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"Texas Family Farmer"
In general, to be considered a Texas Family Farmer under Chapter 12
of the Federal Bankruptcy Code, the majority of the debtor's income must be
derived
from actual farming operations, and, as an additional condition of
filing Chapter 12 as a Texas Family Farmer, annual net farm income must be sufficient to
support regular annual payments to the trustee
for disbursement to creditors.
| 11 U.S.C. 101(18) defines an individual family farmer as a person, and spouse if any, engaged in a farming operation whose aggregate debts
do not exceed $1,500,000 and not less than 80 percent of whose aggregate noncontingent, liquidated debts
(excluding a debt for the principal residence of such individual or such individual and spouse unless such debt
arises out of a farming operation), on the date Texas bankruptcy is filed, arise out of a farming operation owned or
operated by such individual or such individual and spouse, and such individual or such individual and spouse
receive from such farming operation more than 50 percent of such individual's or such individual and spouse's
gross income for the taxable year preceding the taxable year in which the Texas bankruptcy concerning such individual or
such individual and spouse was filed. |
Words and phrases used by the court are frequently terms of legal art. In practice, legal terms convey an assortment of requirements for compliance, according to case law, statutes and rules. Although the common usage of a word or phrase may be clear to an average person, legal terminology easily snares unaware pro se debtors because of the complexity of bankruptcy laws. Also be aware, attorneys representing creditors readily sense a pro se debtor's apprehension, and test their knowledge, confidence and compliance. For this this reason, pro se debtors must become their own best advocate, and be capable of defending their right to debt relief according to current laws.
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