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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 Delaware, Chapter 12 of the Bankruptcy Code is tailored to assist 'family farmers' or 'family fishermen' who have a consistent annual income and are facing financial difficulties. This chapter allows these individuals to create and implement a repayment plan to settle their debts partially or in full over a period of three to five years. The standard duration for the repayment plan is three years, but if there is a justifiable reason, a bankruptcy court may extend this period. The objective of Chapter 12 is to enable family farmers and fishermen to continue their operations while managing their debt obligations. This provision reflects a recognition of the unique financial challenges faced by those in the agricultural and fishing industries and provides a mechanism for debt relief that is sensitive to their seasonal income patterns.

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Bankruptcy

Chapter 12 bankruptcy

Individual & Family Legal Plan

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Delaware State Code

Delaware State Code

Bankruptcy

Chapter 12 bankruptcy

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