Chapter 12 Bankruptcy Attorney Serving Worcester and Framingham
Who Qualifies for a Chapter 12 Bankruptcy?
Chapter 12 Bankruptcy was designed to provide legal options for both individuals
and corporate farmers to obtain financial relief from their debts. Because
farms are a unique type of business in our country, specific bankruptcy
protection was designed for them. Chapter 12 bankruptcy protection is
available to those who are considered as family farmers with a regular,
annual income. Certain partnerships and corporations can also qualify
if they are controlled by a single family. If you own a farm and need
assistance with handling your debts, the Law Office of Robert W. Kovacs, Jr., a
Worcester Framingham Bankruptcy Law Attorney, will be able to guide you through the process.
There are various tests that must be passed in order to qualify for a Chapter
12 filing, which include a “farm debt test”, “farm income
test” and farm assets” test. On the income test, at least
50 percent of a farm’s gross income must come from farming. There
are other requirements, such as not owing more than $1,500,000 in debts.
If this is the case, the individual or business must file under Chapter
Worcester Framingham Chapter 12 Bankruptcy Attorney
Similar to Chapter 11, a farm property that has filed for Chapter 12 protection
can continue to operate but will have their debt restructured. The Bankruptcy
Court will appoint a Trustee to assist with the restructuring and ensure
that the business is maintaining certain requirements. The farm owner
will be required to provide the Trustee with accounting information on
a periodic basis. Information such as income, disbursements, tax payments
and other financial matters need to be reported.
The bankruptcy filing will allow the farm owner to continue its daily operations
and have the necessary funds to ensure that it remains viable. It is important
to obtain a knowledgeable attorney who can take the time to provide you
with the guidance and advice you need in order to properly apply for the
bankruptcy. Contact our office today for a free consultation to answer
Contact a Worcester Framingham Bankruptcy Attorney from the Law Office of Robert W. Kovacs, Jr.
to assist with your Chapter 12 filing.