Farmer Bankruptcy Law and Legal Definition
Farmer bankruptcy refers to a bankruptcy case filed under Chapter 12 of the United States Bankruptcy Code. Chapter 12 of the Bankruptcy Code provides for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code [11 USCS § 101]. It is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. The case can commenced by filing a petition with the bankruptcy court serving the area where the individual lives or where the corporation or partnership debtor has its principal place of business or principal assets.