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Honored Advisor
Posts: 17,892
Registered: ‎05-13-2010
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Farm debt exceeds chapter 12 limits

[ Edited ]

They`re talking about raising it to $10 million, that is no longer a "Norman Rockwell painting"  farmer.   I`m against it.

 

 

http://www.iowafarmertoday.com/news/regional/farms-exceed-chapter-bankruptcy-debt/article_763f12a4-2...

 

 

“The debt of family farmers has increased far faster than the rate of inflation,” Peiffer said. “That’s why the debt limit, I believe, is too small. I’ve been advocating to (increase the aggregate debt limit to) $10 million.”

Peiffer said nearly half of his clients who don’t qualify for the current debt limit would still not qualify with a $10 million limit.

Chapter 12 bankruptcy is intended to allow “family farmers” to propose and carry out a plan to repay all or part of their debts.

To qualify for Chapter 12, in addition to being engaged in farming, at least 50 percent of a family farmer’s total fixed debts (excluding debt from the home) must be related to farming, and 50 percent of the gross income for the individual or husband and wife must come from farming.