Chapter 12 Bankruptcy for Family Farmers & Fishermen in Fort Walton Beach, FL
Specifically designed for family farmers and commercial fishermen to reorganize debt while continuing their livelihoods.
Chapter 12 Bankruptcy — Tailored Relief for Family Farmers and Commercial Fishermen
Chapter 12 bankruptcy was created by Congress specifically for family farmers and commercial fishermen, recognizing the unique financial challenges of seasonal income and the importance of preserving family agricultural and fishing operations. It combines elements of both Chapter 13 (reorganization) and Chapter 11 (business reorganization) in a streamlined, more accessible package.
The Florida Panhandle has a rich tradition of commercial fishing, and many families in the Fort Walton Beach and Destin area depend on fishing operations for their livelihoods. Chapter 12 provides a lifeline for these families when debt becomes overwhelming, allowing them to restructure their obligations while continuing to operate.
Unlike Chapter 11, Chapter 12 is designed to be simpler and less expensive, with a more streamlined confirmation process. The debtor proposes a repayment plan of 3 to 5 years, and the plan can be confirmed without creditor approval in many cases. Importantly, Chapter 12 allows for the modification of secured debt on farmland and fishing vessels, which is not available in Chapter 13.
Attorney Shiraz A. Hosein understands the unique financial pressures facing farming and fishing families in Okaloosa County and is prepared to help you navigate Chapter 12 to protect your operation and your family's future.
Free Consultation
Speak directly with Attorney Hosein about your situation. No obligation, no judgment.
(850) 863-4064Send a Message909 Mar Walt Drive, Suite 1014, Fort Walton Beach, FL 32547
Key Benefits
Protect Your Farm or Fishing Operation
Continue operating your farm or fishing business while reorganizing your debt under court protection.
Modify Secured Debt on Land & Vessels
Reduce the principal or interest rate on loans secured by farmland or fishing vessels — not available in Chapter 13.
Accommodate Seasonal Income
Chapter 12 plans can be structured to accommodate the seasonal nature of farming and fishing income.
Automatic Stay Protection
Stop foreclosure on farmland, repossession of fishing vessels, and all other collection actions immediately.
Streamlined Process
Simpler and less expensive than Chapter 11, with a more accessible confirmation process.
Family Preservation
Designed to keep family farms and fishing operations in the family, not in the hands of creditors.
Who May Qualify
- Family farmers with regular annual income, where at least 50% of gross income comes from farming
- Total debt does not exceed $11,097,350 (for family farmers, as of 2024)
- Commercial fishermen with regular annual income, where at least 50% of gross income comes from commercial fishing
- Total debt for commercial fishermen does not exceed $2,268,550 (as of 2024)
- At least 50% of total debt arises from the farming or fishing operation
- The farming or fishing operation is ongoing and viable
The Process
Consultation
Review your farming or fishing operation's finances with Attorney Hosein.
Filing & Stay
File the petition; automatic stay immediately protects your operation.
Trustee Appointment
A Chapter 12 trustee is appointed to oversee the case.
Plan Filing
File your reorganization plan within 90 days of the petition date.
Plan Confirmation
Court confirms the plan after a hearing.
Plan Completion & Discharge
Complete plan payments and receive a discharge of remaining eligible debts.
Frequently Asked Questions
Ready to Take the First Step?
Contact Attorney Shiraz A. Hosein today for a free, confidential consultation. Serving Fort Walton Beach, Destin, Niceville, and all of Okaloosa County.