Goiás Court reaffirms rural producers' right to debt extension

The Court of Justice of the State of Goiás (TJGO) has reaffirmed that rural producers have a legal right to request the extension of debts due to unforeseen challenges such as climate instability and market fluctuations. This right is established by Precedent 298 of the Superior Court of Justice (STJ).

In a recent ruling overseen by Substitute Second Instance Judge Sebastião de Assis Neto, the court maintained an urgent injunction in favor of a producer. The decision mandates that financial institutions must provide a reasoned response to administrative requests for debt extension within 15 days, provided all requirements are met.

Crucially, the ruling suspends the enforceability of installments and any judicial or extrajudicial collection measures until the bank provides a formal response. This measure aims to prevent the expropriation of assets and the potential collapse of agricultural activities before the extension request is properly evaluated.