Chapter 12: Family Farmer or Fisherman Bankruptcy

Chapter 12 of the Bankruptcy Code is designed for family farmers and fishermen facing financial difficulties. It allows them to reorganize their debts while keeping their operations running. This type of bankruptcy provides a structured plan to repay creditors over three to five years, ensuring they can maintain their farms or fishing businesses. Unlike other bankruptcy chapters, Chapter 12 specifically addresses the unique challenges these individuals face, such as seasonal income fluctuations and the need for continued operation to recover financially. This helps protect their livelihood while providing a path to financial stability.