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| vol 18, num 3 | August 2021 |
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| Chapter 12: A Primer, Including Recent Legislation |
| Chapter 12 was added to the Bankruptcy Code in 1986 in response to the farm crisis of the 1980s. Chapter 12 became a permanent part of the Code in 2005. For many reasons, farmers have continued to struggle in the intervening years, causing this chapter to be more relevant than ever. In 2016, farm real estate debt surpassed the 1981 peak. In 2019, commodity prices were 50 percent lower than their peak in 2012, and the weather in 2019 — including massive Midwest floods — prevented American famers from planting 19.6 million acres of crops, more than double any other year since the U.S. Department of Agriculture began keeping track
in 2007.
For chapter 11 and 13 practitioners, chapter 12 will look familiar. Chapter 12 cases are typically administered by a trustee. Many districts have a standing chapter 12 trustee, but others are assigned on a case-by-case basis. Like chapter 13 but unlike chapter 11, chapter 12 cases proceed under the supervision of a trustee and the court until completion of the plan. Chapter 12 cases also have a debt limit of $10 million. After successful plan completion, the debtor receives a discharge. There is no disclosure statement or voting on the plan by creditors. Also unlike chapter 11, there is no absolute priority rule in chapter 12.
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| Proposed Changes to Paycheck Protection Program for Farmers and Ranchers |
| One of the most popular support programs developed through the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act was the Paycheck Protection Program (PPP). This program was administered by the U.S. Small Business Administration (SBA) through participating lenders throughout the U.S.
This program was originated to grant relief through a forgivable loan to employers to assist with continuing to pay their employees while in lockdown during the declared pandemic period. It was also expanded to self-employed individuals, independent contractors and sole proprietors to aid in paying for such ongoing expenses as rent, utilities, interest on debt obligations and supplier costs.
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| ABI's "Industry Viewpoints" |
| Want to learn more about the different industries that bankruptcy affects?
ABI’s got you covered! Check out our “Industry Viewpoints” video series, featuring ABI Editor-at-Large Bill Rochelle discussing various industries with prominent bankruptcy professionals. The first four conversations have been previously posted on our social media platforms (Facebook, Twitter, LinkedIn and YouTube).
Make sure to check out Bill’s most recent conversation with Scott A. Wolfson of Wolfson Bolton PLLC (Troy, Mich.) on the auto industry.
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| Previous guests of “#IndustryViewpoints” have included:
Be sure to view the ABI YouTube Channel and follow ABI on social media (twitter.abi.org, facebook.abi.org or linked.abi.org) to be notified of upcoming episodes!
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| Legislation Committee Leadership for 2021 |
| For your reference, below is a full roster of the Legislation Committee leadership. Please consider them a resource for getting more involved in ABI volunteer activities.
You can also visit the committee's homepage for more newsletter articles, relevant recordings and other committee information.
The committee is always eager to welcome new volunteers. Please contact any member of our leadership team to find out how you can get involved.
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