Which of the following is false regarding Chapter 12 of the bankruptcy code?
A) A family farmer under Chapter 12 must have regular annual income.
B) The family farmer's gross income must be at least 50 percent farm-dependent.
C) At least 50 percent of the family farmer's debt must be farm-related.
D) The debt must be under a certain debt cap.
E) Congress modeled Chapter 12 after Chapter 7 relief.

Question

Quizplus · Accepted Answer

Chapter 12 of the bankruptcy code is specifically designed for family farmers and fishermen, providing them a mechanism for debt reorganization, not liquidation, which is the focus of Chapter 7. Therefore, stating that Chapter 12 was modeled after Chapter 7 is incorrect, as Chapter 12 is more akin to Chapter 13 but tailored for the unique needs of family farmers and fishermen.

Which of the Following Is False Regarding Chapter 12 of the Bankruptcy