Tag: debt collectors

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PROVEN DEBT COLLECTION TIPS AND STRATEGIES TO MAXIMIZE RECOVERY: A LAWYER AND ACCOUNTANT’S COMPREHENSIVE GUIDE

woman on phone witih debt collector with money in chains representing she cannot pay her debts

Importance of Effective Debt Collection

Welcome to our comprehensive guide on debt collection strategies! In this Brandon’s Blog, you will discover many proven tips to maximize recovery and enhance your success rates in debt collection. Whether you are an experienced collector, just starting, or are an accountant or lawyer trying to help educate your clients, this resource is designed to equip you with effective methods for recovering unpaid debts.

From industry best practices to innovative tools and techniques, we provide valuable insights to help you streamline your collection processes and boost debt recovery. Stay tuned to learn how to optimize your approach and achieve better results in debt collection. Let’s elevate your success in debt recovery together!

Overview of the Debt Collection Process

The debt collection process is a crucial aspect of financial management that requires a strategic and systematic approach. It involves a series of steps to recover outstanding debts while maintaining positive relationships with debtors. From initial contact to negotiation and resolution, each stage demands precision and professionalism to ensure a successful recovery.

Understanding the legal framework, utilizing effective communication techniques, and leveraging technology are key components of a well-rounded debt collection process. Organizations can maximize recovery rates and optimize their financial performance by following best practices and implementing proven strategies. A comprehensive debt collection process overview is essential for success in debt recovery endeavours.

The Impact of Outstanding Debts on Businesses

Outstanding debts can have a significant impact on businesses of all sizes. When customers fail to pay for the products or services they have received, it can lead to a domino effect of financial challenges for the business. Here are some of the key ways in which outstanding debts can affect a business:

Cash Flow Strain: One of the most immediate impacts of outstanding debts is the strain it puts on the business’s cash flow. When invoices go unpaid, it can disrupt the regular flow of income into the business, making it difficult to cover operational expenses, pay employees, or invest in growth opportunities.

Hindered Growth Opportunities: Businesses rely on a healthy cash flow to invest in new projects, expand their operations, or launch new products and services. When a significant portion of the revenue is tied up in outstanding debts, it can hinder the business’s ability to seize growth opportunities and stay competitive in the market.

Profitability Challenges: Unpaid invoices directly impact the profitability of the business. As debts accumulate, it can lead to a decrease in profit margins, making it harder for the business to generate revenue and sustain its operations in the long run.

Damage to Reputation: Failing to collect outstanding debts can also damage the business’s reputation. Customers may view the business as unreliable or unprofessional if they repeatedly encounter issues with payments or outstanding debts. This can lead to a loss of trust and loyalty among customers, ultimately affecting the business’s bottom line.

Legal Risks: In some cases, businesses may face legal risks if they are unable to collect outstanding debts. Legal actions or disputes with customers can be time-consuming, costly, and damaging to the business’s reputation. Businesses need to have a solid debt collection strategy in place to minimize these risks and protect their interests.

Overall, outstanding debts can have a ripple effect on the financial health, growth opportunities, and reputation of a business. By implementing effective debt collection strategies and working with professional debt collection agencies, businesses can mitigate these risks and ensure a healthier financial future.

Understanding the Impact of Credit History and Credit Reports on Debt Collection

Debt collectors need to have a comprehensive understanding of how credit history and credit reports impact consumer behaviour. By gaining insight into these complexities, debt collectors can improve their communication and collaboration with debtors to reach mutually beneficial resolutions effectively.

This knowledge not only facilitates smoother interactions but also enables debt collectors to operate with professionalism and ethics. It enhances the likelihood of successful collections by customizing discussions to address debtors’ concerns about maintaining a positive credit score and credit report.woman on phone witih debt collector with money in chains representing she cannot pay her debts

Understanding Debt Collection Tools and Systems

The Role of Artificial Intelligence in Debt Collection

Artificial Intelligence (AI) is revolutionizing the debt collection industry by providing businesses with innovative tools and technologies to improve their debt recovery processes. AI-powered solutions offer a wide range of benefits, including increased efficiency, accuracy, and scalability. Here are some key ways AI is transforming debt collection:

Automated Data Analysis: AI algorithms can analyze vast amounts of customer data to identify patterns and trends that can help businesses better understand customer behaviour and payment patterns. This insight allows businesses to develop more targeted and personalized debt collection strategies.

Predictive Analytics: AI-powered predictive analytics can forecast which customers are most likely to default on their payments, allowing businesses to prioritize high-risk accounts and allocate resources more effectively. This proactive approach can significantly improve debt recovery rates.

Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can interact with customers in real time, providing personalized assistance and support throughout the debt collection process. These virtual agents can answer customer inquiries, negotiate payment terms, and even process payments, all while maintaining a high level of customer satisfaction.

Machine Learning: AI algorithms can continuously learn and adapt to new data, enabling businesses to optimize their debt collection strategies based on real-time insights. By leveraging machine learning capabilities, businesses can improve their collection efforts and maximize recovery rates.

Compliance and Risk Management: AI-powered solutions can help businesses ensure compliance with regulations and reduce the risk of non-compliance penalties. These tools can flag potential compliance issues, monitor regulatory changes, and provide guidance on best practices for debt collection.

AI is crucial in revolutionizing debt collection practices, helping businesses streamline their processes, improve efficiency, and maximize debt recovery rates. By leveraging AI-powered solutions, businesses can stay ahead of the curve and achieve award-winning collections success.

Benefits of Using Debt Collection Agencies

The benefits of using debt collection agencies include:

Efficient Recovery: Debt collection agencies specialize in recovering outstanding debts promptly and efficiently, ensuring a higher recovery rate.

Expertise and Industry Knowledge: Debt collection agencies have specialized knowledge of debt recovery laws, regulations, and best practices, enabling them to navigate the complexities of debt collection with precision.

Professional Expertise and Experience: Debt collection agencies bring a wealth of expertise and experience to the table, using successful tactics customized to each debtor’s situation to maximize recovery rates.

Streamlined Operations: By outsourcing debt collection to experts, businesses can focus on their core operations while the debt collection agency handles the details of debt recovery.

Improved Cash Flow: Recovering unpaid debts can improve cash flow and financial stability for businesses, enabling them to invest in growth opportunities and future success.

The Power of Online Payments in Debt Recovery

In today’s digital age, online payments have revolutionized the way organizations approach debt recovery. With the rise of self-service portals and digital payment platforms, customers have more control over their repayment options, leading to a more positive and efficient debt recovery experience.

One of the key advantages of online payments in debt recovery is the convenience it offers to past-due customers. By allowing customers to set up payment schedules, review their payment history, and make secure payments online, organizations are empowering customers to take charge of their debt repayment journey. This self-service approach not only gives customers a sense of control but also reduces the likelihood of resistance when it comes time to pay back.

Moreover, online payments streamline the debt recovery process for organizations as well. Debt collection software enables organizations to accept online payments without involving third-party merchants, ensuring added security and lower costs. Additionally, automated reminders and notifications can be sent to past-due customers, prompting them to make timely payments and reducing the manual workload for recovery teams.

By implementing a digital-first contact strategy and leveraging debt collection software, organizations can bridge the gap between customer expectations and the reality of debt recovery. Automating debt-collection tasks, such as implementing chatbots and virtual assistants, allows companies to scale up