Chapter 12 Bankruptcy

Bankruptcy under Chapter 12 is available to family farmers with regular annual income. The term “family farmer” only applies to certain individuals and business entities, depending on income and debts owed. Like Chapter 13, Chapter 12 involves the repayment of certain debt via a payment plan lasting 3-5 years. Filing a Chapter 12 is usually more beneficial than filing a Chapter 13 for a family farmer because of certain allowances and the reality of a seasonal income.