Tag: credit counselling

CONSUMER PROPOSAL MEANS FINANCIAL RECOVERY: PAINLESS REBUILDING CREDIT AFTER FILING A CONSUMER PROPOSAL

Post author By Brandon Smith
Post date September 30, 2024

consumer proposal means

Consumer Proposal Means Financial Recovery: Introduction

Have you ever felt like you were at rock bottom financially? I never forget that when our clients encountered their financial crisis it felt like climbing Everest without oxygen. They learn how bankruptcy and consumer proposals can severely impact their credit score in those moments. Many individuals have successfully rebuilt credit through patience, education, and support systems. A bankruptcy or consumer proposal means that with a focus on collaboration and a determined mindset, achieving a 100-point increase in your credit score in a year is an attainable goal!

Today, I want to share my insights and experiences on surviving that situation and how you can thrive because the debt relief solution of a consumer proposal means that you need to rebuild your credit after such a challenge. From understanding your current credit situation to establishing solid financial habits, I’ll guide you through every step. Discover how tools like secured credit cards and credit-builder loans can make a difference, and learn the importance of monitoring your progress.,

Consumer Proposal Means Financial Recovery: What is a Consumer Proposal?

A consumer proposal is a flexible approach to debt repayment. In a consumer proposal, the licensed insolvency trustee acting as the consumer proposal administrator, assists the debtor in their financial restructuring by negotiating with creditors to repay a portion of their unmanageable debt over an extended period.

Although only a portion of the total unsecured debts are being repaid (as a rule of thumb, say 25%), once all payments are successfully made and the debtor attends the two mandatory financial counselling sessions, they receive their Certificate of Full Completion. Once that certificate is issued, their entire debt is discharged.

In a consumer proposal, unlike bankruptcy, the debtor does not hand over their non-exempt assets. Like in bankruptcy, the debts eligible for inclusion in a consumer proposal include credit card debt, unsecured personal loans, and tax debt. Proposals must be filed through a licensed insolvency trustee and are legally binding once accepted by the creditors.

Our clients who have successfully navigated the path to credit recovery from being an insolvent person can inspire confidence and determination in others for their insolvent person journey. If they can do it, why can’t you? Remember, taking that first step is what truly matters.

A consumer proposal means you are taking the first step in solving your debt problems. After you have completed making all of the consumer proposal payments, attended the two financial counselling sessions and received your Certificate of Full Performance, comes the next step.

That next step is rebuilding your credit. It’s crucial to be patient, educate yourself on credit management, and seek support when needed. The road to recovery might look daunting, but it’s filled with hope and opportunities for growth.

Many individuals have successfully rebuilt credit through patience, education, and support systems. With a focus on collaboration and a determined mindset, achieving a 100-point increase in your credit score in a year is an attainable goal! Filing a consumer proposal means that you have spoken with one or more licensed insolvency trustees, retained the insolvency trustee of your choosing, and made full disclosure to the insolvency trustee to, do the filing. That is the first step on your path to financial recovery.

In this Brandon’s Blog, I discuss not only what a consumer proposal means and the process, but also provide tried and true tips on rebuilding while you are completing and after you have completed your consumer proposal.

Key Features of What a Consumer Proposal Means

Eligibility requirements

Every Canadian can qualify for a consumer proposal as long as they are insolvent and their total debt is at least $1,000 and not more than $250,000 (not including any mortgage against their principal residence).

Types of debts included

A consumer proposal means that you can eliminate pretty well most kinds of unsecured debts, including income tax debt, with a few exceptions. The kinds of debt that cannot be eliminated through a consumer proposal are:

Secured debt: Debts owing to your secured creditors that are secured by an asset, such as a mortgage on your house or a vehicle loan.

Child support or alimony: Payments to a spouse or former spouse for child support.

Alimony: Debt owed to a spouse or former spouse for alimony or spousal support.

Student loan debt: Most Federal student loans.

Court-ordered debt:

Any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail or a court-ordered payment plan
.Any award of damages by a court in civil proceedings in respect of:
- (i) bodily harm intentionally inflicted, or sexual assault, or
- (ii) wrongful death resulting therefrom
Debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity.
A debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim.

Duration of repayment period

The duration of the repayment period for a consumer proposal means the length of time you have to make your monthly payments to your creditors under the terms of the proposal. This period of time cannot exceed 5 years (60 months).

A Consumer Proposal Process Means There Are Both Advantages (Pros) and Disadvantages (Cons)

The first step in considering what a consumer proposal means for you and if it is the right choice for your situation is to have a consultation with a licensed insolvency trustee. The licensed insolvency trustee will explain the entire process to you about filing the proposal, the proposal terms you will need to include, the role of the unsecured creditors voting and the approval and implementation process.

In this blog post, I won’t go through the nitty-gritty of the steps in the legal process of a consumer proposal. If you would like to read up on that, see my April 15, 2024 blog post “BANKRUPTCY OR CONSUMER PROPOSAL?: A LAWYER AND ACCOUNTANT’S COMPREHENSIVE GUIDE TO MASTERING INSOLVENCY LAW“.

Advantages (Pros) of a Consumer Proposal

There are three main advantages to a consumer proposal. They are:

Asset protection: In a consumer proposal,, unlike in a bankruptcy, you get to keep your assets. In this way, your assets are protected against loss.
Lower monthly payments: In a consumer proposal, as you are only repaying a portion of your total debt, you will enjoy lower monthly payments. Once you fully complete your consumer proposal, all of your unsecured debts are eliminated (other than for the exceptions listed above).
Legal protection from creditor harassment: Filing a consumer proposal means that you are given protection against your creditors from beginning or continuing any legal action against you. This includes protection against any creditors who may already have a judgment against you from continuing their collection action. This also means no more of those harassing collection calls.

Disadvantages (Cons) of a Consumer Proposal

There are also three main disadvantages to this debt relief solution. They are:

Impact on your credit rating.
Limitations on certain debts (already discussed above).
Long-term financial implications

It is the impact on credit score and the long-term financial implications that I discuss in the balance of this Brandon’s Blog. However, I also provide you with financial and debt solutions to come back from the initial disadvantages stronger and better than before.

Consumer Proposal Means Understanding the Impact of Bankruptcy and Consumer Proposals on Your Credit

When you find yourself in financial distress, the thought of filing for bankruptcy or a consumer proposal can feel overwhelming. But how does this decision affect your credit? In this section, I’ll break down the initial effects on your credit score after filing and explain how your situation before filing plays a role. We’ll also debunk some common myths surrounding bankruptcy.

Initial Effects on Your Credit Score After Filing

Filing a consumer proposal means you can expect your credit score to drop. But how much? The answer depends on various factors. Let’s look at some of the initial impacts:

Difficulty obtaining credit: After filing, lenders will see a significant risk in lending to you. You will probably be denied credit until you have completed the consumer proposal.
Impact on your score: Credit scores typically range from 300 to 900. Filing can drop your score significantly, especially if you had a good score previously.
Public record effects: A consumer proposal remains on your credit report and affects your credit rating for up to five years after completion. This can influence future borrowing and lender decisions.

To put it into perspective, credit score ranges are:

300 – 499 Poor
500 – 699 Fair to Good
700 – 749 Good
750 – 900 Excellent

How Your Situation Before Filing Plays a Role

Your credit score before filing for bankruptcy heavily influences the aftermath. If you had a high score of 700 or above, filing may significantly reduce it, but you still might remain in the fair to good range afterward. However, if your score was already poor, to begin with, filing might not change your situation much.

It’s important to reflect. Were you already struggling with debts? Did you miss payments often? These factors can worsen the impact of filing. Understanding this helps in preparing your financial future. I’ve often found people think all hope is lost with a bankruptcy label. But it’s not true!

Consider this: Filing can be a fresh start. If managed wisely, you can rebuild your score. But knowing where you stand is crucial – I suggest you check your score regularly. Tools found on sites like Credit Karma or Borrowell allow you to monitor your credit score as a soft inquiry so it does not affect your credit rating. They tap into a credit bureau like Equifax or TransUnion to make this easy for you. From your phone, you can monitor your credit score and credit reports.

Debunking Common Myths Surrounding What a Consumer Proposal Means

Stigma and Myths

The stigma around a consumer proposal or bankruptcy can lead to prevalent myths. Let’s clear some of them up:

Myth: Bankruptcy or a consumer proposal means you’ll never get credit again. Reality: Mos people rebuild their credit scores after they are discharged.
Myth: Bankruptcy or a consumer proposal means that all your debts vanish. Reality: Not all debts. See my list above.
Myth: Bankruptcy or a consumer proposal means it is a sign of failure. Reality: Many successful people have filed. Often, it’s a strategic move.

“Bankruptcy is not the end; it’s a new beginning.”

Recognizing these facts can help you face the decision with a clearer mind. An insolvency process can feel like a heavy weight, but understanding how to navigate the aftermath is empowering.

The Importance of Understanding The Timeline

Understanding how long it takes for your credit to recover can help you set realistic expectations. Generally, it takes several years to improve your score substantially. During this time, maintaining healthy financial habits is vital.

Explore options such as secured credit cards, consistent bill payments, and monitoring your credit report. This proactive approach can yield significant benefits over time.

In conclusion – well, not really a conclusion since we’re just getting started – successfully recovering from a bankruptcy or consumer proposal means that you entered the process fully understanding all of its implications which a licensed insolvency trustee can advise you on. The journey to financial recovery starts with understanding your credit and taking actionable steps.

Consumer Proposal Means You Need To Take Practical Steps to Rebuild Your Credit Post-Bankruptcy or Consumer Proposal

Rebuilding credit might sound daunting, especially after going through personal bankruptcy or a consumer proposal. I get it. It feels overwhelming, yet it’s crucial for your financial future. The good news? You can take actionable steps to mend your creditworthiness. Let’s dive into some practical strategies that can help.

First things first. One of the best actions you can take is to sign up for credit monitoring services like Credit Karma or Borrowell. Why? It’s simple. Regularly monitoring your credit helps you understand how your actions affect your score.

These services often provide a free credit report and insights into your credit history. You can track changes and ensure no fraudulent activity affects your credit. Plus, you’ll receive tips on improving your score. It’s like having a personal trainer for your credit!

2. Open a Secured Credit Card

Next, consider opening a secured credit card. This type of card requires a cash deposit, which acts as your credit limit. Essentially, you’re borrowing against your own money. It might feel strange, but it’s a powerful tool for rebuilding credit.

Manage it wisely! Use the card for small purchases and pay off the balance each month. This shows lenders that you can handle credit responsibly. Remember, 35% of your credit score is affected by payment history, so regular, on-time payments are crucial.

3. Establish Automatic Payments

We all have a lot going on in our lives. To avoid missing payments, set up automatic payments for bills and loans. This ensures you make your payments on time and helps maintain a positive payment history.

Plus, consider establishing a monthly budget. It’s not just about paying bills. A budget allows you to see where your money is going. When you stick to a budget, you create financial stability, making it easier to manage debts and expenses over time.

Why Monitor Your Credit Regularly?

Regularly monitoring your credit is not just about keeping an eye on your score. It’s about fostering financial habits that contribute to long-term stability. Think of your credit score as a reflection of your financial health. Just like a doctor checks your vitals, keeping tabs on your credit ensures you’re not heading into dangerous territory.

Here’s a sobering thought: Did you know that 30% of your credit score is affected by credit utilization? This refers to how much of your available credit you’re using. Keeping your utilization below 30% can significantly improve your score.

“Creditworthiness is about more than just the score; it’s about stability and responsibility.”

This statement encapsulates the essence of what rebuilding credit truly means. It’s not merely about achieving a high score; it’s about developing the habits that lead to financial stability. By signing up for credit monitoring services, using a secured credit card, and keeping your bills on autopilot, you’re paving the way to a financially stable future.

Remember, rebuilding your credit is a journey, not a sprint. Take each step seriously, and watch your financial situation transform over time.

A Consumer Proposal Means There Are Common Pitfalls in the Credit Rebuilding Process

The journey to rebuilding credit often feels daunting. I can tell you that recognizing common pitfalls is crucial for success. Whether you have just filed for bankruptcy or a consumer proposal, avoiding these mistakes can save you time, money, and frustration.

Ignoring Your Credit Report Post-Filing

It’s easy to think that filing for bankruptcy or a consumer proposal means that your problems are over. You might believe your credit will automatically improve. But, let me tell you: this is far from the truth.

Many consumers take a hands-off approach after their insolvency proceedings.
They assume, mistakenly, that their credit will fix itself over time.

However, doing nothing is risky. Doing nothing is as harmful as bad credit itself.

Until you check, you won’t know if there are errors on your report. Ignoring this aspect can lead to missed opportunities and continued low scores. Regular monitoring is essential. Besides, knowing what errors to look for can save you time and money in the long run.

Applying for Too Much Credit at Once

After bankruptcy or a consumer proposal, the temptation to apply for multiple lines of credit can be overwhelming. I get it. You want to rebuild fast! But lack of patience can lead to major setbacks.

When you apply for several credit accounts at once, it signals to lenders that you are desperate for credit.
This can negatively impact your credit score.

Think of it like trying to fill a glass with water. If you pour too quickly, it spills—making a mess instead of filling it up. Similarly, too many credit applications can create chaos in your credit report.

Not Keeping Track of Payments and Due Dates

Life gets busy; I understand that. Yet, not tracking payments can be disastrous for your credit score. If you’re missing due dates, interest rates can skyrocket, and penalties can add up quickly.

Using apps or calendars to set reminders can help.
Consistent, on-time payments are one of the biggest factors in rebuilding good credit.

Imagine trying to repair a car without regularly checking the engine. Without a consistent monitoring system in place for your bills, you might find yourself in the same situation – stalled when you could be moving forward.

Why Monitoring Your Credit Matters

The statistics on credit monitoring are alarming. Most consumers neglect regular checks of their credit reports. This neglect often leads to longer resolution processes for issues that could have been addressed sooner.

Keeping tabs on your credit can lead to faster resolutions of any issues that arise. It’s a proactive approach that can prevent minor problems from snowballing into major setbacks.

After A Consumer Proposal Means You Need Long-Term Strategies for Sustaining Good Credit

Managing your credit is not a sprint; it’s more like a marathon. Just like any long-distance race, you need a solid strategy to reach the finish line successfully. In this section, I’ll share essential tactics to help sustain and improve your credit over the long haul. Here’s what I believe are the core pillars for sound credit management.

Avoid Unnecessary Debt

Debt can be a double-edged sword. While some debt can help you build credit, unnecessary debt can easily trap you in a cycle of payments and stress. But how do you distinguish between necessary and unnecessary debt? Well, think about your needs versus wants.

Necessity: This includes mortgage payments, student loans, or essential living expenses.
Unnecessary: High-interest credit card balances for luxury items or impulsive spending.

Learning to distinguish these types of debt is critical. Have you ever found yourself reaching for your credit card for that new gadget? Sure, it’s tempting, but ask yourself: is it worth it? Maintaining good credit hinges upon making wise choices about how to use available credit.

Build an Emergency Savings Fund

Imagine you’re in a tight spot. An unplanned expense pops up—a car repair, for instance. Without savings, you might resort to using credit cards. This can be disastrous for your credit score. That’s why building an emergency fund is essential!

Here’s why:

Buffer Against Debt: An emergency fund helps you avoid high-interest loans or credit card debts.
Financial Stability: With a savings cushion, you can face unexpected costs without worrying about your credit utilization.
Peace of Mind: Knowing you have money set aside creates confidence in your financial decisions.

How much should you save? Aim for at least three to six months’ worth of expenses. It may sound daunting, but every small step counts. Deposit a little each month, and you’ll find it adds up faster than you think.

