Chapter 12 bankruptcy is a unique legal provision designed specifically for family farmers and family fishermen experiencing financial hardship. Unlike Chapter 7 or Chapter 13 bankruptcy, which are more common among individuals, Chapter 12 provides relief that takes into account the seasonal nature and operational structure of agricultural and fishing businesses.
It enables debtors to reorganize their finances and propose a repayment plan that spans three to five years. This helps them retain assets, continue operations, and work toward financial recovery.
At CAVA Law, we understand how vital your farming or fishing operation is to your livelihood and your family. Chapter 12 was developed to support small agricultural businesses in ways that reflect the unique economic challenges of the industry. Suppose you are based in Coral Gables, Miami, or anywhere else in Florida, and you believe this form of bankruptcy may apply to your situation. In that case, it is essential to understand whether you qualify and how the process works.
Eligibility for Chapter 12 bankruptcy is strictly defined under federal law. To qualify as a family farmer, the individual or entity must meet several criteria.
The operation must be commercial in nature and not solely for personal consumption. The debtor’s total debts must not exceed $11,097,350 (as of the 2022 adjusted limit). At least 50 percent of the total debts (excluding a home mortgage) must be related to farming operations. More than 50 percent of the gross income in the preceding tax year must come from the farming business.
Similarly, for family fishermen, the debt limit is $2,268,550, with 80 percent of the total debt stemming from commercial fishing activities. Over 50 percent of the gross income must be derived from fishing in the previous year.
Both individuals and business entities, such as partnerships and corporations, may qualify, provided they meet these requirements. Working with a Chapter 12 bankruptcy attorney in Coral Gables can help ensure that the eligibility criteria are evaluated adequately before filing.
Although Chapter 11 and Chapter 13 bankruptcy provide avenues for debt restructuring, neither is as flexible for farmers or fishermen as Chapter 12. Chapter 11 is more suitable for large businesses and is often cost-prohibitive for smaller operations.
Chapter 13, while used by many individual debtors, imposes debt limitations and does not offer the same level of protection for farm equipment or fishing vessels. Chapter 12, on the other hand, is streamlined and less expensive.
It includes features such as the ability to reduce certain secured debts to the value of the collateral, extend repayment terms that match seasonal income patterns, and delay payments to secured creditors when necessary. These features make Chapter 12 an appealing option for eligible parties. Farmers and fishermen working with a Chapter 12 bankruptcy law firm in Florida gain access to legal strategies that allow them to remain operational during the repayment period.
Filing for Chapter 12 bankruptcy involves several critical steps that must be completed in a timely and organized manner. Proper preparation and legal oversight are essential to ensure eligibility, protect key assets, and submit a repayment plan that meets court standards. Below is an overview of the process and what debtors can generally expect once they begin the filing procedure:
Working with a Chapter 12 bankruptcy attorney ensures your filing meets legal requirements and protects your essential assets. You can also explore our Practice Areas for additional support related to insolvency and debt matters.
Chapter 12 is a reorganization plan rather than a liquidation, and the goal is to help the filer regain financial stability. Upon successful completion of the plan, any remaining eligible debts are discharged.
This fresh start allows family farms and fishing operations to continue contributing to their communities and maintaining long-term operations. Compliance with court requirements during the repayment period is crucial to obtaining discharge.
Ongoing legal support can make this process easier, especially if plan adjustments or creditor enforcement issues arise. A Chapter 12 bankruptcy lawyer can guide you throughout this process. To learn more about our approach, visit our team page.
Chapter 12 bankruptcy includes several provisions that can be difficult to interpret or apply without experience. Understanding what qualifies as farm-related debt or how to structure a repayment plan around irregular income can present challenges.
Choosing the right law firm ensures that your case is filed on time and in compliance with all legal expectations. At CAVA Law, our team is dedicated to delivering personalized legal support tailored to the needs of each individual and business we serve.
We analyze your financial picture, anticipate legal roadblocks, and work with you to design a sustainable path forward. If you are a farmer or fisherman in Florida wondering if you qualify for Chapter 12, speak with a Chapter 12 bankruptcy attorney in Coral Gables today.
