Bankruptcy under Chapter 12 is designed specifically for family agricultural businesses, such as family farmers and family fishermen. The idea is that the family farmer of fisherman can create a feasible repayment plan over three to five years, which allows them to pay off all or part of their debts without losing their business.
Buddy D. Ford, P.A. has extensive experience representing the interests of debtors, such as an orchid farm in Central Florida, and creditors, including a local bank in Northwest Florida, in Chapter 12 bankruptcies throughout the Middle District of Florida.
This blog will serve as a brief introduction to Chapter 12 bankruptcy and how it can help family agricultural businesses to get back on their feet.
Who qualifies for chapter 12 bankruptcy?
A family farmer or a family fisherman who has a regular yearly income can file for Chapter 12 bankruptcy. This is to be sure that the regular annual income is sustainable enough for the debtor to be able to repay debts at a good rate. Chapter 12 allows for any seasonal disparities in income also.
What information needs to be provided?
To complete the Official Bankruptcy Forms, the debtor needs to compile the following:
- A list of creditors, with their personal details, and the amount of the debts owed to them
- Their income, how it is distributed through the year and how dependable it is|
- Their property details
- Their monthly expenditures, both farming and living costs
Those who are married must gather this information both for themselves and for their spouses, regardless of whether they are filing a joint petition or not.
More information on Chapter 12 bankruptcy
If you would like to find out more about filing Chapter 12 bankruptcy, it is important to seek legal guidance so that your situation can be assessed.
Source: United States Courts, "Chapter 12 Bankruptcy basics," accessed July 27, 2017