If you are a commercial fisherman struggling with your business, one of the options that could be open to you is Chapter 12 bankruptcy. If you have never heard of this kind of bankruptcy before, you’re not alone—many people learn about Chapter 11 or 7, but they don’t realize that Chapter 12 is an option for their businesses.
The Chapter 12 bankruptcy process is open to family farmers, fishermen and others who are interested in setting up a repayment plan to repay what they owe over time. With Chapter 12 bankruptcy, you may not be required to repay the debt in full.
In this repayment plan, secured and priority debts are given preference. You, as the debtor, make a single payment to your bankruptcy trustee periodically. They handle the details of how to repay the debts.
After you go through the repayment period, any remaining debts are forgiven by the court. With that forgiveness, you get to walk away without further limitations and can continue running your business.
Why would you want to choose Chapter 12 bankruptcy?
If you’re still bringing in an income, Chapter 12 bankruptcy can help you free up some of that income while also addressing past debts. Additionally, it will help you stop collection actions and creditor harassment. Creditors won’t be able to foreclose on your property, repossess your property, garnish your wages or be in touch with you in any way. You’ll be given the time you need to get better control over your finances without risking your equipment or machinery being repossessed or foreclosed on.
Chapter 12 bankruptcy gives you options
As a business owner and fisherman, you need to know your options when you’re in over your head in debt. Rather than shutting down your business, you can reorganize it and get control over your finances again. With Chapter 12 bankruptcy, you can continue working while addressing the debts you owe, allowing you to stop worrying about debt and put the focus back on your business. With the right approach, this is an excellent way to help your business grow while resolving overdue debts.