What is a Chapter 12 Lawyer?

Answer 1

A Chapter 12 lawyer is a legal expert who specializes in a particular type of bankruptcy known as Chapter 12 bankruptcy. Sometimes they may take on cases involving several different types of bankruptcy, and sometimes they may exclusively handle Chapter 12 cases. When an individual or a business ends up in a situation where its debt obligations are larger then its revenue, bankruptcy is a legal option that may be taken advantage of in order to prevent creditors from compensating assets. When bankruptcy occurs, it is often the result of difficult financial troubles, which may be the result of the economy as a whole or the financial situation of the debtor. There are several different types of bankruptcy. Chapter 12 protects farmers and fishermen. Since it is so specialized, it is often less well known than other types of bankruptcy. For an individual to legally qualify as a farmer of fisherman covered under Chapter 12, several conditions must be met. A Chapter 12 attorney can help identify if these conditions are met. First of all, the debts can not be greater than $1.5 million. A minimum of 80% of this debt must be farm or fishing related. A mortgage is not included in this figure. To qualify, the individual must also have earned at least half of their income from farming or fishing in the previous year. They also must be able to earn enough to make sufficient payments to be granted Chapter 12 bankruptcy. Farmers and fishermen often faced bankruptcy obstacles prior to the creation of Chapter 12 bankruptcy, which was created in 1986. Chapter 11 and Chapter 13 bankruptcy were inconvenient for farmers and fishermen to comply with. When Chapter 12 was introduced, many lawmakers felt that it was a temporary measure until more comprehensive laws were written for the other types of bankruptcy. It was originally set to expire in 1993, but the law was later changed. Chapter 12 bankruptcy is similar to Chapter 13 bankruptcy, but it has a higher debt ceiling. This is important because farmers and fishers incur much higher debts than typical workers during normal business operation. Chapter 12 bankruptcy allows a fisher or farmer to pay off debts within three or five years. In some circumstances, they may be given to opportunity to pay off these debts over a longer period of time. Chapter 12 bankruptcy is complicated to file and undergo, and it is virtually impossible without the assistance of a qualified legal representative.