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Tampa Bankruptcy And Reorganization Blog

Chapter 12 bankruptcy filings surge in 2019

American farmers are suffering due to the United States' trade wars with other countries. As a result, there has been an across-the-board uptick in Chapter 12 bankruptcy filings as farmers scramble to reorganize their debts and keep their farms.

Records for bankruptcy filings indicate that as of the end of September, there had been 580 Chapter 12 bankruptcy filings. This is a 24% increase from the same point in 2018. It's also the most filings since 2011, when 676 American farmers filed for Chapter 12 bankruptcy relief.

Save your business with Chapter 11 bankruptcy

Are you trying desperately to keep the wolf from the door of your retail business? If you are facing November still in the red, you may have hung the fate of your company on the 2019 holiday season.

But what if sales continue to be down during the final quarter of the year just as they were for the other three quarters? You could be facing some really tough decisions in the new year.

How business owners push through Chapter 11 bankruptcy

Business success often boils down to how profitable it is. Unfortunately, when owners run low on money and have debt to pay off, it can leave them with feelings of fear and anxiety as the future of their company remains uncertain.

Luckily, filing for Chapter 11 bankruptcy can give organizations a chance to get back on their feet while they’re reorganizing their finances and negotiating payments with creditors.

A new law helps more farmers qualify for Chapter 12 protections

Farmers across the country are struggling to keep their farms afloat. The growing debts that many farms face may be caused by a variety of factors that farmers cannot control, such as severe weather and market changes.

If you are falling behind with bills, you are not alone. The farm sector is over $426 billion in debt, according to media reports. The agriculture industry has not seen this amount of debt since the agriculture crash of the 1980s.

Learn when is the best time to file your bankruptcy

Debtors who are planning to file for bankruptcy under Chapter 13 should carefully consider their situations before filing. In some circumstances, time is of the essence, such as when debtors are trying to avoid foreclosure on a home or vehicle.

But you also might have reasons to delay filing your bankruptcy petition. Perhaps you are going through a divorce and will qualify for Chapter 7 once you are no longer married.

Filing for bankruptcy does not make you a failure

In the game of Monopoly, going bankrupt takes you out of the game. Fortunately, in the game of life, the repercussions are not quite so severe.

Still, there is a stigma associated with bankruptcy that can cause consumers to hesitate to file even when they desperately need the financial relief that filing for bankruptcy can provide. While we understand your reluctance, we also encourage you to explore all avenues of debt relief that are available to you — bankruptcy included.

Could you benefit from a Chapter 12 bankruptcy?

If you are at the end of your financial rope and struggling to find a way out of debt, it's likely that you have already looked into filing for bankruptcy under either Chapter 7 or Chapter 13. However, if you are the owner of a Florida citrus farm, you may not realize that you have another option -- Chapter 12.

Most debtors will not be eligible to file for bankruptcy under Chapter 12. That's because this subset of Chapter 13 bankruptcy is available only to those who own family farms and a very few others. It was developed back in the 1980s when family farmers started to struggle to maintain ownership of the farmlands that had, in many cases, been in their families for generations.

Is your shopping habit running you into deep debt?

Financial troubles can arise from many sources. Medical debt, student loans and unexpected major expenditures can all swell strained budgets to the breaking point.

But some debts are linked to out-of-control shopping habits. But the good news is that too much retail therapy is one expense that can be severely curtailed if not eliminated entirely. Below are some suggestions for reining in your spending patterns.

Will you be broke in your golden years?

It's a sobering thought -- facing your final years without the resources to maintain a comfortable lifestyle and meet your everyday needs. However, many Florida senior citizens face these untenable circumstances. Their expenses and debts are overwhelming.

There's a gap between their monthly resources and their expenses. To try to close this gap, many older residents are overextending themselves and their credit limits. They get caught up in the trap of minimum payments and subsequent late fees and wind up spiraling out of debt. Finally, they are left with very few options to reconcile their finances.

You don't have to lose assets in a Chapter 13 bankruptcy

Debtors who can benefit immensely from filing for bankruptcy protection often wait much longer than they should to take advantage of this legal tool. One reason may be that they fear losing all their assets in the process.

It's true that in a typical Chapter 7 bankruptcy there is asset seizure. Any nonexempt property is subject to seizure and sale to satisfy creditors' demands. But you can still avail yourself of the protections offered under a bankruptcy filing without worrying about an asset seizure if you file for bankruptcy under Chapter 13.

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