Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Taking a look at Chapter 12 bankruptcy for family farmers, P.1

Last time, we began looking at Chapter 12 bankruptcy, a form of bankruptcy which allows family farmers and family fishermen to establish a repayment plan to catch up on their debts and reorganize their business. As we noted, there are certain requirements which must be met in order to qualify for Chapter 12 bankruptcy.

There are two sets of eligibility requirements for Chapter 12 bankruptcy, one for individuals or individuals and a spouse, and another for family farmers organization as a corporation or partnership. It is important for a debtor petitioning for a Chapter 12 bankruptcy to understand these criteria to ensure the business meets the requirements and is able to entering smoothly into the bankruptcy process. 

For individual family farmers, with or without a spouse, the requirements are as follows:

  • The individual or couple must be engaged in a farming operation or a commercial fishing operation;
  • The total debts of the farm operation must be less than $4,031,575;
  • At least 50 percent of the total debts claimed must be related to the farming operation;
  • Over 50 percent of the individual or couple's gross income for the previous tax year must have come from the farming operation. For family farmers, an alternative is that over 50 percent of the gross income from the second and third prior tax years must have come from the farming operation.

In our next post, we'll continue this discussion of Chapter 12 bankruptcy, looking at the requirements for family farms organization as corporations or partnerships. 

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
735 West Wisconsin Avenue
Suite 600
Milwaukee, WI 53233

Phone: 414-326-9231
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map