What are the criteria for a corporation or partnership to file chapter 12 under the bankruptcy code?
As of the date of filing the following criteria must be met: • More than 50% of the stock or equity in the corporation or partnership must be owned by one family or by one family and its relatives. • The family or the family and relatives must be currently “engaged” in a farming operation. • The corporation or partnership must have received more than 80% of its gross income from the farming operation during the tax year immediately prior to filing bankruptcy. • More than 80% of the value of the corporation or partnership assets must be related to the farming operation. • Total farming debts (secured and unsecured) must be less than $3,237,000 (excluding debt for a dwelling owned by the corporation or partnership where a shareholder or principle partner lives as a principle residence). • The debt must be at least 50% fixed in amount and related to the farming operation (excluding debt for a dwelling owned by the corporation or partnership where a shareholder or principle partner lives a
