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Chapter 12 Bankruptcy for Family Farmers & Fishermen
Debt Solutions for Family Farmers & Fishermen
In 1986 Congress enacted Chapter 12 of the U.S. Bankruptcy Code to allow family farmers and family fishermen with regular annual income to reorganize debt. Chapter 12 offers some of the most favorable bankruptcy options and provisions in the entire Bankruptcy Code. In fact, Ms. Doling says, “Chapter 12 cases are my favorite type of bankruptcy cases. The extraordinary provisions we can use to save a farm are far safer and more economical than seeking additional financing from banks.” Do not put your farm at risk by borrowing against the farm. We can restructure existing loans in chapter 12.
Eligibility For Chapter 12
This type of bankruptcy is limited to individuals engaged in a farming or commercial fishing operation. More than 50% of gross income must be from the farming or fishing operation. Total farming debt may exceed $11,098,350 or $2,268,550 for a family fisherman. If the farming or fishing operation is operated as a corporation or partnership, additional rules apply.
A Simplified Process
Like Chapter 13, this type of bankruptcy lets you restructure your debt in a repayment plan that lasts between three and five years. Chapter 12 is like Chapter 13, but the process is simpler and offers greater flexibility in how payments are structured. Due to the seasonal nature of these businesses, periodic payments are designed to fit unique circumstances.
Chapter 12 Can Stop Foreclosure & Restructure Secured Debts
Chapter 12 Process
The bankruptcy process can be complex, but our Chapter 12 attorney will evaluate your financial situation to determine if you meet the qualifications for this bankruptcy. We will develop a plan for restricting your loans on better terms, renegotiating bad packing house agreements, eliminate unsecured debts, and resolve tax problems. We guide you through every step of the process, from preparing and filing your petition to representing you through discharge of your debts.
Find The Hope You Need When Dealing With Financial Hardships
Work with our CERTIFIED BANKRUPTCY SPECIALIST who is highly experienced and understands the different bankruptcy and debt settlement options. We’ll find the best solution for you and your family.