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HOLIDAY SPENDING MISTAKES IN CANADA: 12 SECRETS TO SOLVE THEM

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Holiday spending mistakes in Canada: Introduction

Other than for some last-minute small items, your holiday spending is complete. The credit card bills will arrive next month. You will soon find out if you made any holiday spending mistakes in Canada.

Maybe you overspent and will now have too much debt you won’t be able to repay. Perhaps you spent wisely, but it will put you over the top given your current debt level. Regardless, you now need to know how to help yourself financially from holiday spending mistakes in Canada.

Holiday spending mistakes in Canada: You are not alone being in debt

Are you fighting financial threats daily? Do you wish you could unlock how to help yourself financially? If so, you are not alone. Lots of Canadians have fought the good fight to barely survive. There have been many articles in the media of the dangers of living with way too much debt. Many Canadians are living paycheque to paycheque.

The Bank of Canada has warned Canadians for years now. With the rate of interest having been so reduced, Canadians have taken on much debt. Now interest rates are beginning to rise. You have to know how to help yourself financially, so that you will not only be able to make your minimum payments, but you will also be able to start reducing your debt. Your holiday spending mistakes has now increased the pressure on you. I do not want to see anyone living this way.

Holiday spending mistakes in Canada: Who this information will help

You know you have debt troubles and this information will help if you:

  • often pay expenses after the date they are due;
  • on a regular basis write cheques that don’t clear your bank;
  • use room from one charge card to get a cash advance to pay the minimum due on a different card;
  • get telephone calls from a debt collector;
  • routinely ask pals or relatives for money;
  • utilities are threatening to cut you off;
  • cannot live to a balanced budget based on your current family income;
  • need to take a second job just to meet normal daily living expenses;

Holiday spending mistakes in Canada: Statistics Canada reporting

Statistics Canada reported that on average, at the end of 2016, Canadian families have a debt-to-income ratio of $1.67 for each dollar of after-tax revenue. At the end of the second quarter of 2017, they report that the ratio has risen to $1.68. Although Canadians’ net worth is also rising, primarily due to rising housing prices. So now housing prices have dropped, yet the debt remains.

If this sounds like how you have lived, then you need to take corrective action now from your holiday spending mistakes before it is too late. Bankruptcy should not be your first option. There are bankruptcy alternatives which include credit counselling, debt consolidation and a consumer proposal.

holiday spending

Holiday spending mistakes in Canada: Our 12 secrets on how to help yourself financially

If you are living in a debt threatening zone, it is currently the time to act to turn things around. Consider the following 12 secrets to stop your debt from spiralling out of control.

  1. Safeguard Your Health – Make sure that you are taking good care of yourself and your health, both physical and mental. You won’t be any good to yourself or your family if you are ill.
  2. Don’t Talk Yourself Out of What You’re Worth – Don’t put up with the things as they are of your job without seeking out new opportunities. Don’t sell yourself short. Make sure you understand if there are opportunities awaiting you that will pay you more than you are currently earning. Stay current on your marketable skills.
  3. Keep It Simple – Don’t over-complicate things. Don’t get involved with difficult payment plans. Put yourself in a position where if you need an essential item, you can pay for it. Don’t get sucked in by sexy advertisements for things that have long-term payment plans.
  4. Give to Your Future Before Giving to Others – There are many worthwhile causes that clamour for our money. Make sure your own house is in financial order before you give to others. Volunteer your time and not your money. You will find it very rewarding and you will be helping both yourself and others at the same time. Just say no to relatives and friends who ask you for money, until you have no debt yourself.
  5. Make Savings Automatic – Otherwise known as pay yourself first. Set up a special bank account and have the same percentage hived off of your paycheque every payday. Do not touch the funds in that special bank account, until you have enough money to invest in a safe investment. Have this money work for you over and over.
  6. Control Your Impulse Spending – Make sure that you have a monthly budget and follow it. Your budget should account for all your necessary living expenses for you and your family AND allow the percentage you are hiving off each pay period for your investment savings account. If there is anything left over, this balance should be used for debt reduction. Don’t buy on impulse as you will regret it.
  7. Evaluate Your Expenses, and live frugally – We can all get by on less than we think. This ties back into your budget. Make sure that your necessities of life and your regular payday savings are all accounted for. By cutting out expensive daily coffee drinks and other non-essential items, you will be surprised how much you will have leftover for debt reduction.
  8. Invest In Your Future – Upgrade your skillset. Take a course that will make you more marketable. Make room in your budget for this type of expense, as it will generate more income for you for the long-term future.
  9. Keep Your Family Secure – Involve your entire family in the family budget process. Everyone needs to be on the same page and working towards the same goals. Meet regularly to go over your real performance as compared to budget. When everyone knows the plan is working, they will all feel secure and try even harder.
  10. Eliminate And Avoid Debt – Make sure that you are not taking on any new debt. Use budgeting to make sure that you allow a certain amount out of your monthly budget for paying down debt. Even small amounts add up over time. You will see and feel the difference it makes in your life.
  11. Use The Envelope System – Set up a separate envelope for each of your weekly necessities, based on your budget. Only take out enough cash for those amounts and place the right amount of cash in each envelope. Do not use credit cards to pay for the necessities; just use the cash in each envelope. Make the cash in your envelopes last the entire week, then rinse and repeat.
  12. Pay Bills Immediately And Automatically – If you don’t like the envelope system, here is another idea. Pay as much as you can online from your bank account. Set up regular automatic monthly payments so that the bills are paid. You can also use this method for your regular payday savings account. Make sure you budget properly so that you realize what money is coming out of your account in a month automatically so that you don’t overdraw your bank account.

