Chapter 12 Bankruptcy

“Family Farmer Bankruptcy”

Family farmers and fishermen are an integral part of the Maine economy. In tough economic times, family farmers and fishermen face a unique set of financial challenges. Chapter 12 bankruptcy is specifically designed for family farmers and fishermen experiencing financial hardship.

Chapter 12 versus Chapter 13

Chapter 12 bankruptcy is similar to Chapter 13 bankruptcy in that the debtor files a plan for reorganizing his or her debts then, upon approval of the plan by the Court, makes regular plan payments to the Trustee until the plan is completed and the debtor's debts are discharged.

The biggest procedural difference between Chapter 12 and Chapter 13 bankruptcy is that Chapter 12 allows a debtor 90 days to file his or her plan after filing a petition for bankruptcy, whereas Chapter 13 requires that the plan be filed within 15 days of filing the petition.

Filing for Chapter 12 Bankruptcy in Maine

In order to file for Chapter 12 bankruptcy, you must meet the Bankruptcy Code's definition of a family farmer or fisherman. For more information about who qualifies for Chapter 12 bankruptcy and what filing for Chapter 12 bankruptcy involves, read my article on the Process of a Chapter 12 Bankruptcy.

Schedule an Appointment

If you are a farmer or fisherman and are wondering whether a Chapter 12 reorganization can help you protect your assets and emerge from debt, please schedule an appointment to meet with me. I have been assisting individuals and small businesses through the bankruptcy process in Maine for over 20 years.