Manvel Chapter 12 Bankruptcy Lawyers
The demands of farming and ranching seem to rise every year, and there are some years when the weather, an infestation, or economic concerns can obliterate any financial rewards. It is a hard life, but it is a life that has become a longstanding tradition for many families. Recent changes in the production and distribution of food have further affected the livelihood of those reliant upon family farms or ranches, and as a consequence many have struggled to keep up with their financial obligations.
In recognition of the growing challenges faced by farmers and ranchers, the United States Bankruptcy Code was amended in the 1980s to include a special protection devoted to small operations. Chapter 12 bankruptcy affords a family farm the opportunity to restructure its business and debt repayment plans while continuing to operate. Contact the Manvel Chapter 12 bankruptcy lawyers of Gipson & Norman at 800-291-0898 to learn more.
Qualifications for Chapter 12 Bankruptcy
Though bankruptcy aims to help both debtors and creditors attain some resolution to a debt standoff, it requires a debtor to demonstrate that his or her financial difficulties are attributable to the farming operation. This helps to reduce the likelihood that abuse of the system will occur. The Chapter 12 qualifications include:
- The percentage of farm-related debt to be covered must be greater than 80%
- More than ½ of the filing party’s income must have been drawn from the farm
- The presence of a sufficient and continuous income stream to meet restructured payment obligations
Contact Us
The longer you wait to take action, the deeper the financial hole you are in will become. Put an end to that sea of troubles. Contact the experienced Manvel Chapter 12 bankruptcy lawyers of Gipson & Norman at 800-291-0898 to schedule a free initial consultation.
