Farmer initiated mediation
Farmers may initiate mediation with their creditors in relation to a farm debt. The typical process when the farmer initiates mediation under the Farm Debt Mediation scheme is outlined here.
|1. Farmer issues creditor with notice requesting mediation with the creditor (Form 7).|
|2. Creditor responds within 21 days accepting farmer's offer to mediate (Form 8).|| 2. Creditor:|
a) fails to respond to a farmers request to mediate within 21 days
b) refuses to mediate
c) fails to mediate in good faith or 3 months elapse
|3. Creditor notifies DEDJTRI that mediation is required (Form 9 with copies of forms 7 and 8).||3. No further action can be taken if the farmer's loans are not in default.||3. Farmer applies to the VSBC for the issue of prohibition certificate (Form 10).|
|4. DEDJTR opens case and provides details to VSBC.||4. VSBC advises creditor of application and of creditor's right to lodge a submission regarding issue of certificate.|
|5. VSBC arranges mediation at mutually acceptable time and place.||5. VSBC adjudges that creditor has not mediated satisfactorily.|
|6. Pre-mediation assistance arranged and conducted by VSBC (usually by telephone hook-up).||6. VSBC issues a prohibition certificate to the farmer and advises creditor of the issue of the certificate.|
|7. Mediation conducted on agreed day at agreed venue.|
|8. Creditor applies to VSBC for certificate of exemption from provisions of the Act (Form 4). An application for an exemption certificate can only be considered if the farmer's loans are in default.||OR||Creditor ceases enforcement action as a result of outcomes from mediation.||A prohibition certificate ceases to be in force on the earlier of:|
a) the expiry of 6 months after the date of issue of the prohibition certificate; or
b) the day on which the farmer and creditor enter into mediation in respect of the farm debt.
|9. VSBC advises farmer of application and of farmer's right to lodge a submission regarding issue of exemption certificate.|
|10. VSBC adjudges that creditor has mediated satisfactorily, drawing on mediator's summary.||OR|| VSBC adjudges that creditor has not mediated satisfactorily. There is an option of issuing certificate prohibiting creditor from taking recovery action for 6 months (upon farmer's request).|
Go to step 1.
|11. VSBC issues certificate to creditor and advises farmer of the issue of the certificate.|
|12. VSBC informs DEDJTR that the process is finished.|