In Minnesota, many farmers face debts and other financially distressing issues. Fortunately, Chapter 12 of the Bankruptcy Code is designed to help family farmers or family fishermen who have regular annual incomes. Chapter 12 helps debtors develop a repayment income to pay off all or a portion of debts within three to five years.
The Rochester and St. Charles, Minnesota, based lawyers of Ryan & Grinde have the experience and expertise to help farmers through the process of filing for Chapter 12 bankruptcy. Contact our attorneys today.
What Is Chapter 12 Bankruptcy?
Chapter 12 bankruptcy considers the often harsh economic realities that family farmers and family fishermen face. Unlike Chapter 11 or Chapter 13 of the Bankruptcy Code, Chapter 12 removes many of the obstacles farmers and fishermen may face when seeking to reorganize and pay off debts. Chapter 11 is best suited for large corporations, for example, while Chapter 12 is less expensive, less complicated, and more streamlined. Chapter 13 is designed for filers who have smaller debts than those often faced by family farmers. Chapter 12 represents the attempt of the Congress to create a solution that will be successful for family farmers and fishermen.
What Are The Criteria For Chapter 12?
Under Chapter 12, filers must be an individual or a corporation/partnership. Individuals filing for Chapter 12 bankruptcy must meet the following criteria:
- The individual or couple must be involved in a commercial fishing or farming operation.
- The total debts must not exceed $1,868,200 for a commercial fishing operation or $4,031,575 for a farming operation.
- A certain percentage of the total fixed debts must be related to commercial farming or fishing operation.
- More than 50 percent of the individual's or couple's gross income for the prior year must come from the commercial farming or fishing operation.
Chapter 12 bankruptcy combines many features of the bankruptcy code to create a viable solution for family farmers and fishermen. Schedule a reduced flat fee $150 initial consultation with Ryan & Grinde. Call us at 888-399-7281 or contact us online.
As to bankruptcy matters, we are designated a debt relief agency under the BAPCPA. We help people file for bankruptcy relief under the Bankruptcy Code.