Chapter 12 bankruptcy: what to know

Chapter 12 Bankruptcy is referred to as the “Family Farmer or Fisherman” bankruptcy. A family farmer or fisherman may be a debtor under Chapter 12. A Chapter 12 case provides the opportunity to restructure debts through a payment plan, which normally lasts 3 years. With court approval, a plan may last up to 5 years. The Chapter 12 Trustee receives all funds that are paid through the plan and pays creditors from these funds.