Chapter 12 – Family Farmer Debt Adjustment

The chapter 12 bankruptcy law was created to help family farmers who need to reorganize their debts while keeping their land and farming business. Chapter 12 bankruptcy is meant to assist farmers who have potential to reorganize and to allow them relief from a heavy debt burden, while at the same time allow farmers to pay their creditors what is deemed reasonable under the terms of a court approved repayment plan.

The rules of a chapter 12 bankruptcy are modeled closely after those of a chapter 13. A chapter 12 bankruptcy case may only be filed by certain family farmers and businesses. A trustee is appointed, but the farmer usually remains in possession of the farm while formulating a plan.

Bankruptcy court filing fee: $239.00 (price subject to change)

For a free bankruptcy consultation, call (517) 347-6700