The number of people filing for bankruptcy here in Maine and across the nation continues to rise, and with the current pandemic and economic insecurity, that number most likely will continue to increa…Read More
Chapter 12 Bankruptcy
If you are a farmer or fisherman in the state of Maine and need to file for bankruptcy, Chapter 12 may be the best option for you. This type of bankruptcy is only available for fishermen, lobstermen, and farmers and operates much like Chapter 13. However, Chapter 13 bankruptcy only allows for a five-year limitation on property payment, whereas Chapter 12 bankruptcy allows farmers and fishermen the option to stretch the payments over the useable life for a boat, farm equipment, or another type of loan.
Fishermen and lobstermen have the ability to exempt a boat up to 46 feet in length when filing for Chapter 12 bankruptcy in Maine. With the ever-changing laws, it is important to hire a knowledgeable and experienced bankruptcy attorney to help you through the legal process.
Let the dedicated professionals at McCue Law Office to help you understand every aspect of bankruptcy before deciding to file. We offer free consultations, whether over the phone, via email, or in-person, and we are always working to ensure the best outcome for you and your business. Contact us today.
Benefits of Chapter 12 Bankruptcy
Like every type of bankruptcy, there are benefits and downsides to Chapter 12 bankruptcy filing. Those that qualify for Chapter 12 relief are allowed to pay the present market value on almost all secured debt. For example, if you have accumulated $15,000 on a loan due to accumulating interest and the asset is only worth $10,000, you can reduce the debt to the base value of $10,000.
A farmer or fisherman can also make a plan to make payment installments over three to five years. This plan can also allow for seasonal payments that are larger during some parts of the year and smaller during other parts of the year to allow with harvesting and selling of your commodities.
Another benefit of Chapter 12 bankruptcy is that if you are unable to fulfill the repayment plan due to illness or natural disaster, you may be eligible for a hardship discharge from your debt. Essentially, Chapter 12 bankruptcy allows for more flexibility in payment plans than other bankruptcy chapters to accommodate the unique needs of farmers and fishermen.
McCue Law Office – Help Is On The Way
Our bankruptcy attorneys are based in Bangor and understand the unique needs of fisherman and lobsterman in Maine. We are here to help you understand your options for debt relief and help you through the often complex legal process. Our mission is to ensure the best outcome for you and your business. Contact our law firm today to schedule a free consultation with a bankruptcy attorney.