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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 Ohio, as in other states, Chapter 12 of the Bankruptcy Code provides a process for 'family farmers' or 'family fishermen' with a regular annual income to restructure their finances and avoid liquidation or foreclosure. This type of bankruptcy is tailored to the unique financial situations of those in the farming or fishing industries, allowing them to create a plan to repay creditors over a period of three to five years. The plan involves making installment payments to creditors, and while the standard period for repayment is three years, the court can extend this period if there is a justifiable reason ('for cause'). This extension allows for more manageable payment amounts given the seasonal nature of farming and fishing income. It's important for family farmers and fishermen considering Chapter 12 bankruptcy to consult with an attorney who is experienced in this area of law to ensure they meet the eligibility criteria and to help them navigate the complexities of the bankruptcy process.

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Bankruptcy

Chapter 12 bankruptcy

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Bankruptcy

Chapter 12 bankruptcy