Farmer`s First Petition in Bankruptcy

``Although I have worked very hard, I could not help giving up because of the increasing debt.``

A farmer who has been in irrecoverable debt because of the natural disaster, was at last declared bankrupt by the court.

▼ Case

Mr. Park who has been engaged in the livestock raising in Cheolwongun, Kangwon Province, lost both eyes due to the explosion of a mine 15 years ago. Despite he was a first-order handicapped person, the blinded Park has lived eagerly by raising 3 cows, borrowing the loan from the livestock cooperatives federation.

But one cow was dead when calving, and another was killed by the disease. Furthermore, a cattle shed was collapsed by the huge snowfall. Notwithstanding, he raised the last cow and a calf, but he could not meet even the feed cost due to the heavy fall of the cow price.

Later, Mr. Park purchased 60 goats with the loan. But he lost 50 goats because of the continuous attacks of the wild dogs. Although he tried to raise the dogs, he had to sell them dirt-cheap due to the collapse of the dog price.

His wife who could not bear the hardship of life ran away, he had to eke out a living with his two sons, who are 16 years old and 14 years old. But the debt quickly increased over 80 million won, and his house was sold by auction. Nevertheless, the half of his debt still remained.

Mr. Park who had faced the situation in which he could not but have his two sons adopted in the U.S., finally filed a petition in bankruptcy to the bankruptcy department of the Seoul District Court at the beginning of this year. His two sons appealed in the petition that ``the blinded father has to enter `Kkottongnae` alone. If the court tides over this hardship, we will earn the money eagerly to help the unfortunate neighbors and to give our father the artificial eyes``.

The Third Bankruptcy Department (Chief Judge Lee Young-Ha) recently accepted this petition, and allowed Mr. Park to declare the personal bankruptcy and to apply the exemption from the debt.

▼ Cases and Causes of the Personal Bankruptcy

The persons who filed a petition in the personal bankruptcy to the bankruptcy department of the Seoul District Court, have increased two times over last year; 13 in January, 18 in February and 35 in March.

But it is the only case for the past few years that the court accepted the petition of the personal bankruptcy from a person who is engaged in the livestock farming like Mr. Park.

While the applications of the personal bankruptcy by the business person or the consumers who do not pay the credit card debt, have sharply increased, the destitute farmers have rarely filed the petition in the personal bankruptcy.

An official of the bankruptcy department analyzed that ``The farmers tend to keep even the small land because they usually regard the farming as his vocation. Hence, the farmers used to avoid to apply the personal bankruptcy because they have to sell the land as well as the cattle shed once they declare the bankruptcy``. That is, they try to keep the land for his vocation even though their debts are much more than their properties.

Another official told that ``A lot of farmers, who have suffered from the debt, seem not to use the personal bankruptcy system only because they do not know about the system well. And most farmers cannot escape alone from the economic hardship because of the joint guarantee which entangles them with the relatives and the neighbors``.

▼Personal Bankruptcy System

The personal bankruptcy is the system by which the personal consumer, who has irrecoverable debt, sells his/her properties according to the bankruptcy procedure of the court.

After the filing the petition in bankruptcy, the consumer can apply the exemption from the debt. If the application of the exemption from the debt is accepted through the review of the court and the agreement of the creditor, the rest of the debt is exempted. The person who was declared bankrupt, cannot borrow the loan from the bank and has the various disadvantages. But (s)he can recover the rights if (s)he applies the restoration of rights to the court.

Lee Jung-Eun lightee@donga.com