Chapter 12 bankruptcy is designed to provide an opportunity for "family farmers" or "family fisherman" to reorganize their affairs while under the protection of the Bankruptcy Court.   Chapter 12 provides certain types of relief that may not be available under chapter 13 or chapter 11.

Under chapter 12, a distressed family farmer or fisherman may propose a plan of reorganization for his secured and unsecured creditors.

Upon the filing of a chapter 12 petition, a trustee is appointed to administer the case. The filing of the petition stays most creditor collection actions. The bankruptcy clerk will provide notice of the bankruptcy filing to creditors.

About a month after the filing of the petition, a creditor's meeting is held. During the creditor's meeting, the trustee and creditors may ask questions regarding the debtor's financial affairs and the terms of the proposed chapter 12 plan.

Subsequently, a confirmation hearing on the chapter 12 plan will be scheduled to consider confirmation of the chapter 12 plan.