Tag: bankrupt

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OWED WAGES BY EMPLOYER? FIND OUT IF YOU QUALIFY TO GET PAID

accrued vacation pay wage earner protection program, owed wages by employer, starting over starting now, avoid bankruptcy, licensed trustee, trustee, Service Canada, receivership, bankruptcy, notice of intention to make a proposal, Division I Proposal, Companies’ Creditors Arrangement Act, WEPPA, bankrupt, wages, Bankruptcy and Insolvency Act, BIADo you believe you wages are owing to by your employer? People ask us what if my employer owes me money & goes into either receivership or bankruptcy.

We answer if wages are owed by your employer and the company is either in receivership or is bankrupt don’t despair; there is hope for you to recuperate monies owed to you. The Wage Earner Protection Program (“WEPP”) Act – WEPPA – in conjunction with an amendment to the Bankruptcy and Insolvency Act (Canada) – BIA – created a mechanism for employees to be compensated for claims of unpaid wages, commissions and vacation pay accrued in the six months preceding the employer files for bankruptcy or being placed in receivership and wages are owed to you along with claims for unpaid termination and/or severance pay.

Are there any exceptions to this? What are the rules?

There are a few exceptions. You are generally not eligible if, during the period for which you wages are owed to you by your employer, you:

  • were an officer or a director of your former employer
  • had a controlling interest in the business of your former employer
  • were a manager whose responsibilities included making binding financial decisions impacting the business of your former employer, and/or making binding decisions on the payment or non-payment of wages by your former employer

Who is eligible for the WEPP? You may apply if wages are owed to you by your employer and:

  • your former employer has filed for bankruptcy or is subject to a receivership
  • wages are owed to you by your employer, vacation pay, termination or severance pay from your former employer
  • amounts earned during the eligibility period or, in the case of termination or severance pay, your employment was terminated during the eligibility period ending on the date of bankruptcy or receivership

One more very important exception – it only applies if wages are owed to you by your employer and your employer is in either receivership or bankruptcy and owes you wages. If your employer is attempting a corporate restructuring under a Notice of Intention to Make a Proposal, a Division I Proposal or the Companies’ Creditors Arrangement Act, then WEPPA and its provisions do not come into play.

Claim limits

Regardless of the total amount owing to you, the maximum any employee can receive under WEPPA is the greater of $3,200 or four times the maximum weekly insurable earnings under the Employment Insurance Act (which is now greater than $3,200). Once employees file claims with both the Trustee and Service Canada, Service Canada pays their claims for owed wages by employer and Service Canada becomes the creditor. The amendment to the BIA has recognized WEPPA and created a priority charge that supersedes all secured charges except CRA’s deemed trust claim (and the reclaiming rights of farmers and suppliers) to a max of $2,000 per employee, secured against current assets.

Documentation

While no one wants – or expects – to be part of a receivership or bankruptcy, you should always keep detailed records of hours worked for any pay period. On any occasion when you discover there will be no paycheque, record the loss that you will suffer, such as not being able to pay bills or buy groceries. Ask for a formal explanation from your employer and keep detailed notes on your efforts. It’s important to prove that when owed wages by employer; you still expect to be paid, even if it’s late.

If your employer is in receivership or bankruptcy proceedings, and you believe you have a claim for owed wages by employer, find the trustee and get in touch with Service Canada. Have your records ready and make sure you get your Proof of Claim.

If you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We are a licensed trustee and will listen to your issues and offer compassionate, professional assistance to aid you to avoid bankruptcy, so that you can regain control of your life, Starting Over, Starting Now.

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BANKRUPT: EVEN A PRESIDENT CAN BECOME ONE

BANKRUPT: EVEN A PRESIDENT CAN BECOME ONEBankrupt. This word still carries a stigma with it, but did you know that 4 American Presidents became bankrupt? So even a President can become bankrupt. They’re really not so different from average working people who find themselves drowning in debt. In fact American presidents became bankrupt at a rate at least 20 times the national average. And, their financial downfall was largely due to ill conceived real estate speculation, poor crop yields on the lands that they held, and high risk business deals that ended badly.

Which American presidents became bankrupt?

