- Step 1. What this service offers
- Step 2. Eligibility
- Step 3. Before you apply
- Step 4. How to apply
- Step 5. Complete the application and apply
- Step 6. After you apply
- Information for creditors
- Contact information
Step 3. Before you apply
Review and consider the following information before you apply.
Choose your situation
To apply for the Farm Debt Mediation Service (FDMS), you must decide which section of the Farm Debt Meditation Act (FDMA) is most relevant to you, Section 5(1)(a) or Section 5(1)(b), as listed below. If you can't decide which section is most relevant to your situation, or if you want to discuss your situation, please contact the FDMS.
- Section 5(1)(a) You received a Notice of Intent by Secured Creditor, notice of other recovery action from your creditor(s) or you believe your assets may be in danger of being seized
Creditors who send you a Notice of Intent by Secured Creditor under Section 21 of the FDMA must wait 15 business days before they can begin or continue any action to realize on their security.
If you received a Notice of Intent by Secured Creditor or notice of other recovery action from your creditor(s) and you have not applied for a mediation under Section 5(1)(a) within the past 2 years, Section 5(1)(a) may be the appropriate application for you.
Section 5(1)(a) protects the farm with a stay of proceedings, during which time creditors may not begin or continue recovery or seizure action against your assets, a financial review, and mediation.
Under Section 5(1)(a), the administrator will notify all creditors (secured and unsecured) listed on the application of the request for mediation.
- Section 5(1)(b) You have not received a Notice of Intent by Secured Creditor or notice of other recovery action from your creditor(s) but you can foresee financial difficulties
If you have not received a Notice of Intent by Secured Creditor or notice of other recovery action, but you can foresee financial difficulties and you have not applied for a mediation under Section 5(1)(b) within the past 2 years, Section 5(1)(b) may be the appropriate application for you.
Section 5(1)(b) provides a financial review and mediation without a stay of proceedings. There are no restrictions placed on either you or the creditors. This section normally deals with secured creditors and may include major unsecured creditors essential to an arrangement.
Under section 5(1)(b), the administrator will notify only the secured creditor(s) listed on the application of the request for mediation.