Bundled subprime loans. To bundle, or not to bundle; that is the question. Bundled mortgage loans have become a hot topic these days because they are a tactic used by sub-prime mortgage providers to “beat the system”.
Bundled subprime loans: How are mortgage lenders regulated in Canada?
Regulated lenders in Canada can’t lend more that 80% of a property’s value without obtaining a government-backed insurance
If the borrower has bad credit, lenders can’t lend more than 65% of a property’s value.
Insurance requires banks to run income stress tests on borrowers.
Bundled subprime loans: The bundled mortgage loans definition
Bundled home loans package a primary mortgage with a second offering from an unregulated group. It is a product offered by sub-prime mortgage providers.
Bundled subprime loans: How do they beat the system?
With a bundled loan the strict mortgage lending rules don’t apply. Borrowers can make down payments of only 10% instead of the 20% or 35% on mortgages not backed by government insurance.
Are bundled subprime loans legal?
At the moment bundled subprime loans are legal. However, the Office of the Superintendent of Financial Institutions (OSFI) assistant superintendent Carolyn Rogers warned mortgage providers under its jurisdiction against providing such products.
“They are rules. They are not guidelines, and they are not principles. We absolutely expect regulated entities to be adhering to them,” Rogers said. “Anytime a regulated entity is or appears to be designing a product or an approach that is, by its design, circumventing the rules we would take issue with that.”
The OSFI will be cracking down on bundled loans. Canada’s six biggest banks do not offer bundled loans for good reason.
In the United States, before December 2007, when banks bundled mortgage loans and sold the resulting mortgage-backed securities, the poor credit risk combined with the drop in US home prices, many say explained the global economic collapse & the world debt crisis complete with allegations of white-collar crime.
consumer proposal markham scarborough newmarket
Are bundled subprime loans worth the risk? Do you want another global economic collapse and world debt crisis?
Borrowers can be at risk if they load up on too much debt at high rates of interest. “I would suspect that at least 10% of homeowners who are taking out this type of product may find themselves in hot water within the first couple of years of home ownership,” said Scott Hannah, the head of Canada’s Credit Counseling Society, a charity that advises consumers on debt. The Credit Counseling Society’s Hannah urged regulators to ban the products.
Scott Hannah is absolutely right. Loading up on too much debt is never a good idea. Are you overwhelmed by debt? Don’t despair. Ira Smith Trustee & Receiver Inc. can help. We approach every file with the attitude that financial problems can be solved given immediate action and the right plan. Give us a call today and Starting Over, Starting Now you can be on your way to debt free living.
The average Canadian debt will never be repaid if you only make the minimum monthly payments. Making simply the minimal payment on your charge cards and car loans is leading a lot more borrowers right into trouble, says a brand-new study.
Average Canadian Debt: February 2017 released TransUnion study
Chicago-based TransUnion checked 1,010 customers in Canada. They discovered 88 percent of bank card owners in Canada commonly make a higher payment compared to their minimum due on their rotating financial debts every month. Regardless, 39 percent of those charge card owners doubt of the advantages of repaying greater than the minimal payment noted on their credit card statement!
“Making more than the minimum payment makes them a more attractive customer to their financial institution,” stated Todd Skinner, president of TransUnion Canada.
bankruptcy policy TPR average Canadian mortgage debt
Average Canadian Debt: The new Total Payment Ratio (TPR) statistic
TransUnion is currently utilizing exactly what it calls a trended information report over 24 months, as opposed to a month-to-month picture. They find this offers a clearer representation of the state of a person’s financial resources. It remedies a stat that could be manipulated if, for instance, your credit report was pulled in January after your financial debts increased through the holiday period.
The credit rating company has actually likewise developed exactly what it calls a TPR statistic. It decides the connection between the repayment measure as well as the defaults throughout the many debts. The TPR calculation separates a customer’s complete month-to-month credit repayments by the complete minimum due on every one of the customer’s credit items. The greater the TPR the much less likely a customer falls back on repayments.
Average Canadian Debt: How to calculate a TPR
A person making $400 in repayments on 3 cards when the accumulated minimum due was $200 would have a TPR of 2.0. A person with $1,200 in repayments with an accumulated minimum due of $200 would have a TPR of 6.0.
In its research, TransUnion discovered among Canadians with a TPR of less than 5 on their charge card there was a 1.77 high threat of vehicle finance default. This is specified as not paying back for 90 days or even more. When the TPR rose to greater than 15.0, the high threat of default went down to 1.4 percent.
