- 3 - On January 16, 1976, petitioner filed a chapter 11 petition in the U.S. Bankruptcy Court for the District of Kansas (Bankruptcy Court) to obtain protection from his creditors and to reorganize his business and personal debts, including debts relating to his farm, his grain distributorship, and his commodity investments. On April 20, 1976, in the above proceeding and over petitioner's objection, the Bankruptcy Court converted petitioner's chapter 11 proceeding into a chapter 7 proceeding, adjudicating petitioner a bankrupt and subjecting petitioner's assets to liquidation. Petitioner appealed that decision to the U.S. District Court for the District of Kansas (District Court), in which appeal petitioner claimed that he qualified for "farmer" status under 11 U.S.C. secs. 1(17) and 22(b) (1970), which provisions exempt farmers from chapter 7 bankruptcy proceedings. In order to qualify for "farmer" status, under the above provisions as applicable to bankruptcy petitions filed in 1976, an individual must have been personally engaged in farming as his or her principal source of income. 11 U.S.C. sec. 1(17).1 On October 5, 1977, after an evidentiary hearing, the District Court, by written order, concluded that petitioner did not qualify for "farmer" status under 11 U.S.C. sec. 1(17) on the 1 Petitioner’s bankruptcy proceedings were governed by the Bankruptcy Act of 1898, ch. 541, 30 Stat. 544, as amended. The Bankruptcy Act of 1978 did not become effective until Oct. 1, 1979. Pub. L. 95-598, sec. 402(a), 92 Stat. 2549, 2682.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011