Chapter 12

Chapter 12 Bankruptcy

Whether you are an individual or a business owner, finding yourself struggling to pay your bills can be devastating, and can leave you unsure as to where to turn. Filing for bankruptcy provides a viable answer, and depending upon the type of bankruptcy you file for, you can arrange to liquidate assets and wipe out many of your debts, or to restructure loans and give yourself more time to make the payments that you’ve committed to.  The U.S. Bankruptcy Code has provided a number of different types of filings to address the specific needs created by different situations, and in recognition of the fact that family farms and similar businesses that may generate revenue on a seasonal basis may require special types of restructuring and repayment plans, the government offers Chapter 12 bankruptcy.

How is Chapter 12 Bankruptcy Different?

The state of Pennsylvania and the federal government offer Chapter 12 bankruptcy for those who own family farms or farm-related businesses that are in financial trouble. It is available to those operating farming businesses that can show that fifty percent or more of their annual income comes from farming. The Chapter 12 process is more flexible and much less complicated than either Chapter 11 or Chapter 13 bankruptcy, providing a way for those whose income is more seasonally-driven to pay off their debts during the times of year when they are generating the majority of their revenues.

The state of Pennsylvania is rich in farms and farm-related businesses, which may include

  • Animal raising farms
  • Dog kennels
  • Produce farms
  • Horse farms
  • Cattle farms
  • Logging or timber farms
  • Greenhouses and nurseries

Because Chapter 12 bankruptcy permits these types of businesses to structure repayments using installment plans that fit into the times of their peak production, they are often the best answer, and can help these struggling family businesses to avoid having to liquidate their businesses entirely.

Contact the Bankruptcy Attorneys at Jensen Bagnato, P.C. For Help with Chapter 12 Bankruptcy

Pennsylvania farms and farm-related businesses that are struggling with debt have the option of filing for Chapter 12 bankruptcy, yet many bankruptcy attorneys in the state are unfamiliar with the specifics and requirements of this type of filing. The law office of Jensen Bagnato, P.C. is experienced in advising clients seeking information about Chapter 12 bankruptcy and in helping with the process from start to finish. You can rely on our expertise to help you make the right decisions and put yourself on the road to financial recovery. Call us today.