Bankruptcy does not have to mean closing your doors. Chapter 12 was created to protect the future of farming and fishing families by allowing them to restructure debt without losing the operations they have built.
If you are in Coral Gables or anywhere in the Miami area, CAVA Law can help you explore whether Chapter 12 is the right option. Our firm offers trusted legal counsel in insolvency, debt disputes, and financial restructuring. With the proper guidance, you can regain control and rebuild with confidence.
Contact our team at CAVA Law for reliable support. If you are ready to protect your business and restructure your obligations, contact us today.
Small business owners in Florida face growing pressure from rising interest rates, supply chain disruptions, and customer defaults. When these financial challenges become unsustainable, bankruptcy may provide a path to reorganization and recovery. Subchapter V of Chapter 11 bankruptcy was introduced to make this process more efficient and affordable for small businesses that want to stay open.
Subchapter V is specifically designed for small businesses with debt under a certain threshold, providing streamlined procedures that avoid the high costs and complications associated with traditional Chapter 11. At CAVA Law, we help small business owners in Coral Gables, Miami, and across Florida understand whether this reorganization option is the right solution. If your company is facing creditor pressure, payroll issues, or looming defaults, it is worth evaluating Subchapter V with the help of a bankruptcy attorney.
To qualify under Subchapter V, a business must meet specific criteria. As of 2024, the debt limit for eligibility is $7.5 million, and at least 50 percent of that debt must be tied to commercial business activity.
The business may be structured as a sole proprietorship, a partnership, an LLC, or a corporation. Unlike standard Chapter 11, Subchapter V does not require formation of a creditors’ committee, and it permits the owner to retain control of the company throughout the case.
Small businesses in Florida that are experiencing short-term losses, cash flow disruptions, or creditor lawsuits may benefit from this more flexible approach. Working with a bankruptcy lawyer in Florida is critical in determining whether you meet the criteria and how to structure your case to preserve your operations.
Subchapter V alleviates many of the procedural burdens associated with Chapter 11, which can be too costly or time-consuming for small business owners. One of the key benefits is that it allows owners to maintain control without the need for a disclosure statement or competing plans from creditors.
There is also no requirement for approval from an impaired class of creditors. Instead, the court appoints a Subchapter V trustee whose role is to assist in the process, not take control of the case. The debtor can spread debt payments over three to five years and may even be able to reduce secured debts to the value of the collateral.
These features make Subchapter V a more viable and business-friendly option for reorganization. A qualified bankruptcy attorney in Florida can help you build a plan that focuses on long-term survival and avoids unnecessary litigation with creditors.
Subchapter V cases move faster than standard Chapter 11 filings. After the petition is filed, the court schedules a status conference within 60 days. The debtor must file a reorganization plan within 90 days unless an extension is granted.
Working with a Subchapter V bankruptcy attorney ensures your plan is realistic and complies with legal requirements. The plan must show how the debtor intends to repay creditors over the proposed term using projected disposable income.
Unlike Chapter 13 for individuals, Subchapter V does not require the liquidation of non-exempt assets. This allows businesses to maintain their operating equipment, inventory, and other essential tools necessary for their recovery.
Subchapter V also permits the use of projected income, allowing future revenue to be used to fund the plan rather than relying solely on existing resources. This forward-looking structure is beneficial for seasonal or recovering businesses in the Coral Gables and Miami areas.
While Subchapter V is intended to simplify the reorganization process, there are still legal pitfalls that can cause delays or dismissal. Incomplete financial disclosures, unrealistic projections, or failure to make required payments can all lead to problems during the plan confirmation stage.
Additionally, business owners sometimes wait too long to seek help, making it harder to regain control once the company is in steep decline. Early consultation with a bankruptcy attorney can help avoid these outcomes.
Proper planning, complete documentation, and a realistic approach to creditor negotiations are essential to a successful filing. At CAVA Law, we guide small business clients through every phase of the process, ensuring compliance and helping them protect their core operations.