  1. Thomas Jefferson (1801-1809), America’s 3rd President: Jefferson inherited debt from his father-in-law. He managed his own money poorly and by all accounts lived a very opulent lifestyle which sadly, his main source of income – Monticello – was inadequate to support. As a result Thomas Jefferson struggled with debt issues for most of his life and went bankrupt several times. He died owing $107,000. After he died, his estate was auctioned off, and his surviving daughter was forced to rely on charity.
  2. Abraham Lincoln (1861-1865), America’s 16th President: Abraham Lincoln’s business venture in his 20s left him in financial ruin. He opened a general store in the 1830s with a partner, but it was a financial disaster. Lincoln sold his share in the store before it went bankrupt but his former partner died not long after and Lincoln became liable for the outstanding debts. The sheriff seized his only assets which were a horse and some surveying equipment to repay some of his creditors. It took another 17 years for the insolvent debtor to satisfy his remaining obligations.
  3. Ulysses Simpson Grant (1869-1877), America’s 18th President: Ulysses S. Grant lived well beyond his means. After leaving office he and his wife went on a very costly round-the-world tour. In 1881, Grant’s son, Buck, convinced his father to invest $100,000 with one of his associates, Ferdinand Ward. The money was mismanaged and embezzled, resulting in the bankruptcy of the firm of Ward and Grant. Ulysses S. Grant went bankrupt and ultimately had to sell his civil war memoirs to provide for his family.
  4. William McKinley (1897-1901), America’s 25th President: Although William McKinley did nothing personally to bring financial ruin upon himself; he co-signed a $100,000 loan for a friend who later went bankrupt. This in turn forced McKinley to declare bankruptcy on the $100,000 debt while he was Governor of Ohio in the 1890s.

Things really haven’t changed much since the 1800s; living beyond your means, making bad business investments and co-signing a loan are still common causes of people becoming bankrupt. Any of this type of debt, along with credit card debt, can cause you to live paycheque to paycheque. If you are considering bankruptcy contact a professional trustee as soon as possible. Ira Smith Trustee & Receiver Inc. is a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan Starting Over, Starting Now. There is life after bankruptcy. Contact us today.

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407 ETR FAIRNESS-ONTARIO COURT OF APPEAL ENSURES 407 ETR FRESH START

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consumer proposal bankruptcy alternatives trustee bankruptcy and insolvency act vaughan trustee 407 407ETR bankruptcy ontario Ira Smith trustee Receiver Inc1

 

407 ETR407 ETR found out that bankruptcy law is complicated. It not only deals with the facts, but with the spirit of the law. Canada (Superintendent of Bankruptcy) v. 407 ETR Concession Company Limited, 2013 ONCA 769 (Bankruptcy and Insolvency Act CanLII) is a very interesting case.

It involves Matthew David Moore, a truck driver who owned two vehicles and was a frequent user of this toll highway. Mr. Moore owed the money for usage of the toll Highway which he failed to pay. In March 2005 and December 2006, 407ETR sent notices of his non-payment relating to two separate vehicles to the Registrar of Motor Vehicles for the Province of Ontario (the “Registrar”). As a result, when the vehicle permit for one of the vehicles expired in August 2005, it could not be renewed. However, Mr. Moore continued to use Highway 407 for another 18 months and as of October 2007, he owed $34,977.06.

In November 2007 Mr. Moore made an assignment into bankruptcy. The 407ETR was listed as a creditor but it did not file a proof of claim which would have enabled the 407ETR to make submissions at any hearing into Moore’s discharge from bankruptcy and to share rateably with Moore’s other unsecured creditors in the bankruptcy. After declaring bankruptcy Mr. Moore had an accident and retrained to become a car salesman, which is what he now does for a living. He gave evidence that he needs a vehicle permit in order to do his job and earn a living. In February 2011 Mr. Moore obtained a conditional discharge from bankruptcy. He requested an Ontario Ministry of Transportation (“MTO”) vehicle permit but the MTO refused his request due to his outstanding indebtedness to this Highway concession company. On June 21, 2011, Mr. Moore obtained an absolute discharge from bankruptcy. Even though he was discharged from bankruptcy, the MTO refused to issue Mr. Moore a vehicle permit. The alleged conflict, in this case, is between s. 178(2) of the BIA, which releases the discharged bankrupt from most claims, and s. 22(4) of the 407 Act, which permits 407ETR to initiate a process by which the debtor will be denied a vehicle permit until he or she discharges the debt to 407ETR. A lot of legal wrangling ensued and eventually, this matter went to appeal. The issues on appeal were:

(i) Does s. 22(4) of the 407 Act conflict with the operation of s. 178 (2) of the BIA?

