When considering debt consolidation with bankruptcy, you just tap all kinds or bankruptcies on the table assuming what type of bankruptcy protection would belong to you. This can be a dangerous act because in the United States, there are different codes for different types of financial crises and that each code differs widely from the other. There are some forms of bankruptcy reserved for people while others deal with professional organizations. If you can not choose the right shape of bankruptcy to spend a particular situation, it can have an adverse effect on your dispute and can even cause a rejection of your petition.
This may even give rise to a unnecessary loss of assets and can even lead to a penalty or you have to pay more to your creditors that you would have paid otherwise in case you have filed for the most appropriate bankruptcy code for your situation. For the family, farmers, breeders, fishing companies and other small-scale agricultural organizations the best way to resolve to a serious financial crisis is Chapter 12. This has been introduced in the bankruptcy code in 1986 . When economic conditions become quite difficult to maintain fiscal solvency for small businesses in family farming, Chapter 12 Bankruptcy has been introduced.
Chapter 12 Features of Bankruptcy
Chapter 12 Bankruptcy has been specifically designed for actively engaged parties in small-scale agricultural practices. For example, loans included in the bankruptcy plan must be at least 80% of farm operations. And to show that the farm has the main source of income for the whole family, more than half of the income from previous years should have been won from the farm.
There are several reasons why you should prefer the specific provisions of the bankruptcy of Chapter 12 to other forms of bankruptcy that you could assume that you are eligible. Some of them are:
The absence of tests means that necessary when you deposit for the bankruptcy of Chapter 7.
There is no need for credit advice required for the debtor.
You may not have to mortgage your assets to satisfy outstanding debts to creditors.
No need to produce declarations of disclosure.
Difficult solutions for difficult questions
When you drop bankruptcy, you certainly feel huge pressures. The deposit of bankruptcy can be the best solution for your state, but if you want to know and understand the benefits and consequences of the bankruptcy of deposit and what kind of bankruptcy would be appropriate to suit your situation, you should talk to an experience experienced and qualified. Bankruptcy lawyer. It will let you know if bankruptcy is the right option for you or what kind of bankruptcy would be best suited to your condition.