Chapter 12

Farmer

Provide The Protection And Stability That Your Business Needs

Designed to provide financial assistance for a family of farmers and a family of fishermen, as defined by the Bankruptcy code, Chapter 12 allows financially-stressed families and businesses to propose a plan in which a portion of or the entire debt is payed off, generally within three to five years.

A major benefit to Chapter 12 is it's simplicity. Chapter 12 is a far less complicated process than Chapter 11 and far less expensive. 

Chapter 12 was deliberately designed to assist a successful family of farmers or a successful family of fishermen the opportunity to reorganize after a financially debilitating period of time.

To find our whether or not Chapter 12 is right for you, make an appointment today.

Make Sure That You Qualify For Chapter 12

A family of farmers and a family of fishermen fall into two separate categories under the Bankruptcy Code - individuals and/or married couples, or a corporation/partnership. For individuals and married couples, certain criteria must be met to qualify for relief under the Bankruptcy Code.
  • An individual or married couple needs to be engaged in a farming operation or a commercial fishing operation
  • To total debt must not exceed $3,792,650 (farming) or $1,757,475 (commercial fishing)
  • A certain percentage of the debt must be directly related to farming (50%) or commercial fishing (80%)
  • A certain percentage of the gross income must be attributable to the farming or fishing operation (50%)
To be recognized as a corporation or partnership, a different set of criteria must be met.
  • Over 50% of the outstanding stock or equity must be owned by one family and by one family and its relatives
  • The farming or fishing operation must be conducted by the family or the family and its relatives
  • Over 80% of the operation's value must related to farming or commercial fishing
  • A farming operation's debt must not exceed $3,792,650 and a commercial fishing venture's debt must not exceed $1,757,475
  • At least 50% of a farming venture or 80% of a commercial fishing venture's debts must be attributable to their respective operation
  • Stock, if issued by a corporation, cannot be publicly traded
Put Your Family Business Back On Solid Ground. Call Us Today To Schedule A Free Consultation.
Gavel
“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”

Share by: