Chapter 12 Bankruptcy

Family Farmer or Fisherman

It is for the family farmer or fisherman that has a regular annual income.  It lets family farmers and fisherman carry a repayment plan to repay all or at least part of their debt.   Allows payments over a 3-5 year period—it is usually a 3 year period unless the court allows for an extended period of time. 

Chapter 12 is easier than either Chapter 11 or 13.  It is more streamlined, less complicated and less expensive.   Chapter 12 is designed for farmers and fisherman, because generally their debts are greater than the average individual

REQUIREMENTS:

  • Must be a family farm or commercial fishing operation/company
  • Total debts must NOT exceed: $3,544,525 (Farming) and $1,642,500 (Fishing)
  • At least 50% of farm and 80% of fishing debt must come from the business itself and not personal debt.
  • More than 50% of income for an individual or spouse must come from either farming or fishing