Chapter 12 Bankruptcy

Chapter 12 is strictly for farmers and fishermen. This type of bankruptcy is similar to chapter 13. It is a bitter differ in that it has other advantages and benefits that are not available the average wage earner. Originally Chapter 12 was set to expire but it has since been made a permanent option.

Farmers and fishermen are allowed to keep certain assets under this type of bankruptcy. It is more complex than the chapter 7 bankruptcy. The farmer and fisherman must come up with a plan for reorganization. It is for farmers who earn a regular income. Payments will need to be made between 3-5 years.