Assosiated Press
WASHINGTON (AP) -- The House voted Monday to temporarily extend special farm bankruptcy protections that are scheduled to expire on Friday.
Chapter 12 of the federal bankruptcy code was created for farmers during an economic downturn in the 1980s. Unlike Chapter 11, which applies to corporations, Chapter 12 does not require a farmer to obtain the consent of creditors before reorganizing.
Congress has temporarily extended Chapter 12 twice before. A permanent extension of the section has been mired in a dispute between lawmakers and the Clinton administration over an overhaul of the entire bankruptcy code. Lawmakers hope to finish work on that legislation this year.
A bill the House approved on a voice vote Monday would keep Chapter 12 alive through September.
The bill is H.R.4718.:
