How Chapter 12 Bankruptcy Can Help You
Chapter 12 Bankruptcy is designed to help restructure the way debts are paid so that most, if not all, of the debts can be repaid over the required period of the plan. Under Chapter 12, debtors propose a repayment plan, much like in a Chapter 13, to make installments to creditors over three to five years.
Generally, the plan must provide for payments over three years unless the court approves a longer period of time. Chapter 12 is much more streamlined, much less complicated, and considerably less expensive than Chapter 11—making it much more financially feasible and manageable than a Chapter 11.
In addition, few family farmers or fishermen find Chapter 13 to be of any advantage because it is designed for wage earners who have smaller debts than farmers and fishermen. One of the greatest benefits of a Chapter 12 filing is to allow the family farmer or fisherman to propose a reorganization plan that will allow payments to be made seasonally.
In other words, payments can be made while the farmer or fisherman is earning money.
Contact Caddell Reynolds Law Firm for a free consultation to see if you qualify for a Chapter 12 repayment plan. Let us help you organize your payment arrangements into a feasible repayment plan and work with you through your financial hardships to retain your property and to keep farming or fishing.
