Personal Bankruptcy chap 12 bankruptcy

[valerie_jordan]

ok.....sorry to bother you all...just trying to figure this out..........in order to understand this question you need to read my 2 other questions concerning inheritance......................ok,what about my husband filing chap 12 bankruptcy...........how would that work when your creditor is your father who owns the bank where you are in debt for $200,000..........would you make monthly payment.....please explain chap 12 in our case........do you have to continue farming or downscale your farming operation to a much smaller level?

 

[Michael Wechsler]

I am not a specialist in bankruptcy, but my understanding is that Chapter 12 was drafted with farmers in mind. There is a debt ceiling of $1.5 million and income must be at least 50% from farm sources and 80% of income must be farm related. After filing is made, the debtor must file monthly financial report and a trustee is named and put into place. The trustee has powers to do things with consent of court and input of the debtor, such as sell some of the assets. I do not believe that there is a set time on which you have to pay, e.g. monthly, and that is dealt with via a mutually agreed payment plan with the creditors and trustee that will provide for a repayment plan (may not be 100% repayment) that will be of a duration of up to five years maximum.

It is highly probable that you will be using a lawyer for this process. It is a complex matter and, as stated before, your situation requires a good amount of analysis before decision is made.