Chapter 12 - Family Farming & Fishing Business Reorganization
Chapter 12 is a voluntary method of bankruptcy filing which allows only the debtor to file bankruptcy intended for "family farmers" or "family fishermen” who have "regular annual income." It allows economically troubled farmers and fishermen to reorganize their debts and their repayment procedure. The rationale behind the "regular annual income" requisition is to make certain that the debtor's earnings are steady to allocate his financial reorganization and repayment plan. Chapter 12 also allows for the group of families who are dependent on the seasonal earning.
The plan of the chapter 12 bankruptcy procedure is designed in a way in which it allows the farmers and the fishermen such options which are not favorable to the practical application with reference to the economic condition of the family farmers and fishermen. However some family farmers and fishermen find chapter 13 more comfortable for their portability and nature of earning.
Additional Resources
- Chapter 7 Vs Chapter 13
- Recent Changes to Bankruptcy Law
- How to File Bankruptcy
- Bankruptcy Filing Fees
- The Automatic Stay
- The 341-Meeting
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