Galveston County Chapter 12 Bankruptcy Attorney

Assisting Farmers & Fishermen Get Out of Debt

Chapter 12 is unique in the Bankruptcy Code, as it specifically pertains to bringing debt relief solutions to family fisherman and farmers. Like Chapter 11 and 13, it is a reorganization chapter, but is more “debtor friendly” than either Chapters 11 or 13. For example, there is now “means test” requirement. Chapter 12 can also allow a debts, even those on a family home, to be lowered to the assets’ actual value instead of to 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.

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.

Qualifying 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.

Benefits of Chapter 12

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.