Chapter 12 Bankruptcy

Heading up a faltering business or overseeing a failing family budget can understandably result in confusion and anxiety. Should you throw up your hands and file for bankruptcy? If so, what are the alternatives? And why are there so many?

Get the answers to your bankruptcy questions at Bunch & Brock, Attorneys at Law, in Lexington, Kentucky. We’ve been representing debtors and creditors in bankruptcy actions for more than thirty years. We are trusted, knowledgeable business owners who can relate to your unique problems.

Eligibility Limited to Qualifying Family Farmers

Chapter 12 bankruptcy is practically the same as Chapter 13.

But to be eligible for Chapter 12 bankruptcy, at least 50% of your debts and 80% of your income must arise from the operation of a family farm.

The Chapter 12 portion of the Bankruptcy Code was enacted by Congress in 1986 and updated in 2005, specifically to meet the needs of financially distressed family farmers and fishermen. The legislation’s primary purpose was to provide them with opportunities to reorganize their debts and keep their farms or fisheries.

Chapter 12 has higher debt ceilings to accommodate the large debts that may come with operating a farm. It also offers the debtor more power to eliminate certain types of liens. Only a few hundred people file for Chapter 12 each year, whereas many times that, hundreds of thousands in fact, file for Chapter 13.

Your Options

Under the more recent bankruptcy laws, credit counseling or other options may be required of the client. We will inform you of all your legal options and rights, and creatively strategize for you. You’ll definitely want a lawyer’s assistance in filing for Chapter 12. We think you’ll be so impressed by our experience, honesty, and customer service at Bunch & Brock, Attorneys at Law, that you will choose our well-known quality representation.

Contact Us

Filing Chapter 12 bankruptcy may be a viable option for your situation. To discuss eligibility, contact Bunch & Brock, Attorneys at Law.