You know firsthand the financial challenges of owning farm or another agricultural business. After several years of struggle, your debt from running your business is insurmountable, and you are considering bankruptcy.
Filing bankruptcy is nothing to be ashamed of: Rather, it offers farmers and other business owners the opportunity for a new start. If you think that bankruptcy could help you, you should first determine which type of bankruptcy is the best fit.
- Chapter 11
Businesses that file Chapter 11 bankruptcy wish to continue operation, but pay off their debts with a repayment plan. The bankruptcy court will designate a payment plan to help you repay your debts within a certain period. Chapter 11 allows you to reorganize your business, and you can keep possession of most of your business-related property and assets.
- Chapter 12
Chapter 12 bankruptcy was originally created to help family farmers who needed to reorganize their debts and keep their land. Filing Chapter 12 will halt your creditors and allow you to keep your farming property. You must establish a repayment plan with the bankruptcy court and your creditors, but many of your debts will be eliminated.
- Chapter 13
While Chapter 13 bankruptcy is not as common as Chapter 11 or 12, it is a food option for many people who have a regular income. It allows you to retain the assets necessary to run your businesses, eliminates many forms of debt and helps establish a payment plan.
Get guidance to file bankruptcy
When you want to start afresh and wipe your slate clean, bankruptcy can be an excellent choice. You may feel overwhelmed by the prospect of filing, but you do not have to go through this difficult time alone. Many farmers and business owners choose to seek outside help with bankruptcy, to ensure that they choose the best type for their business and ensure that the process goes as smoothly as possible.