Advantages of Chapter 12 of the Bankruptcy Code for “Family Farmers”
Barry Chatz, Kevin Morse and Sean Williams co-authored this article discussing the Family Farmer Relief Act of 2019, which gives family farms access to Chapter 12 bankruptcies should they be in need of debt relief. The article summarizes the advantages of this type of bankruptcy declaration.
"Farming operations are typically able to file bankruptcy under chapter 7, chapter 11, or chapter 12 of the Bankruptcy Code….On the other hand, chapter 12 of the Bankruptcy Code allows special rules for “family farmers” under a somewhat simplified statutory framework," wrote the lawyers. "Despite obvious similarities, there are a number of nuanced differences between chapter 11 and chapter 12 of the Bankruptcy Code that makes chapter 12 a very attractive option for parties that qualify."