Taking a look at Chapter 12 bankruptcy for family farmers, | Milwaukee, WI

BREAKING NEWS:   U.S. Department of Justice announces new rules to discharging federal student loans. Find out if you qualify TODAY!

Milwaukee 414-250-7880         Madison 608-465-4594         Green Bay 920-626-3125

Serving all of Wisconsin
Toll-free 866-906-5634  Milwaukee  414-250-7880     Madison  608-465-4594     Green Bay 920-626-3125

Our 3 Step Process

Step 1:
Get Out Of Debt

Step 2:
Clean Up Your Credit

Step 3:
Build Your Score

Home 9 Commercial Bankruptcy 9 Taking a look at Chapter 12 bankruptcy for family farmers, P.3

Taking a look at Chapter 12 bankruptcy for family farmers, P.3

by | Jul 15, 2016 | Commercial Bankruptcy

We’ve been looking in previous posts at the issue of farming business bankruptcy. As we’ve noted, the farming industry is currently going through a great deal of stress due to decreased commodity prices, and there are bound to be business failures before things get better, particularly for smaller operators.

Previously, we briefly mentioned the qualification requirements for individual and couple family farmers. Operations organized as corporations and partnerships must meet a separate set of requirements

Specifically, corporate and partnership farms must meet each of the following requirements:

  • Over half of the business’ outstanding stock or equity must be owned by one family or by one family and its relatives;
  • Corporate farms which issue stock must not do so publicly;
  • The family or the family and its relatives must be involved in the farming operation;
  • Over 80 percent of the value of the corporation or partnership assets must be related to the farming operation;
  • At least 50 percent of the farm operation’s fixed debts must be related to actual farming operations; and
  • The farm operation’s debt must not be greater than 4,031,575.

There are certain other standard requirements as well, such as the requirement for credit counseling, as is required in other forms of bankruptcy, and the requirement that there be no dismissals of a bankruptcy petition within the previous 180 days of the current filing. In our next post, we’ll take a little closer look at how Chapter 12 bankruptcy works and how an experienced advocate can assist a debtor in the process. 

the secrets about bankruptcy they don't want you to know

Complete this form to receive your FREE copy of Attorney Miller’s book, The Secrets About Bankruptcy They Don’t Want You to Know. Order today to begin your personal journey toward true financial freedom.

Sidebar (Book Request)