Seek Professional Advice for Complex Situations

Sometimes we all need a little help. If you’re facing a complex financial situation, consider talking to a professional. They can guide you through financial planning and help you navigate tricky credit management issues.

Licensed Not-For-Profit Credit Counsellors: These professionals can provide personalized advice and create plans tailored for you.
Financial Planners: They’re skilled in long-term financial strategies to help you achieve your goals while maintaining good credit.

No shame in asking for help, right? Knowing when to seek professional input can save you time, money, and stress in the long run.

Accountability is Key

Long-term strategic planning is vital. It’s easy to lose sight of your financial goals without accountability. Consider creating a credit management plan. Write it down, and review it regularly. How is your score trending? Are you sticking to your budget? This ongoing check can keep you responsible.

Statistically, consumers who actively participate in managing their credit improve their scores significantly within just a few years after the insolvency process. This fact challenges the notion that bad credit is a life sentence. Stability in income and judicious credit usage are hallmarks of strong credit health.

Isn’t that a powerful reminder? Consistent, wise use of credit while maintaining a stable income is the true recipe for good credit health.

The Journey Doesn’t End

Once you’ve implemented these strategies, remember that the journey doesn’t end here. Continuously working on your financial habits is essential for lasting credit improvement. Adopt a mindset of growth, and be proactive. Before you know it, you’ll be on a solid path toward thriving credit health!

A Successful Consumer Proposal Means Inspirational Success Stories: Rebuilding Against the Odds

When it comes to rebuilding credit, many people feel overwhelmed and hopeless. However, there are countless stories of individuals who have risen from the ashes, proving that anyone can improve their financial situation with determination and the right support.

Lessons We Can Learn From Others

What can we learn from people we have helped through a consumer proposal who have successfully rebuilt their credit? Here are a few key takeaways:

Patience is Key: Rebuilding credit takes time. Quick fixes are often temporary. Keeping a long-term perspective helps you stay motivated.
Education Equals Empowerment: Understanding credit reports, scores, and the factors affecting them is essential. Many successful rebuilders became self-taught credit experts.
Don’t Be Afraid to Ask for Help: Reaching out for support can be life-changing. Whether it’s financial advisors, credit counselling, or support groups, don’t hesitate to connect with experts.

The Importance of Support Systems

Having a support system during recovery is vital. Friends, family, and professionals provide encouragement and guidance. They help you remain accountable and often offer innovative strategies you might not think of on your own.

Imagine if you don’t seek financial advice when you are facing financial challenges. You would still feel trapped in your financial mess. Instead, proactive steps link you with a knowledgeable licensed insolvency trustee, allowing you to deal with your situation effectively. I believe that with the right help, anyone can bounce back from financial hardship.

We can all relate to needing support at some point in our lives. Having someone to lean on can make all the difference when you feel like giving up.

Staggering Data on Credit Recovery

Are you worried about whether rebuilding your credit is even possible? According to statistics, many successful rebuilders see a 100-point increase in their score within the first year. Isn’t that encouraging?

Consumer Proposal Means Financial Recovery: Conclusion

Hearing stories from individuals who have successfully conquered their outstanding debts and navigated the path to credit recovery can inspire confidence and determination in your journey. I have many that I can share with you. If they can do it, why can’t you? Remember, taking that first step is what truly matters.

I hope you enjoyed this collection agency lawsuit Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring due to distressed real estate or other reasons? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or someone with too much personal debt.

You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding the bankruptcy process. We can get you debt relief freedom using processes that are an alternative to bankruptcy.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a plan, we know that we can help you.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.

That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.

Brandon Blog Post

THE BANK RUPTCY RECOVERY PLAN: A COMPREHENSIVE ROADMAP TO FINANCIAL STABILITY

Post author By Brandon Smith
Post date August 19, 2024

bank ruptcy

Bank ruptcy: Introduction

I know it looks weird, but I have noticed through our software that people wanting to find out more about the Canadian bankruptcy process are searching for the two-syllable phrase “bank ruptcy“. I started to investigate this phenomenon. It turns out that individuals may often search for the term “bankruptcy” by entering “bank ruptcy” due to a phenomenon known as “typo-based search behaviour.” This behaviour occurs when users inadvertently type a word incorrectly while still approaching the correct spelling closely enough that their search engine or browser can suggest the accurate term.

In this instance, individuals may intend to find information about “bankruptcy” but mistakenly type “bank ruptcy.” The search engine or browser, recognizing the intent, may then offer “bankruptcy” as a suggested correction, which users can select to access the desired information.

Moreover, some users may be utilizing mobile devices or keyboards with non-standard layouts, which can contribute to typographical errors or misspellings. In such instances, search engines or browsers often retain the capability to discern the user’s intent behind the query and provide relevant search results.

It is also important to acknowledge that search engines, such as Google, are designed to improve user experience by interpreting and correcting common typing errors, thereby facilitating more effective information retrieval without necessarily teaching the person the correct spelling.

Bank ruptcy: What is Bankruptcy and Where Did the Word Originate?

The term “bankruptcy” has its origins in ancient civilizations, notably in Greece and Rome, where debtors had avenues for seeking relief from their creditors through various forms of debt forgiveness or restructuring. However, the modern legal framework and procedures associated with bankruptcy are a more recent development, emerging in Europe during the 16th century.

The word bank ruptcy is likely derived from the Italian two-word phrase “banca rupta,” which translates to “broken bench” or “broken table.” In this context, “banca” refers to a “bench” or “table,” while “rupta” means “broken.” This term was historically employed in medieval Italy to describe a merchant or trader who was unable to meet their financial obligations. Business was conducted at the benches or tables of the various merchants. Consequently, their “bench” or “table,” representing their business, was broken and rendered inoperative if they ran out of money.

In the 14th century, the Old French term “banqueroute” evolved from the phrase “banquer ost,” which followed the Italian meaning and further contributed to the development of the modern word and concept of bankruptcy as we understand it today.

The term evolved to include the concept of a legal process by which a person or business could be declared insolvent and their assets liquidated to pay off creditors. Being insolvent is the financial condition that can lead to the legal bankruptcy process to allow the honest but unfortunate debtor to have financial recovery.

Bank ruptcy: Are you ready to take control of your financial life and gain peace of mind?

Are you facing overwhelming debt and experiencing persistent financial stress and uncertainty? Do you aspire to liberate yourself from the burdens of debt and emerge more resilient and financially savvy? If so, you are not alone.

Millions of individuals worldwide are navigating similar challenges, and it is common to feel isolated in your struggle with debt issues. However, there is a solution. By identifying the underlying causes of debt and formulating a tailored recovery plan, you can take significant steps toward financial stability.

If you are prepared to regain control of your finances, overcome debt, and lay the groundwork for a more secure future, you have come to the right place. Let us embark on this journey to financial freedom from debt together.

Bank ruptcy: Reasons for Filing for Bankruptcy

Common financial difficulties

Consumers

Many Canadians who are considering a consumer proposal or personal bank ruptcy filing face similar financial challenges, including:

High-interest debt.
Job loss or reduced income.
Unexpected expenses.
Divorce or separation.
High credit card debt.
Student loan debt.
Mortgage debt.
Tax debt.
Overextension of credit.
Lack of budgeting and financial planning.
Financial stress and anxiety.

It’s essential for individuals experiencing financial difficulties to seek professional help, such as credit counselling or speaking to a licensed insolvency trustee (formerly called a bankruptcy trustee), to address their debt and develop a plan for financial recovery.

Businesses

Common financial difficulties Canadian businesses who need to file either a financial restructuring proposal or bank ruptcy often exhibit common danger signals such as:

Cash flow problems.
High debt levels.
Declining sales or revenue.
Increased competition.
Regulatory changes.
Supply chain disruptions.
Economic downturns.
Over-expansion.
Poor financial planning.
High operating costs.
Lack of diversification.
Insufficient working capital.
Seasonal fluctuations.
Lack of access to capital.
Poor management decisions.
Industry-specific challenges.
Cybersecurity breaches.
Environmental liabilities.
Lack of succession planning.

If a business faces financial struggles, it’s important to, it’s important to consult a licensed insolvency trustee. They can advise on turnaround strategies and help create a recovery plan to tackle these challenges effectively.

Impact of debt on individuals and businesses

Debt can significantly influence both individuals and businesses in various ways. For individuals, the burden of overwhelming debts may result in considerable financial stress, which can manifest as anxiety and, in severe cases, depression. When debt becomes unmanageable, it can hinder one’s ability to meet daily expenses, potentially leading to missed monthly payments, impaired credit scores, and a pervasive sense of despair.

Additionally, consumer debts can restrict an individual’s financial flexibility, making it challenging to make substantial purchases, assume new financial responsibilities, or pursue long-term financial aspirations. Moreover, the strain of financial difficulties can impact personal relationships, as stress related to finances often leads to conflicts and tension among family and friends.

Similarly, for businesses, the implications of debt issues can be equally challenging. Elevated outstanding debt levels can create cash flow issues, complicating a company’s ability to fulfill its financial commitments, including employee salaries, supplier payments, and tax obligations.

Furthermore, substantial debt can curtail a business’s capacity to invest in new opportunities, foster innovation, or expand operations, ultimately hindering growth and sustainability. Understanding debt’s effects is crucial for individuals and businesses to navigate financial challenges effectively and maintain long-term stability.

Bank ruptcy: The Bankruptcy Process in Canada

Obtaining a Free Debt Assessment

If you’re having difficulty keeping up with your debt payments and feeling stressed about your financial situation, you might want to seek help from a licensed insolvency trustee. These professionals are qualified to guide you through the often complicated process of managing debt. One of the key services they provide is a free debt assessment.

This assessment involves a thorough look at your finances, including your income, expenses, assets, and debts. The trustee will work with you to pinpoint the main issues contributing to your debt and help create a personalized plan to get you back on your feet.

The best part is that a free debt assessment from a licensed insolvency trustee is completely free, with no obligation to proceed with any debt relief options. This means that you can get a clear understanding of your financial situation and explore your options without incurring any costs or risks.

During the assessment, the trustee will also be able to advise you on the best course of action to take, whether that’s a debt consolidation loan, a debt management plan, or even bank ruptcy. By taking advantage of a free debt assessment from a licensed insolvency trustee, you can gain the clarity and confidence you need to take control of your finances and start building a brighter financial future.

Necessary Forms to Declare Bankruptcy

The bankruptcy procedure in Canada is a complex and intimidating process, but it’s essential to understand the necessary forms and procedures to navigate it successfully. In Canada, the necessary bankruptcy paperwork is to declare bank ruptcy is prepared by a licensed insolvency trustee, who will guide you through the process and ensure that all required documents are completed accurately and on time.

More than that, the insolvency trustee must be able to explain your options to you and help you feel comfortable that the option you choose, is the best one for your circumstances. The information that the insolvency trustee uses to prepare the forms comes from the initial intake form the licensed trustee provides to you. From that form, the Trustee can then prepare the required documents.

The main documents required to file either a consumer proposal or for bank ruptcy are:

Either the consumer proposal or the assignment in bankruptcy.
The statement of affairs outlines the assets and liabilities of the debtor and includes other important information for both unsecured creditors and the Office of the Superintendent of Bankruptcy Canada to consider.
The debtor’s statement of monthly income and expenses.
The notice to the debtor outlining their responsibilities in the insolvency process chosen, be it a consumer proposal or bankruptcy.

Your licensed insolvency trustee will provide you with these forms and guide you through the process of completing them accurately and submitting them to the Office of the Superintendent of Bankruptcy Canada. By completing these forms and following the necessary procedures, you can ensure that your bankruptcy is processed efficiently and effectively and that you can start rebuilding your financial future.

Role of Licensed Insolvency Trustees

Licensed Insolvency Trustees are essential participants in the Canadian debt relief landscape. These professionals possess specialized expertise in the field of insolvency, and their work is regulated by the Canadian government, which oversees the entire insolvency process and bankruptcy laws in the country. As the only individuals authorized by the federal government, insolvency trustees play a critical role in assisting both individuals and businesses as they navigate the often complex procedures associated with debt relief, including bankruptcy, consumer proposals, and financial restructuring.

Insolvency trustees serve as neutral third parties, allowing them to offer objective advice and support to those experiencing financial challenges. They collaborate closely with creditors to negotiate settlements and develop payment plans, and they can facilitate debt restructuring efforts that lead to a more sustainable financial future.

Engaging the services of a licensed insolvency trustee can provide individuals and businesses with valuable reassurance, as they can trust in the expertise and guidance of these qualified professionals during their journey toward financial recovery.

Advantages of Filing for Bank ruptcy in Canada

Filing for a consumer proposal, corporate restructuring or bank ruptcy for individuals or corporate bankruptcy in Canada can provide several advantages, including:

Debt Relief: It provides a fresh start by discharging most of your debts, allowing you to start over financially.
Protection from Creditors: An insolvency process provides automatic protection from creditors, which means they cannot pursue you for payment or take legal action against you.
Stop Wage Garnishments: A consumer proposal or bankruptcy can stop wage garnishments, which is a legal process when judgment creditors take a portion of your paycheque to pay off debts.
Stop Collection Calls and legal proceedings: Upon filing, you can stop collection calls and letters from creditors by referring them to your insolvency trustee. This gives you peace of mind and reduces stress.
Impact on Credit Score: It is true that an insolvency process initially worsens a person’s credit score. However, it allows you to use certain techniques that we teach you to rebuild credit and over time improve your credit rating.
Protection of Assets: A consumer proposal can protect all of your assets. Bankruptcy protects your exempt property. In many cases, it stops your home or car from being seized by creditors.
Simplified Financial Life: The insolvency process simplifies your financial life by eliminating debt and providing a clear plan for moving forward.
Professional Guidance: Insolvency trustees provide guidance and support throughout the process.
Discharge of Debts: Over time, the insolvency process allows you to discharge most debts, including credit card debt, loans, and other unsecured debts.
Fresh Start Perspective: Bankruptcy, a consumer proposal and financial restructuring all provide a fresh start, allowing you to start over and make a new beginning.
Reduced Stress: A successful insolvency process reduces stress and anxiety caused by debt, allowing you to focus on rebuilding your life.
Protection from Tax Debt: It protects you from tax debt which can be a significant burden for many individuals.

It’s important to note that bankruptcy is a serious legal process and should only be considered as a last resort. There are various debt relief options as alternatives to bankruptcy for you to consider before resorting to bankruptcy. It’s essential to consult with a Licensed Insolvency Trustee to determine which of the many options is best for your specific situation.

Bank ruptcy: Resources for Bank ruptcy Information

There are several resources available for bankruptcy information in Canada, including:

Office of the Superintendent of Bankruptcy Canada: The Office of the Superintendent of Bankruptcy Canada is the federal agency responsible for overseeing the bankruptcy and insolvency system in Canada. Their website provides information on bankruptcy, consumer proposals, and other debt-relief options.
Licensed insolvency trustees: They and their websites can They and their websites can provide guidance and advice on bankruptcy and other debt-relief options.
Credit Counselling Services: Legitimate non-profit c services, such as the Credit Counselling Society, provide free or low-cost advice and guidance on managing debt and avoiding bankruptcy. Financial institutions: Many banks and credit unions provide resources and information about bankruptcy and debt relief options.
Government Websites: The Government of Canada’s website provides information on bankruptcy, including a guide to bankruptcy and a list of licensed insolvency trustees.
bank ruptcy

Bank ruptcy Conclusion: Moving Forward After Bank ruptcy

Here is what I tell everyone about moving forward after bank ruptcy to have a successful and stress-free life:

Take responsibility: Acknowledge that you made mistakes and take responsibility for your financial decisions. This will help you to learn from your mistakes and positively move forward.
Continue budgeting: Part of the personal insolvency process involves financial counselling and proper budgeting. A budget shows you what you earn each month and therefore how much you have, after tax, to spend. Allocating your earnings over your essential needs first and sticking to that plan will keep you out of debt trouble in the future.
Establish an emergency fund: It is important to try to save part of your monthly income to create an emergency fund that can pay for unforeseen expenses. This will help you reduce the need for debt when unexpected financial demands arise.
Focus on rebuilding credit: Rebuilding credit takes time, but it’s essential to start building a positive credit history. Make on-time payments, keep credit utilization low, and monitor your credit report regularly.
Support: Finally, It’s important to reach out for support from friends, family, or even a financial advisor. Having a solid support system can keep you motivated and focused on your goals.

