Bankruptcy cases have technical terms that describe a debtor or a creditor. Among these terms are family farmer or family fisherman. It results to arising questions about what is family fisherman and what can bankruptcy code do for them.
What is Family Fisherman?
The term family fisherman appears in Chapter 12 of bankruptcy law. This is the term given to regular fishermen with regular yearly income. As working individuals supporting themselves, they can have debts acquired from creditors. Chapter 12 is the part of bankruptcy law designed for people who fall under the category of family fishermen or farmers.
Understanding Chapter 12
Chapter 12 is the bankruptcy code that helps family fishermen deal with their financial problems. Through this chapter, they can prose a good repayment plan to debtors, giving them the chance to pay their debts within to five years. In general, the allowed plan should be able to pay for debts over the first three years, but the court may approve longer repayment depending on the situation. Unlike other chapters, Chapter 12 is less complicated and friendlier on the budget for family fishermen.
Although family fishermen may benefit from this bankruptcy code, only a few of them meet eligibility requirements required by the authorities. The first eligibility rule is having a regular income yearly. Regular income is defined as a stable income that let debt repayments according to the code, regardless if it’s seasonal or not.
An individual, partnership or corporation can apply for this bankruptcy type, given that they fall under the category of family fishermen. They must be completely engaged in commercial fishing business and with debt of less than $1.8 million with around 80 percent debt for fishing operation. Another eligibility rule is they should obtain over 50 percent of gross income from fishing. Other special eligibility may vary depending on local bankruptcy law.
Several documents must be filed once a family fisherman has been proven eligible with for Chapter 12 bankruptcy. Among these documents are list of debt amounts and creditors, their related claims, income information, the debtor’s assets, and monthly living and faring expenses. All these documents are necessary for everyone filing for Chapter 12 bankruptcy regardless if they are going for individual, joint or separate petition. For spouses, even only one spouse file for the bankruptcy, financial documentations of the non-filing partner must also be provided.
Confirmation Hearing and Discharging
Repayment plan must be submitted within 90 days after the petition has been filed. The plan should have information on the amount that a trustee will handle to repay the creditors as indicated on the document. Confirmation hearing will be hearing will be conducted with aid from a trustee. When all repayments have been completed, the debtor will be discharged of Chapter 12 bankruptcy according to local rules.
Many individuals ask what is family fisherman. They are individuals who have certain rights in filing for bankruptcy according to Chapter 12 of the bankruptcy code. This helps them deal with financial problems and begin a new life after filing for bankruptcy.