Question 1

A family farmer can be an individual or an individual and spouse, but cannot be a partnership or corporation.

Accepted Answer

This statement is incorrect. A family farmer can be an individual, individual and spouse, partnership, or corporation, as long as the majority ownership of the entity is held by an individual, family or group of individuals related by blood or marriage.

Question 2

A Chapter 12 case may be dismissed for failure to pay a domestic support obligation that came due before the filing of the petition.

Accepted Answer

False

Question 3

The debtor must file a Chapter 12 plan not later than days after the order for relief.

Accepted Answer

90

Question 4

Using the dollar amounts as of April, 1, 2010, the debtor's aggregate debts to be a family fisherman must not exceed ____.

Accepted Answer

As of April 1, 2010, the specific dollar amount for a debtor's aggregate debts to qualify as a family fisherman was set at $1,757,475. This figure is adjusted periodically to reflect changes in the economy and inflation.

Question 5

Chapter 12 is only available to family farmers who have regular annual income.

Accepted Answer

Chapter 12 bankruptcy is available to family farmers and fishermen who have regular annual income, not just family farmers.

Question 6

The Chapter 12 debtor, unlike his or her Chapter 7 counterpart, is initially a debtor in possession.

Accepted Answer

In a Chapter 12 bankruptcy case, the debtor is initially a debtor in possession, meaning they continue to operate their farming or fishing business while in bankruptcy. In contrast, in a Chapter 7 case, a trustee is appointed to liquidate the debtor's assets and distribute the proceeds to creditors.

Question 7

Although some aspects of Chapter 12 have been patterned after Chapter 11, the procedural aspects of Chapters 12 and 13 are almost identical.

Accepted Answer

While Chapter 12 does share some similarities with Chapter 11, the procedures for Chapter 12 and Chapter 13 bankruptcies are much more similar to each other.

Question 8

The documents required of a debtor in a Chapter 12 case are similar to those required of a debtor in a Chapter 7 case, except for the Chapter 12 plan.

Accepted Answer

The documents required of a debtor in a Chapter 12 case are similar to those required of a debtor in a Chapter 7 case, except for the Chapter 12 plan.

Question 9

Unlike Chapter 13, there is not a case trustee in a Chapter 12 case.

Accepted Answer

In a Chapter 12 case, there is indeed a case trustee whose role is to oversee the case, help with plan formulation, and distribute payments to creditors, similar to Chapter 13 bankruptcy proceedings.

Question 10

How may secured claims be treated in a Chapter 12 plan that would not be permitted in a Chapter 13 plan?

Accepted Answer

The answer of How may secured claims be treated in...

Question 11

How may the role of a Chapter 12 trustee differ from that of a Chapter 13 trustee?

Accepted Answer

The answer of How may the role of a Chapter...

Question 12

Chapter 12 has been expanded to apply to family fishermen.

Accepted Answer

The text states, "Chapter 12 has been expanded to apply to family fishermen and includes provisions for voluntary bankruptcy petitions and debt adjustments for eligible family fishermen."

Question 13

For an individual to be a family farmer, more than ____ of such individual's income must come from farming operations.

Accepted Answer

According to the United States Department of Agriculture (USDA), an individual must derive at least 50% of their income from farming operations to be classified as a family farmer.

Question 14

Confirmation of a Chapter 12 plan requires that the debtor be current on all domestic support obligations that came due after the filing of the petition.

Accepted Answer

This is correct according to 11 U.S. Code § 1225(a)(8), which states that confirmation of a Chapter 12 plan requires the debtor to be "current on all payments due under any domestic support obligation that first became payable postpetition."

Question 15

Why would a debtor file under Chapter 12 rather than under Chapter 7?

Accepted Answer

The answer of Why would a debtor file under Chapter...

Question 16

To be a family farmer, the debtor's aggregate debts must not exceed ____.

Accepted Answer

The aggregate debt limit for a family farmer to qualify for Chapter 12 bankruptcy is $3,792,650.

Question 17

The Chapter 12 plan may provide for payment of creditors from the debtor's future earnings.

Accepted Answer

Under Chapter 12 bankruptcy, a farmer or fisherman debtor may propose a plan that provides for payment of creditors from the debtor's future earnings. This is known as a wage earner plan.

Question 18

There is no codebtor stay in a Chapter 12 case.

Accepted Answer

In a Chapter 12 case, there is a codebtor stay, which protects certain codebtors of the debtor from collection actions by creditors. This is designed to help family farmers or fishermen reorganize their debts without creditors bypassing the debtor to collect from family members or others who may have cosigned on loans.

Question 19

Contrast the scope of property of the estate in a Chapter 7 case versus a Chapter 12 case.

Accepted Answer

The answer of Contrast the scope of property of the...

Question 20

Neither a corporation nor a partnership is eligible to be a debtor under Chapter 12.

Accepted Answer

Chapter 12 bankruptcy is specifically designed for "family farmers" and "family fishermen" with regular annual income, allowing them to restructure their finances and avoid liquidation or foreclosure. It is not limited to individuals; corporations and partnerships can also qualify under Chapter 12 if they meet the specific criteria related to agricultural or fishing operations.

Quiz 7: The Chapter 12 Bankruptcy Adjustment of Debts of a Family Farmer or Family Fisherman With Regular Annual Income

A family farmer can be an individual or an individual and spouse, but cannot be a partnership or corporation.

A Chapter 12 case may be dismissed for failure to pay a domestic support obligation that came due before the filing of the petition.

The debtor must file a Chapter 12 plan not later than days after the order for relief.

Using the dollar amounts as of April, 1, 2010, the debtor's aggregate debts to be a family fisherman must not exceed ____.

Chapter 12 is only available to family farmers who have regular annual income.

The Chapter 12 debtor, unlike his or her Chapter 7 counterpart, is initially a debtor in possession.

Although some aspects of Chapter 12 have been patterned after Chapter 11, the procedural aspects of Chapters 12 and 13 are almost identical.

The documents required of a debtor in a Chapter 12 case are similar to those required of a debtor in a Chapter 7 case, except for the Chapter 12 plan.

Unlike Chapter 13, there is not a case trustee in a Chapter 12 case.

How may secured claims be treated in a Chapter 12 plan that would not be permitted in a Chapter 13 plan?

How may the role of a Chapter 12 trustee differ from that of a Chapter 13 trustee?

Chapter 12 has been expanded to apply to family fishermen.

For an individual to be a family farmer, more than ____ of such individual's income must come from farming operations.

Confirmation of a Chapter 12 plan requires that the debtor be current on all domestic support obligations that came due after the filing of the petition.

Why would a debtor file under Chapter 12 rather than under Chapter 7?

To be a family farmer, the debtor's aggregate debts must not exceed ____.

The Chapter 12 plan may provide for payment of creditors from the debtor's future earnings.

There is no codebtor stay in a Chapter 12 case.

Contrast the scope of property of the estate in a Chapter 7 case versus a Chapter 12 case.

Neither a corporation nor a partnership is eligible to be a debtor under Chapter 12.