Chapter 12

A U.S. bankruptcy proceeding specifically for family farms or fisheries that gives the farm or fishery owner the ability to reorganize his or her finances and debts while still keeping the farm or fishery. The farm or fishery owner will work with a bankruptcy trustee and creditors to formulate a payment program that will meet his or her owner obligations. This proceeding is available for individually run family farms and fisheries as well as those owned by a corporation or partnership.

Chapter 12 was enacted in 1986 specifically for farms and fisheries to make the bankruptcy process easier for these types of businesses. Prior to Chapter 12, farmers would have to either file for protection under Chapter 11, which can be very expensive and is mainly for large corporations, or Chapter 13, which is mainly for those with relatively small outstanding debts (generally not the case for farms and fisheries).

In order to qualify for this protection, both individuals and corporations must get the majority of income for the farm/fishery operations. There is also a limit on the size of the outstanding debt.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Chapter — • Designates certain corporate ecclesiastical bodies, said to be derived from the chapter of the rule book, which it was the custom to read in the assemblies of monks Catholic Encyclopedia. Kevin Knight. 2006. Chapter     Chapter …   Catholic encyclopedia

  • Chapter 27 — Theatrical release poster Directed by Jarrett Schaefer Produced by Na …   Wikipedia

  • Chapter 11 — ist ein Abschnitt des Insolvenzrechts der Vereinigten Staaten (engl.: US bankruptcy code). Der Begriff bezeichnet in der angelsächsischen Finanz und Rechtssprache die Insolvenz eines Unternehmens. Inhaltsverzeichnis 1 Inhalt 2 Der Sinn von… …   Deutsch Wikipedia

  • Chapter 13 — bankruptcy proceedings for an individual with the intention of rescheduling the individual s debt (rather than liquidating the individual s assets and debt; an individual files under Chapter 7 to liquidate), Chapter 13 is referred to as… …   Glossary of Bankruptcy

  • Chapter 14 — Origin San Diego, California, USA Genres Rock, progressive metal, post hardcore Years active 2003–present Associated acts Austrian Death Machine, Destroy The Runner …   Wikipedia

  • Chapter 11 — chap·ter 11 n: chapter 11 of the U.S. Bankruptcy Code see also bankruptcy code in the important laws section Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Chapter 24 — Song by Pink Floyd from the album The Piper at the Gates of Dawn Released August 5, 1967 Recorded February June 1967 Genre Psychedelic rock …   Wikipedia

  • Chapter — Chap ter, n. [OF. chapitre, F. chapitre, fr. L. capitulum, dim. of caput head, the chief person or thing, the principal division of a writing, chapter. See {Chief}, and cf, {Chapiter}.] 1. A division of a book or treatise; as, Genesis has fifty… …   The Collaborative International Dictionary of English

  • Chapter 13 — n: chapter 13 of the U.S. Bankruptcy Code see also bankruptcy code in the important laws section Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Chapter 11 — reorganization proceedings, generally for business entities. The debtor maintains control of the business in Chapter 11, unless the Court appoints a trustee (Glossary of Common Bankruptcy Terms) A reorganization proceeding in which the debtor may …   Glossary of Bankruptcy

  • Chapter 7 — liquidation proceedings; generally assets are sold by a trustee and the company ceases operation. Individuals may file Chapter 7 also (Glossary of Common Bankruptcy Terms) A liquidation proceeding available to individuals, married couples,… …   Glossary of Bankruptcy

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.