Which of the following is true of Chapter 12 of the U.S. Bankruptcy Code?

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Chapter 12 of the U.S. Bankruptcy Code allows family farmers and fishermen to file for bankruptcy reorganization. This chapter was specifically created in 1986 to provide relief to farmers and fishermen who may experience financial difficulty due to factors beyond their control, such as natural disasters or fluctuations in commodity prices.

B, C, and D are incorrect statements. A plan for Chapter 12 reorganization should provide for payments to creditors over a period of three to five years, not one year. Chapter 12 does not provide a personal exemption for all farm or fishing equipment, although exemptions may be available under state law. A debtor can convert from a Chapter 12 reorganization to a Chapter 7 liquidation, although this may not be in their best interest depending on their financial situation.

Which of the Following Is True of Chapter 12 of the U.S