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Simple English definitions for legal terms
family-farmer bankruptcy
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A quick definition of family-farmer bankruptcy:
Family-farmer bankruptcy refers to a type of bankruptcy that is available to farmers and fishermen who operate as a family business. This type of bankruptcy is also known as Chapter 12 bankruptcy. It allows family farmers to restructure their debts and keep their farms running, rather than having to sell off their assets to pay creditors.
A more thorough explanation:
FAMILY-FARMER BANKRUPTCY
Family-farmer bankruptcy is a type of bankruptcy that is available to family farmers or fishermen who are struggling financially. It is also known as Chapter 12 bankruptcy.
Example 1: John is a family farmer who has been struggling to make ends meet due to a drought that has affected his crops. He decides to file for family-farmer bankruptcy to restructure his debts and get back on track financially.
Example 2: Sarah is a fisherman who has been hit hard by a decline in fish prices. She decides to file for family-farmer bankruptcy to protect her assets and reorganize her debts.
Family-farmer bankruptcy is a legal option for family farmers or fishermen who are facing financial difficulties. It allows them to restructure their debts and protect their assets while continuing to operate their business. The examples illustrate how family-farmer bankruptcy can be used by farmers and fishermen who are struggling due to factors beyond their control, such as natural disasters or changes in market conditions.