Santa Rosa Chapter 12 Bankruptcy Lawyers


Santa Rosa Chapter 12 Bankruptcy Attorneys

Bankruptcy for Farmers, Winery Owners and Fishermen

Financial problems can make it difficult or impossible for family owned wineries,  family farmers, and fishermen to operate a business. Individuals whose regular income is gained from operating a farm, winery, or fishing business may qualify for Chapter 12 bankruptcy. Although this type of bankruptcy is not widely utilized, it can be extremely beneficial.

At the Levy Carroll Law in Santa Rosa, California, we represent financially distressed farmers, winery owners, commercial fishermen, and other farm owners and operators. If you are interested in learning more about the benefits of Chapter 12 bankruptcy, or farm bankruptcy, please contact us online or call (707) 523-1515 to schedule a free initial consultation.


Is Chapter 12 Bankruptcy a Good Option?

Chapter 12 is designed for “family farmers” or “family fishermen” with “regular annual income.” It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under Chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years.

In tailoring bankruptcy law to meet the economic realities of family farming and the family fisherman, chapter 12 eliminates many of the barriers such debtors would face if seeking to reorganize under either Chapter 11 or 13 of the Bankruptcy Code. For example, Chapter 12 is more streamlined, less complicated, and less expensive than Chapter 11, which is better suited to large corporate reorganizations.

Chapter 12 Bankruptcy Process

The Chapter 12 bankruptcy process is similar to the Chapter 13 bankruptcy process, but is specifically designed for farm owners, family owned wineries, and fishermen. Chapter 12 bankruptcy gives the client more flexibility than a Chapter 13 bankruptcy (including higher debt limits, and more options when dealing with their mortgages and other secured debts), allowing them to reorganize their debts and continue operating their farms.

Chapter 12 bankruptcy has higher debt ceiling limitations due to the large expenses associated with operating a farm, winery or fishery. Very few individuals qualify for Chapter 12 bankruptcy, but those who do can greatly benefit from the debt relief this type of bankruptcy offers. To learn more about the qualifications for Chapter 12 bankruptcy, contact Levy Carroll Law today  or call 707-523-1515 for a free consultation.