Agriculture Bankruptcies - Don’t Sell Your Farm, Call an Attorney Today
Are you behind in payments and struggling to make ends meet? Worried about losing your farm and all of your assets? When there doesn’t seem to be any available options left, it may be time to file for farm bankruptcy. If you have questions about agriculture bankruptcy, you’re in the right place. Our experts at Ivey McClellan are here to help you through the complicated bankruptcy process.
Agriculture bankruptcy happens when you’re so far in debt there is no possible way of repaying your loans. Additionally, farm bankruptcies, also known as Chapter 12 Bankruptcy seems to be on the rise in the US.In fact, a total of 84 farms in the upper Midwest filed for
bankruptcy between July 2017 and June 2018, according to the Minneapolis Star Tribune. That’s more than double the number of farm bankruptcy filings during the same period in 2013 and 2014 in Wisconsin, Minnesota, North Dakota, South Dakota, and Montana.
During the 1980s agricultural crisis, Congress enacted emergency legislation creating a bankruptcy specifically for farmers. Congress believed that Chapter 7, Chapter 11, and Chapter 13 did not provide the correct options needed for farmers that have been tied to their land for generations. This led to the creation of Chapter 12 Bankruptcy, to give farmers a chance to reorganize their debt and retain their land. Though these legislations were initially intended to be temporary, Chapter 12 was made a permanent part of the Bankruptcy Code in 2005.
How Do Farm Bankruptcies Work?
Farmers use Chapter 12 bankruptcy because it gives them the best chance at a successful recovery from bankruptcy. Chapter 12 combines the simplicity of Chapter 13 bankruptcy, usually used by individuals, and the higher debt levels allowed with a Chapter 11 bankruptcy, usually used by corporations. The Chapter 12 process typically allows for repayment of debt over three years.
As you know, filing for bankruptcy gives you a second chance to start over. In addition, bankruptcy blocks all creditors from approaching or harassing you in the future about your loans. With your debts cleared, you’re able to continue your life and farm operation without fear of the bank repossessing your land, animals, or equipment.
Does Filing for Bankruptcy Mean You Lose Your Farm?
In most cases, bankrupt farms will not have to give up their property or assets. However, specifications of the bankruptcy depend on your situation.
Furthermore, if you do have to sell or give up assets, you may be able to choose what you discard and what you keep. This allows you the opportunity to reorganize your farm operation and get back on track.
Carefully Select Your Attorney
Above all, who you hire to oversee your bankruptcy case matters. You’ll only want to hire the best attorney to guide you through the legal process and ensure that you come through bankruptcy with a new sense of financial security. Call our expert attorneys today and reclaim your farm.
100 South Elm Street Suite 500
Greensboro, NC 27401
551 Monroe Street
Eden, NC 27288
Phone: (336) 623-4600