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If you are a family farmer who is experiencing a financial difficulty, then a Chapter 12 bankruptcy was specifically designed to help you overcome your current financial crises. The government amended the federal Bankruptcy Code in 1986 to help family farmers reorganized their debts. Similar to a Chapter 13, this kind of bankruptcy plan allows a family farmer to repay their creditors through a payment plan. Although the plan is designed so that all creditors can be repaid within three years, the plan may be extended for a period up to five years, if approved by the bankruptcy court.
To file a Chapter 12 bankruptcy, the process starts by the filing of a voluntary petition. It is best to hire a bankruptcy attorney to help you with this process since the law is so complicated. There are several eligibility requirements that you must meet in order for you to receive a favorable discharge from the bankruptcy court. An experienced attorney who specializes in bankruptcy law knows the various federal income eligibility requirements, definitions of a family farmer, and debt limitations which you must meet to file a Chapter 12 bankruptcy petition.
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.