Chapter 12 Bankruptcy
Chapter 12 Bankruptcy is specifically designed for family farmers and fishing businesses that derive more than half of their profits from these enterprises. If you believe filing for Chapter 12 Bankruptcy may be able to provide you with a path toward financial stability, our team of bankruptcy lawyers can help. We’ll answer all of your questions and help you take the next step forward. We proudly serve clients all throughout Oregon and Washington and we provide free initial consultations!
Schedule a Free Appointment!
Our appointments are free until you file and your concerns are addressed!What Is Chapter 12 Bankruptcy?
Similar to Chapter 13 but exclusive to farmers and family fishermen, Chapter 12 Bankruptcy provides immediate relief with an automatic stay. This temporarily shields you from creditors as you formulate a three to five-year debt repayment plan, presenting it to the court. The plan requires that all disposable income, what remains after business and living expenses, goes toward debt repayment. Upon court confirmation and adherence to the plan, the debt is discharged when terms are met, and the case is closed.
Do I Qualify for Chapter 12 Bankruptcy
Eligibility for Chapter 12 Bankruptcy depends on specific debt limits, adjusted annually for inflation:
For Farmers:
- Limit: Approximately $4 million
- At least half of the debt must be from farming operations
For Fishermen:
- Limit: Approximately $2 million
- At least 80% of debt must be from the fishing business
Also, more than half of the gross income that is reported by the debtor must come from the fishing or farming enterprise. Keep in mind, that home mortgages are not included.
How Do I File for Chapter 12 Bankruptcy?
Filing for Chapter 12 Bankruptcy involves initiating a specialized process. OlsenDaines, with expertise in both Oregon and Washington, is ready to assist you in navigating this financial tool designed for family farmers and fishing businesses. Contact us to get answers to your questions and explore your options.
How Long Is a Chapter 12 Bankruptcy Plan?
The duration of a Chapter 12 Bankruptcy plan typically spans three to five years. During this time, the debtor adheres to the terms outlined in the court-approved repayment plan, ultimately leading to the discharge of debt upon successful completion.
Bankruptcy Support for Family Farmers and Fishing Businesses
At OlsenDaines, our bankruptcy attorneys practice law in both Oregon and Washington, with offices located strategically across the Pacific Northwest, including Portland, Vancouver, Tri-Cities, Yakima, and various other cities. We understand the unique challenges faced by family farms and fishing businesses in our region. Chapter 12 Bankruptcy stands as a valuable tool to assist these enterprises in regaining financial stability.
Our firm is dedicated to serving clients in numerous communities throughout Washington and Oregon. With many small commercial fishing enterprises and widespread farming occupations in these states, Chapter 12 Bankruptcy emerges as a specialized solution for family farmers and fishing businesses encountering financial difficulties.
While Chapter 12 Bankruptcy may be relatively uncommon in the broader scope of bankruptcy filings, its effectiveness in addressing the specific needs of family farmers and fishing businesses cannot be understated. If you believe Chapter 12 Bankruptcy could offer you a pathway toward financial relief, we encourage you to reach out to us for a free consultation.
Chapter 12 Bankruptcy Attorney in Portland OR and Salem OR
And all surrounding areas
