|
As a defined term under the U.S. Bankruptcy Code, a Chapter 12 family
farmer is either an individual or business partnership owned by individual
partners as described in 11 U.S.C. 1201, et seq. Family farmers also
must derive the majority of their income from actual farming operations,
proven by historical tax return information. The basis of a family
farmer reorganization plan is the continued payments of debts, over an
extended period of time, for lower interest and lower late fees or
penalties. For confirmation, the family farmer debtor must prove to the
satisfaction of the court that annual income is sufficient in amount and
stability to continue making payments over the life of the plan.
|