(ii) Does s. 22(4) of the 407 Act conflict with the purpose of the bankruptcy and insolvency system because it (a) thwarts the objective of providing the bankrupt with a fresh start or (b) creates a new class of debt that survives bankruptcy and frustrates Parliament’s intention to treat all unsecured creditors equally?

What was the 407 etr ruling?

“For these reasons, I would allow the appeal and, as requested by the appellant, set aside the order of the motions judge. In its place, I would substitute an order that:

(1) the discharge of Moore dated June 21, 2011, released him from all claims provable in bankruptcy, including the toll highway debt as at November 10, 2007, and

(2) the Ministry of Transportation is hereby directed to issue license plates to Moore upon payment of the usual licensing fees.

Further, I would declare that s. 22(4) of the 407 Act is inoperative to the extent that it thwarts the purpose of providing a discharged bankrupt with a fresh start.”

This decision ensured that bankruptcy did provide Mr. Moore with a fresh start. If you are experiencing serious financial problems and are looking for a fresh start, contact Ira Smith Trustee & Receiver Inc. today. You can even do some self-study with our bankruptcy faqs. Upon review of your situation, we will provide you with a solid plan for moving forward. Starting Over, Starting Now you can get your life back on track and live a happy and productive life.

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IS CANADA’S 1% IMMUNE FROM INSOLVENCY OR BANKRUPTCY?

bankrupt, bankruptcy, insolvent, insolvency, financial plan, 1 percenters, trustee, canadian bankruptcyThere has been quite a bit of buzz recently about Canada’s high income earners, affectionately referred to as the “1% or 1 percenters”. According to a National House Survey in 2011, to be considered in such illustrious company you have to earn a minimum of $191,100. However, the average income among the top 1% was $381,300 while the average Canadian earns $38,700. The typical member of the 1% club is male, married or living common-law, between the ages of 45 and 64 and lives in Toronto, Montreal, Calgary or Vancouver.

Earning $191,100+ may sound rich to the average Canadian but they would probably be shocked to know that many 1 percenters have ZERO savings or investments and are living paycheque to paycheque. Many are living lifestyles far beyond their means with sky-high mortgages, luxury vehicles, wining, dining, exotic travel, personal grooming, household staff… They are candidates for Canadian bankruptcy. There is no correlation between money earned and money saved. Living a high flying lifestyle can be intoxicating and very difficult to give up. Sadly, those seeking luxury are younger than ever. American Express Cardmember and merchant data reports that Canada’s Generation Y (born from 1983 onwards) as the biggest spenders on fine dining, luxury and travel. Living on a financial high wire is risky business. It equates to flirting with disaster. These 1 percenters are no different from the celebrities who blow through millions in earnings per year and declare bankruptcy. Few are super rich enough to become immune from insolvency and bankruptcy.

In fact it doesn’t take much for some 1 percenters to become insolvent or bankrupt – a downturn in the market, an illness, job loss, bad investment… If you’re walking a financial high wire, it’s time to come down to safety. Contact Ira Smith Trustee & Receiver Inc. We’ll evaluate your situation and come up with a realistic financial plan so that Starting Over, Starting Now you can live a happy, productive life without the fear of falling off a financial high wire.

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WILL I EVER BE ABLE TO RETIRE?

will i ever be able to retireWill I ever be able to retire?” is a common question amongst the Boomers generation. Last week we discussed the problem of living paycheque to paycheque. This week we’ll be addressing whether or not you will ever be able to retire. That’s right; there is a distinct possibility that many of you may never be able to retire. A new HSBC study reports that 17% of Canadians believe that they will never be able to retire, while a growing number of Canadians believe that retirement is getting further and further away and therefore the answer to their will I ever be able to retire question is NO.

  • 40% say they did not prepare well enough and of that group that doesn’t have enough money, 40% only came to the realization after they retired
  • 72% of retirees experienced a fall in income, yet only 48% had a similar drop in spending
  • 14% of people were funding a dependent in retirement while 32% of people not fully retired made the same claim

A BMO study reports that Baby Boomers are about $400,000 short of their retirement goals. Another reason why the answer to their will I ever be able to retire question is no. The money has to come from somewhere and as a result the BMO survey reports that:

  • 71% of Boomers plan to work in retirement and therefore feel that the answer to the will I ever be able to retire question will never be yes
  • 44% will sell off their valuable goods such as antiques or possessions they don’t use in order to raise funds otherwise the answer to their will I ever be able to retire question will never be yes
  • 33% plan to sell their home to help make ends meet otherwise the answer to their will I ever be able to retire question will always be no

