Chapter 12 Bankruptcy Law Firm in North Carolina Helping Farmers and Fishermen with Their Debt
Farming and fishing are critically important and complex businesses that operate differently than most businesses. Equipment and input costs can be extraordinarily high and the risks are sometimes impossible to manage. Because of the unique nature of farming and fishing, the Bankruptcy Code includes Chapter 12 bankruptcy, which is exclusively available to farmers and fishermen. Chapter 12 bankruptcy is designed for the unique challenges faced by farmers and fishermen, allowing struggling farmers and fishermen to modify secured debts, potentially eliminate unsecured debt, and obtain financing to stay in business and continue farming and fishing during the Chapter 12 bankruptcy.
If you owna farming or fishing business, a Chapter 12 bankruptcy can be an excellent way to reduce debts and give you some breathing room. The law firm of Gillespie & Murphy, P.A. has helped many North Carolina farmers and fishermen relieve or reorganize their debt and stay in business. Please contact Gillespie & Murphy, P.A. today if your farm or fishing business is struggling.
What is Chapter 12 Bankruptcy?
A Chapter 12 bankruptcy is a five-year bankruptcy designed to keep a farmer or fisherman in business. Like Chapter 11 bankruptcy, which is a business reorganization and can also be used for a struggling farmer or fisherman, Chapter 12 is a business reorganization designed specifically to keep farmers and fishermen in business. During the five year bankruptcy plan, creditors are prohibited from initiating legal actions against the farmer or fisherman, except through the bankruptcy court.
Gillespie & Murphy, P.A., as attorney for the farmer or fisherman during a Chapter 12 bankruptcy, works with the farmer or fisherman to propose a “Plan of Reorganization” to reorganize the debts of the farming or fishing business. The attorney for bankruptcy also files motions with the court to keep the farmer or fisherman in business, defends the farmer or fisherman against actions of creditors in the bankruptcy, and assist you to obtain approval of your Chapter 12 Plan of Reorganization by the bankruptcy court.
When a Chapter 12 bankruptcy is filed, a Chapter 12 bankruptcy trustee is appointed to the case. The job of the Chapter 12 bankruptcy trustee is to independently evaluate the farm or fishing business and work with your bankruptcy attorney to have a plan approved, including negotiating with creditors. A Chapter 12 bankruptcy Trustee advises the bankruptcy court and monitors the case throughout the five year bankruptcy plan.
If you are a farmer or fisherman and need debt relief, please contact our law firm so we can help.
What is Different Between Chapter 12 and Chapter 11 Bankruptcy?
Businesses, includes farming and fishing businesses, can file a bankruptcy under both Chapter 12 and Chapter 11 of the Bankruptcy Code. Gillespie & Murphy, P.A. can provide an overview of each Chapter to help you determine which one is right for your needs:
Chapter 12 Bankruptcy
- Intended for farmers or fishermen with debts up to a certain limit.
- Requires a repayment plan of five years.
- A Chapter 12 Trustee is appointed to the case to monitor the case and can assist the Debtor during the Chapter 12 process.
- The Chapter 12 Trustee will recommend whether the Plan of Reorganization should be approved by the court.
- The Chapter 12 Plan of Reorganization can be approved over the objections of creditors.
Chapter 11 Bankruptcy
- Allowed for all businesses.
- The Debtor is the Trustee of the bankruptcy case.
- The Debtor has greater flexibility in proposing plan payments and terms longer than five years.
- The Debtor must have approval of the Plan of Reorganization by some creditors.
Should I File for Chapter 12 Bankruptcy?
If you determine that your farming or fishing business will not be able to pay all of its current or expected bills, do not hesitate to contact Gillespie & Murphy, P.A. It is important to contact as as soon as you know you will have an issue. Farming and fishing are complicated businesses and you often must have a strategy to prepare for and file a Chapter 12 bankruptcy to get the best results. We will review all of your options, including whether you should negotiate with your creditors or whether a Chapter 12 bankruptcy is right for your farm or fishing business.
Which Law Firm is Right for Me?
Choosing the right advisors for your circumstances can be difficult and stressful when your farm or fishing business is in trouble. We would be glad to discuss your circumstances with you so you can make the right choice. At Gillespie & Murphy, P.A., we strive to provide clients with the best legal advice possible while maintaining an understanding and compassionate approach that will help you get the results you deserve.
Contact Gillespie & Murphy, P.A. as soon as possible to get the help you need for your farm or fishing business.