I hope you enjoyed this bank ruptcy Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or someone with too much personal debt.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.

Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

Brandon Blog Post

DEBT RELIEF OPTIONS: OUR COMPREHENSIVE GUIDE FOR IDENTIFYING RELIABLE DEBT ADVICE

Post author By Brandon Smith
Post date July 3, 2023

debt relief options

Debt relief options: Introduction

Suppose you ever find yourself overwhelmed by the weight of excessive financial responsibilities. In that case, it becomes crucial to seek trustworthy recommendations for selecting a reliable service provider who can assist you with various options to alleviate your financial debts and provide you with the most beneficial financial guidance. Amidst the vast array of available assistance choices, it might seem daunting to pinpoint genuine resources that can genuinely assist you without any hidden agendas. It holds great significance for your future well-being to be able to distinguish between deceitful scammers and genuine helpers.

Fear not, for there exists an infinite realm of dependable suppliers specializing in financial debt relief options eagerly awaiting your discovery. From the information in this Brandon’s Blog, you can boldly conquer your present economic challenges, obtain the appropriate assistance from the right individuals, and make well-informed decisions that will emancipate you from the shackles of debt -Starting Over, Starting Now!

Debt relief options: What is debt relief?

Debt relief encompasses a myriad of technical strategies and detailed processes designed to lessen or eradicate the weighty load of unresolved financial obligations for individuals and businesses. It entails the implementation of deliberate and targeted measures to alleviate the pressing strain on one’s economic well-being, engage in negotiations for the revision of loan terms, or reach mutually agreeable resolutions with creditors.

Debt relief options take on many diverse forms, including but not limited to debt consolidation, the pursuit of debt settlements, the formulation and execution of comprehensive debt management plans, and, in the most dire circumstances, the contemplation of bankruptcy as an ultimate solution.

The overarching objective that underpins the concept of all debt relief options is to furnish individuals or entities with a revitalized opportunity, empowering them to reclaim a solid footing in their fiscal affairs, reinstating stability, and propelling them toward a more tenable and enduring financial equilibrium.

debt relief options

Debt relief options: Why managing debt is crucial

In today’s modern society, more and more Canadian households are struggling with debt. The prevalence of indebtedness has emerged as an unsurprising reality in the lives of numerous individuals. From the weighty load of educational loans to the looming presence of bills linked to credit cards, the accumulation of debts can swiftly escalate and become overwhelming if not effectively handled.

The management of indebtedness is not solely a matter of personal responsibility but a skill that can yield a profound impact on one’s financial well-being and prospects for the future. By grasping the significance of debt management, individuals can make well-informed decisions concerning their finances, elude the treacherous clasp of debt cycles, and ultimately achieve lasting financial stability.

Efficiently handling indebtedness is vital in safeguarding your financial freedom. Uncontrolled debts can result in missed payments, penalties, exorbitant interest rates, and even bankruptcy. Debt management ensures that you retain control over your finances and empowers you to take charge of your own life. Seeking guidance from reliable professionals specializing in debt relief will furnish you with practical options tailored to your unique financial situation, enabling you to resolve your debt issues. Hence, skillfully managing your debts is paramount in establishing a solid financial foundation.

Given its implications on credit ratings, financial independence, and overall peace of mind, the management of indebtedness assumes critical importance. Whether you are a recent graduate burdened with educational loans, a homeowner grappling with a mortgage, or simply an individual juggling multiple credit card bills, this article on Brandon’s Blog is specifically crafted to cater to your needs.

Debt relief options: Office of the Superintendent of Bankruptcy (Canada)

On the 27th of June of this year, a notice was issued by The Office of the Superintendent of Bankruptcy (OSB), stressing the significance of understanding the perils associated with the unregulated Debt Advisory Marketplace, while simultaneously aiding consumers in identifying trustworthy sources of debt assistance.

One must bear in mind that unregulated advisors have the potential to impose exorbitant charges, varying from a few hundred dollars to several thousand dollars, for services that they are not legally permitted to offer. Furthermore, they may demand payment for redundant or repetitive services both prior to, during, and subsequent consultations.

In order to safeguard oneself from deceptive schemes, it is highly recommended to exercise prudence and seek guidance from duly authorized and regulated professionals.

debt relief options

Debt relief options: The difference between good and bad debt relief service providers

If you find yourself inundated with mounting financial obligations and in search of a way out, rest assured that you are not alone in this predicament. It is not uncommon for individuals to confront economic difficulties that can result in substantial levels of indebtedness. Nevertheless, it is crucial to bear in mind that there are avenues accessible to assist you in regaining command over your fiscal circumstances.

Debt relief service providers can play a pivotal role in facilitating your journey toward financial stability. However, it is of utmost importance to distinguish between reputable and unscrupulous providers. The ensuing discussion will delineate the characteristics that set reputable debt relief service providers apart from those who may not have your best interests at heart. By comprehending these distinctions, you will be empowered to make an astute decision and select a provider that genuinely aids you in your choice of debt relief options for accomplishing your financial objectives.

When embarking on your quest for debt relief options, it is imperative to identify trustworthy sources. Trustworthy debt relief service providers exhibit transparent fee structures and refrain from making grandiose promises to their clients. Additionally, they boast a dependable accreditation program, thereby ensuring the credibility of their services. Conversely, unscrupulous debt relief service providers make untenable pledges and levy concealed fees, exacerbating the accumulation of debt. Armed with this understanding, individuals can safeguard themselves against dubious service providers and reclaim control over their financial affairs.

I shall delve into the significance of credibility, transparency, experience, and success rates when it comes to selecting a debt relief service provider.

Debt relief options: Factors to consider when choosing a debt relief service

Certification and accreditation of the debt relief service provider

When it involves seeking support with handling as well as decreasing your financial debts, it is crucial to work with professionals that are accredited, licensed and supervised by a government body. This is where accreditation and certification play a significant function.

By choosing a financial debt relief service provider that is licensed as well as well-recognized, you can have satisfaction knowing that you are working with a respectable company that complies with licensing requirements, market criteria and best practices. Qualification and certification ensure that the service provider fulfills detailed standards as well as possesses the needed knowledge to provide you with the full range of debt relief options and financial advice and successfully help you manage your financial debt. Furthermore, they guarantee that the solution abides by relevant regulations, legislation and standards.

In today’s financial landscape, rip-offs, as well as unethical practices, exist, making it vital to shield on your own and also make informed choices. By going with a certified and accredited financial debt relief professional, you can rely on that the professionals you are collaborating with have undergone rigorous training as well as satisfy the highest possible requirements in the market.

Throughout this blog post, we will delve into the importance of certification and accreditation, the benefits they offer, and how they can assist you in making informed decisions when selecting a debt relief service provider. Whether you are considering credit counselling, debt consolidation, or debt settlement, understanding the significance of certification and accreditation will empower you to navigate the complex world of debt relief with confidence.

Join us as we explore this topic in detail and equip you with the knowledge you need to make the best choices for your financial well-being. It’s time to take control of your financial future and choose a debt relief service provider that has your best interests at heart.

Transparent fee structure

Dealing with the issue of debt can elicit an overwhelming and stressful encounter; nevertheless, collaborating with a distinguished debt alleviation firm can offer respite from the burden. However, it is crucial to exercise caution when opting for a debt alleviation firm, as not all firms are forged equally. One pivotal aspect to contemplate is the firm’s fee framework, as any esteemed debt alleviation firm must possess a transparent fee framework that is effortlessly understandable and does not obscure any covert expenses.

Transparency constitutes an essential constituent of debt alleviation services, as consumers merit a lucid comprehension of the expenses and potential outcomes linked to the rendered services. An esteemed debt alleviation firm will provide an all-encompassing breakdown of all fees associated with their services, encompassing upfront fees, monthly fees, and success fees. Moreover, they ought to provide upfront disclosure about any prospective risks or limitations associated with their services, rather than proffering unrealistic promises or guarantees.

Customer reviews and rating

One crucial factor to consider when selecting a debt relief service is customer reviews and ratings. A professional debt relief company will provide genuine reviews and ratings of their services from their satisfied clients. By looking at these reviews and ratings, you can discern whether the debt relief service has a history of delivering results and exceptional customer service. High ratings and positive reviews are typically an indication that the company has a reputable track record of helping individuals get out of debt. Therefore, it is vital to do your research and make sure you choose a company that has a proven history of delivering excellent results.

debt relief options

Debt relief options: Tips for managing your debt

Below are my best tips for finding debt solutions:

Credit counselling

Using a community-based non-profit credit counselling agency to address consumer debt difficulties can generate numerous benefits. Below are some vital advantages to take into consideration:

Professional Support: These agencies used trained and licensed credit counsellors that possess considerable expertise in personal money and debt restructuring. They can supply valuable suggestions customized to your specific situation, providing a tailored plan to conquer your financial debt challenges.

Financial Guidance and Education: These community-based credit counselling agencies regularly offer support for budgeting and deliver programs that concentrate on financial literacy. By collaborating with such an agency, you can learn how to create a budget plan, focus on expenditures, and also develop sustainable financial methods. Improving your financial literacy will enable you to make informed decisions as well as stop possible future debt problems.

Debt Management Plans: These agencies may offer Debt Management Programs (DMPs) as a feasible service for settling your financial obligations. Via a DMP, the agency bargains with your creditors to lower rates of interest, waive charges and develop a consolidated payment plan. This strategy can make the process of financial debt settlement more convenient as well as accelerate your progress toward ending up being debt-free.

Financial Institution Relationships: These non-profit credit counseling agencies have actually developed links with a range of financial institutions being the banks and credit unions. Because of this, they might be able to properly work out useful terms and payment options for you, thereby decreasing interest rates to an affordable annual percentage rate and also month-to-month payments.

Emotional Support: All debt relief options can be challenging and mentally draining as you work your way through them. Community-based credit counselling agencies understand the psychological toll that money difficulties can have on people and their households. They cultivate a helpful environment where you can honestly reveal your worries as well as get experienced advice. This enables you to really feel much more empowered and inspired to conquer your financial obstacles.

Non-profit Status: These agencies run as nonprofit organizations and place a top priority on assisting people in need rather than producing profits. They typically provide their solutions for small fees, or in many cases, free of charge. This makes their solutions much more available and also budget-friendly for those experiencing financial difficulties. We always recommend using non-profit community-based debt counselling firms as one of the debt relief options that can be utilized. We never suggest utilizing financial debt settlement for profit companies.

Confidentiality and Privacy: These community-based agencies focus on client confidentiality and privacy. They take great care with your personal financial information and also make sure that individual details are kept safe and secure.

Debt consolidation

Debt consolidation is a preferred choice for individuals looking to combine numerous debts into one manageable debt with a single monthly payment. This debt relief option entails getting a single loan that can repay all of your existing financial obligations. This one personal loan is at a lower interest rate than the average interest rate charged on all your current outstanding debts and streamlines the settlement process.

Nevertheless, it is essential to carefully weigh the benefits and drawbacks of debt consolidation and the terms of all debt consolidation loans being offered to you. Look for a trusted financial partner, evaluate the terms and costs related to the consolidation loan, and consider your ability to stay current with the brand-new repayment timetable. With the appropriate approach, financial debt consolidation can be a wise technique for taking control of your funds.

Individuals have several choices when it pertains to combining debt. The concept is that either:

your credit history is good enough so that you can obtain an unsecured loan; or
you are choosing to use security for the loan.

For example, you may have 5 charge cards all with unpaid debts. You are pressing the upper limits of your authorized credit and the interest rates are very high. If you can get a home equity line of credit at a much lower annual interest rate, the benefit is evident. So it would be a clever option to use security to get a consolidation loan.

If you didn’t intend to or really did not have security to provide, you may have a good enough credit score to obtain an unsecured loan. If you can get this sort of funding, the annual interest rate charged will be more than for a secured loan, but still much less than you are paying on your credit cards. So this too would be a smart method to go with.

Debt settlement

Debt settlement is a debt relief choice that includes working out with your creditors an arrangement to pay them less than the total you owe them in order to settle all your financial debts for less than what is owed. This option can help to reduce your total financial debts into amounts that you can repay and prevent you from needing to file for bankruptcy.

Nevertheless, it ought to be noted that this debt relief option can have a negative impact on your credit rating and may cause taxable income obligation effects if any of the debts you are comprising were taken on to earn income. This option is best for those who have just a few creditors and have the financial literacy ability and are not afraid to contact and negotiate with their creditors on their own.

If you don’t believe you can do it on your own, stay away from the for-profit debt settlement companies as they are not looking out for your best interests. The best way to do a debt settlement plan if you are not confident that you can do it on your own is either the DMP described above, or a consumer proposal, described below.

Consumer proposal

If you’re battling with financial debt, a consumer proposal may be a great debt settlement plan for you. This debt relief solution is a legal process carried out under the Bankruptcy and Insolvency Act (Canada) (BIA). It enables you to pay back part of your debt over time. The benefit to you of a consumer proposal is that as soon as you end up repaying the part that you agreed to, you will be totally debt-free. The unpaid balance is eliminated too.

To get this government-sanctioned financial debt settlement strategy, you need to be insolvent and also have unsecured debts of $250,000 or less owing to all your unsecured creditors (omitting any type of secured debts registered against your personal residence such as mortgages or lines of credit).

This type of repayment plan is a good choice for people who are:

Employed;
can budget plan their money to make the required month-to-month regular payments;
want to avoid and choose the best alternative to bankruptcy; and
can’t stand all the collection calls from the debt collectors any longer.

Under the BIA, a licensed insolvency trustee (previously called a bankruptcy trustee) is the only party allowed under Canadian law to administer a consumer proposal. The licensed insolvency trustee is named the consumer proposal administrator.

The licensed insolvency trustee will submit the needed documents to the OSB. All interest charges and all collections calls stop on the day you file your consumer proposal. You can take up to 5 years to pay the amount promised under your consumer proposal.

When you submit a consumer proposal, any legal action your unsecured creditors have actually started against you is frozen and stopped. That goes for any legal action any of your creditors were threatening to start also. If a creditor currently has a judgment against you and is having your wages garnisheed, that stops too. You get that legal protection by making an insolvency filing under the BIA.

The licensed insolvency trustee who oversees your consumer proposal is responsible for negotiating with your unsecured creditors to reduce your unsecured original debts on your behalf. Upon successful acceptance of your proposal by the required majority of your creditors, you will be obligated to make monthly payments as per the agreed-upon terms of the proposal. You make your one monthly payment to the licensed insolvency trustee who takes care of making the promised payments to creditors.

Bankruptcy

Bankruptcy is a legal recourse that enables individuals or companies to discharge or restructure their financial liabilities. While it is the last option anyone should consider in the hierarchy of debt relief options, bankruptcy may be the most appropriate solution in certain circumstances.

