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Who is eligible for relief under Chapter 12?

To file for relief under Chapter 12 as a family farmer, an individual must meet the following criteria:

  1. Must be currently engaged in a farming operation;
  2. Must have regular income sufficient to fund a plan of reorganization;
  3. At least 50% of gross income for the year was derived from a farming operation owned or controlled by the individual; and
  4. Total secured and unsecured debts cannot exceed $4,031,575.00, and at least 50% of debts (excluding debt for the principal residence of the individual) arise from a farming operation.

 

To file for relief under Chapter 12 as a family fisherman, an individual must meet the following criteria:

  1. Must be currently engaged in a commercial fishing operation
  2. Must have regular income sufficient to fund a plan of reorganization
  3. At least 50% of gross income for the year was derived from a commercial fishing operation owned or controlled by the individual; and
  4. Total secured and unsecured debts cannot exceed $1,866,200.00, and at least 80% of debts (excluding debt for the principal residence of the individual) arise from a commercial fishing operation.

 

A corporation, LLC or partnership will qualify as a family farmer or family fisherman if

  1. More than 50% of the outstanding stock or equity is held by one family, and such family conducts the farming or fishing operation;
  2. More than 80% of the value of its assets consist of farming or fishing related assets;
  3. Stock cannot be publically traded; and
  4. For family farmers – total debts do not exceed $4,031,575.00 (excluding personal residence of the farmer shareholder) and at least 50% of debts arise from the farming operation owned by the partnership or corporation.
  5. For family fisherman – total debts do not exceed $1,866,200.00 (excluding personal residence of fisherman shareholder) and at least 80% of debts arise from the farming operation owned by the partnership or corporation.
Markarian Frank White-Boyd & Hayes
Markarian Frank & Hayes is located in Palm Beach, Wellington & Vero Beach, Florida and serves clients across Florida from Vero Beach to the Florida Keys, including those in and around Palm Beach, West Palm Beach, Pahokee, Delray Beach, Loxahatchee, Coral Springs, Boca Raton, Boynton Beach, Lake Worth, Deerfield Beach, South Bay, Pompano Beach, Hobe Sound, Stuart, Port St. Lucie, Sebastian, Fort Pierce, Hollywood, Tampa, Tallahassee, Orlando, Martin County, Broward County, Hillsborough County, Leon County, Palm Beach County, Fort Lauderdale, Miami-Dade County and Sebastian. The firm’s lawyers also have a long history representing clients’ interests throughout the Caribbean.
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