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REORGANIZING A FARM BUSINESS WITH CHAPTER 12 OF THE BANKRUPTCY CODE: A BRIEF GUIDE

Wednesday, October 27, 2021

INTRODUCTION
Farm reorganization through chapter 12 of the Bankruptcy Code provides a powerful tool for farmers seeking to restructure burdensome debt, change production models, or even transition a farm to the next generation. While the most common form of bankruptcy, chapter 7 liquidation, generally requires financial insolvency, or the inability to pay debts, chapter 12 does not. Chapter 12 is specifically designed for family farmers and fisherman with regular annual income. The farming industry, on a national scale, is facing a souring economic future...