The firm’s senior partner Trawick H. Stubbs Jr. has served as attorney for the debtor in numerous Chapter 12 reorganizations and liquidations over the past 40 years.
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Bankruptcy: Chapter 12
New Bern, Raleigh and all of Eastern North Carolina - Chapter 12 Business Bankruptcy Lawyers
New Bern Family Farm Businesses Lawyer
Extensive Experience Representing Farmers
Before 1986, farmers filing for bankruptcy relief were required to use Chapter 11. This was difficult, as farmers lost value in their land in the 1980’s and were unable to propose a feasible reorganization plan.
Tailored to the needs of farmers, Chapter 12 provides both individual and corporate farmers with financial relief. Stubbs & Perdue, P.A. has helped clients reorganize their businesses even before Chapter 12 was introduced. We will effectively guide you through the reorganization process.
Contact one of our bankruptcy lawyers to find out if Chapter 12 might be a good option for you. We offer consultations at either our New Bern or Raleigh law offices.
Who Qualifies for Chapter 12 Bankruptcy?
Chapter 12 is available to anyone defined as family farmers with a regular, annual income. This includes some corporations and partnerships. The debtor must meet a “farm debt” test, as well as either a “farm income” or “farm assets” test. Specifically, the debtor must obtain 50 percent of its gross income from farming.
A corporation or partnership farming operation can seek Chapter 12 relief if it is controlled by a single family and meets other requirements. If a debtor has more than $3,792,650 in debts, the individual or business must file under Chapter 11 bankruptcy.
Chapter 12 Bankruptcy Structure
Generally, in Chapter 12, the debtor maintains possession of the farm property and continues the farming operation. A trustee is also appointed to oversee the case. The trustee does not operate the farm, unless the debtor is removed from the operation by the Bankruptcy Court.
But the debtor is obligated to provide the trustee with periodic accounting information, regarding income and disbursements, payment of taxes, and similar items. The debtor is allowed to obtain credit, and continue leasing land and equipment, while maintaining the farm’s day-to-day operation.
Contact Us
Our lawyers also have a strong background representing businesses and farmers in Chapter 11 bankruptcy. Call our office at (800) 348-9404 to schedule an appointment. We are also available by e-mail.
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