The Process of Chapter 12 Bankruptcy
Before the farming crisis of 1986, debt restructuring specific to farms and fisheries was not possible.
However, small farms and fisheries can run into serious financial troubles that, without assistance, can lead to the company’s ruin. Chapter 12 bankruptcy was created to specifically help agricultural industries, and it can be the best option available in a number of circumstances.
The best way to handle a Chapter 12 bankruptcy is with the help of a legal counselor who has experience with this type of bankruptcy filing. For more information, call 337-261-8800 to speak with Somerset Chapter 12 bankruptcy attorney Francisco G. Harrison, PLC.
Chapter 12 Bankruptcy Timeline
Once one has decided to move forward with a Chapter 12 bankruptcy filing, the order of events is well defined:
- Credit counseling
- Chapter 12 petition
- Meeting of creditors
- Submission of the reorganization plan
Once the reorganization plan is approved, it is very important that it is adhered to. This plan lays out a firm budget for both the expenses of the farm and the living expenses of the family. The temptation for many is to create a plan that too optimistically anticipates repayment. A reorganization plan must be reasonable, because if it cannot be followed, a farmer or fisher may be forced into a Chapter 7 liquidation bankruptcy. Furthermore, Chapter 12 bankruptcy is only an option if the farm or fishery has the potential to be a viable business once the bankruptcy process is over.
Here at the Law Office of Francisco G. Harrison, PLC, we understand the frustration and stress that farming families have when making decisions about bankruptcy. Call 337-261-8800 and let one of our Somerset Chapter 12 bankruptcy lawyers assist you during this difficult time.