Holiday spending mistakes in Canada: Will you need immediate help from your holiday spending mistakes?

These 12 steps will ensure that you get back on the road to financial health as soon as possible. You can recover from your holiday spending mistakes.

If you find that you have too much holiday or other debt, debt collectors are harassing you and you can’t keep them all happy, then you need to take more action. I say more action because it will be in ADDITION to the above 12 steps. What you will need to do is to immediately speak to a professional trustee.

The Ira Smith Team has a cumulative 50+ years of experience helping people who are facing a financial crisis and we deliver the highest quality of professional service. Make an appointment for a free, no-obligation appointment today and Starting Over, Starting Now you’ll take your first steps towards financial freedom. We can devise a plan so you can come back from your holiday spending mistakes in Canada.

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INTEREST RATES IN CANADA: ARE YOU WORRIED THAT HIGHER INTEREST RATES WILL CAUSE YOU UNDUE FINANCIAL HARDSHIP POSSIBLY CAUSING BANKRUPTCY

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Interest rates: Introduction

Canadians have been on a borrowing binge due in large part to very low rates. But, the tide is beginning to change and interest rates, although still low, are beginning to creep up. This rise in rates is making many Canadians very nervous. For some, it could cause serious financial hardship.

Interest rates: The threat of rising interest rates

Forum Research Inc. conducted a survey after the Bank of Canada raised rates in September and the results are quite interesting:

  • 60% of young people are at least somewhat concerned by the prospect of rising rates
  • Over 50% of Canadians think that rising rates will negatively impact their personal finances
  • 35% of Millennials aged 18 to 34 have no savings at all
  • Only 26% have an emergency fund
  • 12% expressed concern that more rate hikes were on the way and that the impact would be extremely negative

Interest rates: “It was almost like money was free”

In theory, higher interest rates should provide an incentive for Canadians to save more, but the long period with low rates have taken their toll on many. “Rates were so low for so long, it was almost like money was free,” said Forum Research president Lorne Bozinoff in an interview. “Some may have overextended themselves during that time, thinking rates will never go up.”

Interest rates: How will you cope with higher interest rates?

The question now is how will Canadians cope with higher rates? “Some households might not be able to afford an increase,” says Frances Donald, senior economist with Manulife Asset Management. “And this is where we can see defaults, first on auto loans and then on housing.”

Interest rates: Are you worried about defaulting?

Are you worried about defaulting on your loans or mortgage? Are higher rates causing you financial hardship? There’s no time to waste. Contact Ira Smith Trustee & Receiver Inc. today.

We approach every file with the attitude that your financial problems can be solved given immediate action and the right plan. Together we will explore with you all the bankruptcy alternatives available to you. I know that we can help you get back on solid financial footing, the same way we have helped many others just like you, Starting Over, Starting Now.3bestaward

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RETAIL BANKRUPTCY WATCH LIST: WHAT THIS 102 YEAR OLD TEACHES US ABOUT RETAILING

Retail bankruptcy watch list: Introduction

Metro Vancouver’s high rental fees and salaries for skilled retail staff aided the demise of the 102-year-old shoe-store chain Ingledew’s. Ingledew’s is the latest retailer in Canada to become bankrupt. One of the most compelling of all the retail bankruptcy issues today, is the constant customer practice of identifying the product in bricks-and-mortar shops and then after buying online from other stores. There are others on the retail bankruptcy watch list for the same reasons.

Retail bankruptcy watch list: And what about the future of our malls?

“I worry that the shopping mall that we understand so well today, in as several as five to 10 years, will be totally different,” he informed Business in Vancouver. He predicts a slew of stores having a hard time and landlords clambering to find new methods to attract consumers.

