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Avoid Mistakes When Planning and Filing Virginia Bankruptcy Cases

The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.

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If you are thinking about filing Chapter 7 or Chapter 13 bankruptcy, you are not alone. Complete the form below to contact a sponsoring bankruptcy lawyer. Ask all questions you deem important without cost or obligation of any kind. Free help is only a few minutes away.

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Chapter 12 Bankruptcy in New York State for Family Farmers

Chapter 12 applies to the restructuring, reorganization, adjustment, and/or discharge of debts owed family farmers who generate regular income. Originally enacted in 1986, this form of reorganization of debts is similar to New York bankruptcy under Ch. 13, however subject to higher allowances for included debt, special plan provisions, and the unique definition of "family farmer" provided for in 11 U.S.C. 101(18). To be considered a family farmer, the US Code specifically requires "the individual or individual and spouse engaged in a farming operation whose aggregate debts do not exceed $1,500,000 and not less than 80 percent of whose aggregate noncontingent, liquidated debts (excluding a debt for the principal residence of such individual or such individual and spouse unless such debt arises out of a farming operation), on the date New York bankruptcy is filed, arise out of a farming and or agricultural business operations owned by, or managed by, the debtor who receives more than 50 percent of their gross income for the taxable year preceding the taxable year in which the New York bankruptcy concerning such individual or such individual and spouse was filed."

Because of the seasonal nature of farming, Congress deemed monthly payments required by other chapters unsuitable for farmers. If qualified, a family farmer filing a New York bankruptcy under Ch. 12 must generate at least 50% of their income from farm operations and be capable of making regular payments. If past income is unstable, plan confirmation may be denied.

Chapter 12 Payments in New York Bankruptcy

According to 11 U.S.C. 1226, "payments and funds received by the trustee shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment." In practice, the requirement of payments to a trustee while in New York bankruptcy under Ch. 12 includes payment of trustee fees which are deducted from amounts paid to creditors. Following the completion of the plan remaining debts are discharged similarly to the restrictions placed on Ch. 13 discharges.

Qualification for New York bankruptcy relief is not based on US citizenship. Residency within the state, or property ownership within the state may satisfy jurisdictional requirements for consumers seeking relief under Chapter 7 or Chapter 13 of the US Code.

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Should you need answers to legal questions, contact a local attorney. All information herein is general, and must not be considered as legal advice. The included directory of New York bankruptcy lawyers is intended to assist debtors finding lawyers, local contact information, and help answering attorney fee questions. To find a lawyer, search law firms, and qualify attorneys, the New York State Bar and City Bar Associations and County Bar Associations provide general public assistance. These associations include: Albany, Poughkeepsie, Buffalo, Manhattan, Mount Vernon, Queens, New Rochelle, New York City, Brooklyn, Islip, Rochester, Syracuse, Utica, White Plains, Schenectady, and Yonkers. All content copyright protected - New York Bankruptcy Law Summaries 123, Inc. - ©Copyright 1998 through 2009, all rights reserved.