Resolving Financial Distress For Farms And Agricultural Businesses
A farm is the physical representation of countless hours of hard work and toil. In some cases, that hard work may go back decades or generations. The thought of filing for bankruptcy because mounting debt is threatening your farm can be chilling.
At Bulie Diaz Law Office, we know what your farm means to you, and we want to help you get back on your feet. We want to reflect the same hard work that has gone into your farm when we work to provide solutions to your financial distress.
Who Qualifies For Chapter 12?
Chapter 12 was written specifically with family farmers and family fishermen in mind. As a result, this form of bankruptcy is less complicated than Chapter 13, which appeals more to large businesses.
An individual or a married couple who owns a farm is allowed to file Chapter 12 as long as:
- The majority of their income from the last tax year came from the farm
- Their debt does not exceed $10 million.
- At least 50% of their debt is related to the farm
- They have a stable annual income that would allow for regular payments to debtors
Married couples can file petitions together or separately.
Bankruptcy Code also allows a corporation or partnership to file for Chapter 12 as long as they meet federally defined criteria.
What Will Chapter 12 Mean For Me?
Chapter 12 allows farmers to restructure existing secured and unsecured claims. In addition, in some cases capital gains taxes from the sale of farm real or personal property can be reduced or discharged. Repayment plans are typically three to 5 years. Chapter 12 cases allow farmers to keep their property so long as they continue to make their plan payments.
Since this Bankruptcy Code was written especially for farmers and fishermen, it allows farmers to keep their property as long as they continue making payments.
How Can Bulie Diaz Law Office Help?
Filing a bankruptcy petition is a complicated process. Our team of qualified attorneys can help you determine if Chapter 12 is the right option for you or if you should pursue alternative methods of debt relief.
If we determine that we can help you, we can assist you in many ways, including:
- Examining your existing debts and assets
- Establishing a timeline to file for your petition
- Drafting a suitable repayment plan
- Explaining the consequences of filing for Chapter 12
- Preparing the necessary paperwork and helping you file on time
The size of our practice allows us to provide personalized attention to each client we serve. When you work with us, you can expect compassionate and understanding care as we work through your financial crisis.
If you have any questions about whether you qualify for Chapter 12 or what it will mean for you, call us.
Don’t Let Your Debts Continue To Mount. Call Us.
Bulie Diaz Law Office has offices across North Dakota and Minnesota. If you want to put an end to the harassing phone calls, the threatening letters and the crushing debt, get in touch with us. Call us at 1-701-800-2685 or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code