It is crucial to weigh the consequences and benefits before opting for bankruptcy. A seasoned licensed insolvency trustee can guide you through the process and provide insights on the other debt relief options mentioned earlier.

Bankruptcy should not be taken lightly. Nevertheless, if carefully considered and implemented, it can offer a fresh start and an opportunity to rebuild credit scores for a stronger financial future.

I will not delve into the intricacies of the bankruptcy process and its workings in this Brandon’s Blog post. If you need to learn more about the bankruptcy process and if it is right for you, call me.

debt relief options

Debt relief options: Conclusion

Managing financial debt can indeed be a difficult as well as emotionally draining experience. However, there are reliable sources offered to give guidance and support. When looking for assistance with debt problems, I recommend 2 trusted resources: non-profit community-based credit counselling agencies and licensed insolvency trustees. Stay away from a for-profit debt settlement company.

I hope you enjoyed this debt relief options Brandon’s Blog. Financial stress is a growing concern in Canada, affecting individuals of all ages and income levels.

Creating a solid financial plan can be the key to unlocking a brighter and more prosperous future. By taking control of your finances, you can prioritize your expenses, set clear financial goals, and build a strong foundation for your dreams to come true. With the right mindset and approach, financial planning can empower you to regain control, eliminate this issue as a source of stress in your life and find peace of mind.

Individuals must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your finances and find yourself burdened by stress, do not delay in pursuing aid.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses that are in financial distress. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own and it does not mean that you are a bad person. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. We can get you debt relief now!

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a Trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

Brandon Blog Post

CONSUMER DEBT PROPOSALS: UNLEASH THE MANY PROFOUND BENEFITS OF ELIMINATING DEBT

Post author By Brandon Smith
Post date January 23, 2023

consumer debt proposals

consumer debt proposals

Consumer debt proposals eliminate your debt stress

Are you stressed out and overwhelmed by debt and don’t know how to begin to eliminate it? We know your pain and can help you because this Brandon’s Blog “Consumer Debt Proposals: The Ultimate Solution for Managing Debt” has got you covered! I provide realistic advice on how to manage and even get rid of debt through a binding debt settlement agreement.

I describe what consumer debt proposals are all about and also look at other debt-relief options like debt consolidation and credit counselling. I will also talk about the recent Canadian government’s warning about taking on high-interest debt from certain companies.

Consumer debt proposals: How Does a Consumer Proposal Work?

If you’re in a tough spot financially, in Canada you can submit a consumer proposal if you owe $250,000 or less (not including any debt registered against your home is one of the types of secured debts that must be paid according to your secured loan repayment terms). It’s an official way to get some debt relief, and it’s all legit according to the Bankruptcy and Insolvency Act. Basically, you work with a Licensed Insolvency Trustee who helps you come up with a plan for paying off what you owe. Then you negotiate with your creditors and hopefully, they accept the proposal.

Making a consumer proposal that unsecured creditors will accept is one of the debt solution alternatives to bankruptcy that requires a few steps to get it done:

Reach out to a qualified Licensed Insolvency Trustee and book a no-cost debt assessment consultation.
During the appointment, answer any questions the Trustee may have truthfully and to the best of your ability.
The Trustee will work with you to come up with a payment plan that fits into your budget and allows you to pay off your debt.

Once you’ve submitted your consumer proposal, your creditors will look it over and then decide if they want to accept it as is or negotiate an adjustment (higher) to your periodic payments to eliminate the amount you owe. They have the option to do either one.

Your creditors can decide to:

Agree to the terms you have proposed (cast their vote in favour).
Decline the terms (vote no).
Decline the terms and suggest a meeting with creditors.
Take no action (which is the same as voting yes).

Your consumer proposal is automatically approved unless more than 25% of the dollar value of the claims of your creditors indicates that they would like to have a meeting of creditors. In that case, that is what will happen.

Once you’ve taken the step of filing for a consumer proposal, you’ll be able to rest easy knowing that you have immediate legal protection from creditors and debt collectors through this financial and legal process. This is called a stay of proceedings where your creditors cannot chase you for the money you owe.

Filing under the bankruptcy process in Canada isn’t your only option! You can work out a legally binding agreement with your creditors through the popular alternative and powerful alternative of consumer debt proposals. With a consumer proposal, you and your creditors can come to an agreement on what portion of the debt you can pay off- and the rest will be written off!

consumer debt proposals

Consumer debt proposals: The voting process

When it comes to a consumer proposal, it’s important to understand the process of how creditors come to a decision to accept or reject the plan. This section will provide insight into how the voting process works.

Once a consumer proposal is submitted, creditors are allowed 45 days to express their decision. They can either accept the proposal or reject it in one of the following ways: replying to the Licensed Insolvency Trustee with their acceptance, not responding at all (which is seen as approval), communicating their rejection or requesting a meeting of creditors.

At the creditors’ meeting, creditors will have the opportunity to decide whether to accept the consumer proposal as is or to make adjustments to it.

Consumer debt proposals: What happens if your offer is approved?

If your proposal gets the green light, you’ll need to abide by what you promised – whether that’s a single payment or regular installments to the Licensed Insolvency Trustee. Plus, you must meet any other conditions that were laid out in the proposal.

In a successful proposal, you can keep your assets (as long as you keep paying what you owe to creditors who have a lien on your assets), and go to the two financial counselling sessions held by the Licensed Bankruptcy Trustee. Of course, you’ve got to pay the Licensed Bankruptcy Trustee on time over the entire period of time your proposal is for.

Failure to do so could result in the revocation of the proposal, the accrual of interest and fees, and even legal action. It’s important to remember that while a consumer proposal can provide much-needed relief, it’s ultimately up to you to stay current with the payments you promised to make.

consumer debt proposals

Consumer debt proposals: What happens should your consumer proposal be declined?

If 50% or more of the creditors vote to reject the consumer proposal, then the Licensed Insolvency Trustee must issue a notice and the consumer proposal dies. In this situation, creditors are free again to pursue collection actions against the debtor.

If 25% or more of the creditors request a meeting, that meeting is referred to as the Meeting of Creditors. At this meeting, an agreement will try to be reached by a majority of the creditors. If the agreement can not be reached, the debtor may need to amend the proposal and resubmit it or look for other ways to solve their financial issues.

If a consumer proposal is declined, it means that the creditors do not agree with the terms of the proposal put forth by the debtor. The main reasons for rejection may be that the debtor is not offering enough money or has proposed an unsuitable repayment schedule.

It is important to note that if you fail to fulfill the requirements of your consumer proposal, it will be deemed null and void. However, it does not free you from your existing debt, and the failure to adequately repay your loans or pay off debts within the terms of the agreement could affect your credit score. Collectors for debts are within their right to renew collection calls and seek legal action for retrieving the debts that they owe. They can sue you and if they get a judgment, they can then get a wage garnishment against you. It is never recommended to default on a consumer proposal.

Consumer debt proposals: If you fulfill the requirements of your consumer proposal

If you fulfill the requirements of your consumer proposal, you will have successfully completed the agreement between yourself and your creditors. This means that you will have made the agreed-upon payments and met all other terms of the proposal. The balance of your unsecured debts that you did not pay off is also eliminated if you fulfill the requirements of your consumer proposal.

One of the benefits of fulfilling a consumer proposal is that you will have lower regular payments monthly, which are based on what you can afford, rather than high monthly payments regardless of your income. Additionally, you will have protection from creditors, as they will not be able to contact you or take money directly from your wages.

After fulfilling a consumer proposal, it will come off your credit report maintained by the Canadian credit bureaus three years after the completion. This report will show that the consumer proposal has been successfully completed and you can rebuild your credit rating and credit score simultaneously.

You will also receive from the Licensed Insolvency Trustee (LIT) acting as the Administrator in your consumer proposal a “Notice of Successful Completion of Consumer Proposal”. This is a very important document, as you will be able to provide it to current or future credit grantors to prove that you successfully completed your consumer proposal and avoided personal bankruptcy.

It is important to note that if you fail to fulfill the requirements of your consumer proposal, it will be deemed null and void. However, it does not free you from your existing debt, and the failure to adequately repay your personal loans, lines of credit or pay off debts within the terms of the agreement could negatively affect your credit score. Creditors are within their right to use collection activity and use legal action for retrieving the debts that you owe. It is never recommended to default on a consumer proposal.

consumer debt proposals

Advice for Consumers: Considerations for Debt Relief and Credit Repair Services

Improving your credit score or credit rating will take time, and requires showing creditors that your habits have improved and that you are paying back your debt on time. Be cautious when seeking help to pay off debt or repair your credit, as some companies may offer misleading solutions. I have been warning about the dangers of such “for-profit” debt settlement companies for years now.

One option for getting help with debt is a debt management plan, which is an informal proposal made by a non-profit community credit counselling agency credit counsellor to your creditors on your behalf. This plan consolidates your debts into one affordable monthly payment and in some cases, you may not have to continue to pay interest on your debt.

However, consumers should be aware that the “for-profit” debt settlement companies may charge high fees, including upfront or advance fees, and may not be able to get creditors to reduce your debt. Additionally, it is important to note that even while using a debt management plan, you are still required to keep making payments on any other debts you owe, which may result in no change to your credit score.

Overall, it is important to be cautious when seeking help to pay off debt or repair your credit and to thoroughly research any company or solution before proceeding. It is also important to consider the potential consequences, fees and overall effectiveness of the solution. A LIT during an initial no-cost consultation will provide many of the services that a “for-profit” debt management company charges for.

Consumer debt proposals: Organizations or firms cannot guarantee the resolution of your financial obligations

Be aware of companies or agencies that claim they can quickly resolve your debt problems by negotiating a deal with the companies you owe money to and letting you only pay back a fraction of your debt. These promises may not be reliable, so it’s best to be wary.

It’s important to remember that if certain creditors don’t agree to your payment plan, you may need to work out a different agreement with them directly. Alternatively, you can consult a LIT about doing a consumer proposal.

It’s also worth keeping in mind that anyone can call themselves a debt consultant, but that doesn’t mean they have the proper training or they’ll be able to help you with your finances.

consumer debt proposals

Consumer debt proposals: No company or agency can give you a fast and easy boost to your credit rating

No Canadian debt consultant, company, or agency can promise a fast solution to your credit score. Improving your credit rating takes time and commitment; you have to show a history of paying your debts punctually.

If you’re looking to boost your credit score, one option to consider is a non-profit credit counselling agency. A credit counsellor can offer a variety of services like one-on-one advice, group sessions, and tips on how to better manage your debt. Just keep in mind that simply talking to a credit counsellor won’t do the trick.

If you’re looking to give your credit score a boost, try paying off some of what you owe. Bringing down your debt-to-credit ratio to under 75% of your credit limit will help. You could also ask your credit card companies or financial institution lenders to raise your credit limit and perhaps even amend your terms of repayment (though the latter will be very difficult) – that’ll help increase your credit score. Ideally, try to use less than a third of your available credit and keep it low, ideally below 30%.

Remember, there’s no shortcut when it comes to improving your credit score. Anyone promising you the fast and easy way is not looking out for your best interests. It takes determination and effort to get your credit back on track. Do your research and make sure you understand any associated fees or consequences before you commit.

Consumer debt proposals: Paying off a consumer proposal early

Sure, you can settle your consumer proposal early, but that might not be the best choice for everyone.

If you’ve got the funds, paying off your consumer proposal earlier could help kickstart your credit repair – but don’t expect it to save you money or guarantee a good credit rating. So think carefully before you commit to paying it off early. In the following section, I describe a very troublesome issue which has now attracted the attention of the Office of the Superintendent of Bankruptcy Canada (OSB).

Paying off your consumer proposal early will do wonders for your mental health – and it’s perfectly acceptable! It’s no secret that financial hardship is incredibly stressful, and five years seems like a lifetime. So treating yourself to an early payoff will help you feel a huge weight being lifted off your shoulders.

If you want to shorten how long your consumer proposal lasts, you can change how often you make your proposal payments. Usually, they’re monthly, but if you switch to making extra payments by paying bi-weekly, you can pay off your proposal faster. Once you’re done paying off your consumer proposal, the unsecured debts you’ve been worrying about will be marked as taken care of on your credit report.

consumer debt proposals

Consumer debt proposals: LITs cannot talk you into getting a loan with a high-interest rate to pay off your consumer proposal early

On January 11, 2023, the OSB issued its position paper titled “LITs Promoting and Facilitating Loans to Debtors“. The problem is that some lenders are offering high-interest loans to people who are about to or are going through a consumer proposal. It looks like they’re giving loans to help people pay off their consumer proposals early, but it’s really just taking advantage of people’s tough financial situations.

The OSB has noticed that some LITs are promoting and encouraging people to take out loans without mentioning the potential drawbacks. They do this by talking up the positives and downplaying the negatives, and they may even pressure people into taking out a loan.

The OSB has come to the conclusion that it’s not in line with the Code of Ethics for Trustees or a LIT’s duties under the Bankruptcy and Insolvency Act and General Rules for LITs to promote or facilitate such loans. Furthermore, such actions are not allowed.

There is also evidence that LITs who receive engagements directly from “for-profit” debt consultants, may be entering into inappropriate arrangements with them. No trustees should ever accept a commission, payment, or any other type of reward from a third party for recommending work concerning a professional engagement, nor should they give out any commission, compensation, or another type of benefit to a third party for obtaining a professional engagement.

For the record, my Firm does not have any arrangements with any party regarding the referral of files and we neither accept nor pay a referral fee

Paying off your consumer proposal early isn’t really an issue. In fact, it can be great if you can afford it thanks to a financial windfall or change in circumstances. Everybody benefits in that scenario. But if you don’t have the means to pay off your consumer proposal quickly, don’t worry. Don’t take out an interest-bearing loan to pay off a consumer proposal. The consumer proposal itself should be considered an interest-free loan.

Look, if a debtor is trying to rebuild their credit with a loan after insolvency, there’s nothing wrong with that. They’re making the choice themselves, so it’s all good. In this case, LITs should explain the pros and cons of these loan products to the debtor. And, it’s important that they don’t push any company or product in particular.

The OSB believes that LITs should not be promoting or facilitating loans since it contravenes the Bankruptcy and Insolvency Act and its Rules. This practice has a negative impact on the LIT profession and the insolvency system. The OSB will be keeping an eye on this issue and taking appropriate action.

You Have Outstanding Financial Obligations — Consumer Debt Proposals

I hope you enjoyed our consumer debt proposals Brandon’s Blog.

There are many financial blogs. Ours focuses mainly on issues of importance to those individuals and businesses with financial challenges or worse, financial hardship, caused by debt problems. Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses with debt problems. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Brandon Blog Post

GAMBLING HELP ONTARIO: BEATING THE ODDS AND CONQUERING GAMBLING ADDICTION AND DEBT

Post author By Brandon Smith
Post date January 2, 2023

gambling help ontario

gambling help ontario

Gambling help Ontario: What is gambling?

Gambling is the act of betting or wagering on the outcome of an event or a game with the intention of winning money or other material goods. It can take many forms, including playing games of chance like slot machines or cards, betting on sports events or horse races, or participating in games of skill like poker or blackjack.

Gambling can be done in person, such as in a casino or at a horse racing racetrack, or online. It is important to note that gambling can be addictive and can have negative consequences if it is not done responsibly. With the proliferation of online gambling opportunities in Canada, in this Brandon’s Blog, I discuss the issue of gambling, gambling addiction, gambling debt, and gambling help Ontario. I am talking about impulsive behaviour leading to addiction, not about the social gambler.

Gambling help Ontario: What is gambling addiction?

