The Henson Law Firm is a Bankruptcy law firm in Tulsa, Oklahoma. Chapter 12 bankruptcy is reserved for family farmers and fishermen. With Chapter 12 bankruptcy, family farmers and fishermen are given the ability to develop a payment plan to repay their creditors over a period of three to five years. Chapter 12 bankruptcy is designed to address the specific needs that family farmers or fishermen might face. What are some qualifications you must meet in order to file for Chapter 12 bankruptcy? According to the United States Courts, in order to qualify for Chapter 12 bankruptcy, you must:
- Be a husband or wife engaged in a family farm or commercial fishing operation.
- Total debts must not be higher than $4,153,150 for a family farm and $1,924,550 for a commercial fishing operation and 50% of the debts must be for the family farming operation or 80% of the debts must be for the commercial fishing operation, if you are a commercial fisherman.
- More than 50% of your gross income for the prior tax year must have come from your family farm or commercial fishing operation.
The qualifications for corporate farming and corporate fishing operations are more stringent, but ultimately, the operation must be considered a “family operation” in order to qualify for Chapter 12 bankruptcy. In addition to meeting these requirements, the family filing for Chapter 12 bankruptcy must provide the court with a schedule of assets and liabilities, schedule of income and expenditures, contracts and leases, and a statement of finances.
When family farmers or fishermen file for Chapter 12 bankruptcy, this puts an automatic stop to collections, collections calls, and lawsuits. With Chapter 12 bankruptcy, you’ll need to present the court with a payment plan for how you’ll repay your debts. If the debtor meets all the requirements of the payment plan, at the end of the plan term, all remaining debts will be discharged. Chapter 12 bankruptcy can make it possible for struggling family farmers and fishermen to keep working in their field. In many cases, family farms and fishing equipment is worth more when it is still working to produce food and goods for the community. Chapter 12 bankruptcy can help families save their family farm and fishing operation. If you have questions about whether your family farm qualifies for Chapter 12 bankruptcy, reach out to the Henson Law Firm, PLLC, a Chapter 12 bankruptcy law firm in Tulsa, Oklahoma today.
Family Farms Struggling Due to the Coronavirus Outbreak May Have Options in Tulsa, Oklahoma
Family farmers and commercial fishermen often struggle to make ends meet. They are often at the mercy of droughts, floods, or weather events that can affect their investments, affect their ability to pay debts, and eat into their bottom lines. Farmers across the nation have struggled with these events and have sometimes found themselves behind on paying their debts because of them. However, in recent months, the coronavirus pandemic has changed national and global demand for certain farm goods. Restaurants have closed down, breaking down the connections family farms may have had with local buyers. Changes in consumer demand have also impacted family farmers and fishermen. Time magazine notes that the demand for red meat, poultry, soybeans, corn, wheat, and cotton has all gone down. Time also notes that some dairy farmers have even tossed out excess milk. Corn farmers have seen their sales plunge as ethanol use has dropped.
One of the most crucial challenges facing farmers in the midst of these changes is the fact that many family farms operate under crushing debt. There are also concerns that should the COVID-19 sickness hit these farms and workers, family farms can face health crises along with financial crisis at the same time. Ultimately, many family farmers and commercial fishermen need help at this time. One option that family farmers may have when it comes to managing the effects of crushing debt coupled with economic hardship is to consider Chapter 12 bankruptcy. The Henson Law Firm is a Chapter 12 bankruptcy law firm in Tulsa, Oklahoma that works with farmers and commercial fishermen to help them seek debt relief at this tough time. Chapter 12 bankruptcy isn’t for everyone and it may not always be the best choice for your situation, but before you choose bankruptcy or choose to move forward with Chapter 12 bankruptcy, you may want to speak to the Henson Law Firm, a bankruptcy law firm in Tulsa, Oklahoma today. We can help you understand the consequences and assist you with filing for bankruptcy.
Help with Chapter 12 Bankruptcy in Tulsa, Oklahoma
Are you a family farmer or family fisherman struggling to make ends meet or struggling to pay debts? You are not alone. This is a tough time for many family businesses. Family farmers and fishermen have the unique option of filing for Chapter 12 bankruptcy. If you think you might qualify to file and have questions about your rights, reach out to the Henson Law Firm, a bankruptcy law firm in Tulsa, Oklahoma today.