If you are a farmer in the state of Florida and you are struggling with increasing debts, it is likely that you have considered ways that you can relieve yourself of such a heavy financial burden. While bankruptcy is considered by many as a last resort, it can be a great opportunity for people to get back on track with their finances and even be able to thrive in the future.
There are different bankruptcy chapters that have been created for different situations, and this means that the laws, processes and eligibility requirements differ, too. Chapter 12 bankruptcy was created in order to help family farmers and family fishermen; therefore, in order to be eligible, a person filing for bankruptcy under Chapter 12 must be one or the other. However, these terms are not the only eligibility requirements. If you are considering filing for Chapter 12 bankruptcy as a farmer, it is important to make sure that you are eligible first.
Chapter 12 eligibility for farmers
First, the individual or both spouses who are filing for Chapter 12 bankruptcy must operate a farm. They cannot have debts that exceed $3,237,000 if they are farmers, and a minimum of 50 percent of these debts must be fixed debts that are tied to the running of the farm, after the debts of the family home have been deducted. The filers must also earn over 50 percent of their income from farming income.
If you believe that you are eligible for Chapter 12 bankruptcy, it is a good idea to consider the pros and cons extensively before filing.