A more thorough explanation:

Chapter 12 is a section of the United States Bankruptcy Code that provides a way for family farmers with a regular income to create a court-approved debt-payment relief plan. This plan allows a trustee to collect the farmer's net income and use it to pay off their creditors.

For example, if a farmer is struggling to pay off their debts, they may file for Chapter 12 bankruptcy. The court will then review their financial situation and create a plan for them to pay off their debts over a period of time. The farmer's net income will be collected by a trustee and distributed to their creditors according to the plan.

Chapter 12 bankruptcy is also known as family-farmer bankruptcy or farmer bankruptcy.