According to Sun Life Financial’s annual Unretirement Index poll:

  • Only 27% of respondents believe they’ll retire by 66, a nearly 50% decline from the previous year
  • Economic uncertainty and poor financial planning are being cited as key reasons why a majority of Canadians surveyed say plans to retire by age 66 are more of a fantasy than a reality and their answer to the will I ever be able to retire question is no

Are you one of the many Canadians who haven’t been able to save for retirement? Is life a financial struggle to pay the monthly bills? Are you relying on credit to maintain your lifestyle? Are you forced to use expensive credit, such as an online bad credit loan or a bad credit line of credit? Do you feel that it is no longer worth spending your time thinking about the will I ever be able to retire question because your reality is too depressing?

If so, you are living in a financial danger zone. Consult a professional Trustee as soon as possible. Contact Ira Smith Trustee & Receiver Inc. for sound advice and a realistic financial plan to turn your life around. Starting Over, Starting Now we can solve your financial problems and put you back on track to living a debt free life. We want to help you answer a resounding YES to your will I ever be able to retire question.

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FAMOUS CELEBRITY BANKRUPTCIES HAPPEN TOO

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Most of us look at the rich and famous and wish we could live their lives. We see multi-million dollar mansions, driveways full of Porches, Maseratis, Jaguars, and Bentleys, exotic vacations on magnificent yachts and private islands, and private planes. Who wouldn’t want to live that lifestyle? But, there is a deep, dark secret – many of these high flyers can’t sustain the income to fund these lifestyles and like many mere mortals, go bankrupt. Famous celebrity bankruptcies happen too. Here are some of the more rich and famous bankrupts:

Samuel Clemens – “Mark Twain”Michael Jackson
Abraham LincolnDorothy Hamill – Gold Medal Skater
Johnny Unitas – Football Hall of FameMilton Hershey – Founder Hershey’s
H.J. Heinz – Founder HeinzMarvin Gaye
Mick Fleetwood – Fleetwood MacWalt Disney
Larry KingBurt Reynolds
PT BarnumTom Petty
David CrosbyDionne Warwick
Ed McMahonHenry Ford
M.C. HammerLarry King
Toni BraxtonNatalie Cole
Robin Williams

 

  • 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce within two years of retirement.
  • The National Endowment for Financial Education says that 70% of all people who suddenly receive large amounts of money will lose it within a few years.

We believe that if someone earns a lot of money, that makes them wealthy; but that is far from the truth. If these high earners are spending as much as they make or more, they are on a path to disaster. Many people that you consider to be wealthy are living from month to month. The truth is that high earners and low earners alike can be irresponsible about money. Managing money wisely, living within your means, saving, and budgeting are the necessary elements to living a debt free life.

Bankruptcy is not a shame; it’s a fact of life and everyone can be touched and affected by it. It’s never too late to live a financially healthy life. If you’re experiencing serious financial problems, contact Ira Smith Trustee & Receiver. We are here to help put you on a path to debt free living.

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DEBT AND DEATH – DON’T LET YOUR DEBT HAUNT FUTURE GENERATIONS

debt and death, debt, credit card debt, bankrupt, credit report, trustee, toronto bankruptcy, insolvency, Bankruptcy and Insolvency ActDeath and taxes are certain; but serious debt is optional. The importance of budgeting and living debt free cannot be overstated. In our last two blogs – Is the Ultimate Indignity to Bankrupt a Deceased Person Part 1 and Part 2, we discussed the problems that can arise when there is debt and death. Sixty-seven percent of Canadian adults don’t understand what will happen to their debt when they die, according to a recent survey from the Lawyers’ Professional Indemnity Company. Don’t let your debt haunt future generations. Of course there are times when disaster strikes – serious illness, unexpected loss of a job, divorce – but most serious debt is directly related to consumer spending. According to BMO:

  • 59% of Canadians recently surveyed say they shop to cheer themselves up; mood-lifting impulse purchases cost Canadians $3,720 a year.
  • Canadians plan on spending an average of $3,073 on summer travel this year. People can get carried away on a trip and splurge on things they would never otherwise spend on.
  • Technology sucks people into to spending on the latest and greatest innovation; whether or not they need it.

