Category: Brandon Blog Post

Welcome to our weekly blog on financial matters focusing on debt, debt reduction and alternatives to bankruptcy. Our blog is written by our Senior-Vice President, Brandon Smith, who is a licensed trustee in bankruptcy, hence the title, Brandon’s blog.

Brandon writes on topics of interest for individuals and businesses. We hope that you enjoy Brandon’s blog, visit every week to see the new Brandon’s Blog and spend time on our website learning from the information we provide about bankruptcy, debt consolidation, debt settlement, consumer proposals, restructuring and receivership. We also hope you will spend some time on our website – www.irasmithinc.com, finding out more about our Firm and people.

At Ira Smith Trustee & Receiver Inc., we want to help people for Starting Over, Starting Now, living a debt free life.

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HOW TO FIX BAD CREDIT- READ NOW TO FIND OUT HOW

bad credit, credit repair, credit report, fix bad credit, how to fix bad credit, secured credit card, secured credit cards, canada loan scam, no upfront fee loans for bad credit, bad credit loans guaranteed approval $5,000If like many Canadians you’ve had some financial difficulties, you may now have the additional problem of having to deal with how to fix bad credit. The most important thing to remember is that there is no quick fix for bad credit. Beware of credit repair scams or Canada loan scams; they do not work. Watch out for promises like “bad credit loans guaranteed approval $5000” or “no upfront fee loans for bad credit”.

If you are having trouble paying your bills on time, contact your creditors or seek professional help from a licensed trustee. Stay away from credit repair scams.You are the only one who can fix your credit and it takes time. Here are some tips on how to fix bad credit.

  • Check your credit report – You are entitled to receive a free copy of your credit report annually from each of Canada’s two credit rating agencies, Equifax and TransUnion. Check your credit report annually for errors and get them corrected as soon as possible.
  • Pay the minimum payments on time and in full as required by the signed agreement you have with your creditors.
  • Apply for a secured credit card. Secured credit cards require you to leave a deposit with the credit card issuer as a guarantee. The deposit is usually equivalent to the card limit, but it can be higher. Build a good credit history by paying the balance regularly; then you can ask that the security requirement be dropped and that the deposit be returned. This is an excellent and simple way to start to fix bad credit
  • Do not apply for too many credit and loan products. Having too much credit can also negatively affect your credit report. Keep your available credit at a minimum. Do not fill in too many applications for credit and loans because every time you do, your credit history is checked. Too many credit checks can negatively affect your credit score.
  • Maintain your employment and residence for at least 2 years.
  • Do not fall victim to Canada loan scams.

Contact Ira Smith Trustee & Receiver for more information on how to fix bad credit or to book an appointment. Starting Over, Starting Now you can live a debt free life.

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CONSUMER PROPOSALS OR PERSONAL BANKRUPTCY; WHICH IS RIGHT FOR YOU?

credit, credit scores, credit score, credit report, credit reporting agencies, problems with credit, toronto, bankruptcy, vaughan bankruptcyIf you are experiencing serious financial problems you need professional advice and a plan of action. The first thing that you should do is contact a licensed trustee. A licensed trustee is a federally regulated professional who will evaluate your situation and help you to arrive at the best possible solution for your problems. Consumer proposals and personal bankruptcy are two options for insolvency. Which is right for you?

CONSUMER PROPOSALS

PERSONAL BANKRUPTCY

Stops creditors from taking legal action against a debtorStops creditors from taking legal action against a debtor
Requires a licensed trusteeRequires a licensed trustee
Your total debt cannot exceed a $250,000 (excluding a mortgage)If you owe more than $1,000 you are eligible & no limit on the amount of debt
Your monthly payment is fixedMonthly payments may vary as they are based on your income and assets
You retain your assetsCertain assets may have to be seized by the Trustee
No monthly tasks or reportingMonthly income and expense reporting is required
You are still entitled to all tax refund(s) and/or credits which you are owed.Tax refunds for the year of your bankruptcy and any prior unfiled years will be forfeited
After the completion of a consumer proposal your credit rating is R7After a bankruptcy your credit rating is R9
A Consumer Proposal will appear on your Credit Report for three years after completionA first Bankruptcy will appear on your Credit Report for six to seven years (in Ontario) after your final discharge from the Bankruptcy (14 years for a second Bankruptcy)

Ira Smith Trustee & Receiver Inc. can provide you with solutions to your financial problems and with a plan of action, Starting Over, Starting Now we can help you achieve your goal of a debt free life. Take the first step and contact us today.