Ingledew stated that costs and debt rose because of:

  • the amount of money it took to open these gorgeous new shops;
  • the lease rates paid to mall property owners for rent; and,
  • the wages paid to get and retain excellent people to be knowledgeable, treat the consumer well and properly represent the company.

He further stated that the costs were far overtaking any type of gains being seen in sales in stores.

These pressures, particularly the fad of buyers dealing with physical shops as display rooms, has Ingledew being afraid that there will be an earthquake of adjustment can be found in the retail industry in the next years.

Retail bankruptcy watch list: It is a North American issue

North American merchants are shutting greater than 3,600 stores this year to stanch losses. Retailers are also declaring bankruptcy at a staggering rate. Wal-Mart is now consuming their shed market share, according to Moody’s expert Charlie O’Shea.

He and a green bay bankruptcy lawyer debated at length with Ingledew and they agreed, nonetheless, that retail is quickly developing and stated the ultra-competitive shoe retail industry specifically is undertaking significant change.

Oxford Properties, for instance, wishes to increase the measure of area dedicated to food and drink sales in its shopping centers– to around 20% from 9%. Other shopping centers are increasingly having art exhibitions, Lego demos and various other demonstrations and events to draw consumers.

In the United States, there are frustrating earnings reports from JC Penney, Macy’s, as well as Nordstrom, against a backdrop of overall distress in the retail market marked by sliding sales and traffic. Retailers are shutting shops and companies filing for Chapter 11 in 2017 in the first 4 months of 2017 are at a rate not seen since the last recession.

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Retail bankruptcy watch list: Wal-Mart is investing online

However, it is not just Amazon that is the beneficiary of the distress in the brick and mortar retail environment. There is one major traditional retailer that is crushing it. Wal-Mart recently reported that e-commerce sales rose by 63% in its latest quarter, compared to 29% growth the previous quarter. The firm stated most of these sales were natural via Wal*Mart.com.

“We delivered a solid first quarter and we’re encouraged by the start to the year,” WalMart CEO Doug McMillon said. “We’re moving faster to combine our digital and physical assets to make shopping simple and easy for customers. Our plan is gaining traction.”

Wal-Mart’s $3 billion procurement of the online merchant Jet.com additionally aided the firm boost shopping sales. Wal-Mart also got the Shoes.com domain and is utilizing it to advertise shoes from its Shoebuy.com Inc. subsidiary, which Wal-Mart got in January, simply a few weeks before Shoes.com ceased operating.

Retail bankruptcy watch list: Walmart’s growth is not just online

But Wal-Mart’s development isn’t all online. The firm stated sales at US stores open at the very least for a year, or same-store sales, grew by 1.4%, defeating analyst expectations of 1.3% and also marking the 10th consecutive quarter of same-store sales growth.

Retail bankruptcy watch list: What does your future look like?

Are you unhappy about the direction your debts are taking you? Is shopping putting you into financial ruin? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life?

Call us now for a free consultation. The Ira Smith Team can help you sort through all the issues. We will create a plan to get you back on the road to financial health. Many times, we can avoid bankruptcy, using one of the various bankruptcy alternatives. Call us today so we can help you get your life back, Starting Over, Starting Now.retail bankruptcy watch list 11

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BEST TORONTO BANKRUPTCY TRUSTEE: HOW TO PICK BEST TORONTO BANKRUPTCY TRUSTEE

Licensed Insolvency Trustee In Toronto Ontario: Introduction

I think the most important thing is you choose the lawyer and licensed insolvency trustee (best Toronto bankruptcy trustee) in Toronto Ontario or the GTA, that you feel is right for you. There’s a lot of friends and family out there giving free advice. “Go to this person because they can get you this.”

But each case is different. You will need to have a good working relationship. This is an emotional and difficult time. If you feel like you’re sitting with a person you can’t talk to and you don’t feel comfortable then that’s not going to help you. Also, you need a firm that has the ability in-house and has avenues to instruct other experts such as your accountant.

Licensed Insolvency Trustee In Toronto Ontario: You must feel that you can work together

You must choose a cost-conscious lawyer or licensed insolvency trustee. Look for professionals that offer their realistic budget to be monitored by.

As I’ve said, it’s important you feel you can work with the person. The lawyer and licensed insolvency trustee that you choose must be separated from the emotion. However, you want them to also show you compassion. After all, this is YOUR life they are dealing with.

It’s important that you choose a lawyer and a licensed insolvency trustee that can guide you through the process and strip away the emotion.

Licensed Insolvency Trustee In Toronto Ontario: My 5 point checklist

Here is my checklist of the 5 things I believe are most important.

