Chapter 12 Bankruptcy
Definition - What does Chapter 12 Bankruptcy mean?
Chapter 12 bankruptcy allows a debtor to pay off adjusted debts if they are a “family farmer" or a “family fisherman." Chapter 12 allows a farmer or fisherman to adjust and make payments on their debt without foreclosure or sacrificing the assets including those that support their livelihood.
Justipedia explains Chapter 12 Bankruptcy
Chapter 12 bankruptcy is very similar to a Chapter 13 bankruptcy. In order to qualify to file Chapter 12 bankruptcy, a debtor must be a farmer or commercial fishermen and make a regular annual income that can support bankruptcy payments. The process lasts typically three to five years. There are minimum limits on the amount a farmer or fisherman must make annually in order to qualify for Chapter 12. Chapter 12 is the rarest and most uncommon form of bankruptcy filed in the United States.
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