Chapter 12

Chapter 12 of the Bankruptcy Laws (11 U.S.C. §1201, et sec.) is designed to assist individuals and families whose income primarily results from farming and fishing . It is similar to Chapter 13 in that a plan is prepared by the debtor and presented to the Bankruptcy Court for confirmation, but it differs from Chapter 13 in that it affords benefits to farmers and fishermen unique to their financial situation.

Chapter 12 was added to the Bankruptcy Code by Congress by the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986. The law's provisions were enacted on November 26, 1986. In the early and mid 1980's certain modifications to the bankruptcy code went into effect as a response to the reduced lending by bankers to farmers resulting largely from the failure of several major banks.  The Act was made permanent by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

Chapter 12 provides additional benefits not available under chapter 13 and chapter 11. These benefits include higher debt limitations than the limitations under Chapter 13.  In many cases, debtors under Chapter 12 are allowed greater exemption limits than Chapter 13.  Chapter 12 was designed to afford greater protection to family farmers and fishermen who often experience boom or bust economic cycles.  The United States Congress's concern is that if too many family farmers and fishermen fail, that the industry will be dominated by fewer and fewer mega agricultural corporate giants, resulting in less competition and higher food prices passed on to the consumer.

If you are struggling with debt and would like more information on Chapter 12 bankruptcy, I am here to help. The initial consultation is free and together we will formulate a plan to determine if Chapter 12 bankruptcy is right for you and your business. I offer personal attention and my rates are reasonable. Contact my office today online or by telephone at 585-546-7410 to speak with an experienced New York bankruptcy attorney. 

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