Chapter 12 bankruptcy is a form of bankruptcy law specifically designed to protect family farmers and fishermen and is very similar to Chapter 13. Chapter 12 has a limited application, however, as only family farmers or fisherman with “regular annual income” may seek protection. Seasonal income is sometimes allowed if a debtor can demonstrate an ability to make regular payments.
Individuals, corporations and partnerships are eligible to file Chapter 12 bankruptcy if they meet certain criteria with regard to income and debt. Once a petition for relief is filed and a repayment plan spanning any where from 3 to 5 years is proposed, the bankruptcy is subject to the approval/confirmation by the court.
If you have questions regarding what bankruptcy strategies are available to you, contact the Law Offices of Charles C. Covey for help today.