News & Analysis as of

Farms Bankruptcy Code

Amundsen Davis LLC

What’s In A Name? When Is A Farmer A Family Farmer Under The Bankruptcy Code?

Amundsen Davis LLC on

The United States Bankruptcy Code contains a special bankruptcy chapter for family farmers with regular income. Chapter 12 of the Bankruptcy Code allows family farmers to reorganize in a preferred way. For example, a family...more

Ruder Ware

Did You Know That?

Ruder Ware on

There are many legal rules covering farms – rules that producers might not be aware of. A farm building may not be covered by standard insurance. Farm buildings are exempt from the state building code. And many standard...more

Miller Canfield

Recent and Upcoming Changes to Bankruptcy Law That Affect Your Rights as a Creditor

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The Small Business Reorganization Act of 2019 ("SBRA"), the Honoring American Veterans in Extreme Need ("HAVEN") Act, and the Family Farmer Relief Act were enacted into law on August 23, 2019. This alert summarizes these...more

Kramer Levin Naftalis & Frankel LLP

Flow-through Tax Status as a Property Right? The Case of Schroeder Brothers Farms

A recent case from the Western District of Wisconsin, In re Schroeder Brothers Farms of Camp Douglas LLP, may raise a new issue for the bankruptcy treatment of tax attributes in flow-through entities. The court in Schroeder...more

K&L Gates LLP

Don’t Get Lost in the Weeds in Agriculture Bankruptcies

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Agricultural bankruptcies present special and specific issues. The nature of the collateral and the seasonality of the business present a host of questions that need to get answered in order to preserve any value in the...more

Rumberger | Kirk

Narrow Bankruptcy Reforms Make Big Changes for Small Business, Vets, Farmers

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Three important pieces of bankruptcy legislation were signed into law this summer. The legislation did not make substantial structural changes to the bankruptcy system, but the laws do meaningfully impact three important...more

Maynard Nexsen

Multiple Factors to Drive Increase in Family Farmer Bankruptcy Filings

Maynard Nexsen on

Signing the Family Farmer Relief (FFR) Act of 2019 was like opening a pressure release valve. American farmers have suffered increasing financial stress this year from numerous sources, so a change in the law making Chapter...more

Womble Bond Dickinson

Family Farmer Relief Act Expands Chapter 12 Bankruptcy Protections for Small and Mid-Sized Farms

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Running a family-owned farm is not easy work under the best of economic circumstances, and it can be nearly impossible when times are tough. More than 30 years ago, during the mid-1980s, John Cougar Mellencamp’s mournful song...more

Tucker Arensberg, P.C.

Three New Bankruptcy Amendments Become Law

On August 23, 2019, the President of the United States of America signed three new bankruptcy amendments into law.  The first bill, H.R. 3311, ratifies The Small Business Reorganization Act of 2019, creating a new option for...more

BCLP

Bankruptcy Code Amended: Congress Makes Chapter 12 More Accessible to Family Farmers and Creates New Chapter 11 Subchapter for...

BCLP on

On August 23, 2019, President Donald J. Trump signed into law two bills amending the Bankruptcy Code: (i) the Family Farmer Relief Act of 2019 (“FFRA”); and (ii) the Small Business Reorganization Act of 2019 (“SBRA,” and with...more

Husch Blackwell LLP

New Legislation Likely To Spur Increase In Bankruptcy Filings

Husch Blackwell LLP on

On August 23, President Trump signed into law two new pieces of legislation—the Family Farmer Relief Act of 2019 and the Small Business Reorganization Act of 2019—that will likely lead to an increase in bankruptcy filings...more

Ward and Smith, P.A.

New Law More than Doubles Chapter 12 "Family Farmer" Debt Limit

Ward and Smith, P.A. on

On Friday, August 23, 2019, the President signed into law the Family Farmer Relief Act of 2019. The Act increases the debt limit used to determine whether a family farmer is eligible for relief under Chapter 12 of the...more

Burr & Forman

Trump Signs Bankruptcy Bills Providing Economic Relief for Small Businesses, National Guard, Veterans, and Family Farmers

Burr & Forman on

On Friday, August 23, President Trump signed four bankruptcy bills into law: H.R. 3311, the “Small Business Reorganization Act of 2019”, which adds a new Subchapter V to Chapter 11 of the Bankruptcy Code in order to...more

Burr & Forman

Shelter from the Storm - Bankruptcy Relief Comes in Three's

Burr & Forman on

A trio of bankruptcy bills are sitting on President Trump’s desk awaiting his signature.  The three bankruptcy bills are the “Small Business Reorganization Act of 2019” (H.R. 3311), the “Honoring American Veterans in Extreme...more

Bradley Arant Boult Cummings LLP

The Family Farmer Relief Act of 2019: Will the Increased Debt Limit Lead to an Uptick in Chapter 12 Filings?

The United States Senate passed the “Family Farmer Relief Act of 2019” (H.R. 2336), which substantially increases the debt limit for agricultural producers seeking to file for relief under Chapter 12 of the United States...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Reorganization of the Family Farm: Recent Tax and Debt Limit Updates to Chapter 12

The past few years haven’t been so kind to farmers. It appears that this year will continue the recent trend of subpar net farm income and increasing debt levels due to several years of various detrimental factors, including...more

K&L Gates LLP

Dust Off Your Chapter 12 Knowledge: Increase to Debt Limits May Revive Family Farmer Bankruptcies

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On August 1, 2019 the U.S. Senate passed the Family Farmer Relief Act of 2019, which more than doubled the debt limit for “family farmers” qualifying for relief under Chapter 12 of the U.S. Bankruptcy Code to $10,000,000. ...more

Dorsey & Whitney LLP

House Harvests Increase in Farmer Eligibility for Bankruptcy – Senate Sows Seeds to Match

Dorsey & Whitney LLP on

On July 26, 2019, the U.S. House of Representatives passed H.R. 2336, the Family Farmer Relief Act of 2019.  The primary purpose of the bill, sponsored by Rep. Anthony Delgado (D-NY), is to increase the debt limit for filing...more

Robins Kaplan LLP

Elkhorn Crossing, LLC: An Equity Cushion is Not Enough

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“Don’t Bet The Farm On It” When is a million dollar equity cushion not enough? Despite a purported cushion of at least $1.2 million, the Bankruptcy Court for the District of Nebraska recently held that a proposed Chapter 12...more

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