Chapter 12

Family Farmer Reorganization

Chapter 12 is similar to a Chapter 13, but is limited to those with significant farming or fishing income:

1) Chapter 12 allows farmers to time their plan payments to match crop cycles, sometimes resulting in only one large payment per year.

2) Chapter 12 allows farmers to significantly modify the rights of creditors beyond those powers extended to Chapter 13 debtors.

3) Chapter 12 is more individualized than Chapter 13 and often more complex because it, in effect, involves a business.

For small farm operations, a Chapter 12 can be a life-saver.  It is extremely powerful and has a wide-range of tools available if you can qualify.