{"id":286895,"date":"2021-02-05T09:19:29","date_gmt":"2021-02-05T14:19:29","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/business-bankruptcy\/chapter-12-bankruptcy.html"},"modified":"2026-10-29T11:43:40","modified_gmt":"2026-10-29T16:43:40","slug":"chapter-12-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/business-bankruptcy\/chapter-12-bankruptcy.html","title":{"rendered":"Chapter 12 Bankruptcy for Farmers and Fishing Operations"},"content":{"rendered":"\n
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Chapter 12 Bankruptcy for Farmers and Fishing Operations<\/h1>\n\n
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\n By Amy Vandervort-Clark, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Chapter 12 bankruptcy<\/span> is a legal process designed specifically for family farmers<\/span> and family fishermen<\/span> with regular annual income<\/span>. It allows them to reorganize their finances and create a plan to repay debts over three to five years while continuing to operate their business. Because farms and commercial fishing operations<\/span> face unique financial challenges, like unpredictable weather and fluctuating commodity prices<\/span>, Chapter 12 provides more flexible and streamlined debt relief<\/span> than other bankruptcy chapters.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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This guide explains who is eligible for Chapter 12, the step-by-step filing process, and how a repayment plan<\/span> can provide debt relief<\/span>. Understanding these key elements can help you decide if this is the right path for your business’s financial future. For guidance tailored to your business, consider speaking with a local bankruptcy attorney<\/span><\/a>.<\/p>\n

Why Chapter 12 Exists for Farmers and Fishermen<\/h2>\n

Chapter 12 of the U.S. Bankruptcy Code<\/span> tailors bankruptcy law<\/span> for the financial reality of family farms<\/span> and fishing businesses. It streamlines the process these people would face in Chapter 11<\/u><\/a>\u200b or Chapter 13<\/u><\/a>\u200b of the Bankruptcy Code<\/span><\/u><\/a>\u200b.<\/p>\n

In general, Chapter 12 is:<\/p>\n