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Chapter 12 Bankruptcy

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Chapter 12 was originally a temporary specialized form of bankruptcy relief designed for family farmers. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (2005 Bankruptcy Act), also known as the Bankruptcy Reform Act, made Chapter 12 permanent and extended it to family commercial fishing operations including aquaculture. Chapter 12 addresses the unique risks faced by family farmers and fishing operators and is tailored to help debtors reorganize debt and stay in business.