What are the criteria for an individual or individual and spouse to file chapter 12 under the bankruptcy code?
As of the date of filing the following criteria must be met: • The individual or husband and wife must be currently “engaged” in a farming operation; • Total farming debts (secured and unsecured) cannot exceed $3,237,000 (excluding debt for the home). • The family farmers debts must be at least 50% fixed in amount and related to the farming operation (excluding debt for the home). • More than 50% of the gross income for the past three tax years must have come from the farming operation.
