Chapter 12 Bankruptcy

Chapter 12 Bankruptcy is a legal process designed for family farmers and fishermen facing financial difficulties. It allows them to reorganize their debts while continuing to operate their businesses. This option provides a structured repayment plan based on their income, typically lasting three to five years. Unlike Chapter 11, which is more complex, Chapter 12 is specifically tailored to accommodate the unique financial situations of agricultural producers, helping them manage debts and maintain their livelihoods during financial distress. Ultimately, it aims to balance the needs of the creditors with the survival of the farming or fishing enterprise.