Author: Brandon Smith

Brandon Smith is a licensed insolvency trustee and Senior Vice-President of Ira Smith Trustee & Receiver Inc. The firm deals with both individuals and companies facing financial challenges in restructuring, consumer proposals, proposals, receivership and bankruptcy.

They are known for not only their skills in dealing with practical solutions for individuals and companies facing financial challenges, but also for producing results for their clients with realistic choices for practical decision-making. The stress is removed and their clients feel back in control. They do get through their financial challenges and are able to start over, gaining back their former quality of life.

Brandon Blog Post

#VIDEO-SENIORS AND DEBT: THE SHOCKING TRUTH#

Post author By Brandon Smith
Post date July 13, 2016

Seniors and debt – Background

Seniors and debt is a growing problem. This past Tuesday, we published our blog titled “SENIORS ARE CARRYING DEBT: WILL RETIREMENT SPELL POVERTY FOR YOU?” This is such a serious issue that we have written a series of blogs on the topic which delve into WHY seniors are carrying debt.

Seniors and debt – What is the current situation?

One year ago, CBC News ran a feature on how more Canadians are outliving their savings and spending their golden years in debt. Shortly after that, a new study from credit firm Equifax said seniors are increasing their debt loads at a faster pace than the population at large. This was the first time that such a phenomena had occurred, and it continues.

In September 2015, the Financial Post reported that Canadian seniors are ramping up debt to soaring new heights. They reported that Canadian seniors are getting a lot more comfortable with debt, adjusting to a lifestyle where debt will get them nicer things. It seems that seniors and debt go together very well, which historically was never the case. This is a recipe for disaster.

The image of the frugal senior is waning. They are still around but they have gotten a lot older and do not form the bulk of seniors. The current group of seniors entering retirement have grown up carrying more debt than their parents, so, to have debt in retirement does not faze them. It is a habit that has not been broken yet, in spite of the cost of their “wants” in retirement, as opposed to their “needs”, is greater than their income can sustain.

The baby boomers are the ones who have been the prime generators of big debt loads in Canada. They know how to live large while they were working. The problem is that once they are in retirement, they have even more time now to consume, but are living on a fixed income. All of a sudden, for many it is the first time in a very long time, they need to constrain their spending because they are living on a fixed income. However, not all can change their behaviour, leading to the serious problem of seniors and debt.

Many of today’s seniors are entering retirement with a mortgage outstanding on their principal residence. This is a sign of living large throughout their working years. The baby boomers spent money on more acquisitions, and not paying down debt. This is the first time this is happening in Canada.

The latest facts and figures will not offer any comfort I’m afraid. According to a report by the Broadbent Institute on seniors’ finances:

47% of Canadians aged 55 to 64 don’t have an employer pension plan
50% of Canadians aged 55 to 64 who don’t have an employer pension have less than $3,000 saved up for retirement
Of the Canadians without an employer pension plan those who earn $50,000 to $100,000 a year have saved up an average of $21,000
Of the Canadians without an employer pension plan those who earn $25,000 to $50,000 a year have saved up an average of $250
Less than 20% of people over age 55 who don’t have an employer pension have enough to live in retirement for five years or more
The poverty rates for single seniors, especially for women, is nearly 30%

What can I do now to avoid being a seniors and debt casualty?

The sooner you address debt issues, the better. Eliminating debt is an excellent first step. Contact the Ira Smith Team. We’re professional, federally licensed trustees who can help you conquer your financial problems so that Starting Over, Starting Now you can put debt behind you and start saving for the future. Contact us today so you will live a financially healthy life, and not be one of the seniors and debt casualties.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags Debt, frugal, Ira Smith Trustee, retirement, rising debt, seniors and debt, seniors debt relief

Brandon Blog Post

SENIORS ARE CARRYING DEBT: WILL RETIREMENT SPELL POVERTY FOR YOU?

Post author By Brandon Smith
Post date July 11, 2016

Seniors are carrying debt – Background

Seniors are carrying debt. Senior finances are nothing short of alarming. How will retirement look for you? Will you be taking part in wonderful retirement activities such as traveling the world in style? Will you continue to work in one of the jobs for retirees? Will you be at home living in poverty on a meager government provided pension?

