MILWAUKEE — The Social Development Commission, once Milwaukee County’s leading community anti-poverty agency, is considering bankruptcy as it struggles with unpaid debts, lawsuits and the loss of its federal community action designation. The agency halted regular operations in April 2024 after financial problems disrupted its work, including tax preparation and job-training services for low-income residents. Since then, SDC has reviewed its financial records, sought reimbursement for services and managed dwindling funds, board turnover, government audits and litigation. The Wisconsin Department of Children and Families removed SDC’s community action agency designation late last year. That status had allowed the organization to receive a federal block grant supporting anti-poverty programs. At an emergency meeting Sept. 14, the board voted to collect information about bankruptcy and alternatives that could be pursued outside court. Jorge Franco, SDC’s interim chief executive and board chair, said he would prefer to avoid bankruptcy unless the organization’s attorneys recommend it. “SDC needs to pay whatever it owes in whatever time it takes,” Franco said. The board scheduled several informational sessions on bankruptcy and SDC’s financial records with four or fewer commissioners present. That number is below the quorum required for a public meeting, allowing commissioners to discuss legal strategies without conducting the sessions as public meetings, Franco said. SDC also faces claims from companies that say they have not been paid. Three weatherization vendors obtained a judgment totaling $186,500, while 20 Volga 9004 Lincoln LLC received a $240,100 judgment over a former SDC rental property. The agency is negotiating with TriShulla LLC, an information technology company suing SDC. Franco said the discussions could reduce the company’s claimed liability from about $479,000 to $207,000. He said the possibility of bankruptcy has helped prompt settlement talks. The Wisconsin Department of Justice is also negotiating with SDC over a lawsuit filed on behalf of the Wisconsin Department of Workforce Development. That case seeks unpaid wages and benefits allegedly owed to former employees. SDC’s real estate holdings are under pressure as well. Forward Community Investments repossessed the agency’s former headquarters at 1730 W. North Ave. and a nearby warehouse after pursuing foreclosure earlier this year. Walnut Way Conservation Corp. and the Martin Luther King Economic Development Corp. are seeking to acquire the North Avenue property for the proposed Milwaukee Interagency Resiliency & Access Centers for Learning & Equity, or MIRACLE Campus. A related nonprofit property corporation, SD Properties Inc., avoided tax foreclosure on the SDC building at 6850 N. Teutonia Ave. by paying its 2024 property tax bill. Although the corporation is exempt from taxes on assessed property value, it remains responsible for delinquent municipal charges, including water, sewer and stormwater costs. The property still carried an unpaid 2025 tax bill of $7,025.98, plus accruing interest. SD Properties’ board, chaired by attorney Vincent Bobot, is working to prevent another foreclosure effort next year. SDC’s board is expected to discuss bankruptcy and other options in private sessions on Wednesday and Thursday. A public virtual meeting is scheduled for 5:30 p.m. Wednesday, when commissioners plan to elect board officers. The organization last elected officers in November 2024, even though its bylaws generally call for annual elections. Board members have also said they intend to present the community with a clearer plan for SDC’s future at a meeting scheduled from 5:30 to 7 p.m. Oct. 15. For Milwaukee residents who depended on SDC’s programs, the deliberations mark another uncertain chapter for an organization that once delivered essential services across the county. The outcome will also determine what happens to its remaining debts, properties and public mission.