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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 South Dakota, Chapter 12 of the Bankruptcy Code provides a mechanism for family farmers and family fishermen who have a regular annual income to restructure their debts. This specialized form of bankruptcy is designed to meet the unique needs of the agricultural and fishing industries by allowing these debtors to propose a repayment plan that is manageable based on their seasonal income patterns. The repayment plan typically spans three to five years, with the possibility of extending the period if the court finds a justifiable reason. During this time, debtors make scheduled payments to their creditors, which allows them to keep their operations running while addressing their financial obligations. The goal of Chapter 12 is to help family farmers and fishermen achieve financial stability without liquidating their assets, thus preserving their livelihood and contributing to the local economy.

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Bankruptcy

Chapter 12 bankruptcy

Individual & Family Legal Plan

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South-Dakota State Code

South-Dakota State Code

Bankruptcy

Chapter 12 bankruptcy

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