This is such a serious issue that we have written a series of blogs on the topic which delve into WHY seniors are carrying debt.

Seniors are carrying debt – What is the current situation?

The latest facts and figures will not offer any comfort I’m afraid. According to a report by the Broadbent Institute on seniors’ finances:

47% of Canadians aged 55 to 64 don’t have an employer pension plan
50% of Canadians aged 55 to 64 who don’t have an employer pension have less than $3,000 saved up for retirement
Of the Canadians without an employer pension plan those who earn $50,000 to $100,000 a year have saved up an average of $21,000
Of the Canadians without an employer pension plan those who earn $25,000 to $50,000 a year have saved up an average of $250
Less than 20% of people over age 55 who don’t have an employer pension have enough to live in retirement for five years or more
The poverty rates for single seniors, especially for women, is nearly 30%

If seniors are carrying debt, will seniors be living in poverty?

According to Rick Smith, executive director of the Broadbent Institute, “This new data on retirement savings and gaps in support makes one thing perfectly clear — we have a retirement income crisis on our hands that requires urgent government action now.” The reality is seniors are carrying debt and it’s time for the federal government to step up to the plate and in a meaningful way, increase the amount of money we give seniors. Having seniors living in poverty in the greatest country in the world is just not acceptable.

What can I do now to avoid being a senior living in poverty?

Tags jobs for retirees, retirement activities, retirement income planning, seniors are carrying debt, seniors carrying debt, seniors in debt, seniors living in poverty, seniors’ finances, trustee

Brandon Blog Post

PERSONAL BANKRUPTCY BLOG – TRUSTEE EXPLAINS BANKRUPTCY OPTIONS

Post author By Brandon Smith
Post date July 6, 2016

Introduction

Our Brandon’s Blog certainly is a personal bankruptcy blog, but it is more than that. Brandon writes on various finance and insolvency-related topics including corporate restructuring, corporate bankruptcy, alternatives to bankruptcy, credit counselling, restructuring through a consumer proposal or a Division I Proposal or the Companies’ Creditors Arrangement Act (CCAA).

Every Monday and Wednesday night Brandon posts to Brandon’s Blog. Monday night is a blog and Wednesday night is a vlog. Just to remind you what this means, here are dictionary definitions:

blog Pronunciation: /blɒɡ/noun

A regularly updated website or web page, typically one run by a person or small group, written in an informal or conversational style: you can add personal bankruptcy blog to the growing list of insolvency-related material popping up on the Web

vlog Pronunciation: /vlɒɡ/ noun

A blog in which the postings are primarily in video form: you can add personal bankruptcy vlog to the growing list of insolvency-related material popping up on the Web

Differences between US and Canadian insolvency statutes

In the United States, people filing for bankruptcy have many “chapters” from which to choose. Similarly, Canada has one chief insolvency law, the Bankruptcy and Insolvency Act, or BIA, and several supporting pieces of legislation. In perusing a personal bankruptcy blog, the potential filer can find the information he or she seeks.

In the United States, Chapter 11 bankruptcy is the most complex because it applies to large businesses and usually involves gigantic sums of money. In Canada, the equivalent is the Division I proposal. In such a proposal, the debtor’s business can keep assets necessary for its role so that it can generate streams of income from other places to repay its debts. Management also stays in control of the company and business operations.

What are the Choices in Canada?

The BIA sets out the ground rules, and several smaller pieces of legislation fill in the details. Although we Canadians don’t call them various chapters, our legislation is like that of the U.S. Here are the options for filing bankruptcy in Canada:

Personal Bankruptcy – Summary Administration (streamlined) or Ordinary
Consumer Proposal
Division I Proposal

Personal bankruptcy in Canada is most similar to Chapter 7 in the U.S. By filing bankruptcy, the debtor seeks to deal with his or her entire debt load at once. The debtor does not believe that he or she has the means to attempt a restructuring. There are certain assets that are exempt for any one of a number of reasons, so anyone filing bankruptcy should consult a Trustee to find out more.

