Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.
If the case is converted from a chapter 12 to a chapter 7, it would be a complete liquidation of all assets and property; which means that they would have to discontinue their farming operation.
All secured lenders (lenders that have collateral) would be allowed to recover their property and sell it to pay on the debt. The unsecured creditors (lenders with no collateral) would likely receive little to nothing and their debts would be discharged.
As for the missing cows, if there is a lender with a lien on the livestock, it may demand an accounting or for your parent to prove that the cows haven't been transferred or sold without reporting it to the bankruptcy trustee
or lender. However, if your parent can prove that the cows were either sold and payment remitted to the lender, or if there was an inaccurate count, or if there's no explanation other than it being just a mistake, it is likely that this would not be a huge issue - - because there would be no proof that your parent did anything wrong.
But, if your parent can show why the error occurred, that would certainly help the issue resolve faster.