Almost 50% of Canadians who have credit card debt say they always or often carry an outstanding balance, according to a survey by Harris/Decima. It may surprise you to know that 1 in 20 Canadians report that they will never be able to fully pay off the debt.

Debt can have far reaching effects, but it’s something that we don’t often stop to think about in the course of living our lives. In addition to affecting your ability to borrow, did you know that:

  • You can be turned down for a job because of negative items on your credit report.
  • The stress of serious debt can create a myriad of health problems.
  • One of the major causes of the breakdown of marriages is serious debt.

Starting Over, Starting Now you can make the changes in your life required to live a debt free life. If you are overwhelmed by serious debt, contact Ira Smith Trustee & Receiver Inc. today. We can help.

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DEATH OF A DEBTOR – THE INDIGNITY TO BANKRUPT A DECEASED PERSON PART 2

death of a debtor, bankrupt, bankruptcy, debt, debts, estate, financial sense, executor, Bankruptcy and Insolvency Act, bankruptcy alternatives toronto, bankruptcy alternatives canada, bankruptcy alternatives vaughan, bankruptcy alternativesIn last week’s blog we discussed the dilemma that arises when your parent(s) passes away in debt. This week we’ll be addressing your options, what your obligations are, and what you can do for the death of a debtor.

If your parent(s) pass away in debt and there are insufficient assets to pay off the debt, after paying the testamentary costs you really have only 2 options:

  1. Pay the debts from your own resources
  2. Let the estate go bankrupt

Emotionally you may want to pay the debts because you believe that it’s the right thing to do. But, before you make a decision you should know that there is no liability for a child to take on the debts of the parent(s). Although there is still a stigma attached to bankruptcy, the reality is that the debts are not yours, so why should you assume this burden and possibly place your own family in financial jeopardy?

Bankrupting the Estate makes financial sense. If your parent(s) pass away in debt you won’t receive a penny until the debts are paid. And, Estates can be complicated, especially if there are existing small business services still active or there are exes or common law spouses involved. It is the responsibility of Estate Executors to pay debts and expenses first. The Executor can side step the minefield of issues involved by bankrupting an insolvent testamentary Estate. If you or another family member is the Executor of your parent(s) Estate, there are some important facts that you should be aware of:

1. The Executors have a personal liability for all acts done, and for all acts not done that they should have.

2. By trying their best, they may be opening up the door for lawsuits from creditors or heirs for matters not properly handled. This is especially true where the family member, who is not skilled at financial, insolvency or testamentary matters, is Executor because he or she has been named, but really has no expertise in this area.

3. By putting the Estate into bankruptcy, which requires prior approval of the Bankruptcy Court, the Executor is relieving him or herself of personal liability because the Estate will now be handled under the Federal statute and all creditors will be handled properly and in priority under the law under the administration of the trustee in bankruptcy.

4. The Executor will relieve him or herself of dealing with creditor collection calls.

5. Section 136. (1)(a) of the Bankruptcy and Insolvency Act (Canada) states:

136. (1) Subject to the rights of secured creditors, the proceeds realized from the property of a bankrupt shall be applied in priority of payment as follows:

(a) in the case of a deceased bankrupt, the reasonable funeral and testamentary expenses incurred by the legal representative or, in the Province of Quebec, the successors or heirs of the deceased bankrupt;…

If your parent(s) pass away in debt, contact Ira Smith Trustee & Receiver Inc. as soon as possible. We will evaluate your situation and provide you with sound financial advice on how best to proceed Starting Over, Starting Now.

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CAN YOU BANKRUPT A DEAD PERSON? DEATH OF A DEBTOR, PART 1

death of a debtor, insolvent, insolvency, bankrupt, bankruptcy, boomer retirees, debt, debt products, what is a consumer proposal, what is bankruptcy, vaughan bankruptcy, living wills, funeralsIf you have an aging or aged parent, you no doubt have had discussions surrounding living wills, end of life medical decisions and funerals. However, there is one topic that many families consider taboo – money – because many adult children consider it disrespectful to discuss finances with their parents. But, the truth is that many seniors in Canada are struggling. We began this discussion in our Blog “Grey Divorce Can Create Serious Debt For Boomer Retirees” but serious debt is not the exclusive domain of seniors that are divorced; it is rampant across the demographic. It may shock you to know that Canadians over the age of 65 now have the highest insolvency and bankruptcy rates for their age group and seniors were 17 times more likely to become insolvent in 2010 than they were 20 years ago, according to the Vanier Institute’s 13th annual “Current State of Canadian Family Finances: 2011—2012 Report.” Can you bankrupt a dead person? Can you bankrupt a dead person? Find out here in what we call “Death of a Debtor”.

