Chapter 12 Bankruptcy
One of the most useful features of the US Bankruptcy Code is that it recognizes the different needs of people and businesses in different situations. Instead of relying on one “cure-all” for all financial problems, the Code allows different strategies for resolving debts. For example, most businesses would file for bankruptcy under Chapters 7 or 11. However, some are eligible to file under Chapter 12.
To learn more about what you can do to address your current financial complications, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC at (205) 324-4000. Acting sooner rather than later can help you to avoid further tarnishing your financial record.
What is Chapter 12?
Part of the reason that comparatively few people are aware about Chapter 12’s existence, let alone its provisions, is that it is a highly targeted Chapter of the United States Bankruptcy Code. It is directed solely at family farms, ranches, and fisheries or small organizations of such a type that meet certain requirements. Some of the most important qualifications for a Chapter 12 filing are:
- At least 80 % of the debts covered under the established bankruptcy plan must have been incurred by farm, ranch, or fishery-related expenses.
- The filing party must draw more than 50 % of his or her income from the operation of the affected farm or ranch.
- A Chapter 12 Bankruptcy filer must be able to document evidence of sufficient additional income to meet the payment obligations created under the bankruptcy plan.
If your small business or farm is financially struggling, filing for Chapter 12 bankruptcy may be an effective way to address the problem. Our Birmingham bankruptcy attorneys can provide the information and support you need.
Let us help you to identify the best way to restore and rebuild your financial future. Contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC at (205) 324-4000.