Farming and fishing are unpredictable industries. Some of the things that can leave business owners struggling to pay their debts include bad weather, market fluctuations, and rising costs. When financial trouble hits, family farmers and commercial fishermen can use Chapter 12 bankruptcy to restructure their debt while keeping their businesses running.
Chapter 12 is a special type of bankruptcy designed specifically for farmers and fishermen. Unlike Chapter 7, which requires selling assets to pay creditors, Chapter 12 lets debtors create a repayment plan while continuing operations. This plan typically lasts three to five years and allows farmers and fishermen to repay their debts based on seasonal income.
To file for Chapter 12, you must meet the following criteria:
Chapter 12 works best for those who want to keep their business running while paying off debt. However, there are a few things to keep in mind:
If debt is threatening your farm or fishing business, Chapter 12 may offer a way forward. It provides protection from creditors and gives you time to repay what you owe. Contact O’Brien Law Firm, LLC, in Southaven, MS, today to discuss your options and get the legal guidance you need.
Life can be full of unexpected challenges. No one ever thinks they will face a lawsuit or deal with aggressive creditors, but it happens quite often. For families who have worked hard to build their wealth, protecting those assets is incredibly important. Protecting family wealth requires careful and strategic planning. If you are wondering how to keep your family’s financial future safe, here are some advanced strategies that can help.
A Family Limited Partnership, or FLP, is a smart way to protect family assets while keeping them within the family. An FLP involves transferring assets like property or investments into a partnership. Family members become limited partners, but control stays with the general partner, who is often a parent or family leader.
An Asset Protection Trust (APT) is one of the strongest ways to keep wealth safe. An APT takes assets out of your name and puts them into a trust controlled by a trustee. Because the trust cannot be changed once it is set up, creditors cannot access those assets. Offshore APTs offer even more protection since they are beyond the reach of U.S. courts.
Sometimes, how you own property can make all the difference. Married couples, for example, can title property as “Tenants by the Entirety.” This form of ownership protects property from creditors if only one spouse is in debt. Creditors cannot force the sale of the property to collect on a debt owed by just one partner. This simple change can offer a strong layer of protection for your family’s most valuable assets.
For business owners, accounts-receivable financing can be an effective tool for asset protection. This strategy involves borrowing against the money a business is owed and moving that cash into safer investments, like annuities or retirement accounts. By doing this, the business appears less valuable to creditors, and personal or family wealth stays secure.
O’Brien Law Firm, LLC, has the experience to create a personalized plan that keeps your financial future safe. Contact us today to start protecting what you have worked so hard to achieve.
Starting a business always comes with risks. For serial entrepreneurs in Mississippi, taking chances on multiple ventures can sometimes lead to financial hurdles down the road. When debts pile up and businesses struggle, filing for bankruptcy may feel like the only way out. However, bankruptcy is not always straightforward, especially for entrepreneurs who have started more than one business.
Bankruptcy is meant to help people and businesses manage debt, but it affects serial entrepreneurs differently. For small business owners, especially those who have started multiple ventures, bankruptcy often focuses more on personal financial issues than on saving a business.
Chapter 11 bankruptcy is one option for struggling businesses, allowing them to reorganize their debts. However, it can also trap entrepreneurs in a failing business longer than necessary. This situation is known as the “lock-in effect,” where staying with an existing business feels easier than starting a new one.
In Mississippi, entrepreneurs have several bankruptcy options to consider:
Filing for bankruptcy is stressful and complicated, but serial entrepreneurs face even more challenges.
O’Brien Law Firm, LLC, knows how challenging this process can be for serial entrepreneurs in Mississippi. Contact our team today to learn how we can help you move forward.
Estate planning becomes more complex when it involves leaving assets directly to grandchildren. The Generation-Skipping Transfer Tax (GSTT) was created to ensure that taxes are paid at each generational level. This tax can significantly impact how grandparents structure their estate plans, especially if they want to preserve wealth for future generations.
The GSTT is a federal tax applied to transfers made to “skip persons.” A skip person is typically a grandchild or any relative who is more than 37½ years younger than the person making the transfer. The tax applies to direct gifts, trust distributions, or transfers that bypass the immediate next generation. At a flat rate of 40%, the GSTT can create a major financial burden if not planned for effectively.
Below are various ways GSTT affects estate planning for grandchildren.
The GSTT reduces the value of assets reaching grandchildren if they exceed the current exemption amount. For 2025, the exemption is $13.99 million per individual. Any transfer beyond this limit is taxed at 40%, significantly lowering the inheritance for future generations.
Trusts are a common way to transfer wealth, but they must be managed properly to avoid unnecessary taxes. For example:
GSTT liability can arise from:
The GSTT adds another layer of complexity to estate planning, especially for those wishing to leave a legacy for their grandchildren. However, with proper planning, such as using trusts and allocating exemptions wisely, families can reduce its impact. If you are considering how the GSTT affects your estate plan, contact O’Brien Law Firm, LLC, today to learn how we can help you protect your family’s future.
Filing for Chapter 13 bankruptcy can be a turning point for people struggling with debt. Unlike Chapter 7, Chapter 13 allows individuals to reorganize their debts and create a repayment plan while keeping key assets like their home or car. However, it is important to understand how this decision can impact your financial future.
Chapter 13 bankruptcy stays on your credit report for up to seven years from the filing date. During this time, your credit score will be affected, making it harder to qualify for loans or credit cards. However, the structured repayment plan helps you establish a history of consistent payments, which can improve your credit over time. Some people find that their credit begins to recover shortly after completing the plan.
After filing for Chapter 13, you may face challenges in getting loans or credit. Lenders often charge higher interest rates or impose stricter terms. That said, tools like secured credit cards or small personal loans can help rebuild credit. Over time, these steps can make it easier to access better financial opportunities.
Chapter 13 requires a long-term commitment to following a strict repayment plan, which typically lasts three to five years. This process teaches better budgeting and spending habits, as every payment must be accounted for. Many individuals leave bankruptcy with stronger financial discipline, which can prevent future debt problems.
One of the biggest advantages of Chapter 13 is the ability to keep important assets. Homeowners can stop foreclosure proceedings and catch up on missed payments, while car owners can avoid repossession. This protection allows people to maintain stability and avoid losing items essential to their daily lives.
Completing a Chapter 13 plan results in the discharge of eligible debts. This fresh start provides an opportunity to rebuild savings, improve credit, and plan for the future without the weight of unmanageable debt.
While Chapter 13 bankruptcy can have challenges, it also offers a path to long-term financial recovery. If you are considering filing, contact O’Brien Law Firm, LLC, today to learn how we can help you take the next step toward financial stability.
