Do Farmers Need a Separate Chapter in the Bankruptcy Code?

Jerome M. Stam

No 33725, Agricultural Information Bulletins from United States Department of Agriculture, Economic Research Service

Abstract: Chapter 12, a special section in the bankruptcy code enacted in 1986 in response to the farm financial crisis, will expire on October 1, 1998. It has succeeded in keeping some farmers in business and has encouraged informal lender-farmer settlements out of court. But it has increased costs by encouraging both inefficient farmers who would otherwise liquidate and efficient farmers who would otherwise continue their operations at greater expense to reorganize their businesses and charge off part of their debts under the protection of bankruptcy. Some of these costs could be mitigated by allowing lenders the option of recapturing writedowns in secured debt as asset values increase.

Keywords: Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Pages: 4
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/33725/files/ai977249.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uersab:33725

DOI: 10.22004/ag.econ.33725

Access Statistics for this paper

More papers in Agricultural Information Bulletins from United States Department of Agriculture, Economic Research Service Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().