Chapter 12 bankruptcy is a form of reorganization, in which you follow a payment plan to your creditors under the discretion of a bankruptcy court. It is quite similar to Chapter 13, the main form of reorganization bankruptcy for consumers, but is tailored only to certain individuals.

Because of the specific nature of their livelihoods, Chapter 12 is only for farmers and fishermen whose debt is comprised of at least 80% occupational costs, and who owe less than $1,500,000. Among the powers of Chapter 12 is the ability to release liens on property that is necessary for work.