Average Canadian Debt: What a TPR score tells us about you
“This may sound intuitive — consumers who are able to pay more usually have more liquidity and are less likely to miss payments. But it is assigning a number to this intuition that is important,” stated Ezra Becker, vice-president as well as head of TransUnion’s worldwide research. The research study validated that as TPR boosted, delinquencies decreased for charge card and vehicle funding.
Average Canadian Debt: You will never get out of debt only making the minimum monthly payment
Making the minimal repayment on a credit card leaves you little possibility of in fact ever getting out of financial debt. I understand that many times, people have actually been making minimal repayments on credit cards, by obtaining money from one card to pay a different one.
Credit card statements in Canada currently consist of a line that shows for how long it will take to repay your bank card expense in months. It assumes that you are making just the minimal repayment each month as well as not increasing the amount owing. There are no regulations as to exactly how they place it on the statement. It’s typically in the small print that many people overlook.
Average Canadian Debt: What should you do if you have too much debt
Get in touch with a licensed insolvency trustee. We’re government licensed and supervised. Our costs are government controlled and we’re subject to a stringent code of principles. We must also take necessary professional development courses yearly.
A qualified licensed insolvency trustee (bankruptcy trustee) MUST initially check every one of your alternatives with you in order for you to prevent bankruptcy. The trustee must as well find the very best bankruptcy choice option for you. Lots of times the trustee could effectively carry out a financial debt restructuring for you as an option to avoid bankruptcy.
Get in touch with Ira Smith Trustee & Receiver Inc. Allow us aid your recovery to financial health and wellness. Let us give you back tranquility of mind, body and soul, Starting Over, Starting Now. Call us today.
Planning for retirement Canada appears to be a very troubling matter. As we’ve discussed before, many Canadians will have to alter their views about retirement as they face the prospects of outliving their money. Some will have to put off retirement indefinitely; others will have to continue to work part-time. But the harsh reality is that very few Canadians will be financially able to maintain their current lifestyles.
Planning for retirement Canada: Canadians are concerned
In a recent Royal Bank of Canada “Financial Independence in Retirement” poll, Canadians over the age of 55 revealed that:
46% feel that they’re falling short of saving enough to retire
Only 33% are now willing to tweak their lifestyle plans to face that reality
The top concerns of the Canadians polled were:
The ability to maintain their current standard of living
Planning for retirement Canada: Will you outlive your money?
As our life spans continue to increase, more and more Canadians will be facing the prospect of outliving their money. In 2015, Statistics Canada projected that by 2061 more than 78,000 Canadians will be over 100 years old – versus 5,800 in 2011. And, sadly we are ill ready for the financial ramifications of longevity.
If you’re like most Canadians you won’t able to maintain your current standard of living. Are you worried about covering the costs of health care? Do you know what lifestyle changes to make? Will you be able to manage debt in retirement?
Planning for retirement Canada: Will you have debt in retirement?
Are you managing debt now? If these things are occupying your thoughts callIra Smith Trustee & Receiver Inc. today? We’re experts in dealing with debt and we can help. Starting Over, Starting Now we can give you back peace of mind and a solid plan for moving forward towards retirement.
Canadian household debt news: Canadians hunger for more borrowing
The Canadian household debt news is that the hunger for borrowing from our Canadian financial institutions stayed vibrant. It established a new high for Canadians’ borrowing, Statistics Canada reported in December 2016. The widely followed measure of Canadian household debt service ratio rose to a new high of nearly 167 percent.
The numbers will certainly heighten the issue for our provincial and federal governments. The consumer economic situation has actually ended up being over-reliant on bank borrowing. This as well makes it susceptible to a real estate slump and a climbing rate of interest.
Canadian household debt news: Finance Minister Bill Morneau says “What? Me worry?”
The current StatsCan reporting covers the 3 months before Finance Minister Bill Morneau tightening up home loan financing regulations once again in October. His action made to prevent Vancouver as well as Toronto house purchasers from taking on bigger home mortgages compared to what they can manage.
Credit-market financial debt reached C$ 2.005 trillion from C$ 1.980 trillion in the previous quarter. Those responsibilities leapt by 1.3 percent in the 3rd quarter, faster compared to the 0.9 percent gain in family income.
Overall personal financial obligations surpassed the dimensions of Canada’s economic climate for the 2nd straight quarter. It made up 101.2 percent of GDP from July to September 2016.
