Dedicated South Dakota Lawyers Help Family Farmers Seek Relief from Financial Hardship

Compassionate Rapid City law firm represents clients in Chapter 12 bankruptcy cases

In South Dakota as elsewhere in the U.S., family farmers often struggle financially due to market conditions, low income and disruptions due to weather and other causes. When problems become insurmountable, a Chapter 12 bankruptcy offers a way to restructure and repay debt over an extended period while keeping the farm in operation. At Anker Law Group in Rapid City, we assist family farmers throughout South Dakota and Wyoming in pursuing this powerful remedy. You can trust in our experience and our compassionate approach in helping you resolve your debt situation.

Skilled lawyers assess farmers’ eligibility for Chapter 12 bankruptcy

An individual or a married couple can file for Chapter 12 relief if they are engaged in a farming operation with total debts below a certain threshold, which the Family Farmer Relief Act of 2019 has raised to $10 million. At least 50 percent of the total debts must stem from the farming operation and more than 50 percent of the debtor’s gross income must be attributable to the farm.

Sometimes, a corporation or partnership can qualify for Chapter 12. Our attorneys will review your situation to determine your eligibility.

A sure-handed guide through the Chapter 12 process

A Chapter 12 bankruptcy starts with the filing of a petition, along with a schedule of assets and liabilities. An automatic stay goes into effect, preventing creditors from pursuing collection actions against you. After preliminary review of your case, including a meeting with creditors, you may propose a plan for repaying part of your unsecured debt over a period of three to five years, after which the remaining debt will be discharged. The court will approve the plan if it is found reasonable. Creditors have no say.

We will help you navigate the bankruptcy process from start to finish, providing clear, reliable guidance.

Understanding the benefits of Chapter 12

A Chapter 12 bankruptcy has certain unique features that make it particularly advantageous:

• Although secured debts must be repaid in full, you can reduce (“cram down”) the debt to the current market value of the underlying property in certain circumstances.
• Rather than making regular monthly payments, you can make seasonal payments timed to crop or livestock sales.
• You can lease or sell farmland, equipment or other property with court approval, and you may be able to avoid tax liability on the sale of those assets.
• If you cannot meet your plan obligations due to a medical condition or to natural disasters, you may be eligible for a hardship discharge of remaining debt.

Our experienced attorneys will thoroughly evaluate your finances to develop a workable repayment plan and we will provide counsel throughout the repayment period.

Contact a knowledgeable South Dakota bankruptcy lawyer

The Anker Law Group in Rapid City, South Dakota represents family farmers who are filing for Chapter 12 bankruptcy. Schedule a free initial consultation by calling us at 605-519-5967 or contacting us online.