Houston chapter 12 bankruptcy

Houston chapter 12 bankruptcy

The chapter 12 bankruptcy is also known as the family farmer or the family fisherman bankruptcy. This bankruptcy was designed to deal with the adjustments in debts of a family farmer or a family fisherman. The terms such as family farmer and family fisherman are defined in the code of the bankruptcy.

This chapter of bankruptcy was specially planned to benefit the farmers and the fisherman who have a steady annual income. It is evident that, a farmer spends most of his life just paying debts and suffering the torture from the landlord. To in order to change this situation, this type of bankruptcy was specifically designed to help these farmers to pay their debts in a way that they will be feeling comfortable without any tortures.

Chapter 12 bankruptcy is getting a wide spread attention in Houston and other parts of United States. Here the debtors must propose a repayment plan in which they state the installments in which they will be paying the amount within a span of three to five years. The period can be extended if it is allowed by the court depending upon the cause. This chapter of bankruptcy is debtor friendly.

It is more streamlined, less expensive and very less complicated than its predecessor chapter 11. While chapter 11 bankruptcies were designed to suit larger commercial organizations, chapter 12 is to benefit a smaller group of people and reduce their worries. One cannot file this bankruptcy if in the prior 180 days any of his bankruptcy petitions were dismissed due to unlawful act.