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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 Pennsylvania, Chapter 12 of the Bankruptcy Code is tailored to provide relief to family farmers and family fishermen who have a consistent annual income but 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 financial circumstances. Typically, the plan should span over three years, but if there is a justifiable reason, the bankruptcy court may permit a longer timeframe. This provision aims 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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Pennsylvania State Code

Pennsylvania State Code

Bankruptcy

Chapter 12 bankruptcy

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