Financial debts have actually climbed up together with the Vancouver and Toronto real estate boom. Job creation and low-interest rates encourage more borrowing.
household financial obligations household debt news Canadian household debt to gdp Canadian household debt by province
Canadian household debt news: Bank of Canada Governor Stephen Poloz says “What? Me worry?”
Bank of Canada Governor Stephen Poloz reduced rates of interest two times in 2014 to 0.5 percent. He claimed he should act to ease damages to personal incomes from plummeting oil prices. On December 15, 2016, the Bank of Canada published its newest Financial System Review. The semi-annual record specified that family monetary susceptibilities as well as discrepancies continues to climb in Canada.
The Financial System Review stated that the Bank of Canada really feels that these discrepancies will certainly not adversely impact the Canadian economic climate. Steps have actually currently been implemented to prevent negative after effects. Steven Poloz specified that plans to reduce the threat to the monetary system in its entirety have actually been presented in current months. He further stated that will certainly act to ease the possible repercussions for the monetary system of increasing family financial obligations.
On the bright side of Canadian household debt news, household financial obligations as a share of family net worth stayed at 20 percent in the 3rd quarter of 2016. As well as debt-service repayments were not altered at 14 percent of disposable income.
Canadian household debt news: What to do if you can no longer say “What? Me worry?”
Not all families’ stories have happy endings. If you’ve borrowed too much or life has thrown you a curve ball and you can’t make your mortgage and other debt payments, contact Ira Smith Trustee & Receiver Inc. We’re here to help you solve your debt problems and set you on a path to debt free living Starting Over, Starting Now. All it takes is one phone call to schedule a free, no obligation appointment.
Cashing in RRSPs before retirement is never a good idea. It seems that as life gets more and more expensive, fewer Canadians are saving for their retirement. A recent BMO survey reports that only 46% of Canadians are planning to contribute to RRSPs this year. What is most alarming is that 38% of Canadians have made early withdrawals and were cashing out RRSPs before retirement this year, compromising their retirement savings. In fact on average, Canadians have withdrawn $17,213 from their RRSPs this year, an increase of $1,305 from last year.
Why are Canadians cashing in RRSPs before retirement?
30% – Purchase a house
21% – Living expenses
18% – Pay off debt
18% – Pay for emergencies
13% – Other
Why are Canadians cashing in RRSPs before retirement instead of using the Home Buyers’ Plan to buy a house?
Canadians are using the Home Buyers’ Plan but it’s only for first-time buyers. They access their RRSPs to buy houses and borrow up to $25,000 from their RRSP. The money must be paid back over 15 years. There is no penalty for making the withdrawals, as long as you pay the money back in the specified time frame. Unfortunately if you’re not a first-time buyer or need more than the $25,000 allowed, you have a problem.
Are Canadians concerned about cashing in RRSPs before retirement?
75% are very concerned about the consequences
73% say they’re familiar with the tax penalties or the rules for repayment under the Home Buyers’ Plan
19% don’t expect to pay the funds back
So notwithstanding that Canadians understand the consequences of cashing out RRSP before retirement, they do not feel they have any other alternative.
consumer proposal markham scarborough newmarket
Is cashing in RRSPs before retirement for living expenses ever a good idea?
According to Chris Buttigier, director of wealth planning publications with BMO Wealth Management, “It’s concerning to see that so many Canadians are dipping into their RRSPs to meet short-term needs, which should only be considered as a last resort. Canadians need to consider more options that may be available before making any withdrawals. Make sure you have fully considered the ramifications of the early withdrawal tax consequences. In most cases, RRSP withdrawals will count as income in the year the money is taken out and taxed at your highest marginal rate”.
Is cashing in RRSPs before retirement to pay debt a good idea?
It’s clear that many Canadians are in financial trouble. Before cashing out RRSPs before retirement and emptying out your retirement savings to pay living expenses and debt, contact a professional trustee. There are other options than cashing in RRSP before retirement and compromising your retirement.
We approach every file with the attitude that financial problems can be solved given immediate action and the right plan. Don’t be one of the Canadians cashing in RRSP before retirement. Make an appointment with the Ira Smith Team for a free, no obligation consultation and Starting Over, Starting Now you can get back on track to debt free living. Give us a call today.
The bankruptcy trustee in Vaughan: Why did we transform into a licensed insolvency trustee?
Similar to caterpillars turning into butterflies, this bankruptcy trustee in Vaughan went through a metamorphosis. The Office of the Superintendent of Bankruptcy officially changed the name “bankruptcy trustee” to “licensed insolvency trustee” (LIT). As of April 1, 2017, all licensed trustees must have fully transitioned to the use of the LIT designation.
