A Chapter 12 bankruptcy is specifically for family farmers.  In order to file under this chapter you must qualify as a family farmer as defined in the bankruptcy code.  Also, this chapter is not always available unlike the other chapters of bankruptcy.  This is because it did not exist until the 1980's during the Reagan Administration.  As a result, a sunset provision is always provided when it is renewed.  It is next set to expire in July 2005.  There have been times in the past where Chapter 12 had sunset and not timely renewed.  For example, last year it expired at the beginning of 2004, but was not renewed until about October of 2004.  This was the result of Congress attempting to attach the renewal of Chapter 12 to the Bankruptcy Reform Bill that would cause it to be more difficult to discharge credit card debt.  However, this bill, as every previous incarnation of this bill, was not passed, which resulted in a delayed passage of a renewal of Chapter 12.

Chapter 12 allows for higher debt and income than a Chapter 13.  Otherwise it is similar in that there is a 3-5 year payment plan that the farmer must pay into, in order to succeed with a Chapter 12 and be granted a discharge.  Chapter 12 bankruptcies are often more complicated than a Chapter 13 bankruptcy due to the fact that many farmers own equipment in addition to regular household goods and a home.