Tennessee Private Investigator Licensing Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Tennessee Private Investigator Test. Use flashcards and multiple choice questions; each has hints and explanations. Maximize your exam readiness!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which type of bankruptcy is designed for family farmers?

Chapter 7
Chapter 11
Chapter 12
Chapter 13

The correct answer is: Chapter 12

Chapter 12 bankruptcy is specifically designed to address the financial needs of family farmers and family fishermen. This type of bankruptcy allows these individuals to reorganize their debts while continuing to operate their farms or fishing businesses. Chapter 12 offers a streamlined process comparable to Chapter 13 but is tailored to the unique challenges and cash flow issues that family farmers face. This provision recognizes the agricultural industry’s cyclical nature and allows farmers to create a repayment plan that is both manageable and reflective of their income and expenses. The eligibility requirements, which include debt limits and operational criteria, are structured to support family-run operations while providing them with the opportunity to restructure their debts. Other types of bankruptcy, such as Chapter 7, Chapter 11, and Chapter 13, serve different purposes. Chapter 7 is focused on liquidation of assets to pay creditors, Chapter 11 is typically used by businesses (including larger farming operations) for reorganization, and Chapter 13 is designed for individuals with regular income to create a repayment plan for their debts. However, none of these options specifically cater to the unique needs of family farmers in the way Chapter 12 does.