The Chapter 12 debtor, unlike his or her Chapter 7 counterpart, is initially a debtor in possession.

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In a Chapter 12 bankruptcy case, the debtor is initially a debtor in possession, meaning they continue to operate their farming or fishing business while in bankruptcy. In contrast, in a Chapter 7 case, a trustee is appointed to liquidate the debtor's assets and distribute the proceeds to creditors.

The Chapter 12 Debtor, Unlike His or Her Chapter 7