On July 25, 2019, the U.S. House of Representatives passed a bill that eases Chapter 12 bankruptcy limits for farmers.
The bill, H.R. 2336 (116), would expand the debt cap covered under Chapter 12 bankruptcy to $10 million from the current debt limit of $4.15 million. The bill would enable farmers to qualify for Chapter 12 bankruptcy if their total debt is less than $10 million.
The measure passed by voice vote and was sponsored by House Agriculture Chairman Collin Peterson (D-Minn.) and committee members Representatives Antonio Delgado (D-N.Y.), Dusty Johnson (R-S.D.), Cindy Axne (D-Iowa) and T.J. Cox (D-Calif.).
A similar bipartisan version has been introduced in the Senate S. 897 (116), backed by Sen. Chuck Grassley (R-Iowa). However, the measure has yet to be marked by the Judiciary Committee.