Helping Farmers Seek Bankruptcy Protections
Recent years have seen farmers get hit particularly hard by low prices for their crops and poor economic conditions in the agricultural business. When farms fell on hard times in the 1980s, Chapter 12 bankruptcy was created to help farmers find some form of relief. Similar to a Chapter 13 filing, Chapter 12 enables a farming operation to reorganize its debt and to establish an affordable repayment plan which will last for a three- to five-year period. At the end of this period, most of the remaining debt will be forgiven.
At the Law Offices of Buddy D. Ford, P.A., our attorney helps farmers in Tampa and across Florida with bankruptcy proceedings. We can help explore your options and determine the best path forward for your agricultural operation.
Benefits Of A Chapter 12 Filing
A Chapter 12 filing can provide a wide range of benefits for farmers who are struggling with debt. Chapter 12 enables farmers to “cramdown” secured debt. In other words, if late payments and interests have caused a loan to balloon to $20,000, but the asset that the loan was taken out for is now worth $10,000, the farmer can reduce the value of that loan to $10,000.
Another benefit enables farmers to sell or lease their property without seeking court approval. If a farmer sells off some assets during the bankruptcy proceeding, tax claims associated with the sale can be treated as unsecured debt and may not have to be paid in full. Finally, if it becomes impossible to complete the repayment plan due to an illness or natural disaster, it may be possible to seek a hardship discharge, effectively wiping out any further obligations.
Contact Our Lawyer To Find Out If This An Option For You
There are certain eligibility requirements a farming operation must meet in order to qualify for Chapter 12 protection. To find out if this is the right option for you, schedule an initial consultation by calling us at 813-302-1258 or toll-free at 866-596-9247. You may also complete our online intake form.
We are a debt relief agency. We help businesses and individuals file for debt relief under the Bankruptcy Code.