  1. Signs of professionalism

To get started in picking the best Toronto bankruptcy trustee for you, check the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). Membership in this organization indicates a dedicated firm to the practice of bankruptcy and insolvency, stays up to date on the latest developments.

For a bankruptcy lawyer, check with your local Bar association.

  1. Meet more than one

After you’ve identified a few lawyers and licensed insolvency trustees you’d like to explore further, view their websites. They should contain clearly written educational information and downloadable financial forms that you can fill out that to help you.

Then, start to schedule some appointments. Most lawyers and licensed insolvency trustees will give a free consultation. It’s helpful to go to see more than one. Not to price shop, but to gauge how comfortable you are with them and to see how their advice seems to you. This will also help you find the best Toronto bankruptcy trustee for your needs.

best toronto bankruptcy trustee

  1. Passion

Look for their passion. Are they passionate about their practice? Do you feel the empathy they have for you? Do you feel they “get” you? This is how you gauge passion. A passionate professional will make sure that you are given the best advice and service. This is another way to find the best Toronto bankruptcy trustee for you.

  1. A fee commensurate with service

Lawyers and licensed insolvency trustees are not free. The cost can vary depending on how complex your situation is and where in the country you live. If you go for the cut-rate price, you probably will not be happy with the service you will receive once you sign up. To make a reasonable amount of money in a year, the bargain basement priced shops must do a high volume. That means they cannot spend a lot of time with you.

On the other hand, don’t assume that you get the best service and result from the most expensive firm. They are the most expensive because their overhead costs are the most. It does not mean they are the best.

If it was me, I would look for the in-between price. It means they are fair to both you and themselves!

  1. You may not need a lawyer and you will want options

Look for a licensed insolvency trustee that will discuss bankruptcy alternatives with you, even if some are not right for you. You do not want someone who just automatically tries to put you into bankruptcy.

Licensed Insolvency Trustee In Toronto Ontario: What to do if you have too much debt

I hope that you have found this vlog helpful. If you’re looking for ways to end your financial debt call Ira Smith Trustee & Receiver Inc. Our strategy for every single person is to develop a result where Starting Over, Starting Now comes true, starting the minute you stroll in the door. You’re just one call away from taking the necessary actions to get back on the road to leading a healthy and stress-free life.

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#VIDEO – COST OF FILING FOR BANKRUPTCY: WHAT IS THE TRUE COST?#

If you enjoyed this cost of filing for bankruptcy video and would like a copy of our free e-Book “Cost of Claiming Bankruptcy in Canada” please subscribe to Brandon’s blog by clicking on this link – CLICK HERE

Introduction

The cost of filing for bankruptcy is something you will need to consider when you are considering filing. How much you will have to pay to go bankrupt depends on a number of factors, including:

  1. your monthly income;
  2. what assets you own;
  3. the size of your family; and
  4. whether you have been bankrupt before.

We strongly recommend that you contact a Licensed Insolvency Trustee to arrange for a free first consultation; they will check your situation and calculate the cost for you in your situation.

Your base cost

In most cases, you will have to make payments to the Trustee to contribute to your estate each month to cover various filing fees and other administrative costs. The minimum period for bankruptcy is nine months, so you will be making these payments for at least a nine-month period. This is the base cost of filing.

Surplus income

You are required to pay part of your surplus income into your estate each month. Surplus income is defined by the government, and if you and your family earn over a certain amount each month, you pay part of your earnings over that limit. The limit is essentially the poverty line.

The surplus income calculation is reasonably complicated, so we suggest you bring your recent pay stubs to your meeting with your trustee so that they can estimate the number of surplus income payments you will make while bankrupt. If you have surplus income, your bankruptcy will be extended for an extra year.

If you would like a preliminary idea of what your surplus income payments would be, review our blog What Can I Deduct For Surplus Income In Bankruptcy?

Non-exempt assets

Another cost of filing for bankruptcy is that you will lose all of your non-exempt assets.

Tax refunds

You will lose any tax refunds and HST credits you would otherwise receive during the bankruptcy period. This is a further cost of filing for bankruptcy.

Windfalls

Finally, you will lose any windfalls you receive or become entitled to during the bankruptcy period. For example, if you inherit money while bankrupt, or win the lottery, that money must be surrendered to the trustee.

The minimum bankruptcy period in Canada is nine months, but if you have surplus income, or if you were before bankrupt, your bankruptcy will last longer before you are able to apply for your discharge from bankruptcy.

What should you do with too much debt?

