Those who own a family farm in the state of New York may be eligible to file for Chapter 12 bankruptcy. The same may be true for individuals who work as fishermen. If you fall into these categories and you are facing foreclosures and repossessions, you may want to consider Chapter 12.
Required credit counseling
Typically, the law requires you to attend a credit counseling session no more than 180 days prior to filing your bankruptcy petition. You must show proof that you completed an approved credit counseling course when you file your petition. If you fail to do so within three days of taking this step, your case will likely be dismissed. An exception may be made if you have complied with this requirement but are waiting to receive your certificate of completion. In such a scenario, you’ll have 14 days to provide this document before the case is dismissed.
The court may waive this requirement
The court where your case is being heard may decide to waive the credit counseling requirement at its discretion. Typically, waivers are granted to debtors who are serving in the military or who have a mental impairment that prevents them from meeting this requirement. It’s also possible that a waiver will be granted if you cannot find a credit counseling provider who is approved by the court.
How do you know if a credit counseling agency is approved by the court?
You will likely be able to find a list of approved providers by going to the court’s website. Your Chapter 12 bankruptcy attorney may also be able to provide you with a list of agencies that can help you meet this requirement in a timely manner.
If you are struggling to repay debts incurred while engaged in the trades of farming or fishing, it may be in your best interest to consider bankruptcy. An attorney may be able to explain the process of filing for Chapter 12 bankruptcy, the potential benefits of doing so and how to comply with credit counseling requirements.
