Vermont Bar Journal, Vol. 40, No. 2 Vermont Bar Journal, Fall 2016, Vol. 42, No. 3 | Page 27

Chapter 12

let alone the pride and determination that
comes with the territory. Even if a farmer
were to contact a lawyer familiar with consumer bankruptcy that attorney may not be
able to advise a farmer of her or his rights
under Chapter 12. For this reason, it is important for all attorneys and financial professionals that work with farmers to understand at the very least that Chapter 12 exists and know that is designed to help financially stressed farms to reorganize. A suggestion that a farmer might be well served
to obtain a consultation about Chapter 12
could mean the difference between a successful reorganization and the unnecessary
end to a family farm.
CHAPTER 12 AND VERMONT

Since the enactment of Chapter 12, Vermont has seen roughly 100 farm cases filed.
The vast majority of these, over 80%, have
been dairy farms. Beyond dairy farms,
Vermont Chapter 12 cases have included
Christmas tree farms, orchards, vegetable
www.vtbar.org

farms, horse, alpaca and sheep farms as
well as a trout farm.
Not all farm cases make it to the end
of the plan successfully. Some cases convert to Chapter 7 or dismiss if they reach a
point when the plan payments are no longer affordable or where there is no longer
any need for bankruptcy protection. In Vermont over 80% of the filed cases have successfully completed their plans- which is an
incredible success rate.
Even though the number of farm cases
filed in Vermont is relatively small, these
cases represent a tremendous diversity of farms and the challenges they have
faced. The Vermont farms that have reorganized under Chapter 12 range from
the very small to large. Some farms have
used Chapter 12 to help facilitate a transition from one type of farming to another or a transition from conventional dairy
farming to organic. Only a few farms that
have filed for Chapter 12 relief have filed a
second case, and several farms have grown
and become quite successful after using
THE VERMONT BAR JOURNAL • FALL 2016

Chapter 12 to recover from challenges that
have threatened their survival.
____________________
© Jan M. Sensenich, 2016
Jan Sensenich, Esq. is the standing
Chapter 12 and Chapter 13 Trustee for the
US Bankruptcy Court for the District of Vermont, having served since 1991.

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