Will my property or equipment be protected?

I have been farming for 25 years, it is my only source of income for both my wife and I Within the last 5 years I had to buy new equipment and renovate some barns and I can’t keep up with my payments. Since farming is my livelihood, will my property or equipment be protected if I file bankruptcy or will I lose everything?

One Comment

  1. Farmers have there own bankruptcy section found in Chapter 12. I have no experience with this chapter and therefore can not give any recommendations. However, you could always file a chapter 13 re-payment plan if a Chapter 12 plan would not work. Also depends on the amount of “equity” you have in the equipment as to whether you can protect it from the trustee in bankruptcy in a chapter 7. A secured debt has to be “re-affirmed” in a chapter 7 or the item (farm equipment for example) has to be returned to the creditor. This is assuming the secured creditor “perfected” their rights in that piece of equipment. I put up a link here should you wish to learn more about chapter 12.

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