Chapter 12 Bankruptcy is a special interest area of bankruptcy that is reserved for family fishermen or family farmers with regular annual income. There are many similarities between Chapter 13 Bankruptcy and Chapter 12 Bankruptcy, but Chapter 12 was developed to specifically allow family farmers or fishermen to continue to operate their business while carrying out a plan to repay creditors. If you feel that Chapter 12 Bankruptcy can help you, contact experienced Bankruptcy Attorney Charles Wynn today to schedule a confidential meeting regarding your options.
Advantages of Chapter 12 Bankruptcy
- Opportunity to keep the farm or fishing enterprise
- Able to continue operating the business
- Repayment schedule more conducive to cash flow cycle of a farm or the fishing industry
Chapter 12 Bankruptcy is very similar to Chapter 13 Bankruptcy with a few key differences. Both types of Bankruptcy provide for a restructuring of the debts and finances. There is a trustee appointed in each instance to repay the creditors while the clients have no direct contact with the creditors during the allotted repayment time, which can be three to five years. A key difference in Chapter 12 Bankruptcy is in who is allowed to file. Chapter 12 Bankruptcy was created by Congress in 1986, to help farmers who were struggling financially get back on their feet and keep the farm. It was later amended to provide for protection for family fishermen.
Steps in Chapter 12 Bankruptcy
If you are a family farmer or fisherman struggling to make payments to your creditors, Chapter 12 Bankruptcy may be an option for you. Should you decide to file, here is an overview of what the process may be like.
After filing for a Chapter 12 petition, a trustee will be appointed to handle the case. The trustee will act as a disbursing agent for payments to creditors. The bankruptcy clerk will inform your creditors of the filing and creditor collection actions will cease unless authorized by the Court or specifically provided for in the Bankruptcy Code.
The Debtor will file a case summary with the Court and will provide a summary of operations. Monthly operating reports are filed by the Debtor each month during the case. The Debtor will file a Plan of Reorganization which can restructure creditor payments and the terms of repayment can last beyond the Plan term. The Chapter 12 gives the farmer or fisherman the speed of relief similar to a Chapter 13 with many of the power elements contained in a Chapter 11. Finally, a confirmation hearing regarding the Chapter 12 repayment plan will be scheduled, where the plan for repayment should be confirmed.
You will be allowed to operate your farm or fishing enterprise as you normally do throughout the proceedings and while repaying the debts.
For family farmers or fishermen with regular annual income and are struggling financially, Chapter 12 Bankruptcy may be an option. Many bankruptcy attorneys in Florida do not work with Chapter 12 filings, but Attorney Charles Wynn has extensive knowledge and experience in all areas of Bankruptcy. Deciding whether or not to file bankruptcy is something not to be taken lightly, and Mr. Wynn can help anyone in Panama City, Marianna, or anywhere else in Florida determine the best course of action for you and your family. Contact Mr. Wynn today for a confidential consultation regarding your personal situation.