Chapter 12 bankruptcy

Chapter 12 Bankruptcy in NC

Chapter 12 of the Bankruptcy Code was designed for farmers and fisherman.  Chapter 12 allows you to keep land, equipment, and other. Loan terms can be modified to make payments more affordable and time payments to the completion of the crop or fishing season. Blanket crop liens that cover future years can be modified or eliminated so that you can obtain new financing. 

Filing bankruptcy, immediately stops all collection efforts by your creditors. Once you file, your creditors must stop all foreclosure proceedings, cannot repossess equipment, and cannot contact you to demand payment.  In addition, filing may allow you to use proceeds that would otherwise be paid to your creditors to complete the farming or fishing season. 

During a Chapter 12 bankruptcy case, you work with your attorney to develop a plan to repay your creditors, typically over three to five years. Once you complete your plan payments, any debt not provided for in your plan will be discharged. 

Who Qualifies For Chapter 12 Bankruptcy?

Farmer relief from debt

To qualify for Chapter 12 bankruptcy filing, an individual or a corporations assets must be primarily related to farming or fishing operations and at least 50% of your debt is related to farming operations, or 80% of your debt related to fishing operations.  Any type of agricultural or fishing operation can file under Chapter 12. with less than $10 million in total debt. 

Eligibility Criteria:

  • Total Debt Limit: To be eligible for Chapter 12, individuals or corporations must have total debts of less than $10 million.

  • Primary Business Operations: Your assets and business operations must be principally associated with farming or fishing.

  • Debt ProportionalityFor fishing operations, 80% of your debts must be connected to fishing activities. For farming operations, at least 50% of your debts should be related to agricultural activities.

Why Choose Stubbs Perdue For Chapter 12 Bankruptcy?

Stubbs Perdue has represented agricultural businesses for over 50 years.  Our agricultural experience extends beyond restructuring your debts to obtaining financing, participation in government programs, crop insurance, and other FSA regulations. Our board-certified bankruptcy attorneys have helped numerous farmers save their family farms and know the unique challenges the farming industry faces today. Over the years, we have represented all types of agricultural operations, including traditional row crop farming operations, hog farmers, livestock operations, produce growers, produce packers, and family fishing operations. 

Stubbs Perdue can assist you with Chapter 12 bankruptcy throughout Eastern North Carolina. Call 1-800-348-9404 or contact us online to schedule your consultation at our

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This FAQ is intended for informational purposes only and does not constitute legal advice. Bankruptcy laws are complex and vary widely. For legal advice specific to your situation, please contact a bankruptcy attorney.