West Palm Beach Bankruptcy Lawyers

Chapter 12 Bankruptcy

In the United States, there are many types of bankruptcy. Each type of bankruptcy is meant for different people and serves different purposes. Chapter 12 bankruptcy is meant specifically for family farmers and family fishermen who cannot repay their debts. Farmers and fishermen have their own type of bankruptcy because the challenges they face if they have to file for bankruptcy are unique.

Although Chapter 12 allows the debtors to propose their own plan to pay back their debts, their plan must pay back all of their debts within a period of three years to five years. Because of this requirement, chapter 12 bankruptcy also requires that the farmers or fishermen must have a regular annual income so that the debtor will have enough money to repay the debts under the repayment plan.

The family famers or fishermen who file for chapter 12 bankruptcy can fall into one of two categories.

The first category is individual or individual and spouse. To fall into this category, the debtor must be engaged in farming or fishing, not making more than a certain income, must have the majority of her debts related to fishing or farming, and must make the majority of his or her income from farming or fishing.

The second category is that of partnership or corporation. To fall into this category, a business must meet the same requirements above but also must have at least 50 % of its stock owned by the family.

Contact the West Palm Beach Bankruptcy Attorneys

If you are considering filing chapter 12 bankruptcy, an attorney can help you decide whether or not you meet all of the requirements and can advise you on the best way is to file. For help, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A. by calling 561-353-2800.