Chapter 12 or the family farmers or family fishermen is a repayment plan for farmers and fishermen with regular incomes. It may not be restricted to farmers and fishermen only since it may also cut across partnerships and corporations. For this last category, one of the partners should be a farmer or fisherman or should have relatives in the field. The percentages of the debt acquired from farming or fishing activities will also qualify or disqualify this group from filing a case under this chapter.

A bankruptcy discharge is a special treatment of the debtors property which in most cases prevents both the debtor and the creditor from having claim over property meant to pay a debt. This means that the creditor is not allowed to recoup the property and the debtor too is not allowed to have any claims on the property in question. Before a discharge has been issued it is normally important that the debtors go through a counseling session to allow them gain knowledge on how to deal with handling debt and managing cash flow. This is done irrespective of whether or not the debtor will pay up or not.

Just like in chapters 7 and 13, there are categories of debt that are not discharged and these include those acquired for child support, mortgages, alimony and those assets that are obtained out of fraud or false presentation. The chapter 12 bankruptcy laws are complex and anyone willing to go this way should first contact experts on the matters.

In circumstances where the debtor is not in a position to fulfill the conditions of the bankruptcy discharge conditions, the hardship discharge is issued. This is issued if only the debtor has been unable to pay his debts due to unavoidable circumstances.