Chapter 12 Bankruptcy provides a mechanism for debt restructuring for family farmers and family fisherman. Both persons and business entities engaged in a farming operation are eligible for relief under Chapter 12. A reorganization plan is central to Chapter 12 and is required to be filed with the court within 90 days of filing the initial bankruptcy petition. The plan will detail how the farm intends to continue operating while in bankruptcy and will provide for a restructuring of secured debts, including the possibility of “cramdown”, where the creditor’s secured claim is reduced to the value of the collateral.
The attorneys at DelCotto Law Group assist clients in developing a strategy based on informed decisions and economic reality in evaluating bankruptcy options and developing a restructuring plan. They will evaluate your eligibility for Chapter 12 as well as developing and implementing a plan that is feasible.
In representing creditors in Chapter 12 proceedings, the firm’s goal is to protect a creditor’s interests and collateral. The firm evaluates the debtor’s plan to assess feasibility, good faith, and other confirmation issues.
The lawyers of DelCotto Law Group are experienced in all areas of bankruptcy and can thoroughly analyze their clients’ options, including the available options under the other bankruptcy chapters or the possibility of a consensual workout with creditors outside of bankruptcy, before a final decision is made.