The Nation - News from Oct. 28, 1986

A major change in the nation’s bankruptcy law that backers said will give new hope to thousands of farmers being forced into foreclosure was signed by President Reagan. The revision, part of a law that creates 52 new bankruptcy judgeships, establishes a new chapter of bankruptcy law allowing farmers holding up to $1.5 million in debt to declare bankruptcy and seek protection from creditors under streamlined procedures similar to those used by small businesses. The measure is restricted for use only by family farmers, defined as those who receive at least half their income from farming.