In response to the crisis in the United States farm economy and the inability of farmers to obtain meaningful relief from either Chapter 11 or 13 of the Bankruptcy Code, Congress passed the Bankruptcy Judges, United States Trustees and Family Farmer Bankruptcy Act of 1986 (the "Act") in October of 1986. The Act includes a new chapter in the Bankruptcy Code-Chapter 12-exclusively for family farmers. This article outlines the substantive provisions of the new Chapter 12 and who may be eligible to take advantage of this new statute. In reviewing Chapter 12, the article attempts to show how concepts from both Chapter 11 and Chapter 13 have been employed in developing a statute that provides considerable benefits for eligible family farmers, largely at the expense of secured creditors.
Bruce H. Matson,
Understanding The New Family Farmer Bankruptcy Act,
U. Rich. L. Rev.
Available at: http://scholarship.richmond.edu/lawreview/vol21/iss3/4