Chapter 12, Title 11, United States Code
Encyclopedia
Chapter 12 of Title 11 of the United States Code, or simply chapter 12, is a chapter of the Bankruptcy Code
. It is similar to Chapter 13
in structure, but it offers additional benefits to farmers and fishermen in certain circumstances, beyond those available to ordinary wage earners. Chapter 12 is applicable only to family farmers and fishermen.
law in the United States, there was no provision applicable specifically to farmers. The 1898 Bankruptcy Act contained no special provisions, with one exception that farmers were immune from an involuntary bankruptcy petition. Section 75 was enacted by the Bankruptcy Act of 1933 and provided specific provisions for farmers. However, many of these provisions were limited in scope, and ultimately required the voluntary cooperation of mortgagors and creditors.
In addition, section 75, as it was originally conceived, was a temporary measure. It was scheduled to expire on March 3, 1938.
The Frazier-Lemke Act expanded the scope of section 75, providing for stronger protections available to farmers operating under bankruptcy protection. These changes too were initially temporary, but they were extended a number of times until they ultimately expired on March 31, 1949.
By and large, after the expiration of section 75, farmers were subject to the same rules of bankruptcy as other debtors. The application of the same rules was the case after the passage of the Bankruptcy Code of 1976 until 1986.
in 1986 by the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986. It went into effect on November 26, 1986.
The modification of the bankruptcy code were intended as an emergency response to tightening agricultural credit in the early and mid-1980s, in the middle of a number of notable bank failures
.
The Act was to originally expire on October 1, 1993, but it was extended a number of times without expiring until it was made permanent by the 2005 BAPCPA.
Title 11 of the United States Code
Title 11 of the United States Code is the primary source of bankruptcy law in the United States Code.-Contents:Title 11 is subdivided into nine chapters. It used to include more chapters, but some of them have since been repealed in their entirety...
. It is similar to Chapter 13
Chapter 13, Title 11, United States Code
Chapter 13 of the United States Bankruptcy Code, codified under Title 11 of the United States Code, governs a form of bankruptcy in the United States that allows individuals to undergo a financial reorganization supervised by a federal bankruptcy court. The goal of Chapter 13 is to enable...
in structure, but it offers additional benefits to farmers and fishermen in certain circumstances, beyond those available to ordinary wage earners. Chapter 12 is applicable only to family farmers and fishermen.
Background
For much of the history of bankruptcyBankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
law in the United States, there was no provision applicable specifically to farmers. The 1898 Bankruptcy Act contained no special provisions, with one exception that farmers were immune from an involuntary bankruptcy petition. Section 75 was enacted by the Bankruptcy Act of 1933 and provided specific provisions for farmers. However, many of these provisions were limited in scope, and ultimately required the voluntary cooperation of mortgagors and creditors.
In addition, section 75, as it was originally conceived, was a temporary measure. It was scheduled to expire on March 3, 1938.
The Frazier-Lemke Act expanded the scope of section 75, providing for stronger protections available to farmers operating under bankruptcy protection. These changes too were initially temporary, but they were extended a number of times until they ultimately expired on March 31, 1949.
By and large, after the expiration of section 75, farmers were subject to the same rules of bankruptcy as other debtors. The application of the same rules was the case after the passage of the Bankruptcy Code of 1976 until 1986.
Passage
Chapter 12 was added to the Bankruptcy CodeBankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
in 1986 by the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986. It went into effect on November 26, 1986.
The modification of the bankruptcy code were intended as an emergency response to tightening agricultural credit in the early and mid-1980s, in the middle of a number of notable bank failures
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
.
The Act was to originally expire on October 1, 1993, but it was extended a number of times without expiring until it was made permanent by the 2005 BAPCPA.