Chapter 12 bankruptcy form – Things to consider and facts to know about it

Chapter 12 bankruptcy is specially tailored for the ‘family farmers’ or ‘family fishermen’ who earn a regular income. This type of bankruptcy enables the family farmers to propose and execute a plan to repay all or a major portion of their financial obligations. Under Chapter 12 bankruptcy, the debtors will have to propose an alternative repayment plan that’ll allow installments over 3-5 years. It is a more streamlined process when compared to Chapter 11 or 13. When a debtor wants to file Chapter 12 bankruptcy, he has to fill out the Chapter12 Individual or Joint Debtor Family Farmer or Family Fisherman Form to complete the process. If you’re unaware of the details of this form, read on.

What to fill out in the Chapter 12 bankruptcy form

All financial transactions are incomplete without the forms. The debtor needs to provide some information to the court before initiating the process. Have a look at what you need to fill out.

• The specific date on which the debtor files the Chapter 12 bankruptcy
• The type of the bankruptcy that the debtor(s) has filed before (if he had previously filed any other bankruptcy), the date on which he filed it and also the date on which it was converted to a case under Chapter 12.
• The address(es) and name(s) of the debtor(s).
• The case number
• The last 4 digits of the ITIN or the Individual Taxpayer Identification Number(s) or the complete Employee Identification Number(EIN)
• All the names that you may have used since the last 8 years. (Trade names, married names and maiden names must be mentioned)
• The name, address and telephone number of the bankruptcy trustee
• The name, address and telephone number of the attorney that the debtor is consulting
• The date, location and time of the meeting with your creditors (the time should be mentioned in A.M or P.M)
• The deadline to file a proof of claim for creditors of both governmental and non-governmental unit
• The address of a creditor with a foreign address
• The deadline on which you may file a complaint in order to discharge certain debts
• The deadline to object to the exemptions which is usually 30 days after the conclusion of the meeting with your creditors.
• The date, time and location of the final hearing or the confirmation
• The address of the bankruptcy clerk’s office and the telephone number

Essentials to know about Chapter 12 bankruptcy

As a debtor, you must be aware of a few essential points before taking the plunge. Financial ignorance may compel you to make wrong decisions in the long run. Here is some information that you must know.

• The Chapter 12 bankruptcy is only available to the persons who meet the criteria of ‘family farmer’ that has been set forth in the statute. It might be a corporate or a partnership or even an individual.
• Chapter 12 allows the ‘family farmers’ or the ‘family fishermen’ to readjust their debts and revise the plan. However, this plan will not be effective without the confirmation of the court.
• As you file the bankruptcy, the creditors will stop all collection actions against you and this is known as the ‘automatic stay’. Under certain situations, the automatic stay may be for a limited period or may not exist at all.

Before filing bankruptcy, it is always advised that the debtors must hire an attorney to enhance their knowledge and determine whether or not it is the right option for them. Also educate yourself on the rights of the debtors and the creditors to stay aware of the entire process.