The amount you will pay while bankrupt will depend on your monthly take-home pay, your family size, and your assets. Given this information, you may first wish to attempt to avoid bankruptcy by looking at one of the bankruptcy alternatives.

To show how much it will cost to go bankrupt in Ontario, and to look at ways of avoiding bankruptcy, contact Ira Smith Trustee & Receiver Inc. today. Our team of professional trustees can help you manage your financial crisis and get you back on your feet Starting Over, Starting Now.

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#VIDEO-HISTORY OF BANKRUPTCY NEVER GETS ANCIENT#

HISTORY OF BANKRUPTCY NEVER GETS ANCIENT

History of bankruptcy: Introduction

A subject that rarely gets written about is the history of bankruptcy. Understanding the history of the Canadian bankruptcy system and how it has evolved, gives a helpful look into how it works and help Canadians and Canadian society.

History of bankruptcy: Helping the debtor

The Bankruptcy and Insolvency Act (BIA) provides a way for the orderly liquidation of a bankrupt’s assets and distribute that value to the creditors. In this way, the BIA assists the insolvent debtor who needs a way to be forgiven for his or her financial sins, relieved of their burden and be returned to society as a productive contributor. The BIA assists creditors in providing the system of turning the assets into cash to be distributed to them, and not keeping those assets either out of their reach or just laying in an unproductive state. The BIA also is a system of checks and balances, so that it provides both Canadians and foreigners that there is a vibrant and safe Canadian economy.

History of bankruptcy: Helping the creditors

The BIA also ensures that there is a fair and logical system in place to deal with the assets of the debtor and the claims of creditors. By invoking it, it avoids a race among creditors to attempt to get the right to seize assets in an uncontrolled way. Creditors are paid according to their place in the hierarchy of claims as described in the BIA as follows:

  • Trust claimants who are outside of the bankruptcy scheme
  • Secured creditors, who are also outside the bankruptcy scheme as long as they hold good and valid security
  • Unsecured creditors:
    • Preferred
    • Ordinary

History of Bankruptcy: bankruptcy alternatives

The BIA also provides debtors to opt for avoiding bankruptcy by making a Proposal. In the case of corporations, a Proposal; for people, either a Proposal or Consumer Proposal, depending on the level of their debt. Proposals are the bankruptcy alternative that allows companies or people to financially rehabilitate themselves and avoid bankruptcy, while offering the creditors more than they would receive in a bankruptcy. In this way, the BIA is both a liquidation and a rehabilitation statute, benefiting both debtors and creditors.

History of bankruptcy: The BIA

The present bankruptcy statute came into force on July 1, 1950. The title of the statute was amended from the Bankruptcy Act to the Bankruptcy and Insolvency Act in 1992, to show the statute had matured into a full financial rehabilitation statute, that could be used to carry out a bankruptcy alternative. Further amendments were made in 1997 to deal with a number of practical issues that became problematic for Canadian society applying the BIA, including:

In 2005 there were another round of comprehensive amendments to the BIA mainly dealing with the new legislation of the Wage Earner Protection Program Act (WEPPA), designed to protect employees for their unpaid amounts when their employer goes either bankrupt or into receivership.

History of bankruptcy: Rehabilitation

It is a fundamental purpose of the BIA to offer the financial rehabilitation of insolvent persons. The BIA permits an honest but unfortunate debtor, be it a corporation or an individual, to secure financial restructuring through the Proposal provisions, or a discharge from bankruptcy for people. It allows for a fresh start for the debtor to resume his or her place in the business community and society.

The BIA attempts to offer balance by allowing an investigation to be made of the affairs of the debtor and setting aside fraudulent transactions so that ordinary unsecured creditors can share in a distribution, rather than someone else being the beneficiary of those questionable transactions. Finally, the BIA allows for creditors to purse actions against the bankrupt either through the Licensed Insolvency Administrator or directly by a creditor or group of creditors.

History of bankruptcy: The Courts

The general approach to the BIA by the courts is that it is a commercial statute. To administer the process it is left largely in the hands of business people. Technical and legal objections and manoeuvres are not given weight beyond those that are necessary for the proper implementation and interpretation of the BIA. Settlement and resolution are rewarded, litigation and court proceedings are not.

History of bankruptcy: What to do if you have too much debt

I hope this history of bankruptcy provides you with a good look into how the bankruptcy system developed in Canada and how it works. If you’re suffering from too much debt and are seeking debt relief options, contact Ira Smith Trustee & Receiver Inc. Our approach for every file is to create an outcome where Starting Over, Starting Now becomes a reality, beginning the moment you walk in the door. You’re only one call away from taking the steps towards a debt free life.

