Due to tariffs the US has placed on China, the Chinese markets have closed for products like soybeans, milk, and beef. The results have significantly impacted the profits of US farmers. If you are a farmer in the Dalton and Northwest Georgia area, there are steps you can take to ensure that your business stays viable – such as finding an experienced bankruptcy attorney. Understanding that Chapter 12 Bankruptcy is an option could help your business stay afloat.

What is a Family Farmer?

You are considered to qualify as a family farmer if you are an individual or an individual and spouse with:

• Total debts not exceeding $4,153,150
• At least 50% of the total debts that are fixed in amount (exclusive of debt for your home) are related to the farming operation
• More than 50% of your or your spouse’s gross income for the preceding tax year, or each of the 2nd and 3rd prior tax years have come from farming

Why is Chapter 12 Bankruptcy Better for Farmers?

Chapter 12 Bankruptcy provides for flexibility in the renegotiation of debt not seen in other chapters of bankruptcy. You can change the terms of your home mortgage, the interest rates on debt, and change the way you make payments to lenders.    

After you meet with a skilled bankruptcy attorney and it is determined that filing Chapter 12 Bankruptcy is the right move for you, your attorney will file a petition listing all of the assets and debts of your farm. You and your bankruptcy attorney will then have the opportunity to file a plan of reorganization, which is a contract between you and your creditors, where you can propose to surrender property or to renegotiate debt. 

Once the petition is filed, Chapter 12 Bankruptcy effectively stops most collection actions against you and your farm. Once your payments outlined within the reorganization plan are finished, the court will discharge the remaining debt. 

If your farming business has been hurt by recently installed tariffs, don’t wait, call the experienced bankruptcy attorneys at Hurtt & Johnson in Dalton, GA.  Their team has over 40 years of experience in the field of bankruptcy law and will sit down with you to discuss what options best suit your needs. To learn more, schedule a consultation by calling (706) 226-5425 or visit their website.