Chapter 12 Bankruptcy Lawyers in Seattle
Helping Farmers & Fishermen Obtain Relief from Debt
Designed in the 1980s to assist family farmers and fishermen, Chapter 12 is a relatively new version of bankruptcy that provides a powerful alternative to Chapter 13 and Chapter 11. If you are a farmer or fisherman in Seattle looking for an effective method of debt relief, our team at Henry & DeGraaff can help you file this form of business bankruptcy and attain the fresh start you need.
To learn more about how we can assist you, call (206) 483-0505 to get in touch with our Chapter 11 bankruptcy attorneys in Seattle today.
Chapter 12 is similar to other chapters of bankruptcy in many ways. For example, you will need to attend a Meeting of Creditors, in which the trustee and your creditors ask you about your debt and other financial affairs. Additionally, Chapter 12 triggers the automatic stay, which freezes all collection actions. Like Chapter 13, it also implements the co-debtor stay, which protects others who are liable for your debt—even if they aren’t filing for bankruptcy.
Chapter 12 bankruptcy allows you to propose a repayment plan that will last for 3-5 years and use all your disposable income. The judge will need to approve this plan, upon which you will begin making regular payments to the trustee, who will distribute these funds to your creditors according to bankruptcy laws.
Once you complete this repayment plan, you can benefit from a debt discharge. So long as your creditors receive as much as they would through the Chapter 7 liquidation process, you can be released from liability for any unsecured debt that remains after your repayment plan.
Additionally, you may be able to “cram down” secured debt (e.g. mortgages or boat loans), which allows you to convert any debt owed beyond the collateral into unsecured debt. Once it is unsecured, it can be discharged, and your payments on the secured amount can be stretched beyond your original 3-5-year plan.
In most cases, farmers and fishermen continue their operations after bankruptcy. As such, Chapter 12 can be an effective way to restructure and reduce debt without losing the family business.
Experienced, Creative & Sophisticated
With years of experience between our attorneys, our goal is to deliver a higher level of service, only taking cases where we can add value.
We understand that no two cases are ever the same. We provide tailored solutions for every client and strategize in order to provide optimal results.
As a law firm that focuses on creative and collaborative solutions, we always seek opportunities that go even beyond the law to help provide the results you deserve.
Our ability to tackle complex issues has allowed us to win appellate decisions and push the law in our clients' favor. We pursue compensation arrangements that reward success.
Chapter 12 is reserved for family farmers and fishermen with regular income. To account for these debtors’ seasonal operations, Chapter 12 allows for flexible, periodic payments.
To qualify for Chapter 12, you must:
- Be engaged in a commercial farming or fishing operation
- Owe no more than $10 million as a farmer or about $1.9 million as a fisherman
- Owe at least 50% or 80% (for farmers and fishermen, respectively) through farming or fishing activities/expenses (not including home mortgages)
- Earn more than 50% of your income from these operations
If you are filing as a corporation or partnership, one family must own more than half of all stock and equity.
Let Us Help You Regain Control over Your Finances
At Henry & DeGraaff, our goal is to help you reduce debt without losing your business. We have spent more than 30 years developing the skills needed to accomplish this goal. As a team of problem-solvers, we take the time to understand each client’s unique situation before developing the strategy they need for long-term growth and prosperity.
It is my belief that we came out way ahead of the game but we owe the success to Jacob.- Kim & Mike
5 stars are not enough.- Joe
Jacob successfully took over our Chapter 11 bankruptcy case.- Jerry
Jacob was always focused on our needs and desires concerning our real estate.- Previous Client
If you need their services don't hesitate to give them a call.- Reese H.