[TOM HEFNER]

I got caught in the cattle price crash in the fall of '07 and spring of 08. My bank,capital farm credit,has shut me off and is trying to force the sale of my homestead.this includes my home and pens.if I refuse they threaten to get a judgement. They have me where I can't feded the one pen of cattle left.the loan balance is $230000.I have $60000 from a sale of cattle just before shutdown and 65 head on feed worth approx.$70000.what defensive action have I?

[Fr_Chuck]

Defense? You can prove you paid them, or work out payment plan with them. Did you turn over most of the 60,000 to them to help meet payments ? And why not sell enough cattle to make your payments.

[XTC832]

If you are unsuccessful at trying to work out a deal with them, there is always bankruptcy. It may sound drastic, but you may be able to file under Chapter 13 or even Chapter 11 reorganization. You say that the bank shut you off and now they are trying to get a judgment? What they can do and what they will do are two different things. The price crash to which you refer comes under the heading of 'financial hardship through no fault of your own.' It has the same impact that the falling home prices have on the mortgage market or unexpected medical care for the uninsured. If you've exhausted all other options, keep in mind that filing gives you protection against judgments and levies and in most cases may enable you to keep your homestead and ranch. Depending on your state, bankruptcy laws permit generous exemptions for homesteads and even livestock. If you choose this route, consult with an experienced bankruptcy attorney in your area. Best of luck.