CHAPTER 12 BANKRUPTCY ATTORNEYS NC

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 under United States Bankruptcy Code.  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 North Carolina bankruptcy lawyers 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 debtor’s 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 a chapter 12 bankruptcy lawyer 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.

Our Chapter 12 lawyers 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.

Filing for Chapter 12 bankruptcy can provide critical protections and benefits specifically tailored for family farmers and commercial fishing operations. When you file, an automatic stay immediately goes into effect, which stops creditors from taking further action against your debtor’s property.

This means that wage garnishments, foreclosure proceedings, and telephone calls demanding payments must cease, giving you breathing room to reorganize your finances.

Chapter 12 bankruptcy allows you to propose a repayment plan that fits your debtor’s monthly farming or fishing business income, which often fluctuates seasonally. The bankruptcy court authorizes this plan, which typically lasts three to five years, enabling you to catch up on overdue debts while continuing your business operations. Unlike other bankruptcy types, Chapter 12 is designed to accommodate the unique financial affairs of farming and fishing businesses, including the ability to modify secured debts such as equipment loans or mortgages.

Additionally, filing Chapter 12 requires you to submit official bankruptcy forms detailing your financial situation, including schedules of assets and liabilities, income and expenses, and a statement of your financial affairs.

An impartial trustee is appointed to oversee the case, working with both the trustee and bankruptcy administrator to ensure the plan’s feasibility. This trustee also collects payments and distributes them to creditors as outlined in your repayment plan.

It’s important to note that to be eligible for Chapter 12, you must meet specific criteria, such as being a family farmer or family fisherman with regular annual income, and not having a dismissed bankruptcy claim within the preceding 180 days. You and your legal team will also need to complete credit counseling before filing.

By consulting with experienced Chapter 12 lawyers, you ensure that your case is properly prepared and that all legal requirements are met, increasing the chances of a successful reorganization and financial recovery for your farming or fishing business.

WHICH BANKRUPTCY 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.  A Chapter 12 attorney 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 if you are going through the bankruptcy proceedings.

HELPING FAMILY FARMERS WITH DEBT RELIEF

Contact Gillespie & Murphy, P.A. as soon as possible to get the help you need for your farm or fishing business. Our experienced chapter 12 lawyers understand the unique financial challenges that family farms face, including fluctuating commodity prices, seasonal income variations, and high equipment costs.

We work closely with you to develop a customized repayment plan that fits your farming operation’s cash flow and helps you maintain ownership of your essential assets.

Filing for Chapter 12 bankruptcy provides critical protections, such as an automatic stay that halts creditor actions like foreclosure, repossession, and wage garnishments. This legal shield gives you the breathing room to reorganize your debts without the constant pressure of creditor demands.

Our team guides you through the preparation and submission of all required official bankruptcy forms, including detailed schedules of assets, liabilities, income, and expenses, ensuring your case is thorough and accurate.

We also assist you in fulfilling mandatory credit counseling requirements before filing and represent your interests throughout the bankruptcy process. With a Chapter 12 trustee appointed to oversee your case, we collaborate to negotiate with creditors and secure court approval of your repayment plan. This plan typically spans three to five years, allowing you to catch up on overdue debts while continuing your farming or fishing business operations.

Choosing the right legal team is crucial to successfully navigating Chapter 12 bankruptcy. Gillespie & Murphy, P.A. offers compassionate, knowledgeable representation tailored to the needs of family farmers and fishermen in North Carolina.

Reach out today to discuss your situation and take the first step toward financial relief and a sustainable future for your farm or fishing enterprise.