Chapter 12 bankruptcies were designed to handle the farm financial crisis that occurred in the 1980s. Prior to that time, farm bankruptcy was relatively unheard of because they were few.

In the 1980s, they became very common and a new law provisioning for Chapter 12 bankruptcy was written. It is exclusive to family farmers who go broke. For family farmers that qualify, Chapter 12 serves as a reorganizational bankruptcy similar to that of Chapter 11 for businesses and Chapter 13 for regular wage-earners. It is allows the family farmer to attempt to dodge liquidation and continue his or her businesses.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

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Filed under: Chapter 7 Bankruptcy

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