Bankruptcy Law: Provisions of New Chapter 12 Help Stave Off Farm Liquidations

Abstract

In an attempt to meet the special needs of farmers for a workable reorganization procedure after filing for bankruptcy, Congress amended the Bankruptcy Code in late 1986 to include a new Chapter 12 entitled “Adjustment of Debts of a Family Farmer with Regular Annual Income.” This column found under the Bankruptcy Law section of the National Law Journal outlines the provisions of Chapter 12 of the Bankruptcy Code and notes some of those areas where significant changes have been made to specifically accommodate farm reorganization plans.