The purpose of this blog is to offer an overview of the Canadian insolvency process. Think of it as a bankruptcy and insolvency lesson 101.
What is the purpose of the Bankruptcy and Insolvency Act
Among the primary functions of this insolvency process, it is to release the individual from specific financial debts. It is to give a straightforward honest but unfortunate debtor a “new beginning.”. The debtor has no responsibility for discharged financial obligations.
A discharge is available to personal bankrupts, not to corporations. Although a personal case typically causes a discharge of financial debts, the right to a discharge is not absolute. Some sorts of debts may not be released. Section 178(1) of the Bankruptcy and Insolvency Act (Canada) (“BIA”) sets out the types of debts that are not released by the discharge of the bankrupt. The kinds of debts that are not released are:
1. child support and alimony;
2. fraud or near fraud;
3. debts arising from Court orders.
Where can I do some of my research?
You must initially do some of your own research to get an idea of exactly what your choices are. One place to start is our website to learn about:
through bankruptcy by turning over their property to a licensed insolvency trustee to realize upon it for the general benefit of creditors.
Either way, the funds available for distribution to the creditors are paid out by the licensed insolvency trustee. It is according to the scheme of priority laid out in the BIA.
The Court will consider approving a repayment plan that will repay the approved part of the financial obligations in no more than 5 years. When you use the restructuring provisions of the BIA (Consumer Proposal or Division I Proposal), you need to have a payback strategy to show your creditors just how you are going to pay back your debts. A successful restructuring plan is an alternative to bankruptcy and will allow a person or company to avoid bankruptcy.
There are various rules and ways that must be followed. Your licensed insolvency trustee can go over all the issues with you and is there to aid you through the process.
How does it all work?
Canada’s insolvency legislation is designed for debtors experiencing financial problems who cannot pay their present financial obligations and don’t have enough cash flow to offer a restructuring plan to avoid bankruptcy. The aim is to get a release from their existing debts.
The premise of the BIA is that the individual must deliver all of his or her non-exempt assets to the licensed insolvency trustee. The trustee will sell them for distribution to the creditors. In return, other than for either secured debts or the class of debts not released by a discharge from bankruptcy discussed above, the person’s debts will be erased. The person will be able to maintain any type of property that is categorized as exempt under provincial regulations. In this way, a discharge allows the individual to return to society as discharged bankrupt. This allows the person to start all over again.
Your credit score
Filing in an insolvency process could impact your financial resources and credit score for years. You should very carefully weigh all your options before choosing the bankruptcy option. That is a discussion a licensed insolvency trustee will be happy to have with you and will help you in first trying to find one of the possible bankruptcy alternatives. Hopefully, together you can see which one is best for you. Only if there is not an available alternative, will the trustee recommend bankruptcy?
A current bankruptcy filing may prevent you from acquiring a mortgage or other financing for years. Credit card businesses will instantly end your charge cards when you file for bankruptcy. Likewise, if you are trying to find a job or rent a place to live, some employers or property owners might look unfavourably on a current bankruptcy filing. If other applicants are as qualified as you and don’t have a bankruptcy on their record, you probably won’t be chosen.
Fresh start
Bankruptcy permits people or companies that are unable to pay their debts to settle their monetary difficulties and start restoring their credit. Declaring bankruptcy will trigger the “stay of proceedings”, preventing creditors from starting or continuing any legal action to collect their debts.
A bankruptcy filing will stay on your credit report for about 7 years. Since many financial debts can be discharged in bankruptcy with certain exceptions, people can take certain steps to begin boosting their credit rating after filing for bankruptcy and for sure after obtaining their discharge.
What to do if you are experiencing financial hardship
I hope this bankruptcy trustee in Vaughan Brandon’s Blog was helpful to you. People experience financial hardship for many reasons. If you’re experiencing financial hardship and are looking for a way out, contact Ira Smith Trustee & Receiver Inc. With immediate action and the right plan for moving forward, we can set you on a path to debt-free living Starting Over, Starting Now. All it takes is one phone call.
Retirement’s a hot topic these days, but most people don’t get it that retirement security starts at home. Will we be financially able to retire? How can we fund a retirement that may last 30+ years? How much money will we need to retire? Is there such thing as retirement security?
Retirement security starts at home: Global Retirement Index
The latest Global Retirement Index delivered good news and bad news for Canadians. The good news is that when comparing the state of retirement security in 43 countries around the world, Canada ranked 10th, up from 12th last year. In case you’re wondering what countries were in the top three spots, they were Norway, Switzerland and Iceland. Our neighbour to the south, the U.S. ranked 14th.
