What is Chapter 12 Bankruptcy?
Although Chapter 7 and Chapter 13 are two of the most commonly filed bankruptcy chapters across the country, there are additional options available to people facing financial difficulties. One of the less commonly filed bankruptcy chapters is Chapter 12 and is generally reserved for those who own a farm or fishery in the United States. These industries are very vulnerable to a number of transient factors such as weather and availability; therefore, the government makes it more accessible for these business owners to seek debt relief under Chapter 12 bankruptcy protection.
Financial difficulties can impact every area of your life. Fortunately, you don’t have to go through this trying time alone. If you own a family farm or fishery and are having trouble paying your bills, contact a Raleigh Chapter 12 bankruptcy lawyer of the Bradford Law Offices, PLLC, today at 919-758-8879 and schedule a free consultation.
Requirements of Chapter 12 Bankruptcy
There are a number of requirements a debtor must meet before he or she can file for Chapter 12 bankruptcy to ensure they are not abusing the system. These requirements include the following:
- There must be at least 80% of debt related to the business for fisherman and 50% for farmers
- The debtor must receive at least half of the income from the farm or fishery
- Have proof that you can make the repayment plan payment on time and in full through some sufficient form of income
If you have questions about whether Chapter 12 is right for you, contact a Raleigh Chapter 12 bankruptcy lawyer of the Bradford Law Offices, PLLC, at 919-758-8879 today.