Chapter 12 Information

11 U.S.C. § 109(f)

An individual, corporation, or partnership may be eligible to file a petition under Chapter 12; however, they must qualify as a family farmer or family fisherman with regular income to be a debtor under this chapter. There are limitations regarding the amount of debt owed by the debtor and the percentage of income that must be derived from the farming or commercial fishing operations. See 11 U.S.C. § 109(f) and § 101 (18),(19), (20) for specific information regarding the debt and income limitations.

 

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." But unless the plan proposes to pay 100% of domestic support claims (i.e., child support and alimony) if any exist, it must be for five years and must include all of the debtor's disposable income. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1222(b)-(c).

 


To qualify as a "family farmer”


Individual or individual and spouse: See   11 U.S.C. § 101(18)(A)

Corporation or Partnership: See  11 U.S.C. § 101(18)(B)

 


To qualify as a "family fisherman"


Individual or individual and spouse: See  11 U.S.C. § 101(19A)

Corporation or Partnership: See 11 U.S.C. § 101(19B)