If you would like to learn more about your qualifications for Chapter 12 bankruptcy, do not wait to reach out to our Orange County Chapter 12 bankruptcy lawyers. We are on your side.
How is Chapter 12 bankruptcy defined in New York?
Chapter 12 bankruptcy is mainly used for those who are “family farmers” or “family fishermen” that have a steady annual income. This kind of bankruptcy permits financially struggling family farmers and fishermen to offer and create a plan to repay all or part of their debts.
If you have questions or concerns about Chapter 12 bankruptcy and would like to learn more about whether or not it is the best choice for you, do not hesitate to reach out to our firm today. Our skilled legal team is here to help you with whatever financial struggles you are facing.
What does a corporation or partnership have to do to file for Chapter 12 bankruptcy?
Note that there are several eligibilities for those who file as individuals and those who file as a business for Chapter 12 bankruptcy in New York. If you would like to file for Chapter 12 and you are a corporation or partnership, you will likely be instructed to fulfill the following requirements:
- The total debt of the corporation must be no more than $1,924,550 for a fishing operation or $4,153,150 for a farming operation.
- Over 80% of the corporate assets must be connected to the operation.
- More than half of the outstanding equity in the business must be possessed by one family and the family must execute the operation.
- Farmers must have at least 50% of the corporations’ total fixed debts related to the operation, while fishermen must have at least 80% of the corporations’ total fixed debts related to the operation.
- If the farming or fishing operation issues stock, the stock cannot be publicly traded.
What steps should an individual take when filing for Chapter 12?
Similar to filing as a corporation or partnership, you will want to recognize that the requirements for eligibility are different for those who are filing individually. Because of this, as an individual filing for Chapter 12 bankruptcy, you will need to meet the following requirements:
- Family farmers must have at least 50% and family fishermen must have at least 80%.
- The total secured and unsecured debts of the business cannot exceed $1,924,550 for a commercial fishing operation or $4,153,150 for a farming operation.
- The individual, or his or her spouse, must be involved in a farming or fishing operation of commercial nature.
- A specific percentage of the total fixed debts must be related to the operation.
- More than half of the gross income of the individual for the previous tax year must have come from the operation.
If you have further questions or concerns concerning Chapter 12 bankruptcy, do not wait to reach out to our firm today to speak with an experienced Newburgh bankruptcy lawyer today.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.