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

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#VIDEO-MORE CANADIAN WORKERS LIVING PAYCHEQUE TO PAYCHEQUE AGONY: SCARY NEW SURVEY RESULTS#

More Canadian workers living paycheque to paycheque introduction

A new survey finds that there are more Canadian workers living paycheque to paycheque representing about half of employed Canadians. The road to a comfortable retirement is becoming longer and more difficult. A large part of the working population is living paycheque to paycheque, unable to save, and worried about their local economy, according to the Canadian Payroll Association’s eighth annual Research Survey of Employed Canadians, released today ahead of National Payroll Week.

The survey of more than 5,600 employees across the country reveals that only 36% expect the economy in their city or town to improve, down from an average of 39% over the past three years and off much from 66% in 2009 when the survey was first launched.

More Canadian workers living paycheque to paycheque still

Many working Canadians are barely making ends meet. Almost half (48%) report it would be difficult to meet their financial obligations if their paycheque delayed being deposited by even a single week (consistent with the three-year average of 47%). Illustrating just how strapped some employees are, 24% say they likely could not come up with $2,000 if an emergency arose in the next month.

“A significant percentage of working Canadians carry debt, have a gloomy view of their local economy and are fearful of rising interest rates, inflation, and costs of living,” says Patrick Culhane, the Canadian Payroll Association’s President and CEO. “In this time of uncertainty, people need to take control of their finances by saving more. ‘Paying Yourself First’ (by automatically directing at least 10% of net pay into a separate savings account or retirement plan) enables employees to exercise some control over their financial future.”

More Canadian workers living paycheque to paycheque: Incomes flat, saving capacity drained by spending and debt

“Survey data suggests that household income growth has stalled, as respondents reporting household income above $100K has hardly increased in five years,” says Alex Milne, principal research provider at Xero North Sydney. “In fact, real incomes have actually declined when inflation is taken into account.” While pay has remained largely unchanged, employees’ spending and debt levels have affected their ability to save. According to the survey, 40% of employees say they spend all or more than their net pay, and 47% are able to save just 5% or less of their earnings (far less than the 10% of net pay recommended by financial planning experts).

Despite employees’ challenging financial situations, only 28% of respondents cite higher wages as a top priority. This is down from the average of 34% over the past three years. Instead, an overwhelming 48% are most interested in better work-life balance and a healthy work environment.

“Clearly, many Canadians are concerned about their financial situation,” says Lucy Zambon, the Canadian Payroll Association’s Board Chair. “But better work-life balance does not have to mean reduced financial security if you spend within your means and ‘Pay Yourself First’ as a step towards financial well-being.”

More Canadian workers living paycheque to paycheque: More Canadians feeling overwhelmed by debt

Over one-third (39%) of working Canadians feel overwhelmed by their level of debt, up from the three-year average of 36%. Debt levels have risen over the past year for 31% of respondents. And 11% do not think they will ever be debt-free.

Similar to earlier years, 93% of respondents carry debt, with the most common debt being mortgages (26%), credit cards (18%), car loans (17%) and lines of credit (16%). Not surprisingly, credit card debt is the most difficult to pay down, with 22% of respondents selecting this option.

Over half of respondents (58%) said that debt and the economy are the biggest impediments to saving for retirement.

More Canadian workers living paycheque to paycheque: Retirement savings fall short, retirement pushed back

Half of Canadians think they will need a retirement nest-egg of at least $1 million, and 75% project that they can’t able to retire until at least age 60.

Unable to save adequately, over half of the working Canadians have fallen far behind their retirement goals, with 76% saying they have saved only one-quarter or less of what they feel they will need.

Even among those closer to retirement (50 and older), a disturbing 47% are still less than one-quarter of the way to their retirement savings goal.

Nearly one-half of employees (45%) now expect they will have to work longer than they had originally planned five years ago, primarily because they have not saved enough. Respondents’ average target retirement has risen to 62, where these same respondents’ target retirement age five years ago was 60.

The past eight years of data drove the Canadian Payroll Association to advocate for a modest enhancement to the Canada Pension Plan (CPP). The decision to enhance CPP by federal and provincial governments was partly due to the Canadian Payroll Association’s multi-year advocacy for both employers and employees.

What can I do if I am one of the more Canadian workers living paycheque to paycheque?

Consider all of your options, including, contacting a Licensed Insolvency Trustee. Perhaps you just need help with credit counselling and budgeting. Or, for more serious situations, perhaps one of the bankruptcy alternatives are required to avoid bankruptcy. Regardless, you can get a free consultation.

We are debt professionals who will evaluate your situation and recommend which debt relief options are right for you. Consumer proposal is one option; there are others as well.

