Because the loan is due in 90 days, Family First Farm is experiencing serious financial problems. Several creditors hinted that they might force Family First Farm into an involuntary bankruptcy if Family First Farm does not pay them. Family First Farm has been trying to prioritize their payments so that the creditors that are most important to keeping their business open are paid. What are Family First Farm's options?
Please cite references and support all responses with appropriate cases, laws, and other relevant examples.© BrainMass Inc. brainmass.com March 5, 2021, 12:18 am ad1c9bdddf
If several creditors hinted that they may force the farm into an involuntary bankruptcy, then those creditors aren't aware of the current bankruptcy laws. Farmers are a protected class under bankruptcy law with respect to involuntary, creditor derived bankruptcies. An ...
This solution discusses if Family First Farm can be forced into an involuntary bankruptcy. Pertinent laws are clearly stated in the solution. Additionally, this solution includes one reference source.