If a debtor decides to file a consumer proposal (because his or her debt load is $250,000 or less, not including any mortgages against the principal residence) or a Division I Proposal (for unsecured debts $250,000 or greater) instead, he or she is seeking a restructuring of debt so for repayment over a five years or less. Many times, debtors can negotiate with their creditors for part of the amount owed and work out deals on monthly payments, rates of interest, and other such considerations. A proposal is most similar to Chapter 13 in the U.S. and used by people who wish to AVOID bankruptcy.

Basically, the business operates as usual while making an offer to its creditors of payments over time, totalling an amount greater than the creditors would receive if everything was sold off in liquidation in bankruptcy. The largest businesses might even have several layers of debt that would need restructuring as part of a Division I proposal, and each layer might have different guidelines and restrictions based on the proposal.

For companies with greater than $5 million in debt, they could also make use of a different Federal restructuring statute called the Companies’ Creditors Arrangement Act (CCAA). Both the Proposal under the BIA and restructuring under the CCAA are for large complex corporate reorganizations.

Is a Lawyer Required?

Unlike citizens of the United States, Canadians don’t need a lawyer to file for bankruptcy. A Licensed Insolvency Trustee acts as the “referee” between debtor and creditors. In this way, people file and handle bankruptcy proceedings on their own in Canada. If the debtor has various complex issues or is a defendant in litigation where the plaintiff wishes to continue the litigation perhaps to attempt to prove that their claim is one not released by the person’s discharge from bankruptcy, then they may very well need a lawyer for those issues.

What to do if you have too much debt and want to read a personal bankruptcy blog?

To find out more, check out our Brandon’s Blog entries for the topic of personal bankruptcy blog. If you’re dealing with serious financial issues, contact a trustee, who is the Canadian bankruptcy expert. For the reasons already given, you should do this whether or not you’re contemplating bankruptcy. The reason is very simple: the licensed insolvency trustee will assess your situation, offer you all of your available options and will do this for you for free! You can’t find a better deal anywhere.

We’re not only bankruptcy experts; we’re experts in dealing with debt. Contact Ira Smith Trustee & Receiver Inc. today for a free consultation and you will be well on your way to regaining your former quality of life Starting Over, Starting Now.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags alternatives to bankruptcy, Bankruptcy and Insolvency Act, BIA, blog, brandon’s blog, CCAA, chapter 11, Chapter 13, Chapter 7, Companies’ Creditors Arrangement Act, Consumer Proposal, Corporate Bankruptcy, corporate restructuring, credit counselling, Division I Proposal, personal bankruptcy, personal bankruptcy blog, restructuring

Brandon Blog Post

OUR 5 TOP TIPS IN CHOOSING A BANKRUPTCY TRUSTEE

Post author By Brandon Smith
Post date July 4, 2016

A bankruptcy trustee is now called a licensed insolvency trustee

A bankruptcy trustee is now called a licensed insolvency trustee (LIT). Last week we discussed why you need a licensed insolvency trustee if you or your company has too much debt, even if you do not wish to file for bankruptcy. You should first see a LIT even if you would prefer one of the many alternatives to bankruptcy. This week we’re going to give you some pointers on how to choose a LIT.

Many people are under the mistaken impression that the LIT works only for you, but that’s not right. Although you can choose your LIT and you’ll be making payments to them, the LIT doesn’t technically work for you.

Who does the LIT act for?

The LIT is an independent third party officially appointed by the local Office of the Superintendent of Bankruptcy to manage the bankruptcy process. Their main job is to make sure that the bankruptcy administration to make sure that the assets are properly liquidated and that both you and your creditors follow all the bankruptcy rules.

How do I choose a LIT?

Here are 5 tips for choosing a LIT:

If you have a friend, family member or colleague who has a bankruptcy trustee to recommend, that’s a great place to start.
There’s a list of all licensed insolvency trustees and licensed insolvency trustee firms on the website of the Office of the Superintendent of Bankruptcy Canada. Always check this list to make sure that a trustee you’re interested in working with is on this list. There are unscrupulous, unlicensed debt settlement consultants and companies out there who make themselves appear as though they’re licensed trustees, but they’re not. They will either try to convince you that they can settle with your creditors on your behalf or act as a middleman (for a fee of course) and refer you to a licensed trustee.
The Office of the Superintendent of Bankruptcy Canada publishes professional misconduct decisions on its website. Check to see that your trustee has a clean record.
Set up a free, no-obligation consultation with a bankruptcy trustee. Ask questions and make sure that you’re comfortable with the trustee and satisfied with the answers to your questions. If not, you can move to another LIT. A consultation doesn’t obligate you to stay with the trustee unless you’ve signed the paperwork.
Do research ahead of time so that you will know the right things to ask the LIT during your free consultation. A great place to start is by watching our video 12 THINGS A LICENSED INSOLVENCY TRUSTEE MAY NOT TELL YOU.

