Who can Petition: Debtor (voluntary) only.
- Who can be a Debtor:
- Chapter 12- Any family farmer (one whose gross income is at least 50% farm dependent and whose debts are at least 50% farm related) or family fishermen (one whose gross income is at least 50% dependent of ccommercial fishing operations and whose debts are at least 80% related to commercial fishing) or any partnership or closely held corporation at least 50% owned by a family farmer or fisherman when total debt does not exceed a specified amount ($3,792,650 for farmers and $1,757,475 for fishermen).
Chapter 13-Any individual (not partnerships or corporations) with regular income who owes fixed (liquidated) unsecured debts of less than $360,475 or fixed secured debts of less than $1,081,400.
Procedure Leading to Discharge: Plan is submitted and must be approved if the value of the property to be distributed equals the amount of the claims or if the debtor turns over disposable income for a 3 year or 5 year period; if the plan is followed, debts are discharged.
Advantages: Debtor continues in business or in possession of assets. If the plan is approved, most debts are discharged after the plan period.