The debtors filed a Chapter 7 bankruptcy four years ago. What options do the debtors have if they want to file another bankruptcy now? Support your answer with reason and relevant examples.

A Choice between Chapter 12 or Chapter 13 Filing

While one generally thinks of Chapter 12 for farm bankruptcies, Chapter 13 also is available to farmers to eliminate or reduce debts. Knowing the differences between these Chapters and the advantages each Chapter offers is necessary to guiding a client to the correct filing.

1. When should a farmer file a Chapter 13 rather than a Chapter 12 bankruptcy?
2. What special benefits does the Chapter 12 bankruptcy offer?

Monty is a farmer in Idaho and currently manages the family's potato farm, which has existed for generations. In the past two years, Monty has suffered business losses. First, blight hit the crop, so Monty did not harvest the quantity of potatoes he had in previous years. Next, the price for potatoes had a sharp decline; now Monty gets only $2 for each bushel. The loss of revenue in 2015 was $250,000 and, in 2016, $200,000. Monty's payments for the leased farm equipment are behind, and the companies are threatening to repossess the machinery. Without the machinery, Monty will be unable to farm at all. He thinks he will realize a profit for the 2017 crop and wants to save the farm. What are the advantages and disadvantages?