Chapter 12 Bankruptcy Lawyer
Chapter 12 is the bankruptcy chapter written for family farmers and commercial fishermen. It restructures debt around your real harvest or season, generally stops foreclosure and repossession and keeps the operation running. We handle Chapter 12 cases for South Jersey agriculture, from Atlantic to Cumberland and Salem counties and elsewhere in New Jersey, and for farms across Pennsylvania, entirely by phone or Zoom.
Keep the operation running
Chapter 12 works like a streamlined Chapter 13 built for agriculture and fishing, with debt caps that Congress adjusts periodically and plan payments that can be timed to seasonal income. It's a niche chapter, honestly, and that's its strength: you stay in control of the farm or boat while you reorganize. No office visit needed, which matters when the nearest bankruptcy lawyer is an hour from your fields.
What Chapter 12 does
- Restructure farm or fishing debt into an affordable plan
- Stop foreclosure, repossession, and collection
- Time plan payments to your harvest or season
- Cram down secured debt to the value of the collateral
Who it is for
- Family farmers with regular annual income
- Commercial fishermen with regular annual income
- Operations under the Chapter 12 debt cap, which Congress adjusts periodically
- Owners who want to keep operating while they reorganize
The Chapter 12 Roadmap
A clear path to restructuring your debt while you keep working.
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1
Step 1 of 10
Free consultation
Phone or Zoom, zero obligation. We review your operation, your debts, and your income.
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2
Step 2 of 10
We confirm you qualify
Chapter 12 is only for a family farmer or family fisherman with regular annual income: at least 50 percent of a farmer's debts must come from the farming operation, at least 80 percent of a fisherman's from commercial fishing, and total debt must fall under a cap Congress adjusts periodically. We check your numbers and tell you honestly if it fits.
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3
Step 3 of 10
Credit counseling
A quick, required online course before we can file. About an hour.
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4
Step 4 of 10
We gather your financials
Your books, debts, assets, and recent operating numbers. You pull what you have, we organize the rest.
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5
Step 5 of 10
We file
The moment we file, the automatic stay stops foreclosure, repossession, and collection. You keep running the operation.
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6
Step 6 of 10
A Chapter 12 trustee is appointed
A trustee is assigned to administer your plan payments. You stay in control of the farm or boat.
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7
Step 7 of 10
We build your plan
A repayment plan over 3 to 5 years, shaped around your operation and timed to seasonal income.
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8
Step 8 of 10
Plan confirmation
The court approves your plan, and your creditors must follow it.
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9
Step 9 of 10
You make your payments
You keep operating and make your plan payments through the trustee.
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10
Step 10 of 10
Discharge
After you complete the plan, the court discharges remaining qualifying debt. You keep the operation and move forward.
Common questions about Chapter 12
Who qualifies for Chapter 12?
Section 109(f) of the Bankruptcy Code sets the test: a family farmer needs regular annual income with at least 50 percent of debts coming from the farming operation, and a family fisherman needs at least 80 percent of debts from commercial fishing. Total debt also has to come in under a cap that Congress adjusts periodically. We confirm all of it before anything is filed.
Can I keep farming or fishing during the case?
Yes. You stay in control of the operation and keep working while you reorganize. That is the whole point of Chapter 12.
How is Chapter 12 different from Chapter 13?
Chapter 12 has higher debt limits and is built for agriculture and fishing, including plan payments that can be timed to seasonal income and stronger tools to cram down secured debt.
How long does Chapter 12 take?
The repayment plan generally runs 3 to 5 years. Relief starts immediately, since the automatic stay stops collection the moment we file.
Can I do this without leaving the farm or the boat?
Yes. We handle everything over phone and Zoom, from your first call through your filing, anywhere in Pennsylvania or New Jersey.
What is the Chapter 12 debt limit?
Congress sets the cap and adjusts it periodically, so we won't print a number that will go stale. Many family farm and fishing operations fall under it, but it's the first thing we check. Bring your rough numbers to the free consultation and we'll tell you in one call whether Chapter 12 is open to you.