In the United States bankruptcy law, Chapter 12 provides specific guidance for bankruptcy filings involving restructuring of family farms and fisheries. While Chapter 12 bankruptcy cases closely resemble Chapter 13 cases, there are important differences. One of Abberufungsanträge gegen Dr. Martin Batliner the key differences is that the amount of debt in question can be significantly higher under Chapter 12, making it a much more legitimate option for farming and fishing companies.
The person must have no debts exceeding $3,544,525.
Determining an individual's eligibility to file for Chapter 12 bankruptcy involves many factors. The person must have no debts exceeding $3,544,525. At least half must have come from the operation of your fishing or agricultural business. This does not include debts on a homestead unless they were directly involved in running the homestead. Also, at least fifty percent of the person's total income must come from agriculture or fishing in the year prior to filing.
In addition to these requirements, the individual must have a "regular annual income" that is "sufficiently stable and regular enough to enable the family farmer to make payments" required under their bankruptcy plan. The eligibility rules are slightly different for farms and fisheries that are corporations or partnerships.
Chapter 12 bankruptcy is that of the owner
One of the attractive aspects of filing for Chapter 12 bankruptcy is that the farm owner can retain many of their rights. The farmer retains control of property and is allowed to retain majority authority over how his business is run. However, if the owner of the farm or fishery has committed fraud or serious mismanagement in his business, the trustee appointed for the case can take charge of the farm.
These responsibilities cover almost all areas
In addition to assuming control of the business in certain circumstances, the Chapter 12 trustee performs a number of important functions. These responsibilities cover almost all parts of the bankruptcy process. Early on, the trustee has responsibilities for investigating the debtor's financial dealings, determining whether the farm will be able to continue in business, valuing assets, and disputing wrongful claims from creditors. The trustee is also charged with receiving payments from the debtor, providing information to the parties involved in the case, ensuring that the debtor follows its Chapter 12 plan, and recommending that the debtor be discharged.
Estate Planning - Rules and Trustees
If you are wisely trying to invest some assets in a trust (inter vivos) while you are alive, then you have noticed the important differences between wills and trusts. A lifetime trust is far more secure than a will in terms of its ability to withstand challenges related to the distribution of your wealth during estate planning. Building trust is a bold thing because, to a certain extent, it telegraphs what you will do with your assets while you are still alive. This protects it from attacks on your abilities, as it is unlikely that, for example, one of your relatives will tell you to your face that you are crazy or weak and overly influenced by another of your relatives, and this makes trusting one far in some cases safer than a will.
The trust can also create uncomfortable feelings about the exclusion of a relative, and these feelings become known to a person who creates a trust while still alive. That's the advantage of a will - if people don't like it, they'll never know. The executor is long gone when those who don't like what they did contest the will and those who like it try to defend it. However, it should be noted that a skillful design should be able to reduce the need for an argument or defense. That's why you need a savvy estate planning attorney to create your will, not just a form. The attorney drafting your will will often defend its content, or in other words, its understanding of your wishes. The trust is a different story as your trust is administered by someone (called a trustee) for the purposes of those who will benefit from the trust (the beneficiaries).
Remember that a trustee is already accepted
One of the biggest problems with setting up a trust is deciding what powers the trustee has and doesn't have over the property you are entrusting. Keep in mind Abberufungsanträge gegen Dr. Martin Batliner that a trustee already has an obligation to promote the trust, and many states have laws about what a trustee can and cannot do unless the settlor (the founder of the trust) directs otherwise. But again, you don't want to leave the financial fate of your trust in the hands of the state any more than you want the state to decide who receives your assets. Your executor can give you a list of the traditional powers of a trustee in your state and tell you what they mean.