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Bankruptcy law creates confusion for many family farmers and fishermen. Debt pressures build fast and the legal process often feels impossible to handle alone. Chapter 12 offers relief by allowing you to reorganize debts instead of losing property through liquidation. Our Twin Cities lawyers guide you through this process and protect your ability to continue your work.
Chapter 12 exists for family farmers and fishermen with unstable or seasonal income. Unlike Chapter 7, which liquidates property, Chapter 12 allows repayment through a structured plan. Unlike Chapter 11, which caters more to corporations, Chapter 12 provides a streamlined option for smaller operations.
You maintain property while paying debts under a court-approved plan. Our role is to ensure your plan works for your income cycles and satisfies the court. Chapter 12 becomes especially valuable in Minnesota, where farming and fishing hold strong ties to local communities.
Chapter 12 applies only if you meet these standards::
The process starts with a petition filed in bankruptcy court. Once filed, an automatic stay stops foreclosures, repossessions, and collection lawsuits. You then submit a repayment plan for review by a trustee and creditors. Our lawyers prepare your petition and guide you through every stage to prevent mistakes that risk dismissal.
Most Chapter 12 cases begin voluntarily when debt pressures become too heavy. A voluntary filing gives you control to propose terms that reflect your income cycles. In rare cases, your creditors could push for involuntary bankruptcy if they believe debts remain unpaid without justification. We advise you on the best timing for a filing to protect both your property and your family’s livelihood.
Your choice of attorney determines how smoothly your case moves forward. A Minneapolis lawyer familiar with Chapter 12 cases knows both federal bankruptcy rules and Minnesota-specific practices.
Look for qualities such as:
Our firm has guided farmers and fishermen across Minnesota through the Chapter 12 process. We bring practical knowledge, direct advice, and the experience needed to secure approval of your plan.
Farming and fishing income fluctuates sharply from year to year. We work with you to build a plan that fits your cash flow and protects the future of your farm or fishing business.
Family-owned farms and fishing operations often involve several generations, shared property, and multiple income sources. That structure adds complexity to bankruptcy cases. Our Minneapolis attorneys understand both the financial and family dynamics at stake. We help you reorganize debt without sacrificing the family business.
The repayment plan sits at the heart of Chapter 12. This plan states how creditors receive payment over a period of three to five years. Unlike Chapter 7, no property liquidation takes place if the plan is approved and payments continue.
Important features of the repayment plan:
We review income and expenses carefully before creating the plan. The court requires accuracy, and mistakes can result in rejection. Our lawyers prepare the plan with precision to give you the strongest chance at approval.
Structuring requires balancing fairness to creditors with the reality of your income. Payments must be feasible, but also meet the legal requirement of fairness.
Key factors in structuring:
Our attorneys meet with you to examine all revenue sources and debts. We then draft terms that protect your interests while satisfying the court.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Outstanding, absolutely outstanding. . . My only regret is that I did not pursue representation for my case sooner. I cannot speak highly enough of this firm and their services.
Creditors hold the right to review and object to your repayment plan. Their input often decides whether a plan moves forward. A lawyer negotiates on your behalf to address objections and secure approval.
We manage:
By anticipating creditor concerns, we increase the chance of quick plan confirmation.
Your repayment plan must address both secured and unsecured debts. Secured debts involve property or equipment as collateral. Unsecured debts include obligations like medical bills or credit cards. Each requires different treatment under Chapter 12.
Our legal team:
Secured debts demand close attention, since lenders hold collateral. Property, land, or equipment may be at risk if payments are not maintained.
Our approach:
Protecting collateral gives you the chance to recover financially while continuing your work.
Unsecured debts receive repayment after secured debts. These may include credit cards, vendor bills, or medical expenses.
Our team helps you by:
Failure to comply with Chapter 12 terms risks dismissal. Dismissal restarts creditor actions and places property at risk again. Proper management of your case avoids these problems.
Our lawyers:
Accurate valuation of assets is vital to creating a feasible plan. We work with experts to ensure fair assessments and protect property essential for ongoing operations.
Assets include land, livestock, boats, and equipment. Liabilities include secured loans and unsecured debts. Both must be balanced carefully in Chapter 12.
We:
Asset protection remains a priority in every Chapter 12 case. Without accurate valuations, creditors may challenge the plan.
We assist by:
Filing for Chapter 12 triggers an automatic stay, which halts foreclosure, repossession, and collection lawsuits. These protections allow time to organize a repayment plan.
We guide you through:
Federal law requires credit counseling before bankruptcy approval. This process provides education on repayment and budgeting.
If you are a farmer or fisherman in Minnesota facing debt problems, we stand ready to help. Our Minneapolis lawyers bring decades of experience with Chapter 12 cases. We protect your property, guide you through the process, and work with you to secure a workable repayment plan.
Call our Twin Cities Chapter 12 lawyers today. We will review your situation, explain your options, and start building a plan that protects your family’s business. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form to discuss your case during a free consultation.