Understanding the Family Fisherman (Bankruptcy) Definition and Implications

Q: Can a family fisherman file for bankruptcy?

Yes, family fishermen can file for bankruptcy under Chapter 12, which is designed for family farmers and fishermen.

Q: What are the eligibility requirements for family fishermen?

Eligibility requires that debts do not exceed $1,757,475 and that a significant portion of income comes from fishing operations.

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.

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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.

Key legal elements

Individuals or couples engaged in a commercial fishing operation.
Aggregate debts must not exceed $1,757,475.
At least 80 percent of noncontingent, liquidated debts must arise from the fishing operation.
More than 50 percent of gross income must come from the fishing operation in the year preceding the bankruptcy filing.
For corporations or partnerships, more than 50 percent of stock must be held by one family or their relatives.

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.

Comparison with related terms

Term	Definition	Key Differences
Family Farmer	An individual or family engaged in farming operations.	Family fishermen focus on fishing operations, while family farmers are involved in agriculture.
Chapter 7 Bankruptcy	A liquidation bankruptcy for individuals and businesses.	Chapter 12 is specifically for family farmers and fishermen, allowing for reorganization rather than liquidation.

Common misunderstandings

What to do if this term applies to you

If you believe you qualify as a family fisherman and are considering bankruptcy, start by assessing your financial situation against the criteria outlined above. It may be beneficial to consult with a legal professional who specializes in bankruptcy law. Additionally, explore resources like US Legal Forms for templates that can help you prepare necessary documents efficiently.

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Quick facts

Attribute	Details
Debt Limit	$1,757,475
Income Requirement	More than 50 percent from fishing operations
Debt Composition	At least 80 percent related to fishing
Eligible Entities	Individuals, couples, corporations, partnerships