Defnition
Chapter 12 Bankruptcy is a legal process in which a “family farmer” or a “family fishermen” can have their debt reorganized and restructured to be paid over 3 to 5 years.
Analysis
Chapter 12 bankruptcy is similar to chapter 13 and chapter 11 in that it allows for a reorganization of debts. However, while chapter 13 is used by individuals and small businesses and chapter 11 is mostly used by corporate entities, chapter 12 can only be filed by fishermen and farmers, and the majority of the debt must be related to the commercial fishing or farming operation.
Chapter 12 bankruptcy is less expensive and is much more streamlined and geared towards fishermen and farmers than chapters 13 and 11.
