Monday, October 6, 2014

Help for bankrupt farmers

A Kitchener company is quickly gaining favour with farmers caught up in bankruptcies.

Ontario Debt Servicing, run by Alex Hunsen, uses the federal government's Consumer Proposal Division Two which enables farmers to divide their assets among all creditors.

It means that Revenue Canada and the banks have to share the same percentage as all other creditors.

It also often means farmers can continue to farm, reports colleague Ian Cumming; we both write for Ontario Farmer publications.

Cumming says the federal program is much better than the Farm Debt Review Board which tends to satisfy secured creditors first and then distribute the remainder among other creditors.

One example he cited is a farmer who owed Revenue Canada about $600,000 and the banks about $1 million.

The deal they worked out enabled the farmer to continue farming.