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Bankruptcy

Chapter 12 bankruptcy

Chapter 12 of the Bankruptcy Code is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years. Generally, the plan must provide for payments over three years unless the court approves a longer period "for cause."

In Arizona, as in all states, Chapter 12 of the Bankruptcy Code provides a process for family farmers and family fishermen with a regular annual income to restructure their debts. This specialized form of bankruptcy is designed to meet the unique financial challenges faced by those in the farming and fishing industries. Debtors under Chapter 12 can propose a repayment plan that allows them to make installment payments to creditors over a period of three to five years. The standard time frame for the repayment plan is three years, but if the debtor can demonstrate 'cause,' the court may approve a longer period. This provision aims to give family farmers and fishermen a chance to keep their operations running while managing their debt obligations.

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Bankruptcy

Chapter 12 bankruptcy

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Bankruptcy

Chapter 12 bankruptcy

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