Texas City Chapter 12 Bankruptcy Lawyers

There are many common misconceptions about bankruptcy. One of the most crippling is that it is the course of last resort for failures who want to shirk their bills. The reality is that there are many different factors that can influence an individual’s decision to consider a bankruptcy filing. Family farms or other small agricultural operations are driven by an even more complicated array of issues including an ever changing economic landscape and other details beyond their direct control.

Moreover, with Chapter 12 bankruptcy, debtors do not seek the forgiveness of their debts, but rather, the opportunity to restructure the terms of repayment. During the course of the bankruptcy payment plan, a fixed monthly payment will be due, and business will be permitted to continue so that those obligations can be met. In some situations, it is the most responsible action one can take. Contact the Texas City Chapter 12 bankruptcy lawyers of Gipson & Norman at 800-291-0898 for more information on this type of bankruptcy.

Who can file for Chapter 12?

The revisions to the United States Bankruptcy Code which created Chapter 12 protection were aimed specifically at giving relief to family farmers, ranchers, and fishermen. To prevent other individuals or enterprises from gaining this protection, which is similar to that offered by Chapter 13, there are a number of different verification requirements. These include:

• More than 80 % of debts included in the bankruptcy plan must be farm related
• In the previous year, more than 50 % of a filer’s income must have been directly from the covered farming operation
• It must be demonstrated that a debtor has sufficient means and income to meet the terms of the proposed repayment plan

Contact Us

Do not hide from your debts, because you simply cannot. Take control of your financial future and save the family farm in the process by scheduling a free initial consultation with our experienced team of legal professionals. Contact the Texas City Chapter 12 bankruptcy lawyers of Gipson & Norman at 800-291-0898.