It’s becoming increasingly common for farmers to face financial hardships within their current revenue stream. Credit is becoming more difficult to find and animal produce is harder now than ever to gain profitable returns from. Therefore, many farmers in Florida and across the country are looking into ways that they can diversify their product offering and looking into ways that they can get a fresh start from the debts that they have incurred.
Why Chapter 12 is made for farmers
It was decided by Congress that farmers who were filing for bankruptcy under Chapter 11 were not having their needs adequately met. Therefore, they created a new chapter that was designed specifically for farmers. Chapter 12 bankruptcy makes it possible for farmers to be able to reduce the debts that they owe back to the original value of the assets that were tied to their original loans, as well as reducing interest rates so that farmers are able to sustain and build their business while paying off their existing debts.
Tips for farmers going through Chapter 12 bankruptcy
The wisest advice for farmers going through Chapter 12 bankruptcy is, of course, to be careful with money. Although this goes without saying, it’s extremely important to avoid making risky financial decisions such as investment in property after you have filed for bankruptcy. You should focus only on paying off debts steadily.
As a farmer going through financial hardships, it’s important to take your time and think about the solution that will make the best financial sense both for you and your business.
Source: AGFAX, “Farming and Bankruptcy – 9 Lessons You Need to Know,” accessed Nov. 09, 2017