Senators try to help family farmers in bankruptcy

Two US Senators have introduced a bill called the Family Farmer Bankruptcy Tax Clarification Act of 2013 to reverse a 2012 US Supreme Court decision regarding family farmers in Chapter 12 bankruptcy. The senators state that the changes to the bankruptcy code in 2005 allowed farmers to first pay creditors and then the IRS; however, in Hall v. United States the Supreme Court ruled that farmers must first pay the IRS. The Senators argue that this ruling prevents farmers from reorganizing under Chapter 12 and it was not the intent when they reformed that section of the Bankruptcy Code.

For more read, “Sens. Push to Reverse Supreme Court Ruling on Farm Bankruptcy Code.”

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