Is Chapter 12 Bankruptcy Right for You?
Family farmers and fishermen can restructure their debts, so they can be repaid while they are still able to keep their industries producing an income. The Chapter 12 bankruptcy involves creating a plan to repay your debts over a three- to five-year period.
Other factors include:
- It allows "family farmers" or "family fishermen" with "regular annual income" to file for a specific kind of bankruptcy protection
- It allows farmers faced with financial difficulties to propose a plan to repay their debts. It may propose to pay all debt, but often propose to pay a portion of the debt over a period of time
- Under Chapter 12, farmers pay obligations through installments over a typical time period of three to five years with payments that include all the disposable income
- Although you will remain in control of your business, a trustee may be appointed to oversee the daily operations of the business. The trustee ensures the creditors continue to be paid
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