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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 California, Chapter 12 of the Bankruptcy Code is tailored to provide relief to family farmers and family fishermen who are facing financial difficulties but have a steady annual income. This chapter allows these debtors to reorganize their finances through a repayment plan that is proposed to their creditors. The repayment plan typically spans three to five years, with the requirement that it must last at least three years unless the bankruptcy court finds a justifiable reason to extend the period. This provision is designed to help family farmers and fishermen keep their operations running while managing and paying off their debts over time. It is important for those considering Chapter 12 bankruptcy to consult with an attorney who is experienced in bankruptcy law to ensure they meet the eligibility criteria and to guide them through the complex process of filing and executing a Chapter 12 bankruptcy plan.

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Bankruptcy

Chapter 12 bankruptcy

Individual & Family Legal Plan

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California State Code

California State Code

Bankruptcy

Chapter 12 bankruptcy

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