Fisherman And Farmers May Qualify To File Bankruptcy Chapter 12
Chapter 12 is only open to farmers and fishermen. Those voluntarily filing for Chapter 12 bankruptcy must meet certain requirements, primarily that a majority of the debts have derived from the business. If you are eligible for Chapter 12, it operates similarly to Chapter 13 bankruptcy.
Chapter 12 affords a greater opportunity to modify a mortgage or business loan and stretch out the payments for the useable life of the property, instead of the five-year limitation in Chapter 13. It is especially attractive for people with boat or farm equipment loans. I am attorney J. Scott Logan, and I have extensive experience helping clients file for Chapter 12 in Maine.
Fisherman And Lobstermen Can Now Exempt A Boat Up To 45 Feet Long
Several years ago, after seeing several clients lose their boats in Chapter 7 bankruptcies or forced to pay in the value of the boats through Chapter 13, I decided it was time to take action. With help from a local legislator, I was instrumental in bringing a bill to change Maine’s fishing boat exemption from five tons burden to 45 feet in length. The legislature enacted the bill, and the governor of Maine at the time, Paul R. LePage, signed it on an emergency basis to make it effective immediately.
As a result of this legislative update, fisherman and lobstermen no longer face losing most boats 30 feet or longer and can now exempt from lawsuits or bankruptcy a fishing vessel up to 45 feet in length.
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I have met with great success modifying mortgage loans of lobstermen, fishermen and farmers in Chapter 12. If you meet eligibility requirements, I can often modify your home mortgage by reducing the debt to the value of the house and repaying that debt over a new 30 year period at 3% or 5% interest. This means more farmers and fishermen can save their homes from foreclosure without struggling to get a traditional loan modification. If you are a farmer or fisherman with a house in foreclosure or serious default, please call me at 207-613-8590 in Portland for a free consultation. You may also reach me online through this secure website.
Law Office of J. Scott Logan, LLC, is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.