Chapter 12 Bankruptcy

It is a frequently cited fact that financial issues are the most commonly reported reasons that people seek the dissolution of a marriage. Money troubles can be intensely stressful, and this can adversely affect a person’s life far beyond the financial elements that would be considered initially. Prolonged financial distress can exact a toll on a person’s physical and mental health and can also strain even the strongest of relationships. Given the anguish that this can bring, filing for bankruptcy protection may offer the swiftest and most effective means of improving the situation. It is important to note that there are different forms of bankruptcy which are intended to address separate types of cases.

Chapter 12 of the United States Bankruptcy Code is directed at small farms, ranches, and fisheries. These so-called “family farms” are often owned and operated by a family or small association of partners. To learn if you qualify for filing under the provisions of Chapter 12, contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C., at 480-829-0494.

Important Chapter 12 Facts

One of the challenges inherent in the creation of new bankruptcy laws or the modification of existing ones is the need to prevent abuses of the system. The primary means of accomplishing this is by establishing fairly strict filing requirements that compel a debtor to demonstrate that the bankruptcy is valid and appropriately directed. Some of the requirements under Chapter 12 are:

• Greater than 80 % of the debt covered must be related to the farming operation
• The debtor must have sufficient income to enable regular payment pursuant to the terms of the bankruptcy payment plan
• A Chapter 12 bankruptcy filer must gain at least half of his or her income from the farm

Contact Us

We may be able to help you save your family farm. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C., at 480-829-0494 for more information.