When you consider debt consolidation with bankruptcy you just throw away every sort or bankruptcy on the table assuming what kind of bankruptcy protection would be apt for you. This can be a dangerous act because in the United States there are different codes for different kind of financial crises and each code widely differs from the other. There are certain forms of bankruptcy that are reserved for individuals while others deal with business organizations. If you are unable to choose the right form of bankruptcy to screen yourself from a particular situation, it can have an adverse effect on your litigation and can even result in rejection of your petition.
This can even result in unnecessary loss of assets and may even result in some penalty or you would have to pay more to your creditors than you would have paid otherwise in case you have filed for the most fitting code of bankruptcy suiting your circumstances. For family, farmers, ranchers, fishing companies and other small scale agricultural organizations the best way to stand against serious financial crisis is chapter 12. This was introduced into bankruptcy code in 1986. When the economic conditions become it quite difficult to maintain the fiscal solvency for small family owned farming business, Chapter 12 Bankruptcy was introduced.
Chapter 12 bankruptcy Characteristics
The chapter 12 bankruptcy has been specifically designed for those parties that are actively engaged in small scale agricultural practices. For instance, the loans that are included in the bankruptcy plan must constitute at least 80% of the operations of the farm. And to show that the farm has the main source of income for the entire family, more than half of the income from the previous years should have been earned from the farm.
There are a number of reasons why you should prefer the specific provisions of the chapter 12 bankruptcy to other forms of bankruptcy that you may assume you are eligible with. Some of them are:
- The lack of means tests as it is required when you file for chapter 7 Bankruptcy.
- There is no need for credit counseling required for the debtor.
- You may not be compelled to mortgage your assets to satisfy the outstanding debts to the creditors.
- No need to file disclosure statements.
Difficult solutions for difficult questions
When you are filing bankruptcy you are certainly feeling huge pressures. Filing bankruptcy may or may not be the best solution for your condition, but if you want to know and understand the benefits and consequences of filing bankruptcy and what kind of bankruptcy would be appropriate to suit your circumstances, you should speak to an experienced and qualified bankruptcy attorney. He will let you know if bankruptcy is the right option for you or what kind of bankruptcy would be best suited to your condition.
Need some help with Chapter 12 Bankruptcy In Dallas refer to bankruptcy legal help.
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Harvard McIntosh is a free lance article author and legal expert with special interests in chapter 12 Bankruptcy in Houston and chapter 12 Bankruptcy in Fort Worth.
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