Family Farm Credit Rehabilitation Act

Summary

Family Farm Credit Rehabilitation Act - Defines a "family farmer" for purposes of Federal bankruptcy law as any person (including a corporation if more than half of the aggregate value of the outstanding equity securities are held by one family and its relatives and if the corporation's stock, if any, is not publicly traded) owning a farm, at least 80 percent of whose aggregate debts arise out of such farming operation. Excludes from such aggregate debts a debt for the principal residence of such person unless such debt arises out of a farming operation. Allows a family farmer with a regular annual income and with total secured and unsecured debts of less than $1,500,000 to qualify as a debtor under bankruptcy provisions providing for the adjustment of debts of an individual with regular income (personal bankruptcy provisions). Provides that involuntary bankruptcy cases may not be commenced against family farmers. Extends to 240 days (currently, 120 days for other debtors) the period following the order for relief during which only a debtor may file a reorganization plan, and after which any party in interest may file a reorganization plan, in the case of a debtor who is a farmer. Revises the compensation of a trustee appointed to a personal bankruptcy case where the debtor is a family farmer to a percentage fee not exceeding the sum of up to ten percent of the aggregate payments up to $450,000 under the reorganization plan of such debtor plus three percent of the aggregate amount of payments exceeding $450,000, based on the maximum annual compensation and the actual necessary expenses incurred by the trustee. Prohibits a court from converting a reorganization case to a liquidation case, or a personal bankruptcy case to a reorganization or liquidation case, if the debtor is a family farmer. Allows a plan filed in a personal bankruptcy case to modify the rights of holders of claims secured only by a security interest in real property which is a debtor's principal residence and which: (1) such family farmer uses for farming operations; or (2) is located near the farming operations of a family farmer. Extends from five to ten years the maximum period over which payments may be made under such a plan in the case of a debtor who is a family farmer. Requires a court, at the timely request of a family farmer debtor, to hold a hearing to determine from the facts and circumstances of the debtor and the case a reasonable time after such a plan is filed within which the debtor shall begin making such payments.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 29 July 1985

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.