Consider the Purpose of Chapter 12

It may not be immediately clear why Chapter 12 is even needed in the Bankruptcy Code. Obviously, the goal of bankruptcy applicants and bankruptcy courts are to ensure debts are discharged. Chapter 12 might truly be a better solution for family farmers and fisherman than other bankruptcy options.

Though depending on the circumstances, Chapter 12 bankruptcy is apt to be a better fit for these populations than Chapter 11 relief, as the fees are much less expensive under Chapter 12 and the process runs more smoothly than in Chapter 11, which is arguably quite complex. Compared to Chapter 13, meanwhile, Chapter 12 bankruptcy is usually a superior option for fishermen/farmers, as they are more likely to accrue bigger debts than those who traditionally file for Chapter 13 bankruptcy.

Despite not being a major tenet of Chapter 12, added protections for family farmers and fishermen may be thrown in with contemplations of the purpose of this subset of bankruptcy law. Any projections or estimates of the income debtors should make in coming years are just that, and depend on stable, amenable environmental conditions. In the event of a natural disaster or some other sort of ecological change that negatively impacts farmers or fishermen and is beyond their control, Chapter 12 bankruptcy proceedings may result in a "hardship discharge" of some debts owed.