Family Farmer Bankruptcy Reform Act of 1985

[AI summary unavailable — showing source text] Family Farmer Bankruptcy Reform Act of 1985 - Defines a "family farmer" for purposes of Federal bankruptcy law as a person who received more than 50 percent of gross income from farming operations, including a person that is a corporation that issues stock: (1) which is not publicly traded; and (2) the majority of which is held by one family. Allows a family farmer that owes secured and unsecured debts totaling less than $1,000,000 to qualify as a debtor under bankruptcy provisions providing for the adjustment of debts of an individual with regular income. Authorizes a plan filed under such provisions to modify the rights of holders of claims secured only by a security interest in real property which is a family farmer's principal residence and which such family farmer uses for farming operations. Prohibits the court from granting a discharge of any debt for payment on a claim if the rights of the claim holder are so modified. Permits the court to approve a plan providing for payment over a period of up to ten years in the case of a debtor who is a family farmer. Provides for the confirmation of a family farmer's plan with respect to allowed secured claims on a basis similar to tha…