Boca Raton Bankruptcy Attorney

Chapter 12 Bankruptcy

Chapter 12 bankruptcy is designed for “family farmers” or “family fisherman” with a regular annual income. This form of bankruptcy provides a plan for family farmers and fisherman who are financially distressed to repay all or part of their debts. Debtors propose a repayment plan under which they will make installments to creditors over a three to five year period. In no situation may a plan stipulate payments over a period longer than five years.

Less Hurdles

Many of the barriers that other debtor would be forced to deal with if they were filing chapter 11 or 13 of the Bankruptcy Code are eliminated for family farmers and fisherman. As compared to chapter 11, which is tailored for larger corporations, chapter 12 bankruptcy is more streamlined, less complicated, and less expensive.

Eligibility

Family farmers and family fisherman are categorized into two groups: (1) an individual or individual and spouse or (2) a corporation and partnership. Those who fall under the first category must meet the following criteria:

• Must be engaged in a farming or commercial fishing operation
• Total debts must not be in excess of $3,237,000 (if farming operation) or $1,500,000 (if commercial fishing operation)
• At least 50% (farmer), 80% (fisher), of total debts that are a fixed amount must be related to the field of work
• More than 50% of the gross income for the preceding tax year must have come from the farming or commercial fishing operation

If you or your small business are facing large sums of increasing debt, filing for chapter 12 bankruptcy could help reorganize and handle your financial problems.

Contact a South Florida Bankruptcy Lawyer

Contact the Boca Raton bankruptcy attorney of Eric N. Klein & Associates, P.A. at 561.353.2800 for an initial consultation.