What should you do if you have too much debt?

Ira Smith Trustee & Receiver Inc. has a great reputation and a cumulative 50+ years of experience dealing with diverse issues and complex files. We deliver the highest quality of professional service. Give us a call today and Starting Over, Starting Now you will be well on your way to solving your debt problems.

Tags alternatives to bankruptcy, bankruptcy process, bankruptcy trustee, Ira Smith Trustee, licensed insolvency trustee, Office of the Superintendent of Bankruptcy, official receiver, trustee

Brandon Blog Post

#VIDEO – HOW MUCH DO YOU HAVE TO OWE TO FILE BANKRUPTCY?#

Post author By Brandon Smith
Post date June 29, 2016

HOW MUCH DO YOU HAVE TO OWE TO FILE BANKRUPTCY –

NOT MUCH!

We are always asked, how much do you have to owe to file bankruptcy? The real question is, here are my assets and my debts, what are my options? In Canada, the Bankruptcy and Insolvency Act (Canada) (“BIA”) states that you must owe at least $1,000 of unsecured debt to file for bankruptcy. The same holds true if someone owes you money. They must owe you at least $1,000 on an unsecured basis to apply to the Court to make an Order judging a person or company into bankruptcy. As you can see, the threshold is not very high.

HOW MUCH DO YOU HAVE TO OWE TO FILE BANKRUPTCY –

ARE YOU INSOLVENT?

Facing serious financial difficulties is devastating, especially if you believe that personal bankruptcy is your only option. In fact many people mistakenly believe that dire financial problems automatically mean personal bankruptcy. If you are having problems meeting your financial obligations or have stopped meeting those financial obligations as they come due you are actually insolvent, not bankrupt. Insolvent is a financial condition; bankruptcy is a legal state.

Bаnkruрtсу is a legal рrосеѕѕ under the BIA that helps you to resolve уоur debts if they have become unmanageable. If you have relatively few assets and low іnсоmе and dесіdе to file for bаnkruрtсу, you will probably fіlе under the shortened Summary Administration part of the BIA. If you have realizable assets that will produce a value greater than $10,000, then your bankruptcy would be administered under the general administration provisions. Don’t worry about these distinctions now. For now, just know that the streamlined summary administration rules is a simpler process, and the Superintendent of Bankruptcy sets the cost of the bankruptcy administration.

HOW MUCH DO YOU HAVE TO OWE TO FILE BANKRUPTCY –

THE BANKRUPTCY PROCESS

In either case, you will turn over to your Licensed Insolvency Trustee (“LIT”) all of уоur рrореrtу that is not exempt (protected) by law. The LIT will sell your property and the proceeds used to рау for the bankruptcy administration and then to distribute to уоur сrеdіtоrѕ.

If you have very little property, all of it might be рrоtесtеd so that you will not lose it. How much уоur сrеdіtоrѕ will get in this process dереndѕ on how much уоur unрrоtесtеd property sells fоr and whether you must pay “surplus income” to your LIT.

The last step of your bankruptcy process, will be to get your discharge from your debts, meaning that you will not have to рау them all (with certain exceptions).

HOW MUCH DO YOU HAVE TO OWE TO FILE BANKRUPTCY –

SEE A TRUSTEE EVEN IF YOU DO NOT WANT TO GO BANKRUPT!

People think that they should only see a LIT if they need to file for bankruptcy. Every LIT will give you a free 1 hour consultation, to go over your situation and offer you your available options. The topics the LIT will discuss with you are:

As you can see, bankruptcy is only one of many topics discussed, in determining what your options are, allowing you to choose the one that makes the most sense to you. No other professional can discuss this full range of topics with you, and especially not for free!