Retirement security starts at home: How long will my savings last in retirement
Canadians are asking themselves “how long will my savings last in retirement”. The bad news is that Canadians are underestimating how much they should be saving for retirement.
72% of Canadians surveyed identified retirement saving as their highest financial priority, however many believed they would need to replace only 60% of their income after retirement. Planning professionals typically work on the assumption that you need to replace 75-85%.
Canadians reported setting aside an average of 10.5% of their annual income for retirement. The international average is 12.2%.
Only 55% of Canadians take part in workplace-based savings programs.
The reality is that many Canadians are underestimating how long they’ll need their savings to last. It’s not uncommon for Canadians to live well into their 90s and some will even reach 100. This means that you may be funding a 30+ year retirement. For many Canadians there will be no such thing as a retirement security plan.
Retirement security starts at home: Do you have too much debt to think of retirement savings?
So as you can see, it really is true that retirement security begins at home. You can’t have a secure retirement if your house is full of debt. If you’re struggling with debt, now is the time to see a professional trustee. We can help you free yourself from debt, so that you can start saving for your retirement. Contact the Ira Smith Team today so that Starting Over, Starting Now you can work towards retirement security.
The purpose of this blog is to discuss the corporate receivership bankruptcy difference Canada. Every general security agreement defines exactly how the secured lender will certainly deal with obtaining his/her cash when it comes to default. One means to do this is by selecting a receiver.
A receiver or receiver/manager is an individual/company licensed by the Federal Government to act as a licensed insolvency trustee. The receiver can be appointed either by an instrument in writing or by a court order. A receivership administration falls under the Bankruptcy and Insolvency Act (Canada) (BIA), where the receiver takes possession and control over the assets to of the insolvent business.
The receiver or receiver/manager will certainly seize the properties covered under the lender’s security or covered by the court order. The receiver will also develop a plan to market the assets for sale. After paying any type of priority claims as well as the receivership administration costs, the net funds are paid to the first secured creditor.
Can you have both at the very same time?
Sometimes there is both a bankruptcy plus a receivership. Receivership is a treatment for secured creditors, such as financial institutions. Bankruptcy is a treatment for unsecured creditors.
a restructuring proposal could be annulled by the trustee or creditor for non-compliance.
There are many reasons that a corporation could go into bankruptcy. These consist of the following:
The firm has defaulted under its premises lease, the landlord distrains against the firm’s possessions. A bankruptcy or a notice to make a proposal filed before the property owner finishes the sale of assets defeats the lease distraint.
The firm has unsecured assets (i.e., possessions without a lender’s security registered against it) that are available to be realized upon. Also, the firm cannot carry on business any longer.
If a restructuring proposal is submitted, but the company could not get adequate funding to continue its business and complete the proposal.
To reorganize the statutory priorities.
To officially bring the business to an end as well as give a complete report to the creditors so they will not believe the principals engaged in any kind of misbehaviour.
In a company bankruptcy, the licensed insolvency trustee seizes all the business’s properties plus deals with all the creditors. The directors and management of the company accept the authority of the trustee; if requested by the trustee, they can as well as aid the trustee in his/her tasks. This eliminates them from all the stress of dealing with the creditors as well as running the cash-starved business.
Receivership bankruptcy difference Canada: Making the Application to Put a Debtor Into Bankruptcy
If a creditor is incapable of recovering the amount owed to it with any one of the readily available techniques which can be done, they may look to a bankruptcy application. This is especially so having actually acquired a judgment for the quantum owing which has not been satisfied. The BIA allows for the licensed insolvency trustee, once appointed, to take possession in an organized way, the assets of an insolvent debtor, to realize upon those assets and to then distribute the funds according to the scheme of priority in the BIA.
The BIA allows for the benefit of both bankrupts and their creditors. While the Act is not planned for usage as a device for the collection of private financial obligations, this may be the case in specific situations.
Receivership bankruptcy difference Canada: When is a Creditor Allowed making a Bankruptcy Application?
An unsecured creditor could apply for a bankruptcy order where:
the lender is owed $1,000 or even more on an unsecured basis, and
there has actually been an act of bankruptcy by the borrower within the 6 months that come before the filing of the application. Keep in mind that a secured lender can value its security at less than the overall amount owing to develop a partly unsecured debt.
