One conclusion is enough. Farmers will avoid a bailiff
Farmers with debts will be able to avoid bailiff’s actions. The new regulations are to suspend the execution after submitting one application to Kowr.
Farmers struggling with the problem of debt can soon count on real help. Soon a change of law may come into force, which will allow the bailiff to automatically stop the farmer who has submitted a request to take over the debt by the National Agricultural Support Center (KOWR).
Indebted farms
Currently in Poland up to 100,000 Farms have various types of debt, although most pay their liabilities, such as leasing or preferential loans. However, according to the data of the National Debt Register, as much as 3.5 thousand. farms have so -called Bad debts, the total value of which reaches PLN 232.5 million, which gives an average of 66 thousand. PLN per farm.
One of the solutions for indebted farmers is the possibility of using the provisions of the Act on debt restructuring. It allows KOWR obligations to be transferred in exchange for part of the land. The farmer can still win the land, and in the future – when he improves the financial situation – he has the right to its pre -emption. The problem is that this process takes a long time because the center must verify the purpose of the debt and its value relative to the property. At this time, the bailiff can execute, even if the farmer has already submitted an application to Kowr.
Automatic suspension
MPs of the Civic Coalition propose a change to change this. Their project assumes that the mere submission of an application for the takeover of debt by KOWR will result in automatic suspension of enforcement proceedings until the case is considered. The goal is to protect farms against the loss of financial liquidity and their premature liquidation.
Importantly, the provisions are also to apply back – covering the applications already submitted, but unprusted. In such cases, the suspension of enforcement is to take place the day after the Act enters into force.
The project assumes that the new regulations will come into force 14 days after publication in the Journal of Laws. For now, the Act has been taken to the parliamentary committee of agriculture. Its acceptance can significantly relieve many farmers who are struggling with the growing financial crisis.
