Iowa Senator Chuck Grassley, chair of the Senate Finance Committee is introducing legislation to update the 1986 Chapter 12 Bankruptcy law. He says that reform is needed.

He says the parameters in the 1986 legislation are much different than they are today and by those old standards several people may not be able to quality for Chapter 12.

Grassley says they want to update the threshold to $10 million dollars.

The size of the average farm has grown and the debt amounts handled under Chapter 12 haven’t kept up.