Bankruptcy is, at its core, a tool for individuals in need of financial relief. Selecting the right tool for the job, however, is more complicated than it looks. The specific types of bankruptcy chapters were designed to best suit various financial situations. Depending on your financial status, career, and asset portfolio, you might consider Chapter 12 bankruptcy. This is a specific option for those working in farming or fishing in the Mankato, MN area. No matter your situation, the bankruptcy law experts at Behm Law Group can help you navigate the chapters, make a plan, and start your financial recovery as we head into a new year.
Understanding the basics of bankruptcy is important.
Chapter 12 bankruptcy, like all other types, caters to individuals grappling with overwhelming financial struggles and debts. Unlike other chapters, Chapter 12 bankruptcy provides a tailored approach to debt relief that takes into account the specific needs and challenges of those in the agriculture and fishing industries. While these industries often face fluctuating market conditions, natural disasters, and other unpredictable factors. Chapter 12 offers a path toward financial recovery, helping individuals and families stay afloat when traditional methods of managing debt seem impossible.
You have the opportunity to reorganize your debts in a manageable way given your current income and expenses when you file for Chapter 12 bankruptcy. The process begins with a liquidation analysis to juxtapose the value of your various assets against the liabilities secured by those assets and the creation of a chapter 12 repayment plan. The plan modifies the contractual payment terms of your various obligations. This plan accounts for your financial reality, the seasonality of your income, and the specific nature of your business’ operations. A repayment plan should provide you with a chance to continue operating while gradually working toward financial recovery.
How can Chapter 12 bankruptcy help farmers and fishers?
One of the biggest advantages of Chapter 12 bankruptcy is that it allows individuals to keep their property, including farms. If they adhere to the repayment plan. This helps preserve livelihoods and businesses that are integral to repayment. Even better, it helps the community by ensuring that valuable local businesses continue to function. For the many farms of Minnesota, this is a boon to the farmers themselves. The local economies that benefit from them in turn.
Chapter 12 bankruptcy is a powerful tool for farmers and fishers who are struggling with debt. If you need serious financial recovery for your Mankato, MN property or business, Behm Law Group is here to assist you. We respect the power of local farms and all contributing agricultural professionals. Our team can help you navigate the bankruptcy process and create a plan that benefits both you and your extended community. Contact us today at (507) 387-7200, send us an email, or visit our website to learn more about our bankruptcy support.