A TD Bank study revealed that:

  • Debt among the 65 plus age group increased 15% in 2012
  • The average debt for those 65 and older increased by about $6,000 since 2011
  • Average debt among this group is $47,500

A CIBC study revealed that:

  • 59% of retired Canadians currently hold some form of debt
  • Only 27% of retired Canadians said they have made an extra lump sum payment towards their debt in the past 12 months
  • On average, retired Canadians carry 1.65 debt products with a balance (including mortgages, lines of credit, loans and credit cards)

What will happen if your parent(s) pass away in debt? You really have only 2 options?

  1. Pay the debts
  2. Let the estate go bankrupt

We recognize that this is an emotionally charged issue, but just because your parents were insolvent doesn’t mean that you have to be. Starting Over, Starting Now you can live a debt free life with help from Ira Smith Trustee & Receiver Inc. Contact us today and watch for our next blog – Is It The Ultimate Indignity To Bankrupt A Deceased Person? Part 2 – when we’ll be discussing what you can do if your parent(s) pass away in debt.

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WHAT HAPPENS IF MY EMPLOYER OWES ME MONEY & GOES BANKRUPT?

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Employer owes me money: Introduction

People ask us what if my employer owes me money & goes bankrupt? We answer if your employer is bankrupt don’t despair; there is hope for you to recuperate monies that are owing to you. The Wage Earner Protection Program Act – WEPPA – with an amendment to the Bankruptcy and Insolvency Act (Canada) – BIA – created a mechanism for employees to be compensated for claims of unpaid wages, commissions and vacation pay accrued in the six months preceding the employer files for bankruptcy or being placed in receivership and have unpaid wages along with claims for unpaid termination and/or severance pay.

This amendment came into being as a result of the federal government’s previous concern that when you experienced “my company owes me money & went bankrupt” there was rarely an opportunity for you to get the wages you owing to you.

However, you are generally not eligible if, during the period for which eligible wages are unpaid, you:

  • were an officer or a director of your former employer
  • had a controlling interest in the business of your former employer
  • were a manager whose responsibilities included making binding financial decisions impacting the business of your former employer, and/or making binding decisions on the payment or non-payment of wages by your former employer

Employer owes me money: Who is eligible for the WEPP?

So, if the employer went bankrupt did not pay employees:

You may apply if:

  • your former employer has filed for bankruptcy or is subject to a receivership
  • you have unpaid wages, vacation pay, termination or severance pay from your former employer
  • amounts earned during the eligibility period or, in the case of termination or severance pay, your employment was terminated during the eligibility period ending on the date of bankruptcy or receivership

What is the eligibility period?

The eligibility period is defined as the period in which wages and vacation pay are earned to be compensated under the WEPP and in which your employment must have ended to be eligible for termination and severance pay. The eligibility period starts six months before a restructuring event and ends on the date of bankruptcy or receivership. Should your employer not have gone through restructuring, the eligibility period is the six-month period ending on the date of bankruptcy or receivership.

What are eligible wages under WEPP?

Each case is examined individually and I strongly suggest that you contact a Trustee for a correct answer to the question “my employer owes me money & went bankrupt”. There remains some confusion and a disconnect between WEPPA and the BIA. WEPPA includes severance and termination pay while the BIA excludes severance and termination pay from compensation in sections 81.3 and 81.4. Such claims have and continue to be recognized by the BIA as being ordinary unsecured claims.

How much can I expect to receive?

Regardless of the total amount owing to you, the most any employee can receive under WEPPA is the greater of $3,200 or four times the maximum weekly insurable earnings under the Employment Insurance Act (which is now greater than $3,200). Once employees file claims with both the Trustee and Service Canada, Service Canada pays their claims and Service Canada becomes the creditor. The amendment to the BIA has recognized WEPPA and created a priority charge that supersedes all secured charges except CRA’s deemed trust claim (and the reclaiming rights of farmers and suppliers) to a max of $2,000 per employee, secured against current assets.

Do you have too much debt?

Contact Ira Smith Trustee & Receiver for more information if you have the questions “my employer owes me money and has gone bankrupt” or on any and all matters related to corporate or personal bankruptcies. We are full-service insolvency and financial restructuring practice serving companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now.

Call a Trustee Now!