Gambling disorder is a type of impulse control disorder, commonly referred to as pathological or compulsive gambling behaviour, which is characterized by a persistent and recurrent inability to resist the urge to gamble, despite the potential for serious negative consequences. Individuals suffering from gambling addiction may continue to gamble despite the consequences.

Gambling can be a real problem, resulting in financial issues, relationship stress, and lower work performance. It can also lead to mental health concerns like anxiety and depression. If you think you, or someone you know, might be dealing with a gambling addiction, it’s important to get gambling help Ontario.

gambling help ontario

Gambling help Ontario: What are some of the usual factors behind a gambling problem?

Pathological gambling, commonly referred to as gambling addiction, is a form of impulse control disorder. Those affected by this disorder experience gambling habits which are an intense compulsion to gamble, even when they are aware of the potential adverse effects it can have on their lives.

Potential contributors to the emergence of a gambling dependency may include, but are not limited to:

Biological factors: Some research suggests that gambling addiction may have a genetic component and that certain brain chemicals may be involved in the development of the disorder.
Psychological factors: People with certain personality traits, such as impulsivity and a need for novelty and excitement, may be more prone to developing a gambling addiction.
Environmental factors: People who are exposed to gambling at an early age or who have access to gambling opportunities may be more likely to develop a gambling addiction.
Social factors: Gambling addiction may be more common in people who have a social network that supports or encourages gambling, or in people who are isolated and may use gambling as a way to cope with stress or negative emotions.
Cultural factors: Gambling is more accepted in some cultures than in others, and people who live in cultures where gambling is more prevalent may be more likely to develop a gambling addiction.

It’s important to note that gambling addiction can affect anyone, regardless of age, gender, or background. If you or someone you know is struggling with gambling addiction, it’s important to seek help as soon as possible.

Gambling help Ontario: What is the prevalence of gambling addiction among individuals?

Accurately estimating the prevalence of gambling addiction in Canada is challenging due to underreporting of the disorder. Nevertheless, studies suggest that gambling addiction is a major public health issue in this country.

The Canadian Centre on Substance Use and Addiction (CCSA) estimates that approximately 2% of Canadian adults are affected by problem gambling, characterized by adverse financial, relational, and mental health outcomes.

With respect to alcohol addiction, the CCSA estimates that approximately 5% of the adult population in Canada meets the criteria for alcohol addiction. This includes approximately 10% of men and 3% of women.

The CCSA also estimates that approximately 5% of the adult population in Canada meets the criteria for drug addiction. This includes approximately 10% of men and 3% of women.

It’s important to note that all addictions, including gambling addiction, can have serious consequences for individuals and their families. If you or someone you know is struggling with addiction, it’s important to seek help as soon as possible. There are many resources available in Canada to help people who are struggling with addiction, including support groups, credit counselling, and rehabilitation programs.

gambling help ontario

Gambling help Ontario: How do I stop gambling?

Gambling addiction can be a difficult disorder to overcome, but it is possible for gambling addicts to overcome their gambling concerns and addictive behaviour, stop gambling and regain control of their life. Here are some steps you can take to stop gambling:

Seek help: One of the most important things you can do to stop gambling is to seek help from a healthcare professional or a support group, particularly a gambling help services group. A therapist or counselor who specializes in treating gambling addiction can help you identify the underlying causes of your gambling and develop strategies to overcome it.
Set goals: Identify specific goals that you want to achieve, such as paying off debt or rebuilding relationships with loved ones. Setting goals can help you stay focused and motivated as you work to overcome your gambling addiction.
Avoid triggers: Identify the situations and circumstances that trigger your desire to gamble, and try to avoid these triggers as much as possible. This may include avoiding places where gambling is available, such as casinos, or avoiding activities that you associate with gambling, such as watching sports or playing card games.
Find healthy coping mechanisms: Gambling may have been a way for you to cope with stress or negative emotions, so it’s important to find healthier ways to manage these feelings. This may include exercising, spending time with friends and family, or practicing relaxation techniques such as deep breathing or meditation.
Get support: Surround yourself with a support network of friends, family, and loved ones who can offer encouragement and support as you work to overcome your gambling addiction. Joining a support group, such as Gamblers Anonymous, can also be a helpful way to connect with others who are facing similar challenges.

Remember, overcoming gambling addiction takes time and effort, and it’s important to be patient with yourself. It may take several attempts before you are able to successfully stop gambling. Don’t get discouraged, and keep seeking help if you need it.

Gambling help Ontario: Strategies for managing debt from gambling

People with gambling problems ultimately will have significant debt, which can be overwhelming and stressful. If you are struggling with gambling addiction and debt, it’s important to take steps to address both issues as soon as possible. Here are some steps you can take to deal with gambling addiction debt:

Acknowledge the problem: The first step in recovering from gambling debt is to admit that you have a problem and take responsibility for it. This can be difficult, but it is an essential step in the recovery process.
Create a budget: To manage your debt payments, you need to have a clear understanding of your financial situation. Create a budget that takes into account your income, expenses, and debts.
Make a plan to pay off your debts: Once you have started to address your gambling addiction, it’s important to make a plan to pay off your debts. This may include negotiating with creditors, consolidating your debts, or seeking assistance from a debt management organization.
Cut expenses: Look for ways to cut your expenses so that you can free up more money to put towards your gambling debt. This might involve cutting back on non-essential expenses, such as dining out or entertainment.
Look for additional income: If you are unable to cover your debts with your current income, consider looking for additional sources of income, such as taking on a part-time job or selling assets.
Negotiate with creditors: If you are unable to make your minimum payments, consider negotiating with your creditors to see if they will accept a lower payment or extend the repayment period.Retain a lawyer: If negotiations with creditors fail or if you are facing legal action, it may be beneficial to consult a legal professional for assistance.
Speak to a licensed insolvency trustee (formerly called a licensed bankruptcy trustee): If you feel that you are in over your head in debt and there is no way out of it, get a no-cost consultation with a licensed insolvency trustee who can review your situation and make recommendations.
Avoid temptation: To avoid falling into gambling debt again, it is important to avoid situations that may trigger your gambling addiction. This might mean avoiding casinos or online gambling sites or finding alternative ways to cope with stress or boredom.
Seek support: Recovery from gambling debt is a long and difficult process. It is important to seek support from friends, family, and professional resources to help you stay on track and achieve your financial goals.
Using a financial professional such as a non-profit credit counselor or a debt coach: They can determine if they can make a plan for you that will see you pay off your debts in a reasonable period of time. If not, they will recommend you seek advice from a licensed insolvency trustee.
Deny access to financial resources and credit: In order to impede any additional gambling activities and debt accumulation, it may be wise to restrict your access to money and credit. This could involve canceling credit cards and lines of credit, closing bank accounts, or entrusting a reliable relative or friend to manage your funds.
gambling help ontario

Gambling help Ontario: Is it possible to have gambling debts eliminated in bankruptcy proceedings?

In Canada, it is possible to have gambling debts eliminated in bankruptcy proceedings under certain circumstances.

Under the Bankruptcy and Insolvency Act (Canada), gambling debts may be discharged (eliminated) in bankruptcy if they meet certain criteria. For example, you must not have obtained the money to gamble with through fraud, embezzlement, or larceny.

It is advisable to seek the counsel of a licensed insolvency trustee if you are thinking of filing for bankruptcy with regard to financial obligations resulting from gambling. Doing so will allow you to gain an understanding of the available options and specific regulations applicable to your circumstance so that you can make an informed decision on whether bankruptcy is the best course to take.

Bankruptcy should not be the first option for dealing with a gambling addiction; it should be the last resort. Therefore, it is necessary to explore other options first. However, if any insolvency process is pursued, one must also be committed to tackling the addiction head-on in order to achieve a full recovery. Ignoring the root of the problem and simply filing for bankruptcy will not benefit anyone in the long run.

Gambling help Ontario: If bankruptcy is the last resort, what is first?

The answer is a consumer proposal. A licensed insolvency trustee can offer both a consumer proposal and bankruptcy as two options that are available to individuals who are struggling with debt and are unable to pay their bills. Both options can help you manage your debts and get a fresh start financially, but they work in different ways and have different consequences.

A consumer proposal is a formally proposed payment plan to creditors. Administered by an insolvency trustee, the proposal is intended to have the person make an affordable monthly payment for no more than 60 months to settle all of the debt. It must be approved by creditors.

There are some key differences between a consumer proposal and bankruptcy in Canada. To be eligible for a consumer proposal or bankruptcy, an individual must be insolvent. To qualify for a consumer proposal, you cannot owe more than $250,000 (excluding mortgage debt) and need to have a reliable regular income source.

Feel free to reach out to me to find out more about a consumer proposal for debt relief.

gambling help ontario

I hope that you found this gambling help Ontario Brandon Blog helpful. Other types of addiction can also result in debts.

If you or your business are facing serious debt issues, and you are unsure if bankruptcy is the best solution, call me for advice on ways to tackle your debt, whether it stems from gambling or other sources.

It is not your fault that you remain in this way. It has been demonstrated that traditional methods of addressing financial difficulties are inadequate. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as alternatives to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will thoroughly evaluate your circumstances and devise a tailor-made solution to address both your financial and emotional concerns. Let us lighten your load and dispel any lingering concerns. We will design a debt settlement strategy for you. We know that we can help you now.

We recognize that individuals and companies facing monetary difficulties require an optimistic opportunity for hope. The Ira Smith Team offers a wide array of solutions to fit any situation – never settle for a one-size-fits-all approach!. Not everyone has to file for bankruptcy in Canada. Most of our clients never give up and explore the alternatives to bankruptcy, thus taking control of their financial future! Our mission is to empower people and businesses to steer clear of bankruptcy and achieve financial success.

You can create a unique payment plan to conquer debt and achieve financial success! It will be as unique and extraordinary as the challenges and struggles you are facing. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost bankruptcy consultation.

Brandon Blog Post

CONSUMER PROPOSAL CALCULATOR: CONSUMER PROPOSAL GREAT SECRETS REVEALED!

Post author By Brandon Smith
Post date November 28, 2022

consumer proposal calculator

Consumer proposal calculator: When should you think about a consumer proposal?

Debt can be a heavy burden, and it seems like there’s no end in sight. If you’re having a hard time making ends meet and debt is taking over your life, you may be asking yourself if a consumer proposal is right for you.

If you’re finding it impossible to pay off your financial debt, a consumer proposal could be a perfect choice for you. As soon as approved by your creditors and also authorized by the court, a consumer proposal is an enforceable deal between you and your creditors. You only need to pay off a part of your financial debt and in return, they write off the balance. This is an excellent method to pay off your debt as well as get your life back on course.

There are 2 main points to keep in mind when thinking of a consumer proposal. First, just an insolvency trustee (Trustee) can carry out a consumer proposal. They will first evaluate your situation and determine if this is the very best choice for you.

Secondly, you need to be able to make the promised payments to the Trustee. If you cannot, then a consumer proposal may not be right for you. There are also several non-insolvency debt relief options for people when looking at their unsecured debt and I describe them below.

Knowing how much you may need to pay in a consumer proposal in order to extinguish all of your unsecured debt is an important part of the decision-making. That is why I created this consumer proposal calculator located down below in this Brandon’s Blog.

Consumer proposal calculator: Option 1 – Pay off your debt on your own

If you have adequate savings and are in a financial situation to pay your financial obligations in a timely manner, excellent. Yet that is not every person’s circumstance. It’s not unusual for individuals to find themselves in a state where they have financial obligations coming due for payment, but, they do not have the cash. If you’re in this situation, you might be unsure about exactly how you can repay the money you owe but do not have.

There are a couple of things you ought to remember if you’re seeking to pay off the financial debt by yourself. First, you need to ensure you have a clear plan for exactly how you’re likely to pay off the money. This means establishing a budget plan and staying with it.

Second, you ought to keep communication open with the individual or company you owe the money. By doing this, they’ll understand what you’re doing to pay back the debt and can provide support if needed.

Finally, it is very important to be patient. Settling a financial debt can take time, however as long as you’re sticking to your strategy and seeing progress, you’ll ultimately get there to financial freedom.

consumer proposal calculator

Consumer proposal calculator: Option 2 – Debt consolidation

Combining your financial obligations, such as the total debt on all your credit cards, into one new debt consolidation loan can aid you to become debt-free faster and get your funds back on the right track. It can help you to repay your financial debts a lot faster and also right-size your finances. Before consolidating your financial debts and making debt consolidation payments, there are a couple of things you need to understand:

Prior to you trying to settle your financial debts through debt consolidation, it’s important to recognize just how debt consolidation loan payments work as well as what type of impact it can have on your credit rating.
See to it that you recognize what you’re getting into. Consolidating your financial debts through new loan funding to settle your existing financial obligations, ensure you recognize the terms of the new financing, including the rate of interest and how much the regular monthly payment will be.
Search for the very best deal available. There are a variety of companies that provide financial debt consolidation funding. Shop around to find the best rates of interest as well as terms.
Combining your debts will lead to a lower single monthly payment. Make sure it fits into your budget.
Making your new loan monthly payments on time will work to improve your credit rating.

Consumer proposal calculator: Option 3 – Credit counselling

If you’re struggling with credit card debt, you’re not alone. It’s one of the most common types of debt in Canada. But there’s help available. Credit counselling can help you get your debts under control and develop a plan for you.

Credit counselling can be a very therapeutic process that assists people to address their debt obstacles as well as enhance their total financial health and wellness. Your best choice is to go for credit counselling offered by a nonprofit credit counselling agency.

Credit counselling commonly involves working with a credit counsellor to develop a spending plan, understand your economic alternatives, and produce a plan to settle your financial debts. More often than not the credit counsellor can get your creditors to agree to allow you to pay off the principal amount of your debt without adding any more interest charges.

Credit counselling can aid you to get out of debt, improve your credit score, and also teach you how to make better financial decisions in the future. If you’re seriously thinking about credit counselling as an option for you, it is very important to pick a reputable firm to deal with in order to produce a personalized plan to address your unique financial situation.

consumer proposal calculator

Consumer proposal calculator: Option 4 – Debt Settlement

If you’re struggling to make your financial debt settlements and are dealing with economic difficulty, financial debt settlement may be a great choice for you. This is where you work out with your creditors to resolve your debt for less than the amount of the individual debt amounts you owe.

There are a couple of points to remember if you’re thinking about financial debt settlement:
Your credit score will take a hit.
Your creditors might send your debt to their lawyer to take legal action against you or they might send your debt to a collection agency to plague you with collection calls as soon as you divulge that you cannot settle them in full.

If you’re looking at this kind of financial debt negotiation, it is very important to evaluate the pros and cons and speak with a professional advisor to see if it’s the right option for you.

WARNING:

A for-profit debt settlement company charges fees, just like any other business. Before any of your money is used to settle your personal debts, you must pay their fees upfront. No fees are charged by the non-profit credit counsellor.

When you cannot pay anymore, the for-profit debt settlement company walks you over to their friendly Trustee for you to file either a consumer proposal or an assignment in bankruptcy.

Please stay away from for-profit debt settlement companies. I do not recommend for-profit debt settlement arrangements or debt settlement programs. These types of debt counsellors are not the debt-help professionals you should go to see.

Consumer proposal calculator: Option 5 – About consumer proposals

If you’re battling with a mountain of debt, do not worry, there is help and it avoids bankruptcy. A consumer proposal is a legal process that is the only federally-approved debt settlement process. A consumer proposal can only be carried out by a Trustee.

If you’re thinking about a consumer proposal, it is very important to understand just how the process works and also what it will indicate for your financial future. I have actually written several of Brandon’s Blogs giving a comprehensive on what consumer proposals are and how they work.

If you’re insolvent and owe $250,000 or less to your creditors (excluding any secured creditor debt like mortgages or lines of credit that are secured by registration against your personal residence), you can qualify for this government-sanctioned debt settlement plan.

