“As a result of fish stock depletion, weather-related disasters, and a glut of fish in certain markets, small fishermen in New Hampshire and across the country face unpredictable pressures which can force them into bankruptcy,” said Sununu.  “The goal of this legislation is to make bankruptcy a more effective tool for fishermen and to provide them with  the means to reorganize their finances while continuing to fish. Without Chapter 12 coverage, small fishermen who happen to be incorporated are left with the unappealing option of filing for corporate reorganization in bankruptcy, with its complex and often burdensome provisions.” 

Previously, Chapter 12 protection covered small family farmers. The legislation, introduced
by Senator Susan Collins (R-ME) as an amendment to the “Bankruptcy Reform Act of 1999", would expand that coverage to small commercial fishermen who earn the majority of their income from the commercial harvest of fish or other aquatic species or products.  Additionally, the legislation would apply to those engaged in aquaculture and recreational charter fishing. Those covered must be less than $1.5 million in debt, must have at least 80% of their debts from fishing, and must earn more than 50% of their family income from fishing. 

Sununu, a supporter of the House version of the bankruptcy reform bill (H 833), will be urging members of the  Senate - House conference on bankruptcy reform to include “The Fishermen’s Bankruptcy Protection Act”(S 684) in the final version of bankruptcy reform bill. Congress is expected to consider bankruptcy reform legislation by mid-summer.