Provide The Protection And Stability That Your Business Needs


Designed to provide financial assistance for farmers and fishermen, as defined by the Bankruptcy Code, Chapter 12 allows financially stressed families and businesses to propose a plan in which a portion of or the entire debt is paid off, generally within three to five years.

A major benefit to Chapter 12 is its simplicity. Chapter 12 is a far less complicated process than Chapter 11 and far less expensive.

Chapter 12 was deliberately designed to give farmers or fishermen the opportunity to reorganize after a financially debilitating period.

To find out whether Chapter 12 is right for you, make an appointment today to speak with an experienced bankruptcy attorney.

Do You Qualify For Chapter 12?

Farmers and fishermen may fall into one of two categories under the Bankruptcy Code: individuals and/or married couples, or a corporation or partnership. For individuals and married couples, certain criteria must be met to qualify for relief under the Bankruptcy Code.

  • An individual or married couple needs to be engaged in a farming operation or a commercial fishing operation.
  • The total debt must not exceed $3,792,650 (farming) or $1,757,475 (commercial fishing).
  • A certain percentage of the debt must be directly related to farming (50 percent) or commercial fishing (80 percent).
  • A certain percentage of the gross income must be attributable to the farming or fishing operation (50 percent).

To be recognized as a corporation or partnership, a different set of criteria must be met.

  • Over 50 percent of the outstanding stock or equity must be owned by one family or by one family and its relatives.
  • The farming or fishing operation must be conducted by the family or the family and its relatives.
  • Over 80 percent of the operation's value must relate to farming or commercial fishing.
  • A farming operation's debt must not exceed $3,792,650 and a commercial fishing venture's debt must not exceed $1,757,475.
  • At least 50 percent of a farming venture or 80 percent of a commercial fishing venture's debts must be attributable to their respective operation.
  • Stock, if issued by a corporation, cannot be publicly traded.

Call The Law Offices of Jonathan Stone at 800-491-5622 or send an email inquiry to request a free consultation about Chapter 12 bankruptcy and your unmanageable debt load.

We are a federally designated debt relief agency, proudly helping people file for relief under the Bankruptcy Code.