Family farmers wanting to continue to farm through hard economic times should consider Chapter 12. Chapter 12 bankruptcies are reserved for family farmers who, usually through no fault of their own, are unable to repay their indebtedness as currently structured. Chapter 12 allows family farmers to continue to farm by restructuring debt and debt repayment plans. Chapter 12, using a "plan" (of reorganization), allows family farmers to reorganize their indebtedness, often reducing the amount owed on secured loans, and reducing the repayment to unsecured creditors.

    After 3 years, up to 5 years in certain cases, the farmer is "discharged" from the Chapter 12 and continues to operate the farming operation without Court or Trustee oversite. At this time no further payments are made to unsecured creditor debt owed at the time the bankruptcy was filed.