What is Ch12?
Chapter 12 bankruptcy is for “family farmers” or “family fishermen.” This process is much more streamlined that the complex processes of Chapter 11 or Chapter 13.
Who can file Ch12?
There are two categories that identify who is eligible to file for bankruptcy under Chapter 12.
Farmers or fishermen eligible under the first category must meet the following criteria:
Farmers or fishermen eligible under the second category must meet the following criteria:
How long does it take?
Disposition in a Chapter 12 proceeding takes anywhere from three to five years from the date of filing.
What are the steps involved in Ch12
In order to file Chapter 12 bankruptcy, you must file a petition and financial documents.
What documents will I need?
In order to file for Chapter 12, you need to file a petition for bankruptcy in the federal bankruptcy court. In addition, you need to file the following documents:
Will I become debt free at the end of Ch12?
Chapter 12 reduces and reorganizes debts and only in a few limited situations discharges debts. All debt that is not discharged must be part of the repayment plan confirmed by the judge.
How will Ch12 filing affect my credit?
Filing for Chapter 12 will affect your credit in the same way as any other bankruptcy. It will stay on your credit report for 10 years and make it difficult or expensive to obtain new credit.
Ch12 FAQs
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