Chapter 12 bankruptcy is similar to Chapter 13 but is designed for family farmers and family fishers. People, partnerships, and businesses can file a Chapter 12 reorganization. Just like in Chapter 13, family farmers and fishers reorganize through a three to five-year-long plan using their future income. Chapter 12 makes reorganization slightly easier for farmers and fishers by removing some of the barriers found in Chapters 11 and 13.
There is a debt limit under Chapter 12, as well as a requirement that a certain percentage of the total debts be related to commercial farming or fishing. In addition, Chapter 12 sets forth requirements that a certain percentage of stock or equity be held by family farmers and their relatives.