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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 Vermont, 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 involves making installments to creditors over a period of three to five years. The standard duration for the repayment plan is three years, but if the debtor can demonstrate 'cause,' a bankruptcy court may allow a longer period. This provision recognizes the variability and unpredictability of income in farming and fishing operations, and it aims to help these businesses remain viable while paying off their debts.

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Bankruptcy

Chapter 12 bankruptcy

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Vermont State Code

Vermont State Code

Bankruptcy

Chapter 12 bankruptcy

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