Maine Bankruptcy Chapter 12:
Chapter 12 is only open to farmers and fishermen. It also has requirements that a majority of the debts have derived from the business. If you are eligible for this Chapter, it operates like Chapter 13, but affords a greater opportunity to modify a mortgage or business loan, and stretch out the payments for the useable life of the property, instead of the 5 year limitation in Chapter 13. It is especially attractive for people with boat or farm equipment loans.
FISHERMEN AND LOBSTERMEN CAN NOW EXEMPT A BOAT UP TO 45 FEET IN LENGTH
After seeing several clients lose their boats in Chapter 7 or have to pay in the value of the boats in Chapter 13, I decided it was time to take action. With help from a local legislator, Janice Cooper of Yarmouth, we brought a bill to change Maine’s fishing boat exemption from 5 tons burden to 45 feet in length. In April, the legislature enacted the bill and Governor LePage signed it on an emergency basis to make it effective immediately!
As a result of this new legislation, fisherman and lobstermen no longer face losing most boats 30 feet or longer and can now exempt from lawsuits or bankruptcy a fishing vessel up to 45 feet in length!
Our office has met with great success modifying mortgage loans of lobstermen, fishermen, and farmers in Chapter 12. If you meet eligibility requirements, we can often modify your home mortgage by reducing the debt to the value of the house and repaying that debt over a new 30 year period at 5 or 6% interest. This means more farmers and fishermen can save their homes from foreclosure without struggling to get a traditional loan modification. If you are a farmer or fisherman with a house in foreclosure or serious default, please call us today!