Some Texas Farmers Eligible for Debt Relief Due to Discrimination
Consumer bankruptcy options under Chapter 7 and Chapter 13 may be the best solution for some. For individuals and couples who run their own enterprise, a small business Chapter 13 bankruptcy can help keep an operation afloat through tough times.

SAN ANTONIO, TX, September 14, 2011 /24-7PressRelease/ -- Experienced Texas debt relief attorneys frequently counsel clients that a comprehensive financial strategy may be necessary to reestablish good financial health. Consumer bankruptcy options under Chapter 7 and Chapter 13 may be the best solution for some. For individuals and couples who run their own enterprise, a small business Chapter 13 bankruptcy can help keep an operation afloat through tough times.

A bankruptcy lawyer might also suggest certain strategies short of a bankruptcy filing that best serve a client's needs. One recent development that provides substantial debt relief as well as possible tax relief for some Texas farmers and ranchers comes from the U.S. Department of Agriculture (USDA). Hispanic and female ranchers and farmers who were improperly denied farm loan benefits in the 1980s and 1990s can receive a $50,000 award, debt relief and relief from federal tax obligations.

The USDA encourages women and individuals of Hispanic heritage to contact a lawyer for guidance if they can demonstrate the following three circumstances:

- The applicant applied for either a USDA farm loan or related loan servicing between 1981 and 2000;
- The application was denied or delayed, or approved at a reduced level; and
- The applicant believes that he or she was a victim of discrimination.

The debt relief offered by the USDA is part of a claims adjudication process in the wake of class action settlements with Native American and African American farmers and ranchers. The federal government has set aside over $1.3 billion for the program, including $160 million for debt relief.

The USDA started sending out claims packages to affected farmers and rangers this summer. Potential applicants should be aware that class action litigation by Hispanic farmers and ranchers regarding the USDA's admitted discrimination and violations of the Equal Credit Opportunity Act is ongoing. That is one more reason why a conversation with an attorney who understands all aspects of lending law and debt collection can provide clients with a full overview of their legal options.

Many Roads to Financial Relief for Small Business Owners

Eliminating farm loan obligations with the Farmers Home Administration (FmHA) and Farm Service Agency (FSA) is a targeted option that can provide significant relief for individuals and couples harmed by government discrimination. But many other legal strategies can serve the long term financial interests of people who make a living from their own business.

Construction contractors, restaurant owners and other entrepreneurs must invest a significant part of themselves to give their small business a chance to survive. Economic downturns, market changes and even a single bad decision can put a business in peril. Depending on a few key circumstances, a Chapter 13 reorganization may be the best option to help a business weather the storm.

The bankruptcy code provides many tools to help owners confront problems of cash flow that lead to payroll issues (including staying current on payroll taxes), commercial lease arrears or strained relationships with key suppliers and lenders. The heart of Chapter 13 bankruptcy is a reorganization plan that requires regular payments against existing debt. If financial prospects rapidly improve, the small business owner can dismiss the bankruptcy, or ultimately proceed to liquidation via Chapter 7 if ongoing challenges prove insurmountable.

Chapter 12 bankruptcy is a separate but similar process available to owners of family farms. Eligibility is based first and foremost on predominant ownership by individuals, and the business entity's value and debt load must be largely related to an actual farming operation. One big advantage of Chapter 12 reorganization is a reduction in debt to match the current value of land and other assets.

Exploring All Options to Keep an Enterprise Afloat

A Texas bankruptcy lawyer can advise clients about the many factors that might lead an agricultural business or other company to the brink of insolvency. Unpaid employee claims, legal judgments and accompanying liens, or ongoing contract disputes can create a hive of distractions that keep an owner from day-to-day operations.

Discussing the big picture with a trusted professional can give a client the first glimpse of a workable plan. Whether or not bankruptcy contributes to that solution, a debt relief attorney can provide a frank assessment of a business's prospects for recovery.

Press Release Contact Information:

Paul Rosenbaum
Rosenbaum Law Offices
PR
7330 San Pedro Avenue, Suite 150
San Antonio, TX
USA 78216
Voice: 210-344-7716
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