Chapter 12 is a reorganization bankruptcy designed primarily for consumers who derive at least 50% of their income from farming or fishing. If you qualify for this type of bankruptcy, there are advantages to filing thusly over a Chapter 13 which you can discuss with your Lake County bankruptcy attorneys. The following deals with creditors and claims in this specialized type of bankruptcy.
Once the meeting of creditors takes place, creditors in a Chapter 12 bankruptcy have 90 days in which to file their claims. Your Lake County bankruptcy lawyers can help answer any questions you have, but priority claims include the following:
– Any wages or commission not exceeding the annually adjusted amount that was earned within 180 days before the bankruptcy was filed;
– Any contributions to an employee benefit program made within 180 days of filing;
– Claims made by farmers or fishermen that do not exceed an annually adjusted amount;
– Deposits made by individuals in order to purchase or lease rental property/services; and
There are four exceptions to the time limit for filing claims:
– Claims made by governmental entities;
– Claims made on behalf of infant children or incompetent individuals;
– Certain unsecured claims; and
– Claims that are born out of rejected executory contracts.
If You Believe You May Qualify for a Chapter 12 Bankruptcy, We Can Help
Lake County bankruptcy attorneys with our firm can help you with your Chapter 12 bankruptcy and enable you to save your business. Call Merideth Nagel, P.A., Attorney at Law today to arrange a consultation at 352-404-4634.