Chapter 12 Farm Bankruptcy Information

I have often blogged in the past about a specialized chapter under the Bankruptcy Code for farmers and fishermen, Chapter 12 for Family Farmers and Fishermen.  Farmers are near and dear to my heart because they have been the backbone of this country since its inception.  However, that status is now becoming endangered by the same folks who brought us the Great Recession of 2008, ie Wall Street.  That’s right.  The same folks who thought it would be a good idea to securitize home mortgages and sell as investment vehicles are now doing the same thing with our family farms…Read   More

In this next installment of my Chapter 12 bankruptcy blog, I will discuss how long term farm debt can be addressed in a Chapter 12 plan.  In most Chapter 12 cases, the debtors will come in to the case owing substantial debt on the farm real estate and farming equipment.  How much time a farmer will have through a Chapter 12 repayment plan to pay back this debt is an issue that is critical to the success of a Chapter 12 case.  Generally speaking, unsecured debt and priority debt (ex: income tax liability), must be paid within a five (5)…Read   More

In this next installment of my Chapter 12 bankruptcy blog, I will discuss an issue of critical importance to the success of a Chapter 12 case – the farmer’s ability to use cash collateral to pay creditors and the expenses of the ongoing farming operation.  In most Chapter 12 cases, the debtors will come in to the case owing substantial debt on the farm real estate and farming equipment.  The financing documents of the lender bank securing the repayment of this debt will often include language granting the lender bank a lien in the proceeds of the farmer’s crop, flock…Read   More

I will be writing a series of blog articles over the next few weeks concerning a specialized chapter under the Bankruptcy Code for farmers and fishermen. Farmers have been the backbone of this country since its inception.  As a result of the special place they hold in our society and economy, a specific chapter in the Bankruptcy Code was created by Congress to assist family farmers and family fishermen in reorganizing their debt.  This chapter of the bankruptcy code recognizes the inherent risks associated with farming for a living including unpredictable weather and market conditions and provides a unique avenue…Read   More