Kentucky Bankruptcy Court Rules Former Farmer Eligible For Relief Under Chapter 12

  • May 25, 2016

In a case recently decided by the Bankruptcy Court for the Western District of Kentucky, Bowling Green Division, the Court held that individuals who had ceased, and who had no intention of farming in the future, were still considered “family farmers” and eligible for relief under Chapter 12 of the Bankruptcy Code. In the case of In re Williams, the debtors ceased farming approximately a year prior to the filing of their bankruptcy in what the Court termed a “reasonable financial decision to end a nonprofitable farming operation.”  The debtors were not engaged in farming on the date the petition was filed, and had indicated that they did not intend to restart a farming operation in the future. The Court, overruling the objection of the US Trustee, found that a debtor did not have to be actively engaged in farming operations on the date of the filing of the petition to be eligible for relief under Chapter 12.

View the decision of the U.S. Bankruptcy Court for the Western District of Kentucky Bowling Green Division at this link:  In re: Williams Decision

News & Blog

Main Menu

Pin It on Pinterest