The BIA states that acts of bankruptcy consist of the following:
if in Canada or elsewhere he makes an assignment of his property to a trustee for the benefit of his creditors generally, whether it is an assignment authorized by this Act or not;
if in Canada or elsewhere the debtor makes a fraudulent gift, delivery or transfer of the debtor’s property or of any part of it;
if in Canada or elsewhere the debtor makes any transfer of the debtor’s property or any part of it, or creates any charge on it, that would under this Act be void or, in the Province of Quebec, null as a fraudulent preference;
if, with intent to defeat or delay his creditors, he departs out of Canada, or, being out of Canada, remains out of Canada, or departs from his dwelling house or otherwise absents himself;
if the debtor permits any execution or other process issued against the debtor under which any of the debtor’s property is seized, levied on or taken in execution to remain unsatisfied until within five days after the time fixed by the executing officer for the sale of the property or for fifteen days after the seizure, levy or taking in execution, or if any of the debtor’s property has been sold by the executing officer, or if the execution or other process has been held by the executing officer for a period of fifteen days after written demand for payment without seizure, levy or taking in execution or satisfaction by payment, or if it is returned endorsed to the effect that the executing officer can find no property on which to levy or to seize or take, but if interpleader or opposition proceedings have been instituted with respect to the property seized, the time elapsing between the date at which the proceedings were instituted and the date at which the proceedings are finally disposed of, settled or abandoned shall not be taken into account in calculating the period of fifteen days;
if he exhibits to any meeting of his creditors any statement of his assets and liabilities that shows that he is insolvent, or presents or causes to be presented to any such meeting a written admission of his inability to pay his debts;
if he assigns, removes, secretes or disposes of or attempts or is about to assign, remove, secrete or dispose of any of his property with the intent to defraud, defeat or delay his creditors or any of them;
if he gives notice to any of his creditors that he has suspended or that he is about to suspend the payment of his debts;
if he defaults in any proposal made under this Act; and if he ceases to meet his liabilities generally as they become due.
if he ceases to meet his liabilities generally as they become due.
Keep in mind that in most of the situations above, the creditor does not need to show that the borrower cannot pay various other creditors. In the last situation, the creditor should show that more than just its own debt is not being paid. Unique situations would differentiate matters though.
Unique scenarios can consist of allegations of fraud, near-fraud or those other transactions which fall under the types that would seem to be attackable by a trustee. At least on a prima facie basis.
It should, nonetheless, be remembered that stringent evidence of both your unsecured debt and an act of bankruptcy is required to have an individual or business judged bankrupt.
Receivership bankruptcy difference Canada: Under What Circumstances Should a Creditor Make An Application For A Bankruptcy Order?
Making an application for a bankruptcy order to put a debtor into bankruptcy is no little job. Prior to choosing this option, consider the following:
the presence and amounts of claims that could take priority over your unsecured creditor status;
the dollar measure of unsecured debt ranking on the same level with your financial debt (i.e., each unsecured creditor is paid according to the calculated share based on the measure of his/her debt);
the existence of questionable transactions or transfers undervalue within the three-month to five-year evaluation period before the declaration of bankruptcy;
your very own history of repayments from the debtor/borrower in addition to the normal payment patterns in the 3 months before the date of bankruptcy; as well as
the legitimacy of any kind of security you might hold.
Receivership bankruptcy difference Canada: The Bankruptcy Application Can Be Very Useful
Think about:
has the debtor actually moved the residential property to a related party for inadequate or no consideration;
where the debtor does not want to lose a specific part of its property (e.g. a private yacht, unique cars and truck or shares in a firm) or does not want its transactions and events to be inspected by a trustee and/or creditors;
the debtor (being an individual) expects an inheritance;
where the debtor (being an individual) needs to be an officer, director and/or shareholder of several businesses;
the debtor (being an individual) might have his/her expert certification or licence from which he/she derives income compromised or lost as an outcome of being ruled a bankrupt;
when the bankruptcy of the debtor would cause him/her to lose the ability to generally conduct business, such as required to use a trust account or employment requires the need to be bonded; or
being a bankrupt would cause the company or individual to lose the advantage of a specific useful agreement, lease, or company.
Receivership bankruptcy difference Canada: How Does a Creditor Make The Application For A Bankruptcy Order?
The creditor desiring to file the application will certainly need a lawyer to prepare the needed documents to make the bankruptcy application. The lawyer will serve the motion material and attend for the bankruptcy order. For an uncontested motion, the lawyer appears before the Bankruptcy Registrar who is a Master of the Court. If opposed, the matter can only be heard by a Judge.
