Galveston County Chapter 12 Bankruptcy Attorney

Helping Farmers & Fishermen Get Out of Debt

John E. Smith & Associates is led by an attorney board-certified in bankruptcy. As a farmer or fisherman facing foreclosure or liquidation of your equipment, materials, or assets, we understand you need relief from debt once and for all. Let us ease the burdens for you!

What Is Chapter 12 Bankruptcy?

Chapter 12 is unique in the Bankruptcy Code, as it specifically pertains to bringing debt relief solutions to family fishermen and farmers. Like Chapter 11 and Chapter 13, it is a reorganization chapter but is more “debtor friendly” than either Chapter 11 or 13.

The Means Test for Chapter 12

For example, there is now a “means test” requirement. Chapter 12 can also allow debts, even those on a family home, to be lowered to the assets’ actual value instead of the amount owed, which can be much greater.

Most importantly, Chapter 12 puts more power in the debtor’s hands because creditors cannot vote in reorganization plan proposals. The process for a chapter 12 bankruptcy case begins by filing a petition with the bankruptcy court where the business has its principal place of business or its assets.

The court may request supporting documents including:

• Financials
• List of creditors
• And others

Though very few Chapter 12 cases are actually filed in the Southern and Eastern Districts of Texas, Attorney John Smith has filed the most cases in the past 15 years, it is often a welcome respite for hardworking families across Texas.

How to Qualify for Chapter 12

Unlike other forms of bankruptcy, Chapter 12 reorganization applies specifically to the following:

• Shrimp or fishermen
• Ranchers and ranching operations
• Fish farms
• Tree or grass farms
• Traditional family farming operations

In any of the above, 50% of the family’s annual income should be from the fishing or farming operation. Chapter 12 may apply to partnerships, corporations, or businesses owned by individuals.

What Are the Benefits of Chapter 12 Bankruptcy?

In situations where debt is harming your farm or fishing operation, Chapter 12 can help. It puts a stay on foreclosure, sales by a U.S. Marshall, repossession, and lawsuits.

Our Galveston County bankruptcy attorney is not only Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization, but he has more than 35 years of experience. Our firm has been successful in the vast majority of Chapter 12 bankruptcy cases we have filed and seen through to a resolution.