AMERICANA REVIEW - BANKRUPTCY DATABASE Mailing List

Bankruptcies are becoming more prevalent in rural areas, particularly during periods of general economic stress. The Breadbasket of America has faced the challenges of drought, insect infestations, meat recalls and decreased demand for their products in the marketplace. The Family Farmer Bankruptcy Act of 1986 created Chapter 12 of the bankruptcy code, designed specifically to assist family-size farms reorganize their debts so they can stay in farming. Like other bankruptcy provisions, Chapter 12 has benefits and costs. While Chapter 12 has kept some farmers in business, it has also increased costs by encouraging inefficient farmers to reorganize and continue farming under the protection of bankruptcy rather than liquidating their assets. With subsidy cuts, declining revenue and increased environmental regulations, these Rural Americans are in search of ways to keep their family business above water. The families here have worked hard to keep their farms and now want to work just as hard to prove they are credit worthy. Chapter 7 & 13 Bankruptcies are also selectable with this file.

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