This could be a good option for people who are employed and can budget their money to make the required monthly payments under this plan to the Trustee. It helps to avoid personal bankruptcy, and not have to deal with collection calls from agencies anymore. This is the best alternative to bankruptcy.

For more information, check out either one of the following Brandon’s Blogs:

consumer proposal calculator

Consumer Proposal Calculator: What will my monthly payments be in a consumer proposal?

Here is how a debt calculator calculates your total debt and estimates what your monthly payments will be in a consumer proposal debt management plan. Below you will be asked for all your unsecured debts, including any government debt or income tax debts.

Consumer proposal calculator	$

What is the total of your credit card debt?
What is your income tax debt?
What is the total of any online loan?
How much is your other government debt?
Total of other unsecured debt?
What is your payday loan debt?
Total unsecured personal loan debt?

Your total unsecured debt

# of months you wish to take to pay (max 60 months)	60

Monthly payment = (Your total unsecured debt
divided by # of months) X20%

Use this consumer proposal calculator method to compare what a monthly payment would be for you under a consumer proposal as compared to what your monthly debt payments are now. Keep in mind that in a consumer proposal, you are getting rid of all your debt if successfully completed. Right now, you may only be paying the interest charges and not making any dent in the principal reduction.

To figure out your exact monthly payment, give us a call.

Consumer Proposal Calculator: We can help you with a consumer proposal

I hope you enjoyed this consumer proposal calculator on Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Brandon Blog Post

CONSOLIDATION LOANS IN CANADA: IS IT POSSIBLE TO CONSOLIDATE DEBT BY USING THIS 1 SIMPLE GOING POSTAL HACK?

Post author By Brandon Smith
Post date October 17, 2022

Debt consolidation loans in Canada

Debt consolidation loans in Canada can be an excellent means to conserve money and get your funds in order. By combining several financial obligations into an affordable single loan, you can frequently get a lower rate of interest and also reduced month-to-month payments. This can assist you to get out of debt quicker as well as save cash over time.

Prior to getting debt consolidation loans in Canada, it is very important to understand the terms of the financing and also to make sure you can afford the monthly payments. It’s also a good idea to look around and compare rates of interest and also loan terms from various financial institutions.

In this Brandon’s Blog, I discuss the concept of debt consolidation loans in Canada and a sort of new potential lender offering personal loans in Canada. I will also share another debt settlement and debt consolidation option that may be beneficial for people and companies who want to repair their financial situation.

Advantages as well as downsides of consolidation loans in Canada

Upsides

Debt consolidation loans in Canada can offer many benefits over making regular monthly payments on many different loans and debts with different interest rates. Interest rates on some debts, like credit card debt, can be categorized as high-interest debts, making it difficult to make a dent in the balance owing. if all you ever do is make the monthly minimum payment.

Consolidation loans supply a number of advantages, such as:

Reduced interest rates – Lenders normally give consumers reduced rates of interest on individual personal loans allowing them to repay their high-interest-rate credit card debt. Consolidation loans in Canada can be an excellent method to obtain a lower rate of interest and come to be debt-free quicker.

Reduce your monthly payments – Banks and credit unions usually offer debt consolidation loans in Canada with terms of up to 5 years. This, along with the lower interest rate, can help you save a lot of money in the long run and give you a lower monthly payment than the sum of the monthly payments required under your many debts.

A single payment instead of multiple payments – One of the best things about debt consolidation loans in Canada is that you only have to make one monthly payment. This makes it much easier to budget and stick to your plan. Instead of having to remember to pay six different bills each month, you only have to worry about one.

Potentially improved credit scores – Your credit report is a number that banks make use of to determine your creditworthiness. A high credit rating suggests you are a low-risk borrower, which is excellent. A bad credit rating indicates you are high-risk, which is bad.

By obtaining a debt consolidation loan, making on-time payments and paying it off on time without a payment schedule default or late payments, you are restoring your bad credit score in 2 ways. First, you have revealed that you had the ability to fully settle all of your other financial debts. Second, you are repairing your credit score by making the consolidation loan payments on time. It is not instant, yet in time, paying off debt consolidation loans in Canada will certainly improve your credit rating. Over time, you will see your credit score and credit report improve.

Downsides

There are a few downsides to debt consolidation loans in Canada, including:

Debt consolidation loans in Canada are often referred to as “easy money.” But they aren’t always easy. Even though many consumers think they qualify for a loan based solely on their disposable income, there are certain circumstances where Canadian banks will not see your monthly income in as good a light as you do. You will need collateral such as real estate, cars, boats, etc.

If you do not have these things, you may be at a disadvantage. Most banks will not lend money to someone with a low credit score unless they have some form of security, such as a car or house with enough equity. This makes sense because the lender knows that it is a debt consolidation loan you are applying for and by definition, you cannot pay off your credit card balances without their loan. They will want to protect themselves against the chance you may default on the loan.

When choosing a bank, you’ll want to compare fees, interest rates and prepayment penalties to ensure you’re getting the best deal. Keep in mind that the lowest fees don’t always mean the best overall value, so be sure to compare all aspects of the loan before making a decision. You might even consider getting one of the types of secured loans by raising money against your home through a home equity line of credit or a second mortgage. So compare your offers of secured loans and unsecured debt consolidation loans in Canada very carefully to consider all factors in deciding which is best for you.

WARNING: Stay away from private lenders, payday lenders and most alternative lenders who may provide loans just as expensive as payday loans. Their fees and high-interest loans will never be in your favour.

Consolidation loans in Canada: Can you consolidate student loan debt?

Students and recent graduates who find themselves buried under student loan debt often look for help. They want to consolidate their debts into one manageable monthly payment, but this can be difficult to obtain because there are few debt consolidation loans specifically designed for them.

Many recent graduates lack the credit history or income to qualify for a consolidation loan. They also generally do not have any free assets to qualify for a single secured debt consolidation loan to pay out over a longer period of time at a lower interest rate.

Unsecured loans to young people with a little credit history will be more expensive than one to an individual with a long-established credit history. That assumes that they can even qualify for this type of loan.

For these reasons, other than perhaps for a recent graduate from either medicine or dentistry who perhaps can roll their student debt into a professional loan, it will be very difficult to get consolidation loans in Canada to consolidate student debt.

Consolidation loans in Canada: Can going postal help you reach your financial goals?

Here is a potential new source for debt consolidation loans in Canada. Although it was not set up specifically for consolidation loans, there is no reason why you cannot use the money for that purpose if you are approved.

There is a new loan program offered by Canada Post which is designed to help people who are struggling financially, especially in rural areas where access to banking institutions is limited. It is called the Canada Post MyMoney™ Loan product. The idea is that you get a loan that’s based on how much you can afford to pay back, what you need the money for, and how likely you are to repay it.

The initiative is part of Canada Post’s commitment to helping Canadians manage their finances better. Their goal is to provide easy access to financial services and products that can help people save time and money.

To have your loan application considered, you have to be either a Canadian citizen or a Permanent Resident. You must be no younger than 18 years of age and you need to have annual earnings of a minimum of $1,000. Additionally, you need to not have been bankrupt within the 2 years before applying for the loan or had any of your financial debts handed off to a collection agency within the year before applying. They will of course also do a credit check on you.

In order to receive your loan proceeds, you must have a chequing or interest-bearing account with a Canadian financial institution in your own name. Borrowers of MyMoney™ loans are not required to offer any security against assets, in contrast to secured loans from banks and credit unions. Instead, applicants need only provide proof of identity, employment history and income. Both variable and fixed-rate installment loans are offered. The actual lender is TD Bank.

Consolidation loans in Canada: Other financial debt loan consolidation choices

You may not want to take on more debt to pay off your current debt. I don’t blame you and I get it. Or you may have been denied a debt consolidation loan. Here are some other options for consolidating your debt:

Balance Transfer Credit Cards

A balance transfer is simply when you move the balance of one credit card over to another credit card. For example, if you have a balance of $5,000 on your Mastercard, you can transfer that balance to a new Visa account that offers you 0% interest for 1 year on all balance transfers.

When you switch, you won’t have to pay interest charges for 12 months. After that, you’ll need to pay off the balance in full or start making payments on the balance transferred. Of course, you’ll still accrue interest after the interest-free period on the remaining balance.

Consolidation loans in Canada: Credit counselling

Credit counselling is a service that helps individuals to manage their finances and improve their financial situation. It can be done with a range of techniques, including budgeting, negotiating with creditors, setting up a plan to repay debt and monitoring actual behaviour vs. the plan.

Credit counselling can be an excellent way for individuals to take control of their financial obligations. It can help them create a plan to settle their debt, and provide them with the tools and knowledge they need to maintain financial literacy in the future.

There are many different credit counselling services available to choose from. You should select a community-based service to avoid being charged any fees. Be sure to stay away from any counselling service that charges fees, as this will only add to your expenses when trying to reduce debt.

Consolidation loans in Canada: Debt help is available with a financial restructuring program

Financial restructuring is a complicated and difficult procedure, however, it likewise provides individuals as well as businesses with a new beginning and a brand-new lease on life. Selecting to reorganize your finances with the help of a licensed insolvency trustee will certainly have temporary challenges, but can ultimately provide you with financial relief and a fresh start.

If you are considering financial restructuring, we urge you to consult with a licensed insolvency trustee to discuss your options. We can help you understand all of your options and work with you to develop a plan that is in your best interests.

Trustees are experienced in all aspects of financial restructuring and can supply you with the information and assistance you require to make the very best decision for your situation.

The most well-known financial restructuring tool for individuals is the consumer proposal. For mid-size companies and individuals with larger debt, it is a Division I proposal. For companies with debts greater than $5 million, restructuring is accomplished through the use of the Companies’ Creditors Arrangement Act.

Here is the best part. You should consider financial restructuring as getting an interest-free loan to pay off all your debts for a fraction of what you owe. I am qualified and experienced in all forms of financial restructuring, can explain this concept to you and am always available to answer any of your questions.

Consolidation loans in Canada: Before making a decision on your financial life needs – Call me

I hope that you found this consolidation loans in Canada Brandon’s Blog informative. If you’re sick and tired of carrying the burden of debt and ready to live a much better life, we can assist. We know exactly how it really feels to be in debt as well as feel like you’re never going to get ahead. We have actually helped lots of people and businesses that were in your position reach financial stability, so we understand it’s feasible for you to prosper in your objective of ending up being debt-free. Nevertheless, it will certainly require some work on your part. We’ll be right here to assist you with every action necessary.

The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too many personal unsecured debts, Credit card debt, income tax debt liability, unsecured loans or personal obligations from the running of your company or from being a business owner. These are all types of debt we can help you eliminate. We are aware of your financial difficulties and understand your concerns. Filing bankruptcy is the last option we explore only after we have exhausted all other options to avoid bankruptcy, such as financial restructuring through a debt repayment plan.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to give you the best management advice to get you out of your outstanding debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We are sympathetic to the financial difficulties you are experiencing and would like to help alleviate your concerns. We want to lighten your load by coming up with a debt settlement plan crafted just for you.

We realize that people and businesses in financial difficulty need practical advice and a workable solution in an easy-to-understand financial plan. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We would be happy to give you a no-cost initial consultation. We can find you the perfect solution to tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. We provide a full range of services to people and companies. If any of this sounds familiar to you and you’re serious about finding a solution, let us know. We will get you back to living a happy life, whether or not there is an economic recession in Canada.

Call us now for a no-cost initial consultation. We are licensed professionals.

Brandon Blog Post

CAN A LICENSED INSOLVENCY TRUSTEE NEAR ME OR ELSEWHERE POOCH OUT OF ESSENTIAL DUTIES?

Post author By Brandon Smith
Post date September 25, 2022

licensed insovlency trustee near me

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You can easily find a licensed insolvency trustee near me or you

There are Licensed Insolvency Trustees (LITs) (formerly called a bankruptcy trustee or trustees in bankruptcy) all over Canada who can help you with your debt problems. They’re the only debt professionals and debt advisors regulated by the federal government and are experienced in helping individuals and businesses figure out the best way to deal with their financial difficulties. There are about 1,066 individual Trustees and 218 different Insolvency Trustee Firms/bankruptcy companies in Canada, making it easy to find a licensed insolvency trustee near me or you.

The primary concern is finding a Trustee that you feel comfortable working with to discuss your debt issues and that is an ideal match for you or your business. You also need to find one that is willing to carry out its required functions. This is the same whether it is businesses with debt problems or it is people in debt.

Today’s Brandon’s Blog is about a recent decision from the Court of Appeal for Ontario which confirms that there are certain tasks in the administration of bankruptcy, be it a personal bankruptcy or corporate bankruptcy, or one of the alternatives to bankruptcy under the BIA, a Division I proposal or consumer proposal, that the licensed insolvency trustee cannot opt-out of.

The court’s decision confirms that a Trustee has certain duties under the Bankruptcy and Insolvency Act (Canada) (BIA) which are not optional, regardless of any difficulty that may be involved or the wishes of the party funding the Trustee. The case is Conforti Holdings Limited (Re), 2022 ONCA 651 (CanLII) which is the appeal by the licensed insolvency trustee of the lower court finding. I will describe it in a minute.

Licensed insolvency trustee near me: LITs are federally regulated to ensure consistent standards and supervision throughout Canada

If you’re struggling with debt, a Licensed Insolvency Trustee can help. These federally regulated professionals provide advice and services to individuals and businesses and can help you make informed choices about dealing with your financial difficulties. With their help, you can get back on track and start moving forward.

The only individuals who are authorized to administer Canadian government-regulated insolvency services that would allow you to be discharged from your debt are Licensed Insolvency Trustees. If you are in significant financial difficulty, speaking to a Licensed Insolvency Trustee near me or you to get debt management advice is the right thing to do to learn of the debt restructuring options available to come up with the right debt solution for your specific situation.

If you are not happy with the actions or decisions of a Licensed Trustee that you are unable to resolve, you can file a complaint with the federal regulator. LITs are mandated to follow all federal statutes, rules and guidelines, and your allegations will be given the appropriate consideration.

licensed insolvency trustee near me

Licensed Insolvency Trustee near me: We’ll speak with your creditors for you

After you file for a consumer proposal, Division I proposal, corporate bankruptcy, or personal bankruptcy, the Trustee will manage your affairs with your creditors. This includes sending out a notice with additional documents required by the BIA to all creditors listed on your sworn statement of affairs.

If creditors have questions, they should be speaking with the Trustee, not you. Also, unsecured creditors cannot continue or initiate any collection action or legal proceeding against the debtor who has filed either for financial restructuring or bankruptcy. The collection calls stop in either the consumer proposal process or the bankruptcy process.

Remember, only Licensed Insolvency Trustees are authorized to conduct government-regulated insolvency proceedings – qualified professionals who understand the complexities and nuances of this process. This ensures that your insolvency proceeding is handled correctly, efficiently and with the utmost care.

Locate a Licensed Insolvency Trustee near me who is currently active

So how would I choose a Licensed Insolvency Trustee near me for my problem financial situation and find debt relief solutions? There are 3 main ways that I recommend to anyone who asks me:

Ask a professional that you trust and feel that you can confide in for a referral. Your lawyer, insurance agent, banker or a non-profit credit counselling agency are but a few examples.
If you’re thinking about personal bankruptcy or bankruptcy for your business, it is very important to pick a Trustee you really feel comfortable with. A fast Google or Bing search for “Licensed Insolvency Trustee near me” to check out various internet sites can help you get a feel for various Trustees’ tones. If one resonates with you, make a no-cost confidential consultation to discuss your circumstance.
The Office of the Superintendent of Bankruptcy (OSB) has a database that is complimentary to search to find every Trustee in Canada. Do that search and choose a few. I still suggest looking at their internet site and getting a free appointment before making any kind of decision on the various debt relief options.
licensed insolvency trustee near me

How does a Licensed Insolvency Trustee near me get paid?