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Is it Time to Declare Personal Bankruptcy?

bankruptcy, personal bankruptcy, declare personal bankruptcy, bankruptcy alternatives, licensed trusteeIf you are considering personal bankruptcy you are no doubt feeling helpless as a result of a loss or significant reduction of income. The decision to declare personal bankruptcy is a serious one and should be made only after consulting with a licensed trustee. It’s not an easy fix for your financial problems and should be considered a last resort. Bankruptcy is hard on your credit rating, all debts may not be erased, you may have to surrender most of your possessions to your trustee, and you may have difficulty obtaining credit in the future for some time. There are also emotional and psychological effects of bankruptcy to consider. Although your financial problems may seem insurmountable, there are bankruptcy alternatives that may be better options for you. These include:

When is it time to consult a licensed trustee? Consult a licensed trustee as soon as possible if:

  • You have failed to make one or more payments on a mortgage or loan.
  • Your credit cards are constantly at their limit.
  • You are paying bills by taking credit card cash advances.
  • Your creditors have passed your account to collection agencies who are now calling you.
  • You have received notice of legal action against you to collect money you owe.

Why choose personal bankruptcy:

  • It is relatively quick
  • It can be less expensive than other options
  • It eliminates your unsecured debts
  • You will have some protection from creditors, legal action and wage garnisheeing
  • After your discharge your credit risk can start to improve

Can anyone declare personal bankruptcy? Anyone who is insolvent and owes more than $1,000 is eligible for personal bankruptcy in Canada.

To learn more about personal bankruptcy and bankruptcy alternatives please visit our website. Contact Ira Smith Trustee & Receiver to discuss the right option for you. There is no reason to struggle beneath a mountain of debt when you can gain back your former quality of life Starting Over, Starting Now.

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Are Consumer Proposals Right for You?

consumer proposal, consumer proposals, bankruptcy, personal bankruptcy, bankruptcy trustee, vaughan bankruptcy, vaughan bankruptcy trusteeIf you have serious financial problems, there are options in addition to bankruptcy. In fact more Canadians are now choosing consumer proposals instead of declaring personal bankruptcy due in large part to a change in the bankruptcy law that came into effect in September 2009. Previously only consumers with debt up to $75,000 could file a consumer proposal. Now the limit is $250,000. Is a consumer proposal right for you?

What is a consumer proposal? A consumer proposal is a way to make a deal with your creditors to repay your debts, but you can’t pick and choose the debts to be included. It’s a contract – a legally binding agreement that’s offered to your creditors through a licensed trustee, as an alternative to bankruptcy. It may be proposed that you pay a lower amount each month over a longer period of time, or pay a percentage of what you owe, and the consumer proposal must be completed within five years.

Is a consumer proposal a viable option for you? If you are an individual or a couple with total debts that does not exceed $250,000, not including debts secured by your principal residence, a consumer proposal might be the right choice for you. You will need to have cashflow from income to enable you to make your proposed payments and/or a third party able to assist you with a lump sum payment.

Why can a consumer proposal be a better option than bankruptcy? You’ll have control of your assets and more cash in hand to deal with daily expenses because a consumer proposal extends the time over which creditors are paid. Creditors like consumer proposals as well because they get more of their money repaid than if you opted for bankruptcy. However, you must be able to make the monthly payments. Your credit rating will also recover faster following the completion of a consumer proposal than from a discharge from bankruptcy. This way you consolidate all of your debts into one monthly payment that you can afford.

Be aware that a consumer proposal will not:

  • Eliminate your support and alimony obligations
  • Eliminate your student loan obligations if you ceased being a student less than 7 years prior to filing the consumer proposal
  • Deal with your secured debts, such as your house mortgage and car loan

Only a licensed trustee in bankruptcy can act as the administrator of your consumer proposal. Go to our website for more information on consumer proposals.

