Chapter 12 Bankruptcy
In Oregon, Chapter 12 bankruptcy is essentially a special case of bankruptcy designed only for farmers and fishermen. It has very narrow and specific requirements, because it is designed just to protect those who grow and harvest our food. The government recognizes that it takes a great deal of very expensive equipment and land to run a farm. And there are more natural variables in your profit margins than almost any other profession in the world. So they created Chapter 12 bankruptcy to give farmers and fishermen a way to manage overwhelming debt and continue to provide food and services.
If you’re a farmer you have more rights than anyone else in filing bankruptcy. Chapter 12 is a great deal like Chapter 13 bankruptcy. It allows you an opportunity to reorganize your debts and pay only what you can afford, over the course of three or five years. We can help walk you through your options at a free bankruptcy consultation. Here’s a few more things to consider about Chapter 12 bankruptcy.
What can I expect if I file Chapter 12 bankruptcy?
After you come in and discuss your case for free with one our attorneys we can tell you if you qualify for Chapter 12 bankruptcy. To qualify you have to operate a family farm or fishing business and make most of your regular annual income from that business. Your debts must be below a certain threshold. And most of your debt must come from actual farming or fishing operations. If you qualify, Chapter 12 is a great way to get your debts under control and get a fresh start for your business.
After we file for Chapter 12, we’ll help you create a repayment plan. We’ll sit down and figure out how much ‘disposable’ income you have, after you pay for business expenses and family needs. We set up an agreement with a bankruptcy trustee that you’ll pay only what you can reasonably afford each month. You’ll make one payment to the trustee and they will distribute that money to your creditors. You make these payments for 3 years, or sometimes for 5 years, depending on the plan agreement. At the end of the plan period your case will be discharged. Then you are free!
How can an Oregon Chapter 12 bankruptcy help me?
The most important part of filing for Chapter 12 bankruptcy is that you will be able to continue running your business. Second best is that legal actions against you have to stop. This provides you immediate relief and gives you time to recover. You’ll pay only what you can afford. Often your debts can be modified and interest rates lowered. You’ll pay what you can and the rest of your debts can be eliminated and discharged. You can keep the land and equipment that is vital to your business, but lose the crippling debt and stress you’ve been drowning in.
Put us on your team.
We are proud to live in one of the most fertile and productive states in the U.S. Farmers and fishermen are our friends and neighbors here in Oregon, and we understand the work and determination it takes to keep your businesses alive. We can help you resolve your financial difficulties and be with you through this process. Call Rank & Karnes Law, P.C. today and let us help you get back on your feet.
Get help today.
Request a free consultation
We know that facing financial difficulties is hard, and you don’t have to do it alone. Schedule a consultation with us and we’ll help you create a brighter future.