Chapter 12 Bankruptcy offers individuals and companies engaged in farming or commercial fishing operations a way to reorganize debts and save your business through a Plan of Reorganization. Chapter 12 debtors can “cramdown” loans to the present market value of the property. For example, a piece of equipment that is worth $50,000 but you owe $100,000 on it, by applying cramdown, you would only need to pay $50,000 for this equipment. An additional advantage of a sale in Chapter 12 is the possibility of avoiding capital gains taxes. Payments in a Chapter 12 Bankruptcy generally are seasonal to match income streams of farmers and fisherman, and the amount required to be paid considers past production expenses, income, and future plans to make repayment practical.
Bill Kroll grew up on a dairy farm and understands the sweat that goes into making a living off the land. Do not let a spell of bad luck cost you your home, business, and equipment. Bill worked as a law clerk in the Bankruptcy Court for the Eastern District of North Carolina, is a Board Certified Specialist in Business and Consumer Bankruptcy, and has focused his practice on bankruptcy since 2009. If experience is what you are looking for, call EGH to schedule your free consultation.
Phone: (919) 755-0025