Bankruptcy is the last option for financially distressed value-added businesses.  Understanding the process and implications of filing are important, if you are considering bankruptcy.  Various types of bankruptcy are available to choose from.  Major Developments in Chapter 12 Bankruptcy provides an update on recently legislative changes.

For more information on this topic, see the links listed below of articles posted on related Web sites.

Understanding Bankruptcy

• The New Bankruptcy Law – NOLO Law for All -- Here are some of the major changes you should know about.
• Bankruptcy: The Last Resort – University of Minnesota Extension -- When a farm operator, or any other business person, is unable to continue to service all of his or her indebtedness, he or she may face substantial pressure from creditors.
  
• What is Bankruptcy? – NOLO Law for All -- A brief overview of U.S. bankruptcy laws and procedures.
  
• Bankruptcy FAQ – NOLO Law for All – Answers to common questions about bankruptcy.
  
• Bankruptcy FAQ – Lawyers.com – Questions and answers about bankruptcy.
  
• Bankruptcy Tax Guide – Internal Revenue Service – Publication 908.
  
• Big Changes in Bankruptcy Law Coming in October 2005 – NOLO Law for All -- If you're thinking of filing for bankruptcy, do it now. It will be much harder to qualify after October 17.
  
• How Bankruptcy Stops Your Creditors: The Automatic Stay - NOLO Law for All -- After you file for bankruptcy, the automatic stay offers potent legal protection against bill collectors.
  
• Bankruptcy: Selecting a Good Lawyer – Lawyers.com -- Bankruptcy lawyers usually specialize either as debtor’s counsel or as creditor’s counsel.
  
• Bankruptcy Fact Sheets and Consumer Notices – U.S. Trustee Program -- Obtain information on bankruptcy proceedings, the role of the U.S. Trustee, and mortgage foreclosure scams.
  
• Dealing with your Customer’s Bankruptcy – Lawyers.com -- A discussion of what to do when your customer files for bankruptcy.
  
• Facing Involuntary Bankruptcy – Lawyers.com -- Most entrepreneurs don’t realize that their creditors can force them into involuntary bankruptcy.
  
• Security Interests in Bankruptcy – Lawyers.com -- The division of debt between “secured” and “unsecured” guides what bankruptcy reorganization can do for you.
  
• Reaffirmation and Voluntary Repayment of Debts – Lawyers.com – Reaffirmation of a debt discharged in bankruptcy means that the debtor who has been discharged in bankruptcy from the obligation to pay a debt enters into an agreement to pay it anyway.
  
• Small Business Bankruptcy Relief – Lawyers.com -- How do you figure out whether bankruptcy is necessary or helpful for your situation?
  
• Property Exemptions in Bankruptcy – Lawyers.com -- The bankruptcy code allows each person who files bankruptcy to keep basic assets considered necessary for the debtor's "fresh start" after bankruptcy.
  
• Glossary of Common Bankruptcy Terms – BankruptcyData.com.

Chapter 7

• Chapter 7 Bankruptcy – NOLO Law for All – An overview of Chapter 7 bankruptcy.
• Bankruptcy: Chapter 7 Liquidations – University of Minnesota Extension -- A Chapter 7 bankruptcy is a liquidation proceeding.
  
• Chapter 7 Bankruptcy – NOLO Law for All – Lets you eliminate (discharge) most of your debts in exchange for giving up property that is not protected by "exemption" laws.

Chapter 11

• Bankruptcy: Chapter 11 Reorganizations – University of Minnesota Extension -- Chapter 11 allows a debtor to enter into an agreement with creditors under which all or a part of the business continues.

Chapter 12

• Bankruptcy: Chapter 12 Reorganizations – University of Minnesota Extension -- Chapter 12 is designed specifically for the reorganization of family farms.
• Bankruptcy Reform and Family Farmers: Correcting the Disposable Income Problem – National Ag Law Center -- This article focuses on the last amendment to the Bankruptcy Abuse Prevention and Consumer Protection Act—the assessment of disposable income. It is an amendment that has not been widely reported, nor does it appear to have been the subject of significant congressional debate. It is set forth in one very short section of the bill, but it reverses over a decade of misinterpretation of the plain language of the original Chapter 12 disposable income requirement. It is a significant change that promises to enhance the likelihood of successful family farm reorganizations throughout the country.
  
• An Introduction to Chapter 12 Bankruptcy: Restructuring the Family Farm - The National Agricultural Law Center - Chapter 12 bankruptcy is a special section of the Bankruptcy Code that provides for the restructuring of the debts of a family farm or family fisherman’s business.
  
• Bankruptcy Reform: Changes to Chapter 12 - Adjustment of Debts for a Family Farmer - The National Agricultural Law Center - The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 became law on April 20, 2005.
  
• Bankruptcy Reform and Family Farmers - The National Agricultural Law Center - The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 passed the Senate on March 10; it passed the House of Representatives on April 11; and it was signed by the President on April 20, 2005, marking the conclusion of almost a decade of contentious debate.
  
• Husband and Wife Farmers in Agricultural Bankruptcies: The "Tools of the Trade" Exemption - The National Agricultural Law Center - This article examines the "tools of the trade" exemption as it applies to agricultural bankruptcies involving husband and wife farmers.
  
• Determining the Proper "Cramdown" Rate of Interest in Agricultural Bankruptcies Post-Till v. SCS Credit Corp. - The National Agricultural Law Center - On October 2, 1998, Lee and Amy Till purchased a used vehicle from Instant Auto Finance in Kokomo, Indiana. Little did they know that the events of that day would evolve into legal battles before a bankruptcy court, a federal district court, a circuit court of appeal, and the United States Supreme Court.

Chapter 13

• Chapter 13 Bankruptcy – NOLO Law for All – An overview of Chapter 13 bankruptcy.