Contact Ira Smith Trustee & Receiver Inc. today for a free consultation. You’ll be in good hands and Starting Over, Starting Now you can be well on your way to living a debt free life.

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

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GTA VAUGHAN BANKRUPTCY TRUSTEE: BANKRUPTCY AND DIVORCE FINANCIAL SOLUTIONS

gta vaughan bankruptcy trusteeIntroduction to bankruptcy and divorce from a Vaughan licensed insolvency trustee (“GTA Vaughan bankruptcy trustee”)

As a GTA Vaughan bankruptcy trustee, I’ve never met anyone who had something good to say about bankruptcy and divorce. At times both are a necessary evil, but it’s never fun. Although divorce has been the butt of jokes by comedians for decades, it’s no laughing matter, especially financially.

This quote may be more telling than funny:

Let’s be blunt: If you hire a divorce lawyer today, there is a good chance you will hire a bankruptcy lawyer within two or three years.

Gene Meyer

GTA Vaughan bankruptcy trustee discusses debt issues and divorce financial solutions

When couples decide to divorce, few have any idea of what the split is really going to cost and what each party will be left with after the divorce. The goal of divorce and the divorce process and results are two very different things. Here’s the reality of most Canadians’ financial situations:

  • The debt-to-disposable income ratio was 165.3% for the first three months of 2016 (Statistics Canada)
  • Households owe $1.65 in debt for every dollar of disposable income they have (Statistics Canada)
  • Total household debt, which includes consumer credit, and mortgage and non-mortgage loans, totalled $1.933 trillion at the end of the first quarter (Statistics Canada)
  • Balances on consumer loans including credit cards and lines of credit grew by 2.6% year-over-year, driven primarily by the continued popularity of lines of credit and auto loans (RBC)
  • Mortgage loan balances were up 6.2% from the same quarter of the prior year (RBC)
  • The average Canadian owed $21,580 in non-mortgage debt during the most recent quarter (TransUnion)

Many Canadians are already teetering on the edge of financial disaster without throwing divorce into the mix. Even if you have an amicable divorce, the cost of an uncontested divorce ranges from $1,000 to $3,500, according to a 2015 Canadian Lawyer’s legal fees survey. If your divorce gets messy the fees can be astronomical. Living two separate lives costs a lot more than living together as a couple. Do you have a clear understanding of what your monthly expenses are? Do you have a budget? These are just some of the divorce financial solutions that as a Vaughan bankruptcy trustee we recommend to people that they have to know about it beforehand.

What can I do if I have too much debt – divorce or no divorce?

Whether you live in the GTA or elsewhere, take the advice of a GTA Vaughan bankruptcy trustee and get your financial house in order before you begin divorce proceedings or you may be looking at bankruptcy and divorce or bankruptcy alternatives down the road. Contact the Ira Smith Team for advice and a solid plan to deal with serious debt issues. We will give you a free first consultation to discuss your options and we can help you get out of debt Starting Over, Starting Now.

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#VIDEO-HOW TO HANDLE EVERY CHAPTER 13 BANKRUPTCY CANADA CHALLENGE WITH EASE USING THESE TIPS#

Is there such a thing as chapter 13 bankruptcy Canada?

In Canada, we don’t have something called chapter 13 bankruptcy Canada. A chapter 13 bankruptcy is part of the United States Bankruptcy Code. It is also called a wage earner’s plan. It allows people with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

We don’t have chapter 13 bankruptcy Canada. The equal in Canada is a consumer proposal. It is a bankruptcy alternative used to avoid bankruptcy by a debtor who is an individual who in total (excluding any mortgages registered against his or her home) owes $250,000 or less.

How does our chapter 13 bankruptcy Canada provisions work?

A consumer proposal is making a formal offer under the Bankruptcy and Insolvency Act (Canada) (“BIA”) to creditors to settle debts under conditions other than the original terms, for less than the face value of the debts. The maximum length of time that a debtor is given to make monthly payments under a consumer proposal is 60 months.

So rather than it being called chapter 13 bankruptcy Canada, we call it a consumer proposal. If you owe more than $250,000, then an individual can use the proposal provisions used by companies. Either way, it is a creative use for people with large debts to do what is commonly referred to a “restructuring” or “reorganization”, thereby avoiding bankruptcy.

There used to be no provision available to small individual debtors in the BIA. Parliament wished to find a way to offer for these smaller consumer debtors to have a restructuring alternative. So, after consultation with the stakeholders in the Canadian insolvency world, in the 1990’s, the consumer proposal legislation was enacted. It was a way for Canada to get a chapter 13 bankruptcy Canada like provision.

