Supporting Farms And Farmers Through Chapter 12 Bankruptcy
Charles L. Smith filed the first Chapter 12 bankruptcy for a farmer in the Southern District of Iowa in 1986. The attorneys at Telpner Peterson Law Firm, LLP, have been helping distressed farmers ever since.
Recent trends in Iowa and Nebraska farming demonstrate that a period of prosperity is coming to a close. Volatile commodity prices, problems between farmers and lenders and heavy debt burdens lead to financial crises for many who make their living in agriculture. Family farms and other types of farming enterprises, such as grain elevator operations, are struggling – sometimes to the point of bankruptcy.
Farmer Representation In Bankruptcy
Chapter 12 bankruptcy provides viable debt relief for farmers. This type of bankruptcy allows financially ailing farmers and farm corporations a way to cope with millions of dollars of secured debt. These high debt loads are not uncommon for farms that use very costly equipment such as combines.
Financially stressed farmers and agribusiness owners turn to Telpner Peterson Law Firm, LLP, for debt relief advice and solutions suitable for their unique circumstances. Chapter 12 bankruptcy enables many farms to stay afloat through a customized debt reorganization plan. Such a plan can also address the tax consequences of divesting for those who opt to get out of farming altogether. Let us help you structure an orderly liquidation and shutdown of your farm business in Iowa or Nebraska if ending your operation is your best option.
The Benefits And Drawbacks Of Chapter 12 Farm Bankruptcy
Chapter 12 bankruptcy is a reorganization option for family farmers struggling to repay their debts. It offers several benefits, including:
- Ability to keep your farm. Chapter 12 allows you to develop a repayment plan that fits your income and expenses to keep your farm afloat.
- Ability to make seasonal payments. If your income fluctuates throughout the year, Chapter 12 allows you to make seasonal payments that reflect your actual income.
- Ability to protect your assets. Chapter 12 provides some protection for your assets, such as your home and equipment.
However, there are also some drawbacks to Chapter 12 bankruptcy, including:
- The process can be complex and time-consuming. Filing for Chapter 12 bankruptcy is a complex process that can take several months to complete.
- You must make regular payments to your creditors. Under Chapter 12, you must make regular payments to your creditors, even if you are struggling to make ends meet.
- You may lose some assets. If you cannot afford to make all of your payments under Chapter 12, you may lose some of your assets.
Overall, Chapter 12 bankruptcy can be a helpful option for family farmers struggling to repay their debts. However, weighing the benefits and drawbacks before filing for bankruptcy is important.
Experienced Bankruptcy Lawyers Representing Debtors And Creditors
Attorney Charles L. Smith of our office has close to 50 years of experience as a bankruptcy trustee. He understands the respective interests of debtors, creditors and bankruptcy trustees. A member of the American Bankruptcy Institute and the National Association of Bankruptcy Trustees, he stays up to date on current trends and practices. He also served for three years as the chair of the Iowa State Bar Association’s Commercial and Bankruptcy Law Section.
Attorney Nicole Hughes also represents both debtors and creditors in Chapter 12 bankruptcy proceedings. Nicole is a member of the American Bankruptcy Institute and has served as the state chair of the National Association of Consumer Bankruptcy Attorneys.
Both of our bankruptcy attorneys understand the challenges that farmers and farm business owners experience as they approach and go through the processes of bankruptcy. They welcome the opportunity to evaluate your case and recommend the best course of action.
Contact A Chapter 12 Bankruptcy Law Attorney In Council Bluffs
To schedule a consultation with a lawyer regarding bankruptcy for farmers and agricultural businesses in Iowa or Nebraska, send an email to Telpner Peterson Law Firm, LLP, or call 712-309-3738.