Types of Bankruptcy in Kansas and Missouri
The Kansas and Missouri Bankruptcy Code is typically divided into these chapters:
Chapter 7, known as a Liquidation.
Chapter 11, typical option for small to large business (LLC, partnerships, or Corporations.
Chapter 12, special bankruptcy option for farmers.
Chapter 13, known as an Adjustment of the Debts, and a 3 to 5 year repayment plan.
Chapter 12 Bankruptcy Details
An even more rare type of bankruptcy is the Chapter 12. Congress decided that there was a need to look out for our farmers and fisherman who provide for the country, so they created this special Chapter for them. Chapter 12 is also a repayment plan, and can be for individuals, corporations, or partnerships. Individual Chapter 12 debtors must:be engaged in a farming or commercial fishing operation, have total debts of not more than $4,031,575 if they are farmers, or $1,868,200 if they are fishermen, owe 50% of their total debts on account of farming operations, or 80% of their total debts on account of commercial fishing operations (excluding home mortgages), and make over 50% of their gross income from farming or commercial fishing operations. If you cannot obtain a confirmable repayment under Chapter 12 you may want to consult with an attorney about converting to a Chapter 7 liquidation case.