A Chapter 12 provides debt relief to family farmers and fishermen with regular income. The process under Chapter 12 is very similar to that of Chapter 13, under which the debtor proposes a plan to repay debts over a period of time — no more than three years unless the court approves a longer period, not exceeding five years. There is also a trustee in every Chapter 12 case whose duties are very similar to those of a Chapter 13 trustee.
The Chapter 12 trustee’s disbursement of payments to creditors under a confirmed plan parallels the procedure under Chapter 13. Chapter 12 allows a family farmer or fisherman to continue to operate the business while the plan is being carried out.