Chapter 7 and Chapter 13 are the most commonly filed bankruptcy declarations for individual consumers, with Chapter 13 often being filed by debtors who have sufficient income to repay some portion of their debts on a three to five year payment schedule. Chapter 12 bankruptcy, by way of contrast, is carried out in nearly identical fashion to Chapter 13; however, a person can only declare Chapter 12 when a minimum of 50 percent of the debtor's income and/or debts derive from a family farm or fishery operation.
Subject to these and other qualifications, Chapter 12 bankruptcy allows for higher debt limits than does Chapter 13 due to the extensive debts a family farm can incur. Debtors are further empowered by Chapter 12 with the ability to completely eliminate certain liens. An individual with no ties to the farm or fish industries whose debts exceed the Chapter 13 ceiling may be advised to file for Chapter 11 bankruptcy, though it is one of the lengthiest, most complex bankruptcy filings of all.