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Simple English definitions for legal terms

Chapter 12 bankruptcy

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A quick definition of Chapter 12 bankruptcy:

Chapter 12 bankruptcy is a type of bankruptcy that helps family farmers and fishermen who have regular income to get relief from their debts. To qualify, the debtor must not owe more than a certain amount and a certain percentage of their debts must come from farming or fishing. In a chapter 12 bankruptcy, the debtor can continue to operate their farm or fishery business while they work to pay off their debts. Unlike other types of bankruptcy, creditors do not get to vote on the plan and there is no absolute priority rule. Chapter 12 is similar to chapter 13 bankruptcy, but it gives greater rights and powers to the debtor. This type of bankruptcy was created because farmers and fishermen have unique vulnerabilities to economic downturns and the original bankruptcy laws did not provide them with enough protection.

A more thorough explanation:

Chapter 12 bankruptcy is a type of bankruptcy that provides relief to family farmers and family fishermen with regular income. It allows them to reorganize their debts and keep their farms or fishing businesses while treating their creditors fairly. To qualify for chapter 12 relief, the debtor must not owe more than the statutory limits prescribed by the Code, and a certain percentage of the debtor’s debts must arise out of farming or commercial fishing operations.

Chapter 12 is similar to chapter 13 bankruptcy in that the debtor can shield their assets from creditors and continue to operate their farm or fishing business throughout the case. However, there are key differences between the two, as Congress sought greater rights and powers for chapter 12 debtors than under chapter 13. For instance, chapter 12 debtors in possession have all the rights and powers of a trustee serving in a case under chapter 11, including operating the debtor’s farm or commercial fishing operation.

Chapter 12 bankruptcy was created in 1986 because Congress concluded that chapter 11 was not an effective avenue for bankruptcy relief for insolvent farmers. Before chapter 12, farmers had no added protections in the bankruptcy code, and most farmers filed under chapter 11 to reorganize their debts, which often had insurmountable barriers to a farm reorganization. Chapter 12 provides specially tailored bankruptcy relief to farmers and fishermen because of the unique vulnerabilities of farmers to economic downturns.

Example: John is a family farmer who is struggling to pay his debts. He owes $500,000, and 80% of his debts arise out of his farming operations. John qualifies for chapter 12 relief because he meets the statutory limits and the percentage of his debts arising out of farming operations. He can reorganize his debts and keep his farm while treating his creditors fairly.

Example: Mary is a family fisherman who is struggling to pay her debts. She owes $700,000, and 70% of her debts arise out of her fishing operations. Mary qualifies for chapter 12 relief because she meets the statutory limits and the percentage of her debts arising out of fishing operations. She can reorganize her debts and keep her fishing business while treating her creditors fairly.

Chapter 11 bankruptcy | Chapter 13 bankruptcy

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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