Understanding the Family Fisherman (Bankruptcy) Definition and Implications
Definition & meaning
The term "family fisherman" refers to individuals or entities engaged in commercial fishing operations who meet specific financial criteria set by the Federal Bankruptcy Code. This designation is important for those seeking bankruptcy relief under Chapter 12, which is tailored for family farmers and fishermen. A family fisherman can be an individual, a couple, or a corporation/partnership primarily involved in commercial fishing, with particular attention to their debt levels and income sources.
Legal use & context
The designation of family fisherman is primarily used in the context of bankruptcy law, particularly under Chapter 12 of the Bankruptcy Code. This chapter provides a framework for family fishermen to reorganize their debts while continuing their fishing operations. Legal practitioners may assist clients in determining eligibility and navigating the filing process, often utilizing legal templates available through services like US Legal Forms.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A couple operates a small fishing business and has total debts of $1,500,000, with 90 percent of their debts related to their fishing operation. They derive 60 percent of their income from this business. They may qualify as a family fisherman under bankruptcy law.
Example 2: A family-owned fishing corporation has debts of $1,200,000, with 85 percent of its debts tied to fishing activities. If more than half of the stock is owned by family members, it may qualify for family fisherman status. (hypothetical example)
Relevant laws & statutes
The primary statute governing the definition of family fisherman is the Federal Bankruptcy Code, specifically 11 USCS § 101. This section outlines the criteria for individuals and entities engaged in commercial fishing to qualify for Chapter 12 bankruptcy relief.