WHAT SHOULD YOU DO IF YOU OR YOUR COMPANY HAS TOO MUCH DEBT?

If you’re dealing with serious financial issues, contact a trustee, who is the Canadian bankruptcy expert. For the reasons already given, you should do this whether or not you’re contemplating bankruptcy. The reason is very simple: the licensed insolvency trustee will assess your situation, offer you all of your available options and will do this for you for free! You can’t find a better deal anywhere.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags Bankruptcy, bankruptcy alternatives, Bankruptcy and Insolvency Act, bankruptcy process, BIA, Consumer Proposal, credit counselling, credit rating, debt conslidation, debts, file bankruptcy, how much do you have to owe to file bankruptcy, insolvent, Ira Smith Trustee, licensed insolvency trustee, personal bankruptcy, rebuilding credit, trustee

Brandon Blog Post

CANADIAN BANKRUPTCY EXPERT: GO TO A LICENSED INSOLVENCY TRUSTEE

Post author By Brandon Smith
Post date June 27, 2016

Canadian bankruptcy expert introduction

There are several misconceptions when it comes to the Canadian bankruptcy expert known as a licensed insolvency trustee and that the role of the trustee is only for the bankruptcy process. It is true that a licensed insolvency trustee is the Canadian bankruptcy expert, but it is not the case that a licensed insolvency trustee only can administer Canadian bankruptcies.

Misconception # 1 is that trustees only deal with bankruptcy. Although you may know that a trustee is a Canadian bankruptcy expert, they’re also highly trained and educated debt consultants who, depending upon your particular circumstances, can offer you several alternatives which include credit counselling, debt consolidation and consumer proposals.
Misconception # 2 is that because it is a legal process, you need a lawyer. Although you may have heard many radio commercials telling you that you need a lawyer if you’re going to declare bankruptcy, and if you are dealing with income tax debt to keep using a certain lawyer and not a licensed insolvency trustee, this is simply not the case. Even though it is is a legal process, to file bankruptcy in Canada you need the services of a licensed insolvency trustee. In fact, bankruptcies and consumer proposals can only be administered in Canada through a licensed insolvency trustee.

What is the role of a trustee?

The Office of the Superintendent of Bankruptcy (OSB) licenses trustees to administer bankruptcy proceedings. When you file for bankruptcy, the trustee becomes the administrator of your property and assets.

Why use a trustee instead of a debt settlement company?

Debt settlement companies can’t administer a bankruptcy or a consumer proposal – ONLY a licensed insolvency trustee can. In addition a trustee:

is federally regulated
has undergone a background check by the RCMP before being granted a licence
is subject to a stringent code of ethics
maintains his/her competency by completing ongoing mandatory professional development each year
The Federal Government and the Court regulate trustees’ fees and for consumer matters, they are usually less than the fees of the debt settlement companies who make unsubstantiated claims

What should you do if you or your company have too much debt?

If you’re dealing with serious financial issues, contact a trustee, who is the Canadian bankruptcy expert. For the reasons already given, you should do this whether or not you’re contemplating filing. The reason is very simple: the licensed insolvency trustee will assess your situation, offer you all of your available options and will do this for you for free! You can’t find a better deal anywhere.

We’re experts in dealing with debt. Contact Ira Smith Trustee & Receiver Inc. today for a free consultation and you will be well on your way to regaining your former quality of life Starting Over, Starting Now. Read our blog next week when we’ll be discussing how to choose a licensed insolvency trustee.

Tags Bankruptcy, bankruptcy alternatives, bankruptcy expert, bankruptcy experts, bankruptcy experts in on, bankruptcy process, bankruptcy trustee, Canadian bankruptcy expert, consumer proposals, credit counselling, debt consolidation, debt settlement companies, licensed insolvency trustee, Office of the Superintendent of Bankruptcy, OSB

Brandon Blog Post

Bankruptcy Expert Strategies For The Financially Challenged

Post author By Brandon Smith
Post date June 22, 2016

A licensed insolvency trustee is the bankruptcy expert

Richard is unable to pay his bills, unsure what to do Richard knows he has to speak to someone but talking with a bankruptcy expert scares him. On the advice of a close friend, he contacts a Licensed Insolvency Trustee, a professional licensed by the Office of the Superintendent of Bankruptcy Canada.

