Chapter 12 bankruptcy allows family farmers and family fishermen the ability to restructure their debts. Both individuals and business entities engaged in a farming operation are eligible for relief under Chapter 12. A reorganization plan is central to Chapter 12 and is required to be filed with the court within 90 days of filing the initial bankruptcy petition. The plan will detail how the farm intends to continue operating while in bankruptcy and will provide for a restructuring of secured debts, including the possibility of “cram down” where the creditor’s secured claim is reduced to the value of the collateral.
Whether it be cattle, hog, or other farming operations, the attorneys at DelCotto Law Group assist clients in developing a Chapter 12 strategy and plan based on the specific needs of each client’s business. Through active negotiations with creditors and the Chapter 12 trustee, the attorneys at DelCotto Law Group work closely with their clients and all parties to implement a plan that is feasible and confirmable.
When representing creditors in Chapter 12 proceedings, the Firm’s goal is to protect a creditor’s interests and collateral. The Firm evaluates the debtor’s plan to assess feasibility, good faith, and other confirmation issues.
The lawyers of DelCotto Law Group are experienced in all areas of bankruptcy and can thoroughly analyze their clients’ options, including the available options under the other bankruptcy chapters or the possibility of a consensual workout with creditors outside of bankruptcy, before a final decision is made.