Since its creation in 2020 under the Small Business Reorganization Act, Subchapter V has helped thousands of businesses nationwide. Industries ranging from construction and food services to retail and logistics have used this streamlined process to cut unsecured debt, restructure leases, and reduce burdensome vendor contracts.
In Florida, local businesses have used Subchapter V to preserve jobs, renegotiate terms with suppliers, and stay open while resolving disputes in court. Business owners who have historically avoided Chapter 11 due to stigma or cost now have an alternative that is both efficient and business-focused.
The best time to explore this option is before lawsuits or judgments restrict your ability to make decisions. Speak with a bankruptcy attorney in Florida as early as possible to assess your options.
At CAVA Law, we offer practical, forward-thinking legal guidance centered on long-term stability. We begin by reviewing your business’s financial picture and identifying the most viable path for debt relief.
If Subchapter V is appropriate, we help prepare the necessary filings, communicate with the court and creditors, and ensure that your repayment plan is positioned for approval. You retain control of your business throughout the case, and we work closely with you to protect assets, contracts, and personnel.
To learn more about how we support businesses across Florida, visit our team page for more about our experience in commercial bankruptcy matters.
Small businesses are the backbone of Florida’s economy, and Subchapter V provides a powerful tool to keep them alive during periods of financial stress. If your company is struggling to meet obligations, facing collections, or anticipating future insolvency, this reorganization path may be worth pursuing.
CAVA Law helps business owners across Coral Gables, Miami, and beyond use Subchapter V to protect what they’ve built and secure the future of their operations. We offer clear legal strategies, responsive support, and a deep understanding of how small businesses operate.
If you’re ready to restructure your debts and continue moving forward, contact us today to speak with our team.
Financial strain can build slowly over time or appear suddenly after a major life event. When debt becomes unmanageable, many individuals and business owners feel unsure about what options remain. At CAVA Law, we work with clients across South Florida who are facing serious debt challenges. For those overwhelmed by financial pressure, bankruptcy may be the tool that allows them to reset and move forward with clarity.
Understanding when it’s appropriate to file for bankruptcy is not always obvious. People often wait too long, hoping to resolve their situation without legal intervention. But early legal support from a bankruptcy attorney in Coral Gables, Florida, can help you identify practical solutions and protect your remaining assets before further damage occurs.
If you find yourself relying on credit cards to pay for groceries, gas, or monthly bills, this may be more than a temporary cash flow problem. Consistently using borrowed money to cover basic expenses often signals that your income can no longer sustain your debt load. This pattern can lead to a cycle of high-interest balances and minimum payments that only worsen your financial situation.
A bankruptcy filing can discharge many unsecured debts and help you regain control over your income. It also provides immediate relief from accumulating interest and creditor harassment, giving you a pathway toward financial recovery.
When debt goes unpaid long enough, collection efforts usually escalate. This can include lawsuits, wage garnishments, bank levies, or liens placed on your property. If you’ve received notices of legal action or judgments have already been entered, it’s time to consult legal counsel.
At CAVA Law, we assist clients in understanding their rights when facing creditor lawsuits. Filing for bankruptcy can stop legal actions through the automatic stay, a court order that halts most collection activity as soon as the bankruptcy petition is filed. A skilled debt relief lawyer in Coral Gables, Florida, can help you evaluate which type of bankruptcy best protects you from ongoing litigation.
Housing costs are typically a person’s most significant monthly expense. If you’re missing payments on your mortgage or struggling to cover rent, this can put your long-term stability at risk. In Florida, foreclosures can move quickly, and once eviction proceedings begin, tenants have limited time to respond.
Chapter 13 bankruptcy may allow homeowners to catch up on missed mortgage payments through a structured repayment plan. Tenants may also benefit from the delay that bankruptcy provides while seeking alternative housing or negotiating terms. These protections only apply once a case is filed, which is why timing is critical.
When minimum payments no longer reduce your principal balance or when your total debt far exceeds your annual income, it may be time to step back and reassess your options. Carrying significant unsecured debt, such as credit cards, personal loans, or medical bills, often becomes impossible to manage without relief.
