What is a Chapter 12 Bankruptcy

Chapter 12 bankruptcy is often used by farmers. Listen as Attorneys Tom Olsen and Jim Monroe explain in detail!

Attorney Tom Olsen: Jim, you had teased us with the chapter 12 bankruptcy. I guess I’ve heard of chapter 11, chapter 7, chapter 13, chapter 12. What's that about?

Attorney Jim Monroe: Occasionally we do get chapter 12 cases here in the middle district of Florida. As a matter of fact, up and around Jacksonville, there was a great number of chapter 12 being filed for a while. It generally deals with family farm situation, orange groves. In the case of the Jacksonville in chapter 12, it was believe it or not chicken farming. So, occasionally agricultural entities need to be reorganized and chapter 12 is a very nice chapter to duck into to reorganize. It is not as complicated as chapter 11 and it is more in tune with chapter 13 which is easier to get through the system.

Attorney Tom Olsen: Would you say they're trying to give farmers a break in a sense with the chapter 12?

Attorney Jim Monroe: Most certainly they are. They are trying to keep, as in any reorganization, they're trying to keep the family farm or the family farmer or the individual or the company alive for the benefit of its employees as well as its owners.