The first steps an individual family farmer must take in order to get Chapter Twelve bankruptcy relief are the same as for Chapter Seven. A petition and all the necessary paperwork are filed with the bankruptcy court. There's one extra document that must be filed that's not required in Chapter Seven, and you must file a Chapter Twelve repayment plan within 90 days. You have to begin making payments as you've proposed in the repayment plan within 30 days of filing, whether or not it's been confirmed by the court. The plan will be reviewed by all listed creditors, who may accept or reject it. If it's confirmed by the court, you begin or continue making payments. Shortly after making your final Chapter Twelve payment, you notify the court and requests a discharge. A hearing may be held, with notice given to all creditors. If it's found that you've met all your obligations under the repayment plan, the court will issue a discharge of any remaining debts. Chapter Twelve discharge includes all debts, except those specified in the bankruptcy code. It's also possible to convert at any time during the Chapter Twelve period to a Chapter Seven liquidation. To find out more about what happens in a Chapter Twelve bankruptcy, and whether it's right for you, contact a bankruptcy attorney.
