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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Brandon Blog Post

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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Brandon Blog Post

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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Brandon Blog Post

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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Brandon Blog Post

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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Brandon Blog Post

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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