The creditor has to additionally make arrangements with a licensed insolvency trustee to act will need to guarantee the trustee’s fee and costs incurred by the trustee where there are not enough proceeds from the sale of assets. A lot of times it is likewise needed to give the trustee a cash retainer.
When the Bankruptcy Order is made, the licensed insolvency trustee starts the bankruptcy administration. All actions against the insolvent are stayed.
Receivership bankruptcy difference Canada: What If You’re Company Has Too Much Debt?
Is your company insolvent? Are you looking for solutions? The Ira Smith Team is here to offer alternatives to restructuring and turnaround services however, if required, we also act as a licensed insolvency trustee in bankruptcy matters. We offer help in Vaughan as well as throughout the GTA.
Are you an individual 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.
Alternative mortgage lenders Canada have now made sure that mortgages and loans are no longer the exclusive domain of banks and other brick and mortar financial institutions. Fintechs (financial technology companies) have changed the game in the same way that Uber disrupted the taxi industry. In fact banks who don’t want to be left are changing the way they do business and investing in or partnering with fintechs.
We recently blogged our review of two recent alternative lenders in Canada:
Alternative mortgage lenders Canada: Fintechs are a legitimate alternative
We’ve traditionally thought of alternative lenders as shady operators or payday lenders who prey on the most vulnerable. However a new crop of alternative lenders has emerged in the mortgage game – the fintechs. Some are publicly traded companies and perfectly legitimate. They market to the millennials who want everything online and in an instant; and that’s what some of the new fintechs deliver.
Alternative mortgage lenders Canada: How do the fintechs offering mortgages work?
They can register as a broker and have licensed brokers on staff
In addition to mortgages they can offer personal loans
They work on a fee-based model which gives them upfront revenue without capital requirements or credit risk
They receive a commission on mortgages completed through their service
Alternative mortgage lenders Canada: Fintechs technology advantage
Fintechs take advantage of technology to change the mortgage process. They try to create a more personal experience for users (more akin to online banking) and believe that their process of acquiring a mortgage is more transparent than that of traditional financial institutions. Some even give perks such a bottle of champagne to celebrate your new mortgage and/or dinner for meeting payment milestones. Some fintechs offer:
A mobile interface where users can compare rates, apply for a mortgage and track their payment progress
An interactive dashboard that walks users through the mortgage process
The ability to set up things like payment reminders and progress trackers
Alternative mortgage lenders Canada: What does it mean for you?
For one thing, the banks and other financial institutions have competition, and competition always benefits the consumer. Chances are if you’re already indoctrinated in digital and reach for Apple Pay or Android Pay instead of your wallet, you may welcome fintechs into the mortgage scene. But, not all fintechs are created equal. It’s up to you to check them out thoroughly and check out the rates to make sure they are giving you a good deal. You have options when it comes to taking out a mortgage but make sure you do your homework.
Alternative mortgage lenders Canada: What if you have too much debt?
Not all homeowners’ stories have happy endings. If you’ve bitten off more than you can chew or life has thrown you a curve ball and you can’t make the mortgage payments, contact Ira Smith Trustee & Receiver Inc. We’re here to help you solve your debt problems and set you on a path to debt free living Starting Over, Starting Now. All it takes is one phone call to schedule a free, no obligation appointment.
I am always asked where can you get both good and bad credit loans. The first question I ask is how do you know you have a bad credit score? Have you checked it recently?
Last week we reviewed the new entrant to the Canadian financial marketplace, Credit Karma Canada and its service for checking your credit score for free. Right now Credit Karma Canada does not offer loan products, so it cannot help you with good and bad credit loans.
Good and Bad credit loans: First know your credit score, good or bad
This week we are reviewing another website where you can check your credit score for free, and if you wish, also use the site to get a loan product – Borrowell.com.
If you have a good credit score, you may very well qualify for a loan from Borrowell.com. If you have a bad credit score, being one below the Borrowell minimum credit score, Borrowell can’t give you a loan. In that case, they have partnered with a lender who may be able to. If you have a bad credit score, Borrowell will immediately tell you who to contact to apply for a bad credit score loan.
Good and Bad credit loans: About Borrowell
It’s never been so easy to swipe a credit card when you go shopping, but when people can’t control or manage their swiping, they will fall deep into debt. Then, they’ll have to go to their bank to borrow more money, but could face a big objection, depending on what their credit score is.
Borrowell is a Canadian company and a new breed of lender. Borrowell is in the growing group of fintech – defined as “computer programs and other technology used to support or enable banking and financial services”. Borrowell has teamed up with Equifax Canada, to allow anyone to check their credit score for free.
