HIGHLIGHTS
- A Saskatchewan Bankruptcy Registrar has conducted an in-depth review of Saskatchewan case law with respect to the facts which must be established to prove that a farmer is carrying on the "business of farming" under Part V of the Saskatchewan Farm Security Act, in relation to a claim that the farmer's homestead is exempt, and not subject to the claims of judgment debtors. The Registrar concluded that a third generation farmer whose primary income was from the operation of an off-farm business, and who had a limited income from the sale of forage crops, and a share of income from the sale of oats and straw harvested from his land for the 2 years preceding bankruptcy, was not carrying on the business of farming, and did not therefore qualify for the homestead exemption. (Trimble (Re), CALN/2017-045, [2017] S.J. No. 95, Saskatchewan Court of Queen's Bench)
- A Saskatchewan Bankruptcy Registrar directed that a Saskatchewan farmer be required to pay $120,000.00 to his bankruptcy estate as a condition of his discharge. The Registrar found that the bankrupt had diverted the farm assets and farm revenue to his wife, his children and a farming corporation. He also misrepresented the extent of his assets to his creditors and failed to account for substantial amounts of farm income. The Court concluded that his conduct deserved censor and that the Court's direction should focus less on his ability to pay and more on the need for general and specific deterrence. (Avramenko (Re), CALN/2017-046, [2017] S.J. No. 88, Saskatchewan Court of Queen's Bench)
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