Chapter 12 bankruptcy helps family farmers and commercial fishermen avoid liquidating assets or losing their property to foreclosure. It works much like Chapter 13, but with benefits tailored to your business — including the ability to exempt a boat. If you’re a Maine farmer or fisherman considering Chapter 12, our bankruptcy attorneys can help you establish and confirm a plan that gets you real relief.
To qualify, an individual debtor must:
Chapter 13 limits property payment plans to five years. Chapter 12 lets farmers and fishermen stretch payments over the usable life of a boat, farm equipment, or other loan instead — and fishermen and lobstermen can exempt a boat up to 46 feet in length when filing in Maine.
Debtors who qualify can often pay the present market value on secured debt rather than the full loan balance — for example, reducing a $15,000 loan to a $10,000 asset’s actual value.
Payment plans run three to five years and can be structured seasonally — larger payments during harvest or selling season, smaller ones the rest of the year.
Hardship discharge: If illness or a natural disaster makes it impossible to complete your repayment plan, you may be eligible for a hardship discharge from the remaining debt.
Our Bangor attorneys understand the unique needs of fishermen, lobstermen, and farmers across Maine. Let us help you find the debt relief your business needs.
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