Chapter 12 Bankruptcy Attorney Serving Worcester
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, Kovacs Law, P.C., a Worcester chapter 12 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 11 bankruptcy.
Worcester 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 your questions.
Contact a Worcester chapter 12 bankruptcy attorney from Kovacs Law, P.C. to assist with your Chapter 12 filing.
Real Stories From Real People
Hear It Directly From Our Clients
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“Bankruptcy expert very easy to deal with, friendly service, took care of all Communication and scheduling with the courts. I didn’t have to deal with anyone but him. I really enjoyed dealing with him.”- Colin D.
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“If you need someone to be straight forward with you, tell you like it is, and help guide you through the bankruptcy process, this is the guy. We are very thankful!”- Christina P.
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“Very thankful to Robert and his office staff. Very professional and thorough and I would highly recommend Kovacs Law, P.C.”- Michael K.
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“Mr. Robert Kovac did an excellent job with my parents bankruptcy case. The year process was easy and stress free and he helped us in every way.”- Carolina R.
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“Due to Robert's compassion, I no longer have the stress and worry about my finances. Thank you, Robert, for giving me my life back!”- Lynn C.
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“He walked me through the bankruptcy steps slowly and answered all of my questions. Even on days he was clearly extremely busy, I never felt rushed with him. Would recommend, 100%.”- Nina G.
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“His very attentive and shows empathy towards his clients and does not treat you just like another case load.”- Nuh M.
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“Robert Kovacs and his firm did a thorough job and I was completely satisfied with him and his staff. He handled all the details and there were no surprises.”- Elizabeth
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“From the time I started my process to the time it was finished I was always treated with respect and consideration.”- Former Client