If you have questions about Chapter 12 bankruptcy, look no further than the Law Offices of Michael D. Pinksy, P.C. Our legal team can help ensure you are making the best choices for your financial future. Reach out to us today to speak with one of our dedicated Orange County Chapter 12 bankruptcy lawyers.
What is Chapter 12 bankruptcy 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 present 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 wait to reach out to our firm today. Our committed legal team is here to help in any way we can.
How does a corporation or partnership file for Chapter 12?
It is important to understand that there are various eligibilities for those who file as individuals and those who file as a business for Chapter 12 bankruptcy in New York. If you are looking to file for Chapter 12 and you are a corporation or partnership, you will need to satisfy the following prerequisites:
- Over 80% of the corporate assets must be related to the operation.
- 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.
- More than half of the outstanding equity in the business must be owned by one family and the family must execute the operation.
- Farmers must have at least 50% of the corporations’ total fixed debts be related to the operation, while fishermen must have at least 80% of the corporations’ total fixed debts be related to the operation.
- If the farming or fishing operation issues stock, the stock cannot be publicly traded.
How does an individual file for this kind of bankruptcy?
Again, it is important to keep in mind that the requirements for eligibility are distinct 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:
- 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.
- Family farmers must have at least 50% and family fishermen must have at least 80%.
- More than half of the gross income of the individual for the previous tax year must have come from the operation.
To learn more about Chapter 12 bankruptcy, do not wait to contact us today to speak with a knowledgeable 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.