The Trustee’s fee and disbursements in a financial restructuring are normally paid out of the funds that the person or company makes available when compromising the debt of the unsecured creditors. In other words, it is the creditors who are actually paying the Trustee.

In a receivership or bankruptcy, the Trustee is paid from the proceeds of the sale of assets. If there are insufficient assets to cover the Trustee’s fees, the Trustee may seek a guarantee from a third party who is willing and able to pay, either by putting up a cash retainer, through monthly payments or both.

The guiding philosophy is that the Trustee has done its job and done so properly. This leads us to today’s discussion of the case.

Licensed insolvency trustee near me: What does a Trustee do?

A Trustee is responsible for administering the insolvency estate. This includes tasks such as collecting and selling assets, vetting and adjudicating creditor claims and distributing funds to the creditors. This is a perfect introduction to the recent Court of Appeal for Ontario decision in Conforti Holdings Limited (Re), 2022 ONCA 651 (CanLII).

Conforti Holdings Limited (CHL) as well as the Trustee in the Division I Proposal (Proposal Trustee) appealed the dismissal of the Proposal Trustee’s application for an order advising as well as directing the Proposal Trustee to not carry out the adjudication of the Moroccanoil, Inc. (Moroccanoil) proof of claim or the cross-claim by CHL versus Moroccanoil, as called for by s. 135 of the BIA. They also seek the lifting of the stay of proceedings to allow the parties to continue litigating in New Jersey.

CHL had been operating a chain of 52 hair salons for many years and had been embroiled in litigation with Moroccanoil in New Jersey for over seven years, over differences related to the supply of hair products. When told that CHL had filed a notice of intention to make a proposal pursuant to the BIA on September 28, 2020, the New Jersey court stayed proceedings there, at Moroccanoil’s request, and over CHL’s objections. The New Jersey proceedings have been case managed and the presiding judge said that the case could proceed to trial if the stay were lifted by the Canadian bankruptcy court.

Moroccanoil filed a proof of claim for $2,807,478.12 in CHL’s proposal proceedings. The Proposal Trustee filed a motion to be relieved of its obligations to determine whether the claim was provable or to value it.

This is a very basic cornerstone duty of all Licensed Insolvency Trustees. I am surprised that the Trustee and the company would prefer to continue with costly litigation in the United States, rather than reach an agreement on what value the claim should be allowed for.

By the very nature of the financial restructuring proceedings, CHL would not be paying the claim in full. Perhaps they were worried that Moroccanoil would vote against the Proposal and could carry the vote. In that case, CHL would become automatically bankrupt. However, as part of CHL agreeing to an amount of claim to allow, they could extract from Moroccanoil the quid pro quo that Moroccanoil would vote in favour of the Proposal.

licensed insolvency trustee near me

Licensed insolvency trustee near me: What the lower court said

The motion was denied for two reasons:

It was a requirement under s. 135(1.1) of the BIA for the Trustee to determine the claim, and there was no jurisdiction to exempt the Trustee from carrying out this basic duty.
The judge ruled that even if the court had the authority to make the requested order, the order was not warranted as it was not one of the clear cases that justifies the court departing from the usual process for valuation of claims under the BIA. He was not convinced that permitting the New Jersey proceedings to continue would be more efficient than adjudicating the Moroccanoil claim in the proceedings under the BIA.

Licensed insolvency trustee near me: Leave to appeal to the Court of Appeal for Ontario

The Trustee and CHL asked to appeal the lower court decision, but the Court of Appeal for Ontario said no. The appellate court said that there wasn’t obvious merit to the appeal.

The motion judge decided that it wouldn’t be right to have proceedings involving CHL and Moroccanoil go ahead in two different jurisdictions. The Court of Appeal for Ontario said that this decision could not be appealed. The proposed appeal is from the order made, not the reasons.

This doesn’t surprise me. There are two basic truths for any court-appointed officer:

The court officer will not be excused from performing the most basic duties.
Don’t ask the court to retrospectively approve a mistake you may have made. You just need to work through it.
licensed insolvency trustee near me

Licensed insolvency trustee near me: Are you sick of being in debt?

If you’re seeking to leave financial debt behind and live a much better life, we can assist. We know exactly how it really feels to be in debt as well as feel like you’re never going to get ahead. We have actually helped lots of people and businesses that were in your position reach financial stability, so we understand it’s feasible for you to prosper in your objective of ending up being debt-free. Nevertheless, it will certainly require some work on your part. We’ll be right here to assist you with every action necessary.

The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too many personal unsecured debts, Credit card debt, income tax debt liability, unsecured loans or personal obligations from the running of your company or from being a business owner. These are all types of debt we can help you eliminate. We know that you are worried because you are facing significant financial challenges. Filing bankruptcy is the last option we explore only after we have exhausted all other options to avoid bankruptcy, such as financial restructuring through a debt repayment plan.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to give you the best management advice to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. We know that we can help you the way we take the load off of your shoulders and devise a debt settlement plan.

Call us now for a no-cost initial consultation. We are licensed professionals.

licensed insovlency trustee near me — *licensed insolvency trustee near me*

Brandon Blog Post

INSOLVENCY TRUSTEE: TURNS OUT CERTAIN ACTIONS AGAINST THE TRUSTEE CANNOT BE UNLEASHED WITHOUT COURT PERMISSION

Post author By Brandon Smith
Post date July 18, 2022

What does an insolvency trustee do?

In simple terms, the only professional who can help you with a government-regulated insolvency proceeding that may allow you to be discharged from your debt is an insolvency trustee. This may be the best solution for individuals with significant financial difficulties.

An insolvency trustee is responsible for carrying out the administration of an insolvency file in accordance with the requirements of the Bankruptcy and Insolvency Act (Canada) (BIA). The insolvency trustee is responsible for ensuring that both creditors and the public interest are protected during the debt relief options of bankruptcy, consumer proposal, or Division I proposal process. This includes ensuring that assets are properly managed, sold and the cash distributed and that the bankruptcy or insolvency process is carried out in a fair and orderly manner.

A licensed insolvency trustee is federally regulated

The Office of the Superintendent of Bankruptcy (OSB) licenses and provides ongoing oversight for insolvency trustees, who must adhere to federal standards of practice, including the Code of Ethics for Trustees.

If you have a problem with a licensed insolvency trustee (formerly called a bankruptcy trustee) that you can’t solve, you can file a complaint with the OSB. Your complaint will be reviewed and assessed. You may even want to consider taking legal action against the insolvency trustee if your situation is extreme.

Section 215 of the BIA states:

“Except by leave of the court, no action lies against the Superintendent, an official receiver, an interim receiver or a trustee with respect to any report made under, or any action taken pursuant to, this Act.”

The BIA recognizes that a party may have a legitimate grievance against an insolvency trustee for something that was done or not done during a bankruptcy administration. The BIA tries to balance the need to protect legitimate claims against the Trustee with the need to prevent parties from using the threat of litigation to gain leverage.

insolvency trustee

Who is a person of insolvency?

The above is an introduction to today’s insolvency trustee Brandon’s Blog. In June of last year, I wrote about this bankrupt person in the blog TRUSTEE IN BANKRUPTCY: CERTAIN ACTIONS AGAINST TRUSTEE CAN BE UNLEASHED WITHOUT FIRST REQUIRING COURT PERMISSION. That Brandon Blog dealt with a decision of the Ontario Superior Court of Justice.

The person of this insolvency was a serial bankrupt, filing bankruptcy four times in 12 years: 2004, 2006, 2011, and 2016. Each time he used the same insolvency trustee. He operated a sole proprietorship painting business. So technically, each time he went bankrupt, a new sole proprietorship began.

The plaintiff alleges that the licensed insolvency trustee (LIT) was negligent, committed fraud, breached their fiduciary duty, and was unjustly enriched, starting with the confidential consultation and throughout each personal bankruptcy administration. The bankrupt discovered during his 4th bankruptcy that his former spouse had misappropriated substantial sums from his business between 2003 and 2018. Ultimately, he determined that the amount of the misappropriations was approximately $206,000.

The bankrupt’s fourth bankruptcy was annulled by filing a consumer proposal with a different insolvency trustee that was accepted by his creditors. He and his current spouse then commenced an action not against the corporate licensed insolvency trustee of record who handled all four bankruptcies, but rather against the person, who is a licensed insolvency trustee, who carried out the individual bankruptcy processes.

The bankrupt person and his new spouse are seeking relief against the individual as though he were the Trustee of record. The central allegation is that he, as the “Licensed Insolvency Trustee” providing bankruptcy services for each of the bankruptcies, ought to have detected the misappropriations and, once told about them, he should have sued the former spouse. So they are blaming the Trustee for the bankrupt businesses with debt problems!

The plaintiff went to court to determine whether they needed the court’s permission to proceed with their case under section 215 of the BIA against the bankrupt person’s insolvency trustee. The plaintiff believed they did not need permission, but if they did, they should be granted it. The defendant Trustee argued that permission was needed and should not be granted. The judge ruled that the plaintiff does not need to get permission from the court to start this legal process.

Insolvency trustee appeals lower court decision

On July 13, 2022, the Court of Appeal for Ontario released its decision of the three appellate judge panel on the insolvency trustee‘s appeal of the lower court decision. The OSB obtained intervener status and was represented by legal counsel on the appeal. The OSB supported the insolvency trustee‘s position.

The motion judge, sitting in the bankruptcy court, determined that permission was not required under s. 215 to commence the legal action. However, she expressly did not determine whether, if permission were required, it should be granted. Therefore, she did not address whether the person’s status as an undischarged bankrupt would impact the decision.

The motion judge found that the litigation did not require permission under section 215 for two reasons:

she believed that actions against trustees in their personal capacity do not require permission; and
she found that actions that allege omissions do not require such permission.

Is the appeal as of right, and if not, should leave to appeal be granted?

The Court of Appeal for Ontario first had to decide if the licensed insolvency trustee has an automatic right to appeal the lower court decision and if not, should leave to appeal be granted?

The appellate court stated that it would be willing to grant leave to appeal because the proposed appeal, falls within the proper scope of section 215 of the BIA for 3 reasons:

This case raises an important issue – the circumstances in which an insolvency trustee can be sued without leave of the court – that is of general importance to the practice in bankruptcy/insolvency matters.
The case is prima facie meritorious.
The appeal would not unduly hinder the progress of the person’s bankruptcy proceedings.

The Court of Appeal for Ontario, therefore, gave the Trustee the opportunity to appeal the lower court’s decision.

Insolvency trustees and bankrupts are obliged to work with the court

The lower court found that the action did not require leave under section 215 of the BIA. This is because the judge decided it was against the Trustee in a personal capacity. The Trustee was now appealing this decision. The Trustee argued that section 215 of the BIA applies when a director, officer, or employee of the corporate trustee is sued for the Trustee’s conduct, just as it would if the corporate trustee were sued. The appellate court agreed, relying on a decision from the Supreme Court of British Columbia.

The purpose of BIA section 215 is to ensure that the bankruptcy process is not obstructed by the Trustee being hindered by actual or threatened vexatious lawsuits in connection with the administration of the bankruptcy.

In Canada, most licensed insolvency trustees are corporations. The BIA imposes numerous duties on them. A corporate entity can only discharge its duties through its directors, officers and employees. If the scope of section 215 were limited to protecting only the corporate trustee, then Trustees would be unable to properly carry out their duties.

The Court of Appeal for Ontario in this cased determined that this type of distinction between the corporate trustee and its staff would contravene the clearly expressed will of Parliament as evidenced by the statutory language. To allow such would be to subvert the fundamental purpose of section 215.

The key question in determining whether s. 215 applies is whether the connection contemplated by the section is present. This question is answered by examining the relationship between the alleged wrongdoing complained of in the Action and the role of a trustee. The appellate court looked at the proposed action by the bankrupt person and his current spouse and saw that there was the required connection. Therefore the Court of Appeal for Ontario agreed with the position of the Trustee and the intervener in finding that section 215 does apply in this case.

The other reason the motion judge came to her conclusion was that the action also alleged omissions. The lower court judge determined that a claim for omissions is not covered by section 215. The appellants and the intervener argued that action may fall outside of section 215 only when the crux of the action is the failure to do something expressly and specifically required by the BIA.

The common law claims here arise from alleged failures to act, rather than from failures to do something specifically and expressly required by the BIA. The Court of Appeal believes that section 215 applies to this action, and the motion judge was incorrect in concluding otherwise.

The Court of Appeal for Ontario sent this case back down to the bankruptcy court to decide whether the former bankrupt and his current wife should be allowed to sue the Trustee. insolvency trustee

What you need to know about LITs

Neither myself nor my firm has any kind of involvement in this issue. I have not read any of the pleadings in this action. I wish to be clear with you and let you know, based only on the information available to the public from the court decisions, what I would certainly have done in carrying out the personal bankruptcies if I was the Trustee.

If you’re experiencing financial difficulties and are considering insolvency, the first step is to consult with an insolvency trustee. During this consultation, the Trustee will collect information about your financial affairs and make recommendations about the best course of action for you.

The individual conducting the assessment must inquire about the debtor’s property and financial affairs. They shall prepare a statement of the debtor’s financial affairs, including their assets and liabilities, based on the information obtained from the debtor.

It is also necessary to get a clear and up-to-date monthly income and expenditure statement, which details all income (gross and net), all expenditures (including special needs, alimony, support or maintenance payments, and medical and prescription expenses). The debtor must also be prompted to provide information on all transfers under value they may have made concerning their assets.

There are a few options available to debtors who are struggling financially and looking to improve their financial situation. These debt relief programs include:

non-legislative debt solutions such as debt consolidation or financial counselling sessions performed by credit counselling agencies (insolvency trustees must provide two mandatory credit counselling sessions with the debtor as part of either a proposal or bankruptcy);
consumer proposals under Division II of the BIA;
a proposal under Division I of the BIA for those that do not qualify for a consumer proposal; and
as a last resort, bankruptcy.

What are the duties of an insolvency trustee?

Each debt management plan option has different rights and responsibilities for both the debtor and the creditors. It’s important for the debtor to understand all of the available debt management solutions. I would discuss each one with the debtor and help them choose the one that would be the best for their individual situation. In this particular case, I would want to drill down with the debtor to have him identify the causes of their insolvency. This inevitably would lead to a discussion with this debtor as to why his business seems to be losing so much money every year.

In order to fulfill my duties, I would want to drill down with the debtor to have him identify the causes of their insolvency. This inevitably would lead to a discussion with this debtor as to why his business seems to be losing so much money every year. If the debtor had been able to afford the monthly payments for a consumer proposal to annul his fourth bankruptcy using a different Trustee, could he have avoided filing for bankruptcy a fourth time altogether? I don’t have enough information to know the answer to that question.

I am required to review the bankrupt’s banking transactions for the 12 months prior to the date of bankruptcy as a Trustee. I am looking for any large or unusual transactions, especially large amounts of cash being paid to relatives or friends. This is important in bankruptcy proceedings because the Trustee has a duty to keep creditors updated on any legal proceedings, reviewable transactions, and preference payments. The Trustee needs to consider taking action against anyone to recover funds or, at the very least, opposing the bankrupt’s absolute discharge.

This review is only possible if the bankrupt has accurate records. In this case, if the bankrupt had the records and I reviewed them, I would have either found or not found any unusual transactions. If I did the review, it may have uncovered the alleged fraud.

