Killeen & Waco, Texas Chapter 12 Bankruptcy Lawyer

Comprehensive Chapter 12 Bankruptcy Assistance in Waco, Killeen & Central Texas

Erin Shank, a Chapter 12 Bankruptcy Attorney, has successfully reorganized several family farmers. In 2011, she filed a Chapter 12 Plan that saved a family farm that had been in a rancher's family since 1850. A large bank and the Chapter 12 Trustee fought attorney Shank and her client in his reorganization attempts for over one year, but the Waco Bankruptcy Court ruled in the rancher's favor on virtually every issue, and his Plan of Reorganization was approved by the Bankruptcy Court over the bank's objections.   Erin Baker Shank will always remember this case as one of the hardest fought and successful cases in her legal career. However, most family farms can be reorganized without such a long, protracted legal proceeding.

In 2000, Erin successfully filed and confirmed a Chapter 12 Plan for an 80-year-old farmer who grew strawberries and other berries in Central Texas. Erin never bites into a strawberry without remembering that special client and what an honor it was to reorganize his berry farm.

Considering Chapter 12? Speak with our Killeen & Waco bankruptcy attorney at Erin Baker Shank, P.C.. We serve Waco, Killeen, and beyond. Contact us online or dial (254) 690-4110.

What Is Chapter 12 Bankruptcy?

Chapter 12 bankruptcy is specifically designed to assist "family farmers" or "family fishermen" who have a consistent yearly income. It offers a solution to financially burdened family farmers and fishermen by allowing them to create and execute a repayment plan for some or all of their debts. 

Chapter 12 bankruptcy is a specific type of bankruptcy law designed to reorganize the family farmer. Unfortunately, fewer and fewer family farms are able to survive in this challenging economy. Additionally, most of the produce and animals raised for consumption in the United States are raised in huge corporate farms. The family farmer is really a fading reality.

How Does Chapter 12 Bankruptcy Work?

Within the Chapter 12 framework, debtors develop a repayment strategy to distribute payments to creditors over a span of three to five years.

Typically, the plan requires payments to be made over a three-year period unless the court approves a longer-term "for cause." However, if the plan doesn't intend to cover 100% of domestic support claims (such as child support and alimony), if applicable, it must extend over a five-year period and encompass the debtor's entire disposable income. No circumstances permit a repayment plan to extend beyond a five-year period.