Farming is an incredibly rewarding, but immensely difficult, way in which to make your living. Success depends just as much on the weather patterns as hard work and perfect planning — and is never guaranteed. Due to no fault of your own, you may find yourself in a situation that prevents you from paying your bills on time and threatens your livelihood.
If you are a farmer or vineyard owner facing collections from your creditors, the Liviakis Law Firm is here to help. We have an in-depth understanding of Chapter 12 of the Bankruptcy Code, and how it can best be used for debt relief for farmers. For a free initial phone consultation, contact our Sacramento Chapter 12 bankruptcy attorneys.
“Family farmers,” as specifically defined by the Code, are eligible to file for Chapter 12 bankruptcy, which combines components of Chapter 11 and Chapter 13 bankruptcies.
Through filing for Chapter 12, a farmer has the opportunity to reduce the secured debt on his or her farm property, and to raise money to cover costs through post-petition financing. Lower interest rates are available after filing for Chapter 12 due to decreased risk for the bank in granting the loan, because these loans have the highest priority amongst all other debts — meaning that if any future financial difficulties occur, the post-petition loan is paid first.
Time is also a significant benefit of filing for Chapter 12 bankruptcy, as the process provides the necessary time to sell the available crops for a fair price rather than repossessing equipment or foreclosing on collateral, usually the farmers’ crops.
If a crop failure has put you in a complicated financial situation, contact an office near you for a free initial consultation with an experienced, knowledgeable Sacramento and Dixon farmer bankruptcy lawyer. You will benefit greatly from the representation of a bankruptcy lawyer who has experience handling Chapter 12 bankruptcy filings.
We represent clients in communities throughout Sacramento County, Yolo County and Placer County, California. I am available for appointments 9 a.m. to 5 p.m.