Chapter 12 Bankruptcy

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Chapter 12 was enacted in 1986 to provide relief for family farmers with a regular income. Chapter 12 is patterned very closely after a Chapter 13, but has attributes of Chapter 11 as well. Individual, corporate, or partnership farming operations are eligible to file where aggregate debts (secured and unsecured) do not exceed $1,500,000. A plan must be filed within 90 days of the entry of the order for relief, unless the court extends that time. The trustee, though appointed upon filing, does not remove the family farmer debtor-in-possession. After confirmation, payments are made to the trustee to consummate the plan.

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