Open/Close Menu Bankruptcy Lawyer Port St Lucie | Palm City Lawyer | Serving Stuart, Jensen Beach, Vero Beach, and the entire Treasure Coast - Jon L Martin Attorney at Law

Most people think Bankruptcy falls under either Chapter 7 or Chapter 13. These are the basic consumer formats. Chapter 7 is basically a straight liquidation of non-exempt assets; while Chapter 13 supposedly allows a debtor to retain non-exempt assets through what is essentially a “buy-back” plan over a 3 to 5 years period.

chapter-12-bankruptcySome people (especially small business owners and high net worth individuals) are also aware that there is something “out there” called Chapter 11, of which there is even less known.

Chapter 11 is similar to Chapter 13, however it provides for a special set of rules and longer periods of time to deal with the much larger issues usually associated with these larger cases.

Mention Chapter 12 however, and most likely you will get blank stares and /or questioning double takes. Enacted in October of 1986 and effective that November, Chapter 12 is directed to Farmers and Fishermen, essentially because of the unique nature of their structure and providers of the nation’s breadbasket.

It came about in response to the “Farm Crisis” of the time which was causing a rapid collapse in Family Owned Farms.

Passed almost as an after thought in wrapping up that year’s legislative session, little thought was given to how the existing bankruptcy code would interface with the new provisions, particularly in regards to “the absolute priority rule,’ concerning capital gains taxes when large assets were sold in downsizing operations.

On October 26, 2017, President Trump signed Pub. L. 115-72, thus allowing family farmers to “de-prioritize” tax claims, effectively making them unsecured claims, unlike most tax claims in other Chapters of the Bankruptcy Code.

Effectively, the new rule serves to relieve the effects of capital gains that result when large farming equipment and other high cost assets are sold to in order to pay dividends to lesser priority classes. It stops the IRS from objecting to confirmation of a plan, thus avoiding forced liquidation and allowing survival of the enterprise.

For more information on bankruptcy and debt settlement issues, please contact Jon L Martin Bankruptcy Attorney at (772)419-0057 or visit us online http://jonlmartinlaw.com/. With over 40 years of combined legal and business experience, we have helped hundreds of people in and around Martin and St Lucie County to relieve their financial problems. Bankruptcy Lawyer Port St Lucie Florida and a chairman of Martin County Bar Bankruptcy Committee Jon L. Martin helps clients throughout the following cities and surrounding areas: Hobe Sound, Jensen Beach, Palm City, Port Salerno, Port St. Lucie, Stuart, Sewall’s Point, and the entire Treasure Coast of Florida.

By Bankruptcy Lawyer in Port St Lucie Jon L Martin, the author of “What Everyone ought to Know about Debt Relief Today!”

seniorsThe rate of people over the age of sixty-five who are filing bankruptcy has more than tripled since 1991, according to recent study done by the “Consumer Bankruptcy Project”. Continuing at the current rate, Bankruptcy Courts will soon be overrun with the financially devastated elderly. 12.2% of filers are now 65 or order, as opposed to 2.1% in 1991.

Increased out of pocket medical expenses; disproportionate social security increases compared to true cost of living increases; pension failures of collapsed companies; being saddled with student loan payments that children or grandchildren; cannot, or will not pay; late life divorce or death of a spouse all contribute to the phenomenon. For some, the problem is made worse by “disappearing pensions.” An estimated $156 billion in defined benefit pensions are unclaimed according to the “Pension Action Center” based at the University of Massachusetts.

Pensions become “lost” for a variety of reasons. They are transferred during corporate buyouts and restructurings. People change addresses or their last names and become unreachable. Workers are never notified or they forget they have benefits, or just give up on trying to locate the resource. While many of these “lost” pension plan payments may only amount to a few hundred dollars a month, it can amount to a life line for the elderly who have no other source of financial support beyond Social Security. By the time they get to Bankruptcy Court their savings are used up.

Bankruptcy, as financial relief for these folks is mostly a matter of “too little, too late.” While Bankruptcy allows they to eliminate most of their debt it also destroys their ability to refinance to lower mortgage payments and of course health care expenses are usually ongoing.

Nor is the problem limited to the current “retirement population” according to the study, “The next generation nearing retirement age is also filing for Bankruptcy in greater numbers. This is because the 55 to 60 age group is carrying substantially more debt headed into retirement than those who went before them. Combined with lower income and reduced buying power they are forced more and more to rely on credit for emergencies.

Until the Real Estate crash, they could rely on refinancing their mortgage to hold repayment loads in check but that is no longer an option. There is little to no equity left to justify and expanded mortgage and lenders are not starting to raise rates on all types of loans. Given the hard truths for those carrying unmanageable debt, regardless of age, the sooner they weigh the pros and cons of filing Bankruptcy the more likely they will be able to survive old age at a reasonable level.

For more information on bankruptcy and debt settlement issues, please contact Jon L Martin Bankruptcy Attorney at (772)419-0057 or visit us online http://jonlmartinlaw.com/. With over 40 years of combined legal and business experience, we have helped hundreds of people in and around Martin and St Lucie County to relieve their financial problems. Bankruptcy Lawyer Port St Lucie Florida and a chairman of Martin County Bar Bankruptcy Committee Jon L. Martin helps clients throughout the following cities and surrounding areas: Hobe Sound, Jensen Beach, Palm City, Port Salerno, Port St. Lucie, Stuart, Sewall’s Point, and the entire Treasure Coast of Florida.

I recently had a client come to me seeking bankruptcy help because she could no longer pay her bills due to an accident injury that left her unable to work. The wife of a retired Police Officer, she was mortified by the thought of having to file bankruptcy, but didn’t know what else to do. After an extensive interview with her I realized that her “bankruptcy problem” was the result of an accident caused by the carelessness of another which she had no part in.

Rather than simply file bankruptcy for her, we took on the case and helped her file a personal injury claim while simultaneously opening the door to negotiations with her creditors that allowed her to afford settlements of her debts at reduced amounts. We attained a settlement for her that not only recovered her out of pocket losses, but that also paid for all her outstanding, current and ongoing medical bills as well as her lost income from not being able to work!

Are you suffering financially because of the actions of someone else? Is it time to talk to a bankruptcy Attorney Port St Lucie about your situation before it’s too late to recover compensation that’s due you. No one really WANTS to file bankruptcy. They just usually find themselves in a situation with no understanding of how they ended up in such a mess!

A good bankruptcy attorney Port St Lucie knows more than just Bankruptcy! Let us help you determine if there are alternatives and wether or not Bankruptcy is right for you! Call us today . . . you’ll be glad you did! 772 419 0057

For more information on bankruptcy and debt settlement issues, please contact Jon L Martin Bankruptcy Attorney at (772)419-0057 or visit us online http://jonlmartinlaw.com/. With over 40 years of combined legal and business experience, we have helped hundreds of people in and around Martin and St Lucie County to relieve their financial problems. Bankruptcy Lawyer Port St Lucie Florida and a chairman of Martin County Bar Bankruptcy Committee Jon L. Martin helps clients throughout the following cities and surrounding areas: Hobe Sound, Jensen Beach, Palm City, Port Salerno, Port St. Lucie, Stuart, Sewall’s Point, and the entire Treasure Coast of Florida.