3 types of claims under Chapter 12 Bankruptcy

Posted on Monday, November 7th, 2016 at 6:48 pm    

Families who own and operate a farm or fishery in North Carolina often find themselves burdened by financial problems as their businesses are greatly affected by natural disasters every year. Individuals who are allowed by the court to file for Chapter 12 Bankruptcy should know that the filing has three claims according to the law.

  • Priority claims, or any of the expenses related to the debtors’ unsettled taxes and any expenses incurred in the whole duration of the court trial.
  • Secured claims, or the amount that the creditor could legally liquidate if debtors fail to fulfill the repayment plan approved by the court.
  • Unsecured claims are the amount owed by debtors from creditors who have no guarantee of recovering the amount of debt owed to them.

Individuals should know that the claims may vary depending on the repayment plan allowed by the court. If you want to seek financial freedom through Chapter 12 Bankruptcy in North Carolina, the attorneys at the Bradford Law Offices, PLLC may represent you. Learn more about your options from us today by calling (919) 758-8879.