Through bankruptcy, many of these obligations can be discharged, allowing you to start fresh without being burdened by debts you cannot repay. A consultation with a bankruptcy lawyer in Coral Gables, Florida, can clarify what you qualify for, how your assets will be affected, and what your post-bankruptcy finances could look like.
Debt doesn’t just harm your bank account. It takes a toll on your mental and physical well-being. Constant calls from collectors, fear of lawsuits, and shame around money issues can lead to anxiety, depression, and even physical illness. Financial stress is one of the most common sources of long-term emotional strain for individuals and families.
Choosing bankruptcy is not a failure. It is a legal solution designed to protect people when their debts become unsustainable. When your financial situation starts to affect your health, it’s time to act.
Recognizing the signs that it may be time to file for bankruptcy can be difficult, especially when emotions and uncertainty are involved. At CAVA Law, we work with individuals and business owners throughout Coral Gables to assess their financial situation, explore all available legal options, and guide them toward meaningful debt solutions. Our firm offers judgment-free support backed by experience in both personal and business bankruptcy law. Contact us today to take the first step toward regaining control over your finances.
Debt can quickly become overwhelming when income fails to keep up with growing financial obligations. For Florida residents who want to avoid foreclosure or stop creditor pressure without liquidating their assets, Chapter 13 bankruptcy may offer a structured path forward. At CAVA Law, LLC, we help individuals in Coral Gables and across South Florida understand how Chapter 13 works and what to expect at every stage.
Unlike Chapter 7, which focuses on liquidating assets, Chapter 13 allows you to reorganize your debts and repay a portion over time. It is designed for those with a steady income who want to retain property while catching up on missed payments. A Chapter 13 bankruptcy attorney in Coral Gables, Florida can help you prepare a repayment plan that meets both court requirements and your personal financial needs.
Before filing, the first step is determining whether you qualify. Chapter 13 is available to individuals with regular income and debt levels under the thresholds established by federal law. If your unsecured debts (like credit cards and medical bills) and secured debts (like mortgages or auto loans) fall within those limits, you may be eligible to proceed.
In addition, you must not have had a recent bankruptcy case dismissed or filed in bad faith. The court will review your financial records, income sources, tax filings, and debt obligations. Our firm evaluates your situation thoroughly before any petition is filed to ensure you meet the requirements and have a realistic repayment path.
Once eligibility is confirmed, the next step involves gathering financial documentation. This includes pay stubs, tax returns, monthly living expenses, a list of debts, and a full accounting of assets. Your attorney will use this information to prepare the official bankruptcy petition and your proposed repayment plan.
After filing, an automatic stay goes into effect. This court order stops most collection activity, including wage garnishments, foreclosure proceedings, and creditor calls. Filing with a bankruptcy lawyer in Coral Gables, Florida ensures that your documents are accurate and complete, which helps avoid delays or case dismissal.
Your repayment plan must propose to pay a portion of your debts over three to five years. How much you pay depends on your income, expenses, and the types of debt you owe. Priority debts, such as recent taxes or child support, must be paid in full. Secured debts may be caught up over time, while unsecured creditors may receive only a fraction of what you owe.
The plan must be submitted to the bankruptcy trustee and reviewed for compliance. If accepted, the plan becomes a binding agreement between you, your creditors, and the court. At CAVA Law, LLC, we help clients structure repayment plans that meet legal standards and provide a manageable monthly budget.
About a month after filing, you’ll be required to attend a meeting with the bankruptcy trustee. This is known as the 341 Meeting of Creditors. Creditors can attend, but most often, only the trustee asks questions. You must answer under oath about your income, debts, and repayment plan.
This step is critical because any inconsistencies or missing information can delay your case. Being prepared with the help of a debt relief attorney in Coral Gables, Florida gives you confidence and protects your rights during this process. Once this meeting concludes, your case moves toward plan confirmation.
If the court approves your repayment plan, you must begin making monthly payments as outlined. These payments go to the trustee, who distributes funds to creditors. Staying current with plan payments is essential. If you miss payments without court approval, your case could be dismissed.
