When financial strain threatens the legacy of your family farm or fishing operation, it’s easy to feel like you’re out of options. Fortunately, Chapter 12 bankruptcy was designed specifically to give family farmers and fishermen in Arkansas and Oklahoma a real chance to regroup and rebuild—without losing everything.

What Is Chapter 12 Bankruptcy?

Chapter 12 is a special type of bankruptcy reserved for family farmers and fishermen. Unlike Chapter 7 or Chapter 13, it offers flexible repayment options that take into account the seasonal and cyclical nature of agricultural and fishing income. It also allows qualifying individuals to:

• Avoid liquidation of essential assets like farmland, equipment, and boats
• Consolidate and restructure debt into manageable payments
• Negotiate with creditors under court supervision
• Continue operations while repaying debts over 3 to 5 years

This form of bankruptcy was created to acknowledge the unique challenges rural business owners face, including unpredictable weather, fluctuating markets, and rising production costs.

Who Qualifies for Chapter 12?

To be eligible, you must meet specific requirements. Generally, you must:

• Be engaged in farming or commercial fishing operations
• Have regular annual income from those operations
• Have total debts that fall within current federal debt limits for Chapter 12
• Use at least 50% of your income (farming) or 80% (fishing) from the operation
• Be a family-owned business or individual operator

If you’re unsure whether your situation qualifies, speaking with a Chapter 12 bankruptcy attorney can give you clarity and direction.

Why Chapter 12 Matters in Arkansas and Oklahoma

Family farms and fishing businesses are the backbone of rural economies in both Arkansas and Oklahoma. Yet when droughts, floods, inflation, or market instability hit, even the most careful planners can fall behind on loans and bills. Without help, those setbacks can turn into lawsuits, foreclosures, or asset seizures.

Chapter 12 offers a lifeline to preserve not just your livelihood, but your way of life. It protects your land and equipment while giving you the breathing room to get back on your feet. And with the right legal team, the process can be far less overwhelming than you might expect.

How Carl W. Hopkins, PA, PA Can Help

With extensive experience in bankruptcy law and deep roots in the Van Buren area, our team understands what’s at stake for hardworking families. We’ll help you:

• Determine your eligibility for Chapter 12
• Prepare and file your petition
• Develop a customized repayment plan that works for your operation
• Represent you in all court proceedings and creditor negotiations

Our goal is to protect your assets and keep your business running while we work toward a solution that helps you recover financially and move forward with confidence.