If you are at the end of your financial rope and struggling to find a way out of debt, it's likely that you have already looked into filing for bankruptcy under either Chapter 7 or Chapter 13. However, if you are the owner of a Florida citrus farm, you may not realize that you have another option -- Chapter 12.
With Hurricane Dorian churning out in the Atlantic and bearing down on Florida, the state's farmers face special risks regarding the financial well-being of their family farms.
While the economy continues to surge, there are still some South Florida residents who remain mired in debt. For them, the good times appear to be few and far between as they watch their family-owned farms and related businesses bleed money without turning a profit for yet another fiscal year. Just how long can they keep the creditors at bay?
Some Florida farms have been in the same families for generations. Your grandparents or even great-grandparents may have tilled the same soil planting crops as you now do.
A Chapter 12 bankruptcy can give many struggling farmers a chance to reorganize their debts, as well as have some additional time to bring them under control.
One of the lesser-used procedures for filing for bankruptcy is Chapter 12. It was created by Congress to respond to the debt needs of family farmers and is quite similar to filing for Chapter 13 debt reorganization. In fact, one of the similarities is that the debtor can convert their case to a Chapter 7 bankruptcy during the process.
If you have filed for a Chapter 12 bankruptcy, you likely heard from your attorney about the need to file a debtor repayment plan within three months of your filing the petition for bankruptcy.
The United States is approaching uncertain financial times once again. The outcome of some trade wars with foreign governments can have a negative effect on America's farmers and their ability to get top prices for their harvests.
Many debtors contemplating filing for bankruptcy have never heard of a Chapter 12 bankruptcy. This unique bankruptcy filing is only available to owners family farmers or those in similar employment situations.
If you are struggling with increasing debts as a farmer, it is always best to face your problems head-on rather than to simply hope they will go away. When looking at the problems that your farming business has, it can be difficult to know where to start.