A bankruptcy expert can do more than just bankruptcies

While Licensed Insolvency Trustees can and do handle bankruptcies, they can also offer information about other possible options. These might include reworking his budget, consolidating his debts, selling his assets, or offering a proposal to his creditors. Whatever option Richard chooses, the trustee will thoroughly explain the process.

I have a lot of questions for the bankruptcy expert

Of course, Richard has many questions, all of which the trustee takes the time to answer as part of the free first consultation. Richard gets all the information he needs from the trustee. The Trustee explains that his options include:

Richard now also understands what he needs to do for rebuilding credit. Knowing the options gives him the confidence he needs to take the steps necessary to get his financial house back in order.

Why use a licensed insolvency trustee instead of a debt consultant as your bankruptcy expert?

We:

give the full range of options
deal directly with creditors on your behalf
are licensed by the federal government
are federally regulated
our fee is federally regulated
are easy to find!

Do you have too much debt? Be like Richard and speak to a bankruptcy expert

Are YOU in financial trouble? Not sure where to turn? Regulated by the Office of the Superintendent of Bankruptcy Canada, Ira Smith Trustee & Receiver Inc. is there to help and we are the professionals who can file a consumer proposal or bankruptcy application in your name.

Are you insolvent and looking for solutions? The Ira Smith Team is here to offer alternatives to bankruptcy and bankruptcy. We offer help in Vaughan and throughout the GTA.

Are you a person or company who feels your situation is hopeless? Ira Smith Trustee & Receiver Inc. can prepare and put in place the plan MADE JUST FOR YOU. The plan will free you from the burden of your financial challenges. With our help, you will go on to live a productive, stress-free, financially sound life.

Our motto is Starting Over, Starting Now! Ira Smith Trustee & Receiver Inc. can help you overcome your financial difficulties. Contact us today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags bankruptcy alternatives, bankruptcy expert, Consumer Proposal, Ira Smith Trustee, licensed insolvency trustee, rebuilding credit

Brandon Blog Post

AVERAGE HOUSEHOLD DEBT IN CANADA: CANADIANS LOVE TO MAKE IT CONTINUALLY RISE!

Post author By Brandon Smith
Post date June 20, 2016

What is average household debt in Canada?

Average household debt in Canada: the average of the amount of money that all Canadian adults in the household owe financial institutions.

Statistics Canada said that total household consumer debt, which includes consumer credit card and mortgage and non-mortgage loans, increased 1.2 per cent to $1.923 trillion at the end of last year. The total included $573.6 billion in consumer credit debt, including credit card debt, and $1.262 trillion in mortgage debt.

The growth helped drive the ratio of household debt to disposable income to a new peak of 165.4 per cent in the fourth quarter of 2015, up from 164.5 per cent in the third quarter.

It’s unbelievable but true – average household debt in Canada continues to rise! Unfortunately it seems that nothing has so far been able to stem this tide, particularly as already sky-high housing prices continue to reach new heights. We’ve reported on this very alarming situation in a series of blogs and the situation continues to worsen.

Video – Household Debt In Canada Crisis

How Binge Borrowing Raises Canada’s Household Debt Burden

Canadian Household Debt: We Seem To Love It!

Household Debt; Canadian Levels Sound Alarm Bells

How is it affecting Canadians?

According to a ManuLife Bank survey:

33% of homeowners have been “caught short” at least once in the past year and didn’t have enough money to cover expenses
60% lack confidence that they’ll have enough savings for retirement
Average mortgage debt increased to $181,000 since last fall
25% of homeowners predict that their home equity will make up 80% or more of their household wealth when they retire

What are the options available to Canadian homeowners with limited retirement income?

Delay retirement and keep working as long as possible
Work part-time
Move to a less expensive home and use the money to fund retirement
Sell the home and use the money to fund retirement
Borrow against the home equity

What is the top financial priority for Canadian home owners?