Contact Ira Smith Trustee & Receiver today for a free, no obligation consultation today and take your first step toward living a debt free life Starting Over, Starting Now.

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Everything You Wanted to Know About Credit Scores But Were Afraid to Ask

everything you wanted to know about credit scores but were afraid to ask, credit, credit scores, credit score, credit report, credit reporting agencies, problems with credit, toronto, bankruptcy, vaughan bankruptcy
everything you wanted to know about credit scores but were afraid to ask

Everything you wanted to know about credit scores but were afraid to ask: Introduction

Credit may not be sexy but it does make the world go ‘round. That is why it is important for you to know everything you wanted to know about credit scores but were afraid to ask.

Everything you wanted to know about credit scores but were afraid to ask: Our lives revolve around credit

Our lives revolve around credit – mortgages, car loans, student loans, credit cards…. Take out your wallet and look inside; how many credit cards do you have? According to a poll conducted on behalf of Credit Canada:

  • 43% of Canadians have more than 3 credit cards
  • 80% of Canadians do not know their credit score
  • 63% of Canadians do not know how their credit score is determined

The more you understand about credit the less likely you are to get yourself into trouble.

Everything you wanted to know about credit scores but were afraid to ask: What is a credit score?

A credit score indicates the risk you represent to lenders compared to other consumers. In Canada we have two credit reporting agencies – Equifax and TransUnion. They use a scale from 300 – 900 to rate your credit score. The number is calculated using a mathematical formula based on the information in your credit report (has detailed information on a person’s credit history including identifying information, credit accounts and loans, bankruptcies and late payments, and recent credit inquiries). You get points if lenders believe that you use credit responsibly. Conversely you lose points if you manage credit poorly. The higher your number is the better. A high number means that you are a good risk for credit. There are many factors that figure your credit score:

  • Length of time you’ve had credit
  • The types of credit that you use
  • Do you pay your bills on time?
  • How much debt are your carrying?
  • How many people have inquired about your credit?
  • Have you been bankrupt before?

Everything you wanted to know about credit scores but were afraid to ask: Why is my credit score important?

At some point in your life you will want access to credit whether it’s for a credit card or to borrow money to buy a house or a car, or to start a business. If you have a high credit score, you may be able to get a lower interest rate on loans, which can save you a lot of money over time. A good credit score will allow you to meet your goals for the future.

If you’re experiencing problems with credit, contact Ira Smith Trustee & Receiver Inc. We can help you get your life back on track Starting Over, Starting Now.

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Are You Living in a Financial Dangers Zone?

bankruptcy alternatives, consumer debt, consumer proposals, credit counselling, Debt, debt consolidation, debt problems, debt relief, financial dangersAre you living in a financial dangers zone? Many Canadians have been managing to stay afloat but Bank of Canada officials and federal government ministers have been warning about the financial dangers of accumulating too much debt. With interest rates so low many Canadians have been over borrowing; but what are you going to do once the interest rates go up?

Canadians have serious debt problems:

  • Statistics Canada reports that families now owe about $1.65 for every dollar of after-tax income
  • TransUnion reports that the average Canadian’s consumer debt load hit $27,485 at the end of 2012, a 6% increase over the previous year’s level and the first time the figure has been above $27,000

Consumer debt in Canada has reached an all time high. Are you too far in debt? Are you in a financial dangers zone? The Office of Consumer Affairs (OCA) has listed 8 warning signs that tell you when you are too far in debt, in a financial dangers zone and need to make changes in order to avoid bankruptcy:

  1. Frequently pay bills after their due date
  2. Regularly bounce cheques
  3. Use an advance from one credit card to pay the minimum amount on another card
  4. Receive calls from a collection agency
  5. Regularly ask friends or family members for loans
  6. Have your utilities cut off (telephone, hydro, water)
  7. Have cut back on regular budget expenses such as clothing and recreation, or necessities such as food
  8. Are considering taking a second job in order to help pay your bills

If you are living in a financial dangers zone, now is the time to take action. Contact Ira Smith Trustee & Receiver Inc. We can help you with your debt problems before they reach the critical level. Bankruptcy is not the only option to a financial crisis. There are bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals. Starting Over, Starting Now you can have debt relief.