After successfully completing the plan, any remaining eligible unsecured debts are discharged. This means you are no longer legally required to repay them. Your credit report will reflect that you completed Chapter 13, and you’ll be free from the burden of those obligations.
Chapter 13 bankruptcy gives Florida residents a powerful option for regaining financial control without losing their home or vehicle. With legal guidance, the process becomes manageable and outcomes more predictable. At CAVA Law, LLC, we help clients build repayment plans that align with their income and goals, while protecting them from creditor pressure. Our firm is committed to delivering reliable solutions and supportive representation at every stage of the process. Contact us today to speak with our team and start building a more stable financial future.
From Mall Rat to Midlife Crisis – Is it the End for Forever 21? All millennial 30 & 40-somethings want to know!
Forever 21, the American fast-fashion retailer, filed for Chapter 11 bankruptcy protection for the second time on March 17, 2025. This move comes amid mounting financial challenges and an increasingly competitive retail landscape. Because it has filed under Chapter 11, which is a reorganizing chapter of the Bankruptcy Code, the brand still has a fighting chance!
The company cited several factors contributing to its financial distress:
Forever 21 announced plans to close all 350 of its U.S. stores by mid-2025, unless a buyer emerges to take over some or all of its operations. The company has initiated liquidation sales across its U.S. locations to sell off inventory. Interesting enough, stores outside the United States are not affected by the bankruptcy and continue to operate under separate licensing agreements. Forever 21’s parent company, Authentic Brands Group, is exploring options to keep the brand alive through licensing agreements and potential online ventures. However, the future of the brand in the U.S. market remains uncertain.
In the Chapter 11 bankruptcy proceedings of 23andMe, the court implemented several measures to manage the company’s extensive genetic material assets responsibly.
On May 14, 2025, Regeneron Pharmaceuticals emerged as the winning bidder in a bankruptcy auction, agreeing to acquire 23andMe’s assets for $256 million. The acquisition encompasses 23andMe’s Personal Genome Service, Total Health and Research Services, and its biobank containing genetic samples and data from approximately 15 million customers.
Regeneron has committed to upholding 23andMe’s existing privacy policies and ensuring compliance with relevant data protection laws. The assigned CPO (Consumer Privacy Ombudsman) in the bankruptcy, Neil M. Richards, is tasked with reviewing the transaction to ensure that customer data is handled appropriately and that privacy commitments are maintained.
Customers retain control over their genetic data. They can delete their data and close their accounts through 23andMe’s account settings. Additionally, customers who previously consented to research participation can withdraw their consent at any time.
The bankruptcy court will consider the CPO’s findings before approving the sale to Regeneron. The court’s decision will hinge on whether the transaction respects consumer privacy rights and complies with all relevant legal standards. The sale is expected to close in the third quarter of 2025, pending court and regulatory approvals.
Divorce and bankruptcy are both challenging life events, and they often intersect in ways that can significantly impact your financial and legal situation. If you’re considering or currently going through either, it’s important to understand how they might affect each other.
If you’re facing the complexities of divorce and bankruptcy, our experienced team is here to help. Contact us for personalized guidance to navigate these challenges with confidence.
By: Christina Vilaboa-Abel, Esq.
CAVA Law’s Christina Vilaboa-Abel had the privilege of appearing on UNIVISION’s “La Voz de la Mañana” today with host extraordinaire of “Reto Economía,” Erick Cuesta @erickcuestatv. Today the “Reto Economía” segment, which airs to provide the Hispanic community all over the country with financial advice, focused on the legal process of bankruptcy. Christina differentiated between the truths and the myths of the bankruptcy process for the audience. Thank you Erick Cuesta, Univision Noticias & ViX for inviting us on the air! Always aCAVAndo™!
Personal guarantees are common in various business transactions, yet many individuals may not fully understand their implications. In this blog post, we’ll delve into what personal guarantees are, why they are used, and the potential risks and considerations involved.
A personal guarantee is a legal commitment by an individual to take responsibility for the debt or obligations of another party, typically a business entity. By signing a personal guarantee, an individual agrees to repay the debt if the primary borrower (often a business) defaults on its obligations.
