What Chapter 12 can do

Chapter 12 allows farmers and fishermen to reorganize their finances and allow them to stop or avoid foreclosure and keep their farm. Chapter 12 is the only type of bankruptcy that allows you to modify the principal balance and interest rate on your home without the lender’s consent. In chapter 12 you can modify the balance and interest rate of all of your loans. We are able to lower the balance of your loan to the value of the collateral, stretch out the payments to the typical term of a new loan and reduce the interest rate to around 4.25% interest.

Chapter 12 eligibility

Chapter 12 is available for individuals or closely held businesses who have a farming or fishing operation. More than 50% of your prior year income or two of the last three year’s income must be from the farming or fishing operation. Half of your debts must arise from the farming or fishing operation. Your total debts must be less than $3,237,000.

Our services

Keith Karnes has filed chapter 12 for individuals and businesses owners throughout Oregon and Washington. He offers a free consultation. We are a full service law firm. We will prepare your bankruptcy forms, provide the correct information to the trustee, attend your meeting of creditors with you, and guide you each step of the way.

Our services do not stop with the end of your case. If you have creditors that continue to collect during or after your bankruptcy we can help. We typically will send warning letters to creditors who continue to collect after you have filed bankruptcy. If this does not stop the problem then we can sue your creditors for violating your right to a fresh start.

Also, we will review your credit reports to help you rebuild your credit after bankruptcy. While many creditors understand that people sometimes file bankruptcy, they do not understand when your credit report shows delinquent debts after your bankruptcy is over. This makes it appear as though you have debts that you did not pay after you filed bankruptcy. We can help you dispute the inaccurate information on your credit report. This is the best thing you can do to improve your credit score after bankruptcy. If your disputes about your credit report do not solve the problem we can sue those responsible for wrongfully damaging your credit.

Contact Keith Karnes for a free full length consultation to discuss if chapter 12 is right for you.