More than anything, Canadian home owners want their average household debt in Canada at a manageable amount and ultimately zero; i.e. be debt free. If you’re like many Canadian home owners struggling with alarming levels of household debt, seek help as soon as possible. A professional trustee can help you deal with your debt problems, and believe me they are not insurmountable. With immediate action and the right financial plan the Ira Smith Team can help you realize your dream of living a debt free life Starting Over, Starting Now. We’re only a phone call away. Book your free consultation today.

Tags average household debt in canada, Canada, Canadian household debt, consumer debt, credit card debt, financial plan, household debt, household debt in canada, Ira Smith Trustee, mortgage debt, retirement income, trustee

Brandon Blog Post

#VIDEO – FILING BANKRUPTCY: WILL THEY FINALLY LEAVE ME ALONE? #

Post author By Brandon Smith
Post date June 15, 2016

Filing bankruptcy is tough – but not as tough as you have already experienced

It has been a tough time for David and Julie and now they are seriously contemplating filing bankruptcy. He has been laid off and the bills are piling up. They have been thinking about bankruptcy. David begins an online search to get information about bankruptcy and he finds the Office of the Superintendent of Bankruptcy, an organization that licenses and regulates licensed insolvency trustee professionals.

Based on his search, he finds a licensed insolvency trustee and gets an appointment to meet with the licensed insolvency trustee for filing bankruptcy. During their first free consultation, the licensed insolvency trustee asks David and Julie various questions to get information about their current circumstances, their assets and their liabilities. She also tells them about options to avoid bankruptcy. David and Julie also have many questions about filing bankruptcy and Canadian bankruptcy laws. The licensed insolvency trustee answers them easily because they are often asked questions.

How do you begin the process?

Based on this discussion, Julie and David decide that bankruptcy is in fact the right tool. They give the licensed insolvency trustee the necessary information and documents. The licensed insolvency trustee prepares the necessary paperwork to file an assignment in bankruptcy. Julie and David then sign the documents.

What happens next once the filing process has begun?

The licensed insolvency trustee files the bankruptcy application with the Office of the Superintendent of Bankruptcy. Once the trustee files the assignment in bankruptcy, the trustee takes care of communicating with David and Julie’s creditors directly. The trustee is now in charge of reporting directly and prepares a report on David and Julie’s affairs.

Upon filing, all legal actions against David and Julie stop and no one can sue or garnishee. Some of David and Julie’s assets they will be able to keep because those assets are protected by provincial and federal laws. Other assets will be sold and the proceeds used to help repay their creditors. Their creditors will be notified of the bankruptcy. If a meeting of creditors needs to be called, David and Julie will have to attend.

David and Julie will also have to attend two counselling sessions to help them get back on the road to financial health. Finally, if David and Julie have enough joint income that surplus income arises in the bankruptcy, David and Julie will have to pay a calculated amount towards their debts. After doing so, they will get their discharge from bankruptcy, relieving them from the obligation of repaying most of the debts they had when they filed for bankruptcy.

Certain debts will not be discharged by the bankruptcy. Examples of such debts are:

any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;
any award of damages by a court in civil proceedings in respect of
- (i) bodily harm intentionally inflicted, or sexual assault, or
- (ii) wrongful death resulting therefrom;
any debt or liability for alimony or alimentary pension;
any debt or liability arising under a judicial decision establishing affiliation or respecting support or maintenance, or under an agreement for maintenance and support of a spouse, former spouse, former common-law partner or child living apart from the bankrupt;
any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a trustee or administrator of the property of others;
any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim;
liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
- (i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or
- (ii) within seven years after the date on which the bankrupt ceased to be a full- or part-time student;
any debt or obligation in respect of a loan made under the Apprentice Loans Act where the date of bankruptcy of the bankrupt occurred
- (i) before the date on which the bankrupt ceased, under that Act, to be an eligible apprentice within the meaning of that Act, or
- (ii) within seven years after the date on which the bankrupt ceased to be an eligible apprentice; or
any debt for interest owed in relation to an amount referred to in any of the above paragraphs.

David and Julie want to know how bankruptcy will affect their credit rating. The licensed insolvency trustee tells them that it will negatively impact their credit rating for the years they are in bankruptcy. She also tells them that once they are discharged from bankruptcy, they can start to rebuild their financial future. It’s not an ideal situation but dealing with this does lift a weight off their shoulders.

