Chapter 12 Bankruptcy

Chapter 12 Bankruptcy Guidance

Chapter 12 Bankruptcy is designed specifically for family farmers and family fishermen facing financial distress. It allows individuals in these professions to reorganize their debts through a repayment plan that typically spans 3 to 5 years. With court approval, the debtor will continue to operate their business while repaying creditors.

At Cox Law Group, we can guide you through the Chapter 12 process, helping you restructure your debts and keep your business afloat during this challenging time.

Chapter 12 Bankruptcy Assistance

Our services for Chapter 12 Bankruptcy include:



• Debt Reorganization: We help you propose a repayment plan for your debts, which is typically paid over a 3-5 year period.
• Asset Protection: Ensure that essential assets related to your farming or fishing business are protected from liquidation.
• Financial Planning: Work with you to create a manageable repayment plan based on your income, protecting your business and personal assets.
• Creditor Negotiation Support: We assist in negotiating with creditors to help reduce the financial burden.

Why Choose Chapter 12 Bankruptcy?

Chapter 12 offers many advantages for family farmers and fishermen:

• Reorganization of Debt: Unlike Chapter 7, which might require asset liquidation, Chapter 12 allows you to reorganize your debts and keep your business running.
• Affordable Payment Plans: Payments are based on your income and ability to pay, ensuring you can continue operations without sacrificing your livelihood.
• Family Business Protection: Chapter 12 helps ensure that your family farming or fishing business can continue operating, safeguarding your future.

Who Is Eligible to File for Chapter 12?

Chapter 12 is specifically for:

• Family Farmers: Individuals or couples actively engaged in farming operations.
• Family Fishermen: Individuals or couples involved in commercial fishing operations.
• Regular Annual Income: You must demonstrate that your income is stable and sufficient to make payments under the plan.
  Trust your Chapter 11 case to a locally owned firm that puts you first.

Is More Financial Help on the Way?

Once you file for Chapter 12 Bankruptcy, an automatic stay is put in place. This prevents creditors from initiating or continuing collection actions such as lawsuits, wage garnishments, or calls demanding payment. The stay remains in effect throughout the Chapter 12 process, giving you the breathing room needed to reorganize your finances.

Learn More About Eligibility for Chapter 12 Bankruptcy

To qualify for Chapter 12, you must meet the following requirements:

• Engagement in Farming or Fishing Operations: You must be engaged in farming or commercial fishing.
• Debt Limits: The total debts of your operation must not exceed $4,411,400 for farming operations or $2,044,225 for commercial fishing.
• Debt Allocation: At least 50% of the debt (for farmers) or 80% for fishermen must relate to the farming or fishing operation.
• Income from Farming or Fishing: More than 50% of your gross income must come from farming or fishing. This includes income from the previous 2-3 tax years, depending on the nature of your business.

How Can Cox Law Group Help with Chapter 12 Bankruptcy?

• In-Depth Legal Expertise: We have extensive experience handling Chapter 12 cases for family farmers and fishermen.
• Comprehensive Support: From filing your petition to negotiating with creditors, we offer full legal support to ensure your case is managed effectively.
• Strategic Financial Guidance: We work closely with you to develop a realistic repayment plan tailored to your financial situation.

Contact us today to schedule your free initial consultation and learn how we can help you regain control of your finances.