Chapter 12 Bankruptcy

What does Chapter 12 Bankruptcy mean?

Chapter 12 Bankruptcy allows for the reorganization of debts of a "family farmer," or a "family fisherman." Chapter 12 Bankruptcy requires a debtor have an established income from the business, and the debtor must make a 3 or 5 year reorganization plan to repay their debts. No Chapter 12 plan may extend longer than five years.

To qualify for Chapter 12 Bankruptcy, an individual and their spouse, a corporation, or a partnership must be actively engaged in commercial fishing or farming, not have unsecured debts exceed $3,792,650 if they are farmers or $1,757,475 if they are fishermen, have 50% of their debts of a fixed amount related to farming operations, or 80% of their debts of a fixed amount related to fishing operations, and have 50% of the gross income for the debtor or debtors come directly from the farming or fishing operations.

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Chapter 11 Bankruptcy

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Bankruptcy Attorneys near Ashburn VA

Andrews Law Firm

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122 North Alfred Street
Alexandria, VA 22314

R and B Law Group, PLLC

R and B Law Group, PLLC Profile Picture
7700 Leesburg Pike, Suite 312
Falls Church, VA 22043

Scott R. Sexauer, Attorney at Law

Scott R. Sexauer, Attorney at Law Profile Picture
10521 Judicial Drive, Suite 200
Fairfax, VA 22030

Term of the Day

Preferential Payment

Preferential payments are payments made to creditors within 90 days of a filing bankruptcy or within one year if the creditor is considered an insider

Category: bankruptcy