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I’ll fix my ex, I’ll go bankrupt – do bankruptcy and divorce work?

Bankruptcy, Bankruptcy and Insolvency Act, bankruptcy in Canada, Consumer Proposal, Family Court, spousal support, bankruptcy and divorce“Ah, yes, divorce . . . from the Latin word meaning to rip out a man’s genitals through his wallet”. Robin Williams

Does bankruptcy and divorce together work?

The movies “War of the Roses” and “First Wives Club” were great comedies, but they were also sad commentaries on how down and dirty some divorces can really get. There seems to be no length that some people, mostly husbands, will go to in order to avoid paying or minimizing spousal support. Some of these divorce warriors would even declare bankruptcy in the mistaken belief that a bankruptcy and divorce in Canada will prove to the Family Court that with no assets and minimal if any income, they should be freed from the shackles of spousal support payments.

Declaring bankruptcy will not absolve you of spousal and child support. So for that purpose, bankruptcy and divorce don’t work together. In fact, the Bankruptcy and Insolvency Act defines support payments as one obligation that is not discharged by a bankruptcy and bankruptcy may make things worse. Family Courts tend to look at the bankrupt spouse as better able to keep current on their support payments now that they have been absolved of their debts. Bankruptcy legislation and the Bankruptcy Court tend not to interfere with or attempt to alter the normal outcome in Family Court. The only way to vary a support order is through the rules and procedures of the Family Court. So for this example, bankruptcy and divorce may hurt, not help.

Being an undischarged bankrupt will have no sway with the Family Court when it comes to support. The Family Court will look at the lifestyle the family enjoyed prior to the separation date and the income of the spouses prior to the bankruptcy date as being more indicative of the lifestyle to be enjoyed by the parties in the future. So again, bankruptcy and divorce doesn’t work hand-in-hand.

Bankruptcy and divorce will not remove your obligation to pay child or spousal support. In addition bankruptcy and divorce will not remove your obligation to pay any arrears that may have accumulated. Therefore, bankruptcy and divorce is not a quick fix or panacea to avoid Family Law support obligations. However, if you have other debts that are crushing you or you are insolvent, we can help. Contact Ira Smith Trustee & Receiver to tackle your financial problems Starting Over, Starting Now.

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TAX problems with the CRA? CONTACT A TRUSTEE!

prominent tax lawyer, Prominent tax lawyer accused of cheating clients, Paul DioGuardi , DioGuardi, Philippe DioGuardi, Tax problems, trustee, tax lawyer in CanadaAre you experiencing tax problems with the CRA? If you are burdened with serious debt and tax problems, the CRA may be only one of several creditors that you have to deal with. Although you may be bombarded with advertisements from tax lawyers trying to scare you into believing that you need a prominent tax lawyer in Canada to deal with CRA debt, consulting with a trustee may be a much better option for you. The CRA isn’t looking to prosecute you; they are looking to collect money and a trustee is usually your best option for dealing with debt.

Why use a licensed trustee instead of a tax lawyer? A licensed trustee can:

  • Provide you with a full financial appraisal of your situation, including your tax problems leading to CRA debt
  • Deal with all of your debts while a tax lawyer only deals with your CRA debt; the rest remains
  • Advise you on bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals in dealing with the tax problems and related debt
  • Provide immediate protection with a stay of proceedings by filing a consumer proposal or an assignment in bankruptcy
  • Advise what amounts are payable under the statute
  • Be less expensive than using a tax lawyer because in many cases the trustee doesn’t charge a fee over and above what the statute requires to be paid
  • Save you money because the actual amount required to settle may be higher than what debts could be settled for in a bankruptcy or consumer proposal
  • Offer you a free consultation while a tax lawyer requires a sizable retainer

There are a few cases in which you may want to consult a tax lawyer in Canada:

  • Your debts chiefly or only involve CRA
  • You are not insolvent
  • CRA has registered liens on your property (bankruptcy does not remove liens)
  • Communication between you and your tax lawyer is privileged; a trustee must seek and make full disclosure
  • You can avoid a bankruptcy filing and use the “open kimono” on all of your conduct and transactions
  • You are being prosecuted by the Department of Justice in relation to your tax reportings and therefore do require a lawyer

If you’re experiencing serious debt issues, including tax problems with the CRA, contact Ira Smith Trustee & Receiver Inc. for a no cost, no obligation consultation. Take the first step towards living a debt free life Starting Over, Starting now.

