Chapter 12 bankruptcy is a special type of bankruptcy that is only available to farmers and fishermen. This type of bankruptcy was created back in the 1980s, and it is a lot like a Chapter 13 bankruptcy. However, Chapter 12 gives the filer more flexibility by allowing them to make periodic payments. This option is designed to take into account the seasonal nature of fishing or farming for a living.
How does a Chapter 12 Bankruptcy work?
The filing process for a Chapter 12 bankruptcy is very similar to other types of bankruptcy. First, you will need to gather all your financial information, fill out your paperwork, and then file your petition with the court.
Once you file your petition, an automatic stay will go