Chapter 12 Bankruptcy
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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, we 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!
What is Chapter 12 Bankruptcy?
Chapter 12 Bankruptcy is just like Chapter 13, but it is only for farmers and family fishermen. When you file for Chapter 12 Bankruptcy, you immediately receive an automatic stay, so your creditors are held at bay temporarily while you create a three to five year debt repayment plan that you will present to the court. The rules stipulate that all your disposable income must go toward the repayment of the debt. In this context, “disposable income” is whatever you have left after you pay business expenses and basic living expenses. If the plan is confirmed by the court, you abide by the terms, and the court will discharge the debt once the terms have been met and the case is closed.
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Who Can File for Chapter 12 Bankruptcy?
To be eligible to file for a Chapter 12 bankruptcy, your level of debt must fall under certain limits. These figures are going to be adjusted slightly year-by-year to account for inflation, but the limit varies for farmers and fishermen.
- For Farmers:
- The limit is around $4 million
- At least half of their debt must be due to farming operations
- For Fisherman:
- The limit is around $2 million
- At least 80% of their debt must be due to 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, home mortgages are not included.
The bankruptcy attorneys at OlsenDaines practice law in both Oregon and Washington, with offices in Portland, Vancouver, Tri-Cities, Yakima, and quite a few other cities as well. Here in the Pacific Northwest we have many family farms and fishing businesses. Chapter 12 Bankruptcy is a way to help these types of businesses regain financial stability. If you qualify for Chapter 12 Bankruptcy or wish to file for Chapter 12 Bankruptcy, contact us. We’re standing by ready to answer your questions.
Family Farmer Bankruptcy
Our bankruptcy law firm serves clients in numerous different communities in Washington and Oregon. There are many small commercial fishing enterprises in these two states, and farming is a widespread occupation as well. Chapter 12 Bankruptcy is a relatively new form of bankruptcy that can be useful for family farmers and family fishing businesses that are experiencing financial difficulties. This is a highly specialized financial tool, and it is rarely used when you look at the big picture, but it can be the ideal solution when certain circumstances exist.Back to Bankruptcy Attorney