Chapter 12 Bankruptcy Lawyer in Columbus, OH
Bankruptcy might often come into mind only for those in professional occupations, but did you know that there also exists a kind of bankruptcy targeted at farmers and fishermen and their families? This is where Chapter 12 bankruptcy comes in.
However, this isn’t a common type of bankruptcy. If you qualify for Chapter 12, you will benefit highly from the legal experience of a Chapter 12 bankruptcy lawyer from Columbus, OH, who can help you with the specifics of filing for bankruptcy.
In brief, Chapter 12 bankruptcy helps family farmers or family fishermen who have been struggling with debt to keep their operations running. This was introduced as a quick way to relieve families of their financial woes in the 80s and officially became a permanent bankruptcy chapter in 2005.
Seasoned Columbus, OH, Chapter 12 Bankruptcy Lawyer
If you come from a farmer’s or fisherman’s family, Chapter 12 bankruptcy might be for you. However, before you can start filing, you must first understand if you qualify for Chapter 12 bankruptcy.
A Chapter 12 bankruptcy lawyer from Sheppard Law Offices can genuinely help you sort out your financial matters to help operations run smoothly.
Consult an Ohio Chapter 12 bankruptcy attorney from Sheppard Law Offices. A bankruptcy lawyer can help you every step of the way from bankruptcy filing, providing legal advice regarding bankruptcy law, and representing you in bankruptcy court should you need it. Don’t go through Chapter 12 bankruptcy alone. Schedule an appointment with a Chapter 12 bankruptcy lawyer from Columbus right now!
Why do I need a Chapter 12 Bankruptcy Attorney in Ohio?
One might think that if you have filed for bankruptcy, you are in danger of losing it all. It sounds all so overwhelming that hiring a bankruptcy lawyer might not make sense at this point. However, bankruptcy is a complex field, and you can truly benefit from having a Chapter 12 bankruptcy lawyer from Columbus, OH.
Sheppard Law Offices is a trusted Ohio law firm that focuses on bankruptcy, tax, estate planning, and more, committed to helping you sort out financial matters. The law firm services three locations across the state of Ohio. The lawyers can help you better understand the bankruptcy process and explain complicated concepts. A lawyer can help you get your life back on track.
Sheppard Law Offices provides legal assistance to individuals in Mt. Vernon and Newark. An attorney can help walk you through the bankruptcy process and help you get your life back on track. Schedule an appointment right now!
What is Chapter 12 Bankruptcy?
The United States Bankruptcy Code outlines the different procedures for filing bankruptcy. Chapter 12 bankruptcy is the kind tailored for farmers, fishermen, and their families who are drowning in debt and wish to avoid foreclosure, having their business closed, or cease operations. Chapter 12 bankruptcy initially was a quick way to relieve financial pressures. Eventually, in the 2000s, it was recognized as a bankruptcy chapter.
This kind of bankruptcy is a better fit for these families than Chapter 11, which is more for typical businesses since it is more direct. It is a Chapter 13 process that allows Chapter 12 filers to have more debt than an actual Chapter 13 case.
If you are struggling with debt and are looking to file for a Chapter 12 bankruptcy, it is wise to consult a Chapter 12 bankruptcy lawyer in Ohio to help you get through the bankruptcy process.
Who Can Qualify for Chapter 12 Bankruptcy?
Chapter 12 bankruptcy is specifically for family farmers and fishermen. If you plan on filing as an individual, you must have:
- A farming or fishing operation
- A regular annual income or stable, predictable income
- Half of the gross income must be from farming or fishing
- The total debts of the farmer must not exceed $11,097,350, while fishermen can’t have more than $2,268,550 in debt.
Partnerships and corporations can file Chapter 12 bankruptcy if the family owns more than 50% of the stock or equity. Our Ohio law office has an experienced bankruptcy attorney ready to serve you! Call us today to explore your options.
What are the Steps Involved in Chapter 12 Bankruptcy?
Chapter 12 bankruptcy allows fishermen and farmers to continue operations, but it isn’t all easy work. There are steps they must first consider, including:
- Take a Credit Counseling Class. Filing as an individual requires you to attend a credit counseling class before submitting bankruptcy documents or paperwork to bankruptcy court.
- Chapter 12 Bankruptcy Filing. The bankruptcy case begins with filing. Upon filing, the account goes into automatic stay, which stops collectors or creditors from pursuing debt-collection lawsuits.
- Give Trustee Documents and Attend the Meeting of Creditors. Before the meeting of creditors, you must provide documents such as profit and loss statements and tax returns.
- File the Proposed Chapter 12 Plan. You are given 90 days to file for your Chapter 12 plan, ideally before the 341 meetings.
- Attend Confirmation Hearing. A hearing will be set within 45 days of the plan’s filing. Suppose the debtors, creditors, and trustees cannot resolve the problem. In that case, the judge will consider each side before arriving at a verdict.
- Receiving the Discharge. The bankruptcy court will monitor your case until you make the necessary payments. You must also complete a debtor’s education class before the court closes the matter and grants you a discharge.
What are the Elements of the Chapter 12 Payment Plan?
The Chapter 12 payment plan has the following essential elements:
- Required Plan Payments. This is when the debtor turns over their disposable income to the Chapter 12 trustee. In this context, disposable income pertains to the difference between the revenue generated by the farm or fisheries and the amount needed to cover business expenses.
- Mortgages/Other Secured Debt. Debtors can reduce secured debt like mortgages and boat loans in Chapter 12 bankruptcies. Any balance owed over the collateral value becomes unsecured debt.
- Trustee Fee. Trustees will receive a percentage of the funds
Debt Discharge. The plans must meet the creditor’s best interest test. The best interest test requires creditors to obtain as much under a Chapter 12 bankruptcy as they would in a Chapter 7 bankruptcy.
Call our Ohio Chapter 12 Bankruptcy Lawyer Now!
Chapter 12 bankruptcy isn’t something that everyone can file. Primarily, it’s for farming and fishing families to help them continue their operations so that their operations won’t be closed down. Chapter 12 bankruptcy, when filed by an individual, has plenty of requirements they must first meet. Regardless, it is still the wisest decision to get in touch with an Ohio Chapter 12 bankruptcy lawyer from Sheppard Law Offices. An attorney can help you through the bankruptcy proceedings, from filing to appearing in bankruptcy court. Schedule an appointment right now.