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.
“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
The Law Offices of Jonathan Stone is a locally-owned law firm, primarily practicing in the area of bankruptcy and taxation laws.
With over 13 in the business and eight years of combined experience, The Law Offices of Jonathan Stone is committed to helping you find the best resolution to your legal issues.