Lenders, creditors, and landlords often require personal guarantees as a form of security, especially when dealing with small businesses, startups, or individuals with limited credit history. Personal guarantees provide lenders with additional assurance that they will be repaid, even if the business entity fails to fulfill its obligations.
There are various kinds of personal guarantees. There are unconditional guarantees, through which the guarantor is liable for the full amount of the debt or obligation, without any conditions. There are limited guarantees, through which the guarantor’s liability is limited to a specific amount or scope of the debt. There are continuing guarantees, through which the guarantor’s liability extends to future obligations incurred by the borrower, even if not specifically outlined in the original agreement.
Signing a personal guarantee exposes the guarantor to personal financial risk, including potential loss of personal assets or credit damage. Guarantors are legally bound to fulfill the obligations outlined in the guarantee, even if the business fails or faces financial difficulties. Before signing a personal guarantee, it’s essential to consider alternative financing options and negotiate the terms of the guarantee, if possible.
Some tips for mitigating risks are: review the terms of the personal guarantee carefully and seek clarification on any ambiguous or unfamiliar terms; consult with a legal professional to understand your rights and obligations before signing a personal guarantee; if possible, negotiate the terms of the personal guarantee to limit your liability or add provisions for release.
Personal guarantees play a significant role in business transactions, providing lenders with additional security and assurance. However, they also entail significant risks for individuals who agree to take on personal liability. Before signing a personal guarantee, it’s crucial to understand the terms, risks, and alternatives available. Seeking legal advice and carefully evaluating the implications can help individuals make informed decisions and mitigate potential risks.
By: Christina Vilaboa-Abel, Esq.
When faced with a sea of financial challenges, individuals who begin considering bankruptcy go into it with the uninformed assumption that filing bankruptcy is as easy as filing the case with the Court, pushing a few buttons, and getting debts eliminated.
If only that were true!
Most individuals who come to our office wanting to file bankruptcy arrive thinking they will file a Chapter 7 bankruptcy and walk away with their debts eliminated and problems resolved, however, the Bankruptcy Code is much broader than just this one chapter, and with good reason! What the general public does not grasp, at first blush, is that although they know Chapter 7 to be the “simplest,” and thus, the most “desirable” kind of bankruptcy to file, it is actually the most stringent and the hardest one to qualify for.
If you think about it, this makes sense! Chapter 7, in the best case scenario, can give an individual a fresh start and a chance for financial rebirth, without having to pay another dollar to creditors. It should, logically, be the hardest to qualify under! The debtor walks away with everything and creditors are left with nothing. As the institution in charge of assuring that “social scales” are balanced, for a court to allow such a thing, the debtor has to walk into the bankruptcy in dire straights. A debtor must show that s/he has just not had the income or assets to pay their creditors for quite some time. If the Bankruptcy Court and the Bankruptcy Trustee assigned to a Chapter 7 case find that the debtor in a Chapter 7 bankruptcy has had disposable income or assets with unexempt value under his/her name in the last few years, the debtor will likely not qualify for a clean discharge of his/her debts under this chapter without a detailed and prolonged audit of the debtor’s finances by the Trustee. These audits, usually time-consuming and requiring the Debtor to appear for depositions before the Trustee, will likely produce something that will trigger that payment into the bankruptcy be required for the debtor to receive the discharge they long for. This is why it is immensely important that a debtor’s financials be analyzed every which way by a qualified bankruptcy attorney before a Chapter 7 case is filed.
Understanding the Chapter 7 Bankruptcy Qualification Analysis:
Chapter 7 bankruptcy offers a lifeline to individuals drowning in debt, providing an opportunity for a new beginning. The process is complex, requiring a detailed understanding of the qualification criteria. Filing this kind of bankruptcy without a detailed financial analysis, will more likely than not, lead the debtor down a difficult road. If you find yourself considering bankruptcy, consult with a qualified bankruptcy attorney to navigate the legal intricacies and ensure the best possible outcome for your financial future.
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If you’re facing bankruptcy, debt litigation, or real estate issues in South Florida, don’t hesitate to contact CAVA Law for personalized and compassionate legal representation.
