President Clinton on Tuesday signed a six-month extension of Chapter 12 of the bankruptcy code, which is intended for farmers and was set to expire Thursday.

"Congress and the President acted just in time to keep Chapter 12 in place for farmers who may need to reorganize farm debt in the coming months," said Sen. Chuck Grassley, R-Iowa.

Chapter 12 protects farmers by making it significantly more difficult for lenders to foreclose on agriculture loans.

Sen. Grassley had included a provision in the consumer bankruptcy reform bill to make Chapter 12 permanent. The Senate Judiciary Committee is expected to vote on that legislation late this month.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.