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When you have Debt problems contact a licensed Trustee

Bankruptcy, Consumer Proposal, Credit, Debt, debt settlement, Federal regulations, licensed trusteeIf you’re experiencing serious debt problems you are no doubt going through a very stressful time in your life and you may not know where to turn. Ira Smith Trustee & Receiver Inc. is here to tell you that there is help available and there are solutions to your debt problems. The best thing that you can do is contact a Licensed Trustee as soon as possible. There is a popular misconception that Licensed Trustees only deal with bankruptcy, but that is only one of our many functions. We can and do help with debt problems.

In a world of uncertainty filled with companies making promises that they can’t keep, a Licensed Trustee stands for trust, honesty, transparency, and integrity. We are federally licensed and federally regulated. Licensed Trustees are subject to a stringent code of ethics and we complete ongoing mandatory professional development each year. You’ll never get ripped off because our fees are regulated by the Federal Government unlike the non-regulated, unlicensed companies that make outlandish claims, charge exorbitant fees and often leave you in worse shape than you started from.

There are many great advantages to working with a Licensed Trustee. We:

  • Are required to perform an assessment
  • Review and counsel you on available alternatives
  • Ensure that your rights are not abused
  • Ensure that you are provided with mandatory counselling and access to mediation services if there is a dispute regarding any income you are required to contribute
  • Have the flexibility within the parameters of the legislation to develop a settlement solution that if fair to both sides; there is no one size fits all solution
  • Don’t just throw a number at you to pay whether or not you can afford it
  • Can assist you to make a single offer to negotiate with all of your creditors

Contact Ira Smith Trustee & Receiver Inc. for a free consultation today. We can help you with your debt problems. Starting Over, Starting now you can live a debt free life.

 

 

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Beware Of Debt Settlement Companies – Read this blog to find out why

Bankruptcy, Consumer Proposal, Credit, Debt, debt settlement companiesYou may have noticed that every time you turn on the radio or television there is another advertisement for a debt settlement company making outlandish claims about how they can solve your debt problems with a quick fix for pennies on the dollar. There is a very good reason that Canadians are now being inundated with these ads – the U.S. Federal Trade Commission effectively shut down debt settlement companies across the United States. Now the only place for debt settlement companies to troll for victims is in Canada.

“There is evidence of harmful practices used by some debt settlement companies and that is why our government is taking steps to protect consumers. We want to put a stop to abusive practices in the marketplace. Consumers should know their rights before they sign contracts and they should make no payments until they get results.” Margarett Best, Minister of Consumer Services.

There are over 20 debt settlement companies operating in Ontario and the Ontario Association of Credit Counselling Services receives over 100 complaints about debt settlement companies a month. Finally the Ontario government is responding to this very serious issue and is taking steps to regulate debt settlement companies. Alberta, Manitoba and Nova Scotia have already introduced regulations to crack down on them.

When something appears too good be true it usually is; and in the case of debt settlement companies their promises are always too good to be true. There is no instant or quick fix for serious debt issues. “Essentially, debt settlement companies have charged huge fees, sometimes in the thousands, made broken promises to settle debts for consumers and not followed through on their claims to be able to work with creditors,” wrote Laurie Campbell, CEO of the not-for-profit charity, Credit Canada Debt Solutions (CCDS) in a recent blog.

Beware of debt settlement companies that say:

  • Their program is government approved. Not true; the government doesn’t approve debt settlement programs.
  • They can stop collection calls and negotiate debt settlements. Not true; there is no legal protection for you if you choose to deal with a debt settlement company.
  • They will negotiate with your creditors for pennies on the dollar. Not true; there is no guarantee that your creditors will negotiate with the debt settlement company, especially for pennies on the dollar. You may very well end up in a much worse position than where you started off from.

What can you do when you have debt issues to contend with? Deal with professionals. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice. We are federally regulated and licensed and subject to a strict code of ethics. Our fees are regulated by the Federal Government and are usually much less than the debt settlement companies who make unsubstantiated claims.

 

 

 

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