Thursday, June 2, 2011
What is Chapter 12 Bankruptcy?
Chapter 12 is a bankruptcy for farmers. It is not often used, and you will be hard pressed to find an attorney with experience in chapter 12. However, chapter 12 is similar to chapter 13. Whereas a chapter 13 is for folks with regular income and requires monthly payments, chapter 12 is geared to payments which come due when the crop comes in. Payments can be quarterly or semi-annual depending on the type of farm. Chapter 12 is intended to assist the distressed farmer cope with his debt obligations and keep his farm at the same time.