Chapter Twelve and Chapter Thirteen of the bankruptcy code are both debt repayment plans, but there are several differences between Chapter Twelve and Chapter Thirteen.

Congress enacted Chapter Twelve of the Federal Bankruptcy Code in 1986, as a response to what was then seen as a temporary crisis in the farming industry.

The first steps an individual family farmer must take in order to get Chapter Twelve bankruptcy relief are the same as for Chapter Seven. A petition and all the necessary paperwork are filed with the bankruptcy court.