Clifton and Dee earn 80 percent of their gross income from farming and have debts of $750,000 (90 percent of their total debt) from their farming operation.If they want to file a voluntary bankruptcy, Chapter 12 of the Bankruptcy Code will not apply to them.

Question

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According to Chapter 12 of the Bankruptcy Code, farmers or fishermen who meet certain requirements can file for bankruptcy. One of the requirements is that at least 50 percent of their gross income must come from farming or fishing. In this case, Clifton and Dee only earn 80 percent of their gross income from farming, so they do not meet this requirement and Chapter 12 would not apply to them. Therefore, the statement is false.

Clifton and Dee Earn 80 Percent of Their Gross Income