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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 Maine, Chapter 12 of the Bankruptcy Code is applicable to family farmers and family fishermen who have a regular annual income and are facing financial distress. This chapter allows these individuals to create and implement a repayment plan to settle their debts over a period of three to five years. The repayment plan is designed to be manageable based on the debtor's income, and it typically requires payments to be made in installments to creditors. The standard time frame for the repayment plan is three years, but if there is a justifiable reason, the court has the discretion to extend this period. This provision is intended to help family farmers and fishermen reorganize their finances without losing their livelihood.

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Bankruptcy

Chapter 12 bankruptcy

Individual & Family Legal Plan

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Maine State Code

Maine State Code

Bankruptcy

Chapter 12 bankruptcy

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