Chapter 12 bankruptcy is available for family farmers or fishermen who have enough annual income to make payments on their debts. It is designed to assist individuals who are struggling with the large debts associated with these industries.
If you are considering Chapter 12, speak with a lawyer at Woodall & Woodall as soon as possible. This is a complex chapter of bankruptcy that only a few law firms file. There are debt limits associated with Chapter 12 that you will want to discuss with an attorney before filing this chapter of bankruptcy.
Our firm is located in Valdosta, but we frequently travel throughout the southern part of the state to reach our clients and make sure they have the kind of representation they need. We represent clients ranging from Tifton and Moultrie all the way to the coast.
For Chapter 12, the debtor files a repayment plan that must be approved by the bankruptcy court. The repayment plan is over three to five years and will specify the secured debts that you must repay. The plan will also specify that your disposable income over this three- to five-year period will be used to pay down a portion of your unsecured debts.
When you have completed the repayment plan, you may receive a discharge of certain debts specified in the plan. Chapter 12 also has a hardship discharge that may be granted in circumstances when the debtor could not complete the plan because of factors beyond his or her control.
All chapters of bankruptcy, including Chapter 12, provide the automatic stay. This stops all collection activities while the bankruptcy is in progress such as repossession, creditor harassment and garnishment. In addition, Chapter 12 has a provision that shields co-debtors from collection of consumer debts they share with the debtor.
For a free consultation by phone or at our Valdosta office, please call or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.