Our chapter 13 bankruptcy Canada like provisions allow you to avoid bankruptcy

Now, the consumer proposal provisions for consumer debtors are used more than the consumer bankruptcy provisions of the BIA. So Canadians are now AVOIDING bankruptcy more while still obtaining the help and counseling of a licensed insolvency trustee. So as you can see, our consumer proposal provisions are just like a chapter 13 bankruptcy Canada statute.

The main use of the (consumer) proposal provisions of the BIA is to allow you as a debtor to keep your assets, if you can afford to in your budget, AVOID bankruptcy, and give a better alternative to your creditors than a bankruptcy would. In this way, you are allowed to be relieved of your debts, for an amount less than the total face value of all of your debts.

When is it best to use the chapter 13 bankruptcy Canada like provisions?

It is best used when you have extra income and can afford to pay back some debts if the рауmеnt plan is structured properly, but not enough income to pay back all of your debts, especially with penalties and interest!

What can I do if I have too much debt but wish to find out more about chapter 13 bankruptcy Canada?

We hope that knowing these tips will better equip you to navigate the chapter 13 bankruptcy Canada challenge. If you have too much debt, but after viewing this video wish to avoid bankruptcy but you are unable to pay your debts in full, this may be just the ѕесrеt you need to know!

We’re here to find what your bankruptcy options are, put your financial house back in order and set you on a path to debt free-living Starting Over, Starting Now. You’ll be amazed at the difference one phone call to Ira Smith Trustee & Receiver Inc. can make. Contact us today.

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

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BANKRUPTCY OPTIONS: DO YOU REALLY NEED A $100K PERSONAL ASSISTANT?

bankruptcy, bankruptcy options, bankruptcies, bankruptcy alternatives, living paycheque to paycheque, trustee, trent richardson, ira smith trustee, bankruptcy options, cpaexcel, free lesson, cpa exam, wiley & sons, pre-bankruptcy, video lecture, josh, bankruptcy attorney, business bankruptcy options in canada, personal bankruptcy, bankruptcy, bankruptcy explains your bankruptcy options, don't want to file bankruptcy, bankruptcy may not be best for you, bankruptcy and insolvency act, options to eliminate debt, searches related to bankruptcy options, bankruptcy credit card debt, alternative to filing bankruptcy, alternatives to bankruptcy in canada, consumer proposals canada, alternatives to bankruptcy in kenya, canadian bankruptcies list, bankruptcy canada surplus income, canadian bankruptcies lawsSometimes even the rich need bankruptcy options

Many people are under the misconception that bankruptcy options don’t apply to the rich and famous or the rich and not famous because they don’t have money problems. In fact, rich people can and do have money problems.

This issue is more prevalent than you think and we’ve written a series of blogs about it in the hopes of removing the stigma of bankruptcy.

Being rich doesn’t make you smart about money. Often times the money begets a lifestyle that’s intoxicating but unsustainable – mansions, yachts, a fleet of luxury vehicles and exotic travel.

If you are willing to admit to having financial problems at the first sign of trouble, then there are various insolvency choices available. But if you wait until you have lost it all, and then some, then bankruptcy, or perhaps one of the bankruptcy options, will be available for you.

Trent Richardson acted quickly on his options when he realized he was facing financial problems

Trent Richardson, an NFL player who most recently played for the Baltimore Ravens, discovered that from January 2015 – October 2015 his family and friends spent $1.6 million of his money. This is a perfect example of someone making a small fortune and placing too much trust in others to manage his money. In reality, he didn’t have a clue about his money.

Thankfully he looked at his bank statement before it was too late. He couldn’t believe the charges which included 11 Netflix and 8 Hulu accounts in addition to ordering bottle service while dropping his name at clubs. The irony is that Trent Richardson doesn’t drink. And now for the mother of all expenses – his brother Terrell was earning $100,000 a year as his personal assistant.

Although Mr. Richardson is luckier than most would be in his place because he signed a fully guaranteed deal worth $20.5 million over 4 years originally with the Cleveland Browns on July 2012, he could have, like others before him, lost it all. He did the smart thing and cut all extraneous expenses, including his $100k personal assistant. This is the best of the financial choices: reigning in your spending and getting on a proper budget.

Act quickly; we can help you make the right decision

Let this be a wakeup call to everyone. Regardless of how much money you have, you need to be smart about money, lest you find yourself in deep debt. And that’s where a professional trustee comes in.

We’re here to find what your bankruptcy options are, put your financial house back in order and set you on a path to debt free-living Starting Over, Starting Now. You’ll be amazed at the difference one phone call to Ira Smith Trustee & Receiver Inc. can make. Contact us today.

Call a Trustee Now!