| | Who
Can File - Chapter 12 can be filed by an individual, an individual and spouse,
and by a partnership or corporation; Chapter 13 can only be filed by individuals.
| |
| | Farming/Fishing
Requirement - The debtor must be engaged in a farming or commercial fishing
operation.
| |
| |
 How
Much Can You Owe - A Chapter 12 family farmer debtor
must owe less than $ 3,792,650 in "aggregate debts
(liquidated and unliquidated), at least 50% of which (exclusive
of home mortgage debt) must be related to the farm operation;
and a Chapter 12 family fisherman must owe less than $ 1,757,475
in "family fisherman's debts", at least 80% of
which must be related to the fishing operation; these limits
are substantially higher than the Chapter 13 debt limits.
|
|
| | What
Type of Income is Required - Chapter 12 debtors must have regular "annual"income,
which means that it can be seasonal, and 50% or more of the income must be from
the farming or commercial fishing operation.
| |
| | When
Can a Corporation or Partnership File Chapter 12 - There are 5 additional
requirements for a corporation or partnership to file Chapter 12. | |
| a).
| At
least ½ of the stock or equity musts be owned by one family. |
| b).
| The
family or family relatives must operate the farming or fishing business. |
| c).
|
More than 80% of the assets of the corporation or partnership must be related
to the farming or fishing business. |
| d).
| At
least 50% of the farming business' liquidated debt (except for mortgage debt on
one family home) must be related to the farm operation, with this figure being
80% for commercial fishermen. |
| e).
|
If a corporation, the stock cannot be publicly traded; partnerships and corporations
are not allowed to file Chapter 13.
|
| | Credit
Counseling Needed - To be eligible to file Chapter 12 (or any other chapter)
the debtor must have completed a credit counseling course from an approved credit
counseling agency within 180 days prior to the filing of the case, per Bankruptcy
Code Sections 109 and 111.
| |
| | 180-Day
Bar to Re-filing - Chapter 12 (or any other chapter) cannot be filed by a
debtor if during the 180 days prior to the petition, a bankruptcy petition was
dismissed by the court
for willful failure to appear or abide by the orders of the court, or if the prior
case was voluntarily dismissed by the debtor after creditors sought relief from
the automatic stay to foreclose upon liened property, per Bankruptcy Code Sections
109(g), 362(d) & (e).
| |
| | Payment
Schedule - In Chapter 12 cases, the plan payments are made annually; in Chapter
13, they must be made monthly.
| |
| | Deadline
for First Chapter 12 Plan Payment - In Chapter 12, there is no deadline for
making the first plan payment, whereas in Chapter 13, under 11 U.S.C. Section
1326(a)(1), the first payment is due 30 days after the plan is filed.
| |
| | Deadline
to File a Plan - A Chapter 12 debtor has 90 days to file a plan, per 11 U.S.C.
Section 1221 & Federal Rule of Bankruptcy Procedure 3015; a Chapter 13 debtor
gets only 14 days (absent court-approved extension) to do so.
| |
| | Stretching
Out Mortgage Debt More than 5 Years - A Chapter 12 debtor can extend payments
on secured debt past the 5-year plan period, under Bankruptcy Code Section 1222(b)(9);
this cannot be done in Chapter 13.
| |
| | Chapter
12 Trustee - Like Chapter 13, under 11 U.S.C. Section 1202(a), the Court appoints
a Chapter 12 Trustee
(usually a "standing trustee"), whose job it is to administer the case
and act as a disbursing agent, and advise and assist the debtor with the plan,
and with other duties virtually identical to that of a Chapter 13 trustee.
| |
| | Chapter
12 is Voluntary - Like Chapter 13, Chapter 12 is voluntary only, and creditors
cannot force a debtor into Chapter 12 via an involuntary petition.
| |
| | Chapter
12 Co-Debtor Stay - Like Chapter 13, Chapter 12 provides a "co-debtor"
stay which prohibits creditors from going after co-signers of the debtor's consumer
debts.
| |
| | Property
Includes After-Acquired Property - Property acquired during the course of
the case becomes property of the bankruptcy estate, under 11 U.S.C. Section 1207(a);
this is similar, but not identical, to the provisions of Chapters 11 and 13.
| |
| | Chapter
12 Debtor in Possession ("DIP") - Like Chapter 13, the Chapter 12
debtor remains in possession of all of his property as a debtor in possession
("DIP"), under 11 U.S.C. Section 1203; however, unlike Chapter 13 (but
like Chapter 11), the Chapter 12 DIP can be removed for cause and replaced by
the Chapter 12 Trustee, who will then conduct the farming or commercial fishing
operation.
| |
| | Who
Can File a Plan - Since Chapter 12 (like Chapter 13) is purely voluntary,
under 11 U.S.C. Section 1221, only the debtor can file a plan; this is different
from Chapter 11, where creditors are allowed to propose plans.
| |
| | No
Disclosure Statement is Required - Like Chapter 13, the debtor is not required
to file a disclosure statement.
| |
| | Who
Can Vote on the Chapter 12 Plan - Just like Chapter 13, the Chapter 12 creditors
do not get to vote on the plan, even if they are receiving only pennies on the
dollar.
| |
| | Who
Can Object to a Chapter 12 Plan - Under 11 U.S.C. Section 1224), creditors
can object to a Chapter 12 Plan, just like in Chapter 13, if they believe that
the plan does not meet legal requirements.
| |
| | The
Chapter 12 Plan Confirmation Hearing - Under Bankruptcy Code Section 1224,
unless cause is shown, the confirmation hearing must be concluded within 45 days
of the filing of the Chapter 12 Plan.
| |
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