Chapter 12

Chapter 12 is a family farmer Bankruptcy. It was originally created in the 80s when farmers were having a difficult time and Chapter 13 and Chapter 11 were not providing farmers the relief they needed in order to reorganize. The primary reason it is better for farmers than a Chapter 13 is that the debt limits are higher. The primary advantage over a Chapter 11 is that it is more affordable for the farmer to file a Chapter 12 than a Chapter 11.