Are you considering filing bankruptcy?

Are you insolvent and looking for solutions? The Ira Smith Team is here to offer alternatives to bankruptcy and bankruptcy. We offer help in Vaughan and throughout the GTA.

Our motto is Starting Over, Starting Now! Ira Smith Trustee & Receiver Inc. can help you overcome your financial difficulties. Contact us today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

filing bankruptcy, filing for bankruptcy, ira smith trustee, hoyes, david sklar, a farber, canadian bankruptcies laws canadian bankruptcies list surplus income calculator licensed insolvency trustee consumer proposal bankrupted consumer proposal alberta debt consolidation canada

Tags avoid bankruptcy, Bankruptcy, canadian bankruptcy laws, filing bankruptcy, Ira Smith Trustee, licensed insolvency trustee

Brandon Blog Post

Canadian Payday Loans: 546 Reasons We Need Tough Federal Rules on Payday Lenders and 1 Possible Solution

Post author By Brandon Smith
Post date June 13, 2016

Canadian payday loans – The Problem

Canadian payday loans offered through payday loan companies are a scourge on society. Payday lenders must not be allowed to run. They take advantage of the disadvantaged part of our population who can least afford it. Canadians need protection from payday lenders and it’s high time that the government stepped in and took action. The Ira Smith Team can’t change the law on payday lenders but we can do our best to alert you to the dangers of payday loan companies with our blogs.

Why is the USA ahead of Canada?

When it comes to payday loan companies, the U.S. government seems much more on the ball than the Canadian government. In Canada, it’s the individual provinces that cap the rate lenders can charge borrowers in interest and they apparently aren’t doing much to protect their citizens.

In Ontario the province caps interest on payday loans at $21 per $100 dollars for a two-week period. This may not sound like much to you but on an annual basis it comes to 546%. This is not a typo. The annual interest is 546%.

Canada’s criminal usury rate is 60%. Payday loans are very short-term so they aren’t expressed as annualized amounts making it very easy for payday lenders to hide the fact that you’re actually paying 546% interest on Canadian payday loans.

What is the U.S. government doing about payday lenders?

The U.S. Consumer Financial Protection Bureau has proposed the following regulations:

Lenders must conduct a “full-payment test.” This means that payday loan companies would have to prove that borrowers are able to repay the money without having to renew the loan repeatedly. Typically most payday loans are required to be paid in full two weeks to one month after the person borrows the money and this sets off a cycle of borrowing to repay the previously borrowed money.
Restriction on the several times a borrower can renew the loan.
Lenders must give extra warnings before attempting to debit a borrower’s bank account. This should lower the frequency of overdraft fees that are common with people who take out payday loans.
Restriction on the several times the lender can attempt to debit the account.

What can the Canadian government do about Canadian payday loans?

Canadian activists ACORN are urging the Canadian government to follow the U.S. in regulating these predators. In addition, ACORN is proposing that the federal government:

Create a national database of payday loan users to stop users from taking out a loan to pay off another.
Cap all payday loan fees at $15 on every $100.
Amend the Criminal Code to lower the ceiling for the interest rate from 60% to 30%.

“Too many borrowers seeking a short-term cash fix are saddled with loans they cannot afford and sink into long-term debt,” CFPB Director Richard Cordray said in a statement. “Many borrowers turn to payday loans for fast cash to cover bills when they are rejected by the banks. This allows payday lenders to take advantage of people who have nowhere else to turn”, said Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction. “The predatory nature of payday loans is a failure of the national banking system, which means they should be a federal responsibility”.

Is there an alternative to Canadian payday loans?

According to Duff Conacher, co-founder of Democracy Watch, the alternative is the federal government direct that banks must have branches in low-income neighbourhoods that offer credit lines to lower-income people at the same rate they offer to others. That, he said, would end the need for payday lenders.

What is the solution?

Please don’t resort to payday loan companies! Make a date for a free consultation with a professional trustee instead. Ira Smith Trustee & Receiver Inc. is here to help with sensible advice and a plan to conquer your debt problems so that you can rid yourself of debt Starting Over, Starting Now. Give us a call today.

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