Midwest farmers are filing for Chapter 12 bankruptcy protection at the highest levels seen in 10 years. The Seventh Circuit Court of Appeals, which includes Illinois, had double the bankruptcies in 2018 compared to 2008, many of which had some tie to U.S. farm products – big business in Midwestern states.
With prices down, competition up, and trade disputes sparking retaliatory tariffs in the overseas marketplace, the financial difficulties farmers face every day have gotten worse. U.S. farm debt is approaching record highs and delinquency has climbed while more than half of U.S. farm households income has spiraled down. One farmer who spoke with the Wall Street Journal said he’s been through several dips in 40 years but “this one here is gonna to kick my butt.”…a sentiment likely shared by many.
To stay afloat many farmers have sold second homes, given up land and equipment, or have taken odd jobs to make ends meet. Others have turned to Chapter 12 bankruptcy protection to devise a plan to repay creditors over a three to five year period hoping the tide will turn. More bankruptcies filings are expected through 2019.
If you are facing a difficult financial situation, contact the Illinois bankruptcy law offices of Charles E. Covey at 309-674-8125 for a free consultation to see if bankruptcy is a good strategy for you and your family.