Many Americans, including some from Nassau County look at agriculture as a profitable venture. However, just like any other business, farming has its ups and downs. When pests and natural calamities strike, farmers are more likely to encounter financial challenges. Because their business ventures, which are their farms, are often attached to their houses, farmers who are struggling with debts are in danger of losing not only their business but also their home.
For the time being, a farmer has stopped the courthouse sale of his home and other area properties in North Dakota because he recently filed for Chapter 7 bankruptcy. In their bankruptcy petition, the farmer and his wife declared around $10 million to $50 million in assets and $1 million to $10 million in debts. The debts are owed to 50 to 99 creditors.
In 2007, the farmer and his family farmed with several partners in two different states. Some of their farms in one of the states took a major hit because of a drought and the partners were involved in a dispute with the U.S. Department of Agriculture regarding an issue of whether they should be given crop insurance for crops they did not irrigate. Their partners won this claim for insurance. However, disputes with previous partners, lenders and customers of a grain elevator that the farmer’s family owned took them to court.
Readers in Nassau County are well aware of how annoying creditor harassment can be. Because this issue involves money, some creditors may resort to unpleasant tactics and even illegal means to obtain payments. With this in mind, the farmer in this case may have made a good decision in filing Chapter 7 bankruptcy. A Chapter 7 liquidation of the farm and its assets, may not only pay off the farmer’s debts but may also protect him and his family from being harassed by creditors.
To have a chance at a fresh financial start, residents in Nassau County may wish to consult a lawyer. An experienced attorney can advise debtors on all of the available legal options, including Chapter 7 bankruptcy.
Source: Agweek.com, “Grabanski stops sale of his ND assets by filing Chapter 7 bankruptcy,” Mikkel Pates, July 30, 2013