The former bankrupt claims that the insolvency trustee should have sued the former wife for taking cash out of his business fraudulently. As a Trustee, I must first determine whether there are sufficient funds available to do so. If there are funds available, I must then carefully consider whether pursuing legal action is in the best interests of the estate.

This also assumes that the Trustee’s lawyer has given the opinion that this is a strong case to pursue. The Trustee must be very cautious because if the case is lost, the Trustee will be responsible for the other party’s legal costs awarded by the court. If the bankruptcy estate has insufficient funds, the Trustee will be held personally responsible. This is not a desirable outcome.

If I had found evidence of the alleged fraud and I either did not have sufficient funds to launch a legal action or I did not think it was a wise use of estate funds, there is one more thing I could do and would have done.

I would write to all known creditors and the bankrupt to advise that there is a potential asset in the form of litigation against the bankrupt’s former wife. However, the Trustee does not have sufficient assets to begin the litigation and as a result, I must refuse to pursue this asset. I would also explain section 38 of the BIA. This section allows creditors to obtain court approval to pursue legal action in their own name. If successful, they are able to keep their costs and the full amount of their claim from the recovery. This could be a great option for creditors who wish to fund the legal action.

If the facts that come out align with my explanation of the steps I would have taken, then my prediction is that the former bankrupt and his current wife will not be successful in persuading the court to allow them to continue their action against the Trustee. I will keep watch. insolvency trustee

The insolvency trustee is here to help you with your problem debt

I understand that you’re struggling with debt and I’m here to help. I am an insolvency trustee and I want to help you find a way to shed your debt, eliminate your challenging debt issues, improve your financial future and get all that stress and worry out of your life, Starting Over Starting Now.

I hope you found this insolvency trustee Brandon’s Blog interesting. Among the many problems that can arise from having too much debt, you may also find yourself in a situation where bankruptcy seems like a realistic option.

If you are dealing with substantial debt challenges and are concerned that bankruptcy may be your only option, call me. I can provide you with debt help.

You are not to blame for your current situation. You have only been taught the old ways of dealing with financial issues, which are no longer effective.

We’re passionate about permanently solving your financial problems with you and getting you or your company out of debt. We offer innovative services and alternatives, and we’ll work with you to develop a personalized preparation for becoming debt-free which does not include bankruptcy. We are committed to helping everyone obtain the relief and financial wellbeing they need and are worthy of.

You are under a lot of pressure. We understand how uncomfortable you are. We will assess your entire situation and develop a new, custom approach that is tailored to you and your specific financial and emotional problems. We will take the burden off of your shoulders and clear away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

Call or email us. We can tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. If any of this sounds familiar to you and you’re serious about finding a solution, let us know.

Call us now for a no-cost initial consultation.

Tags bankruptcy canada, bankruptcy proceedings, bankruptcy trustee, Consumer Proposal, credit counselling, debt consolidation, debt management, debt settlement, initial consultation, insolvency trustee, insolvency trustee canada, Ira Smith Trustee, licensed insolvency trustee, monthly payments, Office of the Superintendent of Bankruptcy, personal bankruptcy

Brandon Blog Post

WHAT DOES A LICENSED INSOLVENCY TRUSTEE DO TO HELP IN YOUR MANAGING DEBT FOR A PROFOUND QUALITY OF LIFE?

Post author By Brandon Smith
Post date March 21, 2022

what does a licensed insolvency trustee do

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

What does a licensed insolvency trustee do?: What is a licensed insolvency trustee?

Frequently I am asked what does a licensed insolvency trustee do? How is it different from a bankruptcy trustee? The answer is it isn’t different. The term bankruptcy trustee is dated.

The new title is Licensed Insolvency Trustee. The Office of the Superintendent of Bankruptcy (OSB) changed it in 2015. Among the reasons for the name change were the submissions made by the Canadian Association of Insolvency and Restructuring Professionals. As the name suggests, a licensed insolvency trustee can offer a wider array of financial solutions.

This Brandon’s Blog is intended to describe what does a licensed insolvency trustee do and to provide useful information for you to help you better understand the debt relief advice that a Trustee provides to people, entrepreneurs, and their companies experiencing financial trouble.

What does a licensed insolvency trustee do?: Licensed insolvency trustees are professionals who are federally regulated

There are many terms in the insolvency field that the average person isn’t familiar with, which is why it’s important to understand what the licensed insolvency trustee does. Trustees are licensed and supervised by the federal government through the OSB to act as personal and corporate insolvency administrators. This means they act to protect the interests of all involved parties while assisting debtors, acting as a debt counselor, a restructuring advisor, and if required, overseeing the bankruptcy process.

Licensed insolvency trustees are professionals with a background in finance, law, accounting, and insolvency. They assist businesses and individuals who are struggling financially. Typically, licensed insolvency trustees meet with clients to discuss their financial situation and offer advice and recommendations to help get the client out of a financial bind.

What does a licensed insolvency trustee do?: The credit counselor or a debt management program as an alternative

Financial guidance is offered by licensed insolvency trustees, credit counselors, and debt management programs. These services differ greatly from each other.

A licensed insolvency trustee can simply offer you financial advice and help you plan on how to repay your debts if that is all you need. A trustee is also the only person who can file a bankruptcy or consumer proposal for you. A Trustee will provide you with an initial no-cost confidential consultation to see if there are alternatives to bankruptcy for you. Credit counselors, credit counselling companies, and debt management businesses can give you financial advice and information. They can help you make a budget and make plans to repay your debt.

What does a licensed insolvency trustee do when you have debt but do not need to resort to one of the insolvency processes? During the free initial consultation, if a consumer proposal or bankruptcy is not right for you, the Trustee will refer you to see a community organization-based credit counselor who will be able to help you and also will not charge you a fee.

What does a licensed insolvency trustee do?: The Consumer Proposal Process

Consumer proposals to creditors are made by debtors and are legally binding agreements. You group all your debts into a consumer proposal to creditors. This is a debt solution to avoid bankruptcy. Your creditors agree to accept a reduced amount as full payment. The consumer proposal is a legal alternative to bankruptcy. Only a licensed insolvency trustee can administer it.

The only consumer insolvency restructuring proceeding regulated by the Canadian government is referred to as a consumer proposal (which is the only one of the consumer insolvency government-regulated insolvency proceedings that allow debt consolidation, debt settlement, or debt adjustment). In the end, your creditors write off the remainder of your debt, and you are released from those legal obligations.

If you owe $250,000 or less (not including any personal mortgages) and are insolvent, then you can qualify for a consumer proposal. Month-to-month payments over no more than 60 months need to be made to the Trustee. You pay just a part (generally 25%) of your total financial obligations gradually to the Trustee and when ended up, the rest of the balance owing to your unsecured creditors is written off.

What does a licensed insolvency trustee do?: The bankruptcy process

Canadian bankruptcy is a process whereby a person or company can declare itself bankrupt. The bankruptcy process starts in the provincial or territorial office of the OSB where the debtor is located.

In Canada, personal bankruptcy entails a number of stages. The debtor must be insolvent, meaning that they cannot repay their debts with the assets that they own or the income they earn. With the help of the Trustee, they must file statements of affairs and a statement of current income and expenses. There are other obligations on an undischarged bankrupt but that is not the purpose of this blog.

Upon receiving their discharge from bankruptcy, that is the moment that the debtor’s debts are forgiven or discharged.

What does a licensed insolvency trustee do?: The assignment of assets

When people file assignments in bankruptcy, what does a licensed insolvency trustee do with the assets? Any assets not charged by a secured creditor are available for the Trustee to take possession of. Those assets are usually things like real estate, cash, and vehicles. When assets are seized in bankruptcy the proceedings usually lead to them being sold and the proceeds are shared with creditors.

This is the main difference between a consumer proposal and bankruptcy. In a consumer proposal, there is no assignment of assets to the Trustee like in a bankruptcy. The debtor in a consumer proposal keeps their assets and makes monthly payments. It is the total of the monthly payments that the Trustee distributes to the creditors in a consumer proposal. In a bankruptcy, it is the proceeds of the asset sales.

What does a licensed insolvency trustee do?: Opting for a consumer proposal

Many people I deal with have significant debt problems. However, a consumer proposal may not be the best option for everyone. Opting for a consumer proposal means not only do you qualify under Canadian insolvency legislation to use one. It also means that it is a better alternative for you than personal bankruptcy. It means that you are able to restructure and not need bankruptcy services from a licensed insolvency trustee.

A consumer proposal is a way to get out of debt without declaring bankruptcy. If you are having trouble paying back credit card bills, medical bills, rent payments, and you don’t want to declare bankruptcy, a consumer proposal might be right for you.

Before opting for a consumer proposal, you must meet the following requirements:

Total liabilities of $250,000 or less.
Monthly payments can be made to your creditors, but not 100% of the total amount due.
You cannot repay all of your debts with the money you have.
If you work and are able to budget, you can pay your budgeted monthly expenses and have money left over for regular monthly payments to the Trustee. Under a debt management plan, your creditors will agree to write off a portion of your debt if you pay a fraction of what you owe.
You may also be lucky enough to have a relative willing to put up a lump sum of money that represents a fraction of what you owe so that your unsecured creditors will accept it instead of all that you owe. This means that you can be in and out of your consumer proposal fairly quickly if you are in this fortunate position.

To summarize, consumer proposals are best suited to people with a sufficient disposable income. Consumer proposals offer the best way of restructuring, eliminating your unsecured debts, and avoiding bankruptcy.

There are restructuring provisions in the Bankruptcy and Insolvency Act (Canada) for people who owe more than they can discharge in a consumer proposal or in business insolvency. Despite some differences in the rules, the overall theme of restructuring remains the same.

What does a licensed insolvency trustee do?: Going the bankruptcy route

Given the above, what can a person do to eliminate their unsecured debt if they cannot qualify for filing a consumer proposal as an alternative to bankruptcy? Going the bankruptcy route will probably make the most sense.

Bankruptcy is when a person cannot pay their bills. They file Canadian personal bankruptcy to get a fresh start. Filing a consumer bankruptcy must be your last resort after exhausting all other options to avoid bankruptcy. Bankruptcy means debts are written off when the person receives their absolute discharge from bankruptcy. The bankruptcy law in Canada protects people from dishonest, unfair, or abusive practices by creditors.

However, in return for getting the relief of eliminating debts through bankruptcy, an undischarged bankrupt also has certain responsibilities.

These include:

Making full disclosure to the Trustee.
With the assistance of the Trustee, preparing the sworn Statement of Affairs and Statement of Income and Expenses.
Delivering all assets and properties to the Trustee to be sold (other than for certain provincial exemptions).
Attending the First Meeting of Creditors if one needs to be held.
Attending two financial counselling sessions with the Trustee or a member of the Trustee’s staff. Attendance at credit counseling sessions is also the case in a consumer proposal.
Providing monthly statements of income and expenses while an undischarged bankrupt.
Generally providing any assistance requested by the Trustee.

In providing debt-relief options, the Canadian bankruptcy system is designed to provide fairness to both debtors and creditors while allowing the person to financially rehabilitate themselves.

what does a licensed insolvency trustee do

What does a licensed insolvency trustee do?: Final thoughts

What does a licensed insolvency trustee do? Licensed insolvency trustees are insolvency practitioners. They are debt professionals who deal with and provide services to individuals and businesses with debt problems that are experiencing financial issues that can only be resolved through an insolvency process. Licensed insolvency trustees are professionals, offering affordable solutions to financial struggles.

I hope you found this what does a licensed insolvency trustee do Brandon’s Blog about helpful. Sometimes things are too far gone and more drastic and immediate triage action is required.

Do you have too much debt? Are you in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt. You are worried because you are facing significant financial challenges.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team. That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious in finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation.

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

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Consumer Proposal Means Financial Recovery: Introduction

Consumer Proposal Means Financial Recovery: What is a Consumer Proposal?

Key Features of What a Consumer Proposal Means

Eligibility requirements

Types of debts included

Duration of repayment period

A Consumer Proposal Process Means There Are Both Advantages (Pros) and Disadvantages (Cons)

Advantages (Pros) of a Consumer Proposal

Disadvantages (Cons) of a Consumer Proposal

Consumer Proposal Means Understanding the Impact of Bankruptcy and Consumer Proposals on Your Credit

Initial Effects on Your Credit Score After Filing

How Your Situation Before Filing Plays a Role

Debunking Common Myths Surrounding What a Consumer Proposal Means

Stigma and Myths

The Importance of Understanding The Timeline

Consumer Proposal Means You Need To Take Practical Steps to Rebuild Your Credit Post-Bankruptcy or Consumer Proposal

1. Sign Up for Credit Monitoring Services

2. Open a Secured Credit Card

3. Establish Automatic Payments

Why Monitor Your Credit Regularly?

A Consumer Proposal Means There Are Common Pitfalls in the Credit Rebuilding Process

Ignoring Your Credit Report Post-Filing

Applying for Too Much Credit at Once

Not Keeping Track of Payments and Due Dates

Why Monitoring Your Credit Matters

After A Consumer Proposal Means You Need Long-Term Strategies for Sustaining Good Credit

Avoid Unnecessary Debt

Build an Emergency Savings Fund

Seek Professional Advice for Complex Situations

Accountability is Key

The Journey Doesn’t End

A Successful Consumer Proposal Means Inspirational Success Stories: Rebuilding Against the Odds

Lessons We Can Learn From Others

The Importance of Support Systems

Staggering Data on Credit Recovery

Consumer Proposal Means Financial Recovery: Conclusion

Bank ruptcy: Introduction

Bank ruptcy: What is Bankruptcy and Where Did the Word Originate?

Bank ruptcy: Are you ready to take control of your financial life and gain peace of mind?

Bank ruptcy: Reasons for Filing for Bankruptcy

Common financial difficulties

Consumers

Businesses

Impact of debt on individuals and businesses

Bank ruptcy: The Bankruptcy Process in Canada

Obtaining a Free Debt Assessment

Necessary Forms to Declare Bankruptcy

Role of Licensed Insolvency Trustees

Advantages of Filing for Bank ruptcy in Canada

Bank ruptcy: Resources for Bank ruptcy Information

Bank ruptcy Conclusion: Moving Forward After Bank ruptcy

Debt relief options: Introduction

Debt relief options: What is debt relief?

Debt relief options: Why managing debt is crucial

Debt relief options: Office of the Superintendent of Bankruptcy (Canada)

Debt relief options: The difference between good and bad debt relief service providers

Debt relief options: Factors to consider when choosing a debt relief service

Certification and accreditation of the debt relief service provider

Transparent fee structure

Customer reviews and rating

Debt relief options: Tips for managing your debt

Credit counselling

Debt consolidation

Debt settlement

Consumer proposal

Bankruptcy

Debt relief options: Conclusion

Consumer debt proposals eliminate your debt stress

Consumer debt proposals: How Does a Consumer Proposal Work?

Consumer debt proposals: The voting process

Consumer debt proposals: What happens if your offer is approved?

Consumer debt proposals: What happens should your consumer proposal be declined?

Consumer debt proposals: If you fulfill the requirements of your consumer proposal

Advice for Consumers: Considerations for Debt Relief and Credit Repair Services

Consumer debt proposals: Organizations or firms cannot guarantee the resolution of your financial obligations

Consumer debt proposals: No company or agency can give you a fast and easy boost to your credit rating

Consumer debt proposals: Paying off a consumer proposal early

Consumer debt proposals: LITs cannot talk you into getting a loan with a high-interest rate to pay off your consumer proposal early

You Have Outstanding Financial Obligations — Consumer Debt Proposals

Gambling help Ontario: What is gambling?