An individual (and spouse), corporation or partnership must be engaged in a farming or fishing operation and have a regular annual income to be eligible to file for bankruptcy under Chapter 12, and must meet the following criteria:

• The farming operation cannot have debts that exceed $3,792,650.
• Fifty-percent (50%) of the debts must be derived from the farming operation (excluding the debt for residence, unless the debt also arises out of the farm operations).
• Debtors must receive more than 50% of their gross income from the farming operation for the preceding year or each of the 2nd and 3rd taxable years preceding filing.
• Debtors must have regular income that would ensure regular payments according to the terms of a plan.
• Debtors did not file under this chapter within the preceding 180 days if the case was dismissed for failure to abide by the orders of the court.
• Debtors did not file under this chapter within the preceding 180 days after requesting a voluntary dismissal of the case following a request for relief from stay.

If the farming operation is a corporation or partnership, it must meet the following criteria:

• More than 50% of its stock or equity must be held by one family (including relatives) that conducts the farming operation.
• More than 80% of the value of the corporation’s or partnership’s assets must consist of assets related to the farming operation.
• Fifty-percent (50%) of its debts must be derived from the farming operation (excluding the debt for one dwelling, which is owned by the corporation or partnership and which a shareholder or partner maintains as a principal residence, unless the debt also arises out of farm operations).
• The corporation’s stock must not be publicly traded.
• The corporation must have regular income that would ensure regular payments according to the terms of the plan.
• The corporation did not file under this chapter within the preceding 180 days if the case was dismissed for failure to abide by the orders of the court.
• The corporation or partnership did not file under this chapter within the preceding 180 days after requesting a voluntary dismissal of the case following a request for relief from stay.

To file for bankruptcy under Chapter 12, an individual (and spouse) engaged in a commercial fishing operation must meet the following criteria:

• The fishing operation cannot have debts that exceed $1,757,475.
• Eighty-percent (80%) of the debts must be derived from the fishing operation (excluding the debt for residence, unless the debt also arises out of the fishing operations).
• Debtors must receive more than 50% of their gross income from the fishing operation for the preceding year that the case was filed.
• Debtors must have regular income that would ensure regular payments according to the terms of a plan.

If the fishing operation is a corporation or partnership, it must meet the following criteria:

• More than 50% of its stock or equity must be held by one family (including relatives) that conducts the fishing operation.
• More than 80% of the value of the corporation’s or partnership’s assets must consist of assets related to the fishing operation.
• The fishing operating cannot have debts that exceed $1,757,475.
• Eighty-percent (80%) of the debts must be derived from the fishing operation (excluding the debt for principal residence that is occupied by a shareholder or partner, unless the debt also arises out of the fishing operations).
• The corporation’s stock cannot be publicly traded.