Search results
Results from the WOW.Com Content Network
A chapter 12 case begins by filing a petition with the bankruptcy court serving the area where the individual lives or where the corporation or partnership debtor has its principal place of business or principal assets.
This article gives an overview of how Chapter 12 bankruptcy works, who’s eligible to file it, and how it benefits family farmers and family fishermen. What Is Chapter 12 Bankruptcy? Chapter 12 was created to address the unique concerns and financial hardships facing family farmers and fishermen.
Under Chapter 12 bankruptcy, the debtor must propose a plan to repay creditors over a period of three to five years. This plan must be confirmed by the court and must provide for the full payment of certain priority debts.
Chapter 12 bankruptcy allows family farmers and fishermen who are in financial distress to discharge their debts over three or five years. It combines aspects of Chapter 11 and Chapter 13 bankruptcies while allowing a more flexible payment plan due to the seasonal nature of these businesses.
Chapter 12 is a category of bankruptcy in the United States that applies specifically to farms and fisheries. It allows them to reorganize their business while still maintaining ownership.
How Chapter 12 Works. A chapter 12 case begins by filing a petition with the bankruptcy court serving the area where the individual lives or where the corporation or partnership debtor has its principal place of business or principal assets.
Basics of Chapter 12. Filing for Chapter 12 bankruptcy, sometimes called farm bankruptcy, requires farmers and fishermen to create a plan to repay debt. If the courts approve, you must carry out the plan. It will repay all or some of the debts over three to five years.
The process under chapter 12 is very similar to that of chapter 13, under which the debtor proposes a plan to repay debts over a period of time – no more than three years unless the court approves a longer period, not exceeding five years.
Last reviewed October 2023. Justia - Bankruptcy Basics Chapter 12 - Family Farmer or Family Fisherman Bankruptcy - Free Legal Information - Laws, Blogs, Legal Services and More.
Chapter 12 bankruptcy was created specifically for family farming and fishing operations. As the pandemic raged in early 2020, the number of Chapter 12 filings actually went down because of protections implemented by the CARES Act. [1] . However, these protections are expiring.