How do Chapter 12 bankruptcy proceedings work?Bankruptcy proceedings under Chapter 12 operate similarly to Chapter 13 proceedings, with the inclusion of some Chapter 11 concepts. The main difference in Chapter 12 proceedings is that all property acquired after filing the petition is also added to the estate. Like other bankruptcy chapters, an automatic stay is in effect when the petition is filed. After the petition is filed, an order for relief is mailed to all creditors and a §341(a) meeting is set for 21 to 35 days after filing. If the debtor (i.e., the person declaring bankruptcy) is an individual with domestic obligations, the bankruptcy trustee will give notice to the ex-spouse that he or she has the right to use the services of the State child support enforcement agency to collect support during the case. The trustee must also provide notice to the State child support enforcement agency that a claim was made for domestic support obligations. When the debtor has been discharged, the trustee must give notice to the ex-spouse and child support enforcement agency of:
- The discharge.
- The debtor's last known address.
- The debtor's employer.
- The name of each creditor that is not discharged or was reaffirmed.