Agricultural Lender Debtors Relief in Springfield

Farming is a high-overhead business with no guarantee of decent returns. Even in good years, profit margins are often thin.

Farmers depend on loans to keep their operations going and have little leverage when negotiating terms. Lenders may take advantage.

If you need agricultural lender debtors’ relief in Springfield, contact our law firm. Our dedicated debtor’s relief attorney will review your situation and recommend solutions to preserve your livelihood and provide some financial breathing room.

Loan Renegotiation May Be Possible

When you fall behind on an agricultural loan, you often have the opportunity to negotiate a loan workout. This process involves renegotiating the loan terms to help you manage payments more easily and keep your farm in operation.

The lender often requires additional collateral and may request other concessions. In return, they may extend the loan or temporarily cease collection activities.

Loan workouts like these can be complex and may not be the right solution for every situation. Working with a Springfield debtor’s relief attorney with extensive knowledge of agricultural operations and strong negotiation skills is essential to achieving a practical outcome.

Relief Through the Inflation Reduction Act

Farmers with loans managed by the U.S. Department of Agriculture’s Farm Service Agency may qualify for federal relief. Section 22006 of the Inflation Reduction Act provides payment assistance to farmers who are 60 days delinquent on their loans. Recently, the FSA announced plans to allocate more money to these programs and would automatically bring payments current for some farmers who are one day delinquent on their loans.

The amount and method of payments depend on the type of loan the farmer holds, whether they have signed a Shared Appreciation Agreement and other factors. A Springfield debtors relief attorney could investigate whether a farmer’s circumstances qualify them for payment assistance.

Combatting Debt Enforcement Actions

When a farmer falls behind on payments, lenders often act quickly to enforce their rights. They may seize collateral such as farm equipment or products and even move to foreclose on the farm property.

Even if a lender has begun foreclosure or other enforcement, there is usually still an opportunity to save the farm and keep it in production. A farm debt relief attorney in Springfield could sometimes identify errors in the lender’s paperwork or procedures, providing the farmer additional time to bring the loan current.

In many cases, resolving the matter may require the farmer to adjust their operations. Our firm can work with the farmer and the lender to provide relief from lender debt.

Contact a Springfield Attorney About Escaping Agricultural Debt

Debt is a reality for farmers, as few farms can operate season to season without relying on loans. However, external forces and unanticipated circumstances can combine to make a farmer’s debt overwhelming.

Contact our office if you are seeking agricultural lender debtor’s relief in Springfield. We will investigate every option to help you keep your farm operating.