Irvine, California Chapter 12 Bankruptcy Attorneys

Serving Agricultural and Seasonal Businesses across Orange County

Chapter 12 is a reorganization for family farmers and fisherman that is modeled after Chapter 13, where the debtor retains his or her property and pays creditors from future income. This chapter applies to single or married individuals, partnerships, and corporations who earn a “regular annual income,” or an income that is stable enough to make payments based on their future earnings.

Learn more when you call the Financial Relief Law Center, APC at (949) 570-5466. We offer free consultations to discuss your situation with our Irvine chapter 12 bankruptcy attorney.

What Are the Benefits of Filing Chapter 12 Bankruptcy?

Here are the key benefits:

• Tailored to Farmers and Fishermen: Chapter 12 bankruptcy is specifically crafted to address the unique financial challenges faced by family farmers and fishermen. Unlike Chapter 11 or Chapter 13 bankruptcy, which may not fully accommodate the nuances of these industries, Chapter 12 offers tailored provisions that consider the seasonal nature of your income, the value of your land and equipment, and the specific debts you may hold.
• Flexible Debt Repayment Plans: One of the standout features of Chapter 12 bankruptcy is the flexibility it offers in debt repayment. Under Chapter 12, you can propose a repayment plan that lasts three to five years, depending based on your income and the nature of your debt. This plan allows you to restructure your debts, often lowering your monthly payments and making it easier to manage your financial obligations while maintaining your business operations.
• Protection of Assets: Chapter 12 bankruptcy helps protect your essential assets, such as your land, equipment, and livestock. The law recognizes the importance of these assets to your livelihood and offers mechanisms to prevent their liquidation. This protection ensures that you can continue working and generating income, which is critical for both your financial recovery and the continued operation of your farm or fishing business.
• Cramdown of Secured Debts: In Chapter 12 bankruptcy, you may have the opportunity to "cram down" certain secured debts to the current market value of the collateral. For example, if you owe more on a piece of equipment than it is currently worth, you can reduce the debt to the equipment's market value.
• Discharge of Certain Debts: While not all debts can be discharged under Chapter 12, it allows you to eliminate certain unsecured debts once you have successfully completed your repayment plan. This discharge can give you a fresh start and allow you to focus on rebuilding your financial future without the burden of lingering debt.
• Continued Operation of Your Business: Perhaps one of the most important benefits of Chapter 12 bankruptcy is that it allows you to continue operating your farm or fishing business throughout the bankruptcy process. The law is designed to support your ongoing operations, enabling you to generate income and meet the terms of your repayment plan while working towards financial stability.

How Our Chapter 12 Bankruptcy Attorney Can Help You

Here’s how we can assist you:

• Evaluate Your Financial Situation: We will conduct a thorough assessment of your financial situation, which includes your income, debts, assets, and the specific challenges you face in your agricultural or fishing business. This evaluation helps us determine whether Chapter 12 is your best option.
• Develop a Customized Repayment Plan: We will work closely with you to develop a repayment plan that fits your unique needs. The plan will take into account the seasonal nature of your income, the value of your assets, and your ability to make payments over time.
• Protect Your Assets: We will take steps to protect your essential assets, such as your land, equipment, and livestock, from liquidation. Our goal is to ensure that you can continue operating your business while navigating the bankruptcy process.
• Negotiate with Creditors: We are skilled negotiators who will work with your creditors to restructure your debts in a manageable way. We’ll advocate on your behalf to achieve the best possible terms.
• Guide You Through the Legal Process: We will guide you through every step of the Chapter 12 bankruptcy process, from filing the initial petition to attending court hearings and ensuring compliance with all legal requirements.
• Maximize Your Debt Relief: We will explore all available options to maximize your debt relief, including the potential for cramming down secured debts and discharging certain unsecured debts once your repayment plan is complete.
• Provide Ongoing Support: Throughout the bankruptcy process, we will provide ongoing support and guidance. We understand that financial challenges can be very overwhelming, and we are committed to helping you achieve a successful outcome.