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First, a bankruptcy attorney who files Chapter 12 petitions on the behalf of their clients will have the skills and knowledge necessary to complete the repayment plan which is a requirement and will need to be filed with the court. Basically, the repayment plan is the agreement to pay creditors over an extended period of time, normally within three years. Additionally, the plan will have to be confirmed by the court, which essentially means that it will need the court’s approval. But, what one of the benefits to hiring an attorney is that he or she knows how to structure a repayment plan to modify existing secured loans on a debtor’s property such as the family farm.
While this process is commonly known as a cram down, Chapter 12 bankruptcy attorneys in the United States have helped thousands of distressed dairy farmers to retain their farms. Under this procedure, the attorney will devise the plan so that the debtor will pay the current market value on the mortgaged property, instead of incurred late payments, penalties or increasing interest rates which have been attached to the loan. Also, an attorney can draft the plan so that the interest rates are reduced and mortgage payments are paid over a longer period of time which was originally granted under the loan.
Secondly, not only will a Chapter 12 bankruptcy attorney can help save the family farm, but also the equipment and other assets which are needed to produce income for the farm. There are many provisions under the Chapter 12 code to benefit dairy farmers. Therefore it is best to consult with an attorney in your local area to obtain the legal guidance necessary prior to filing a voluntary petition by yourself. Once it is has been determined that this kind of bankruptcy protection is in your best interest to save your farm, debtors who hire an attorney often in a better position to have their debts discharged successfully by the court. A lawyer who has been hired to represent you in this kind of bankruptcy proceeding may also be of help when you face difficulty in making your monthly plan payments so that case will not be dismissed by the court.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified chapter 12 farmers bankruptcy lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local chapter 12 farmers bankruptcy attorney to discuss your specific legal situation.