Checking your credit score this way, will not impact on your credit score, unlike when a lender, or potential lender, does an Equifax or TransUnion Canada credit check on you. Borrowell has also partnered up with third-party vendors, to offer financial products. Once you have checked your credit score, you can on a fairly seamless basis, apply for a personal loan for almost any purpose.
You can combine your debt, finance a purchase or borrow for your business. Borrowell has partnered with lenders for those with either good or bad credit scores.
Good and Bad credit loans: Hidden secret – Credit score, credit rating and credit report
The tool the banks use to measure creditworthiness is a person’s credit rating and credit report. But not everyone takes the time to check there’s out. You probably found out your credit rating the last time you applied for a mortgage or other loan, but have since forgotten what it was.
Regardless, time has passed and your credit rating has now changed. Here is the hidden secret. If you don’t know your credit score, you have no idea what needs improving. Once you know your credit score, you can drill down to work on what needs improving. Borrowell allows you to check your credit score for free.
“I would say anything above 650 is deemed to be a good rating” says Andrew Graham, the CEO of Borrowell.com. It’s the first lender in Canada to give free credit scores online. Proving that you are able to treat credit properly over an extended period is everyone’s goal. If you want to improve your credit score, the first and most important thing you can do is to check out where it is now at either Borrowell.com or Credit Karma Canada.
Good and Bad credit loans: Your credit score is an important number
Your credit score is an important number. One that can impact:
your ability to borrow money in the first place;
the rate of interest that you’re going to pay;
your ability to find a rental if you don’t own;
your ability to get a job;
your home mortgage rate;
your insurance policy charges; and
even your job expectations.
We have written before on these issues, including:
bankruptcy receivership markham scarborough ira smith trustee
Good and Bad credit loans: Don’t tense up!
Even if you think your credit rating is good, people tense up and they get really nervous and uneasy because they don’t know. People I see in our insolvency practice are always concerned about their credit rating, sometimes unnecessarily so. In fact, the people I see care more about their credit rating than the debt they can’t repay!
Whether you know or not it’s not going to change the result so I say it’s better to know than not know. You wouldn’t ignore going to the doctor if you thought something was wrong, so why ignore your finances?
Good and Bad credit loans: Hidden secret to demystify your credit score
To demystify your credit score a bit, it is on a scale from 300 to 900 and the higher the score the better. So you want to have a relatively high credit score to be assured that you get the best possible borrowing rates.
What would cause you to have a low credit score? Things such as not paying off your credit cards, if you’ve missed payments, and if you are late by 30, 60, or 90 days. That’s a big red flag, because again your credit score reflects how likely is this person to make their payments that they signed up to or not.
If you have a large unused credit ability, say you have five charge cards each with a $10,000 limit, but you pay it off every single month you’d think that would produce a good credit rating. However, the lenders will say, you can get into trouble really quickly. So if you have a lot of charge cards, you should focus on reducing the number you have open and reduce it to just a few.
Can I use a good credit rating to my advantage? Can I negotiate better interest rates? Yes, absolutely. They’ll know, so they’ll have an idea about your ratings and offer you pretty good terms, but you can certainly negotiate. If you’re a renter, you know when you’re dealing with potential landlords, if everything about you is the same as everyone else, except for your credit score, and yours is poor compared to another applicant, the rental will go to the other applicant.
Good and Bad credit loans: It doesn’t have to be like that forever
Does your credit rating stay with you eternally? If I was a broke student and racked up indebtedness, is that still going to affect me in my forties? Probably not. What happens is your rating will change as your circumstances change. So as long as you set up a record of responsible credit behavior, even if circumstances were really bad a very long time ago, you probably can still have a really good credit rating.
So it all starts with knowing your credit score and Borrowell.com can help you. Once you know the credit score, the secret to getting that loan you need at a reasonable price is to first do the things you need to do to improve your credit score. But even with a bad credit rating, Borrowell.com, through one of its partners, may still be able to get you that bad credit loan.
Good and Bad credit loans: Hidden secret to fix the problem without more debt
Our final hidden secret is to let you know that normally, more debt will not fix your problems. You need to find out why you have a bad credit score, why you cannot use your existing income to pay your bills and debts and why you need to borrow more money. We can help you unlock all those answers, and unlock the hidden secret for you to get your life back on track.
Bundled subprime loans: Introduction
Alternative mortgage lenders Canada: Introduction
