Chapter 12 Bankruptcy

Southern California Bankruptcy Attorneys
J.L. Borrie & Associates

Representing individuals and businesses in bankruptcy filings throughout Southern California, including the Inland Empire area, Riverside, San Bernardino, Redlands, Lake Arrowhead, Running Springs, Big Bear, and all of Orange County.

Chapter 12 cases are a hybrid between a Chapter 13 and a Chapter 11. They are much more flexible than a Chapter 13, and there are some advantages over a Chapter 11. However only "family farmers" qualify to file Chapter 12's. Family Framer means individual (and spouse) engaged in farming where aggregate debts do not exceed $1,500,000, and not less than 80 % of the debt (excluding debt on their residence unless it arises out of the farming operation), arises out of the farming operation, and they receive more than 50% of their gross income from farming. OR, a corporation or partnership in which more than 50 % of the stock or equity is held by one family (or the family and their relatives) and the family or their relatives operate the farm, with the same dollar & percentage requirements set forth above for individuals.

Needless to say, most debtors in our area of the state do not qualify to file a Chapter 12, though there have been a limited number of them filed.

The Chapter 12 provisions were enacted for a limited period of time primarily as a test, and have been renewed recently.

Because the procedures are a hybrid, and track Chapter 13 procedures in some areas, Chapter 11 procedures in others, and have some special procedures that apply only to Chapter 12 cases, we will not cover the Chapter 12 procedures since it will only confuse the issues for most persons reviewing this site, the greatest majority of whom wouldn't qualify to file a Chapter 12.

We offer a free conference of up to one hour with an experienced (a minimum of 10 years) bankruptcy, tax problem, foreclosure and debt resolution attorney (not a junior associate or paralegal) who will fully analyze your specific financial situation, and advise you as to your available options, likelihood of success, and the costs and procedures involved in each alternative.

If you would like someone to contact you regarding your problems or concerns, please choose the appropriate choice below, or call us at 951-686-6432 (toll-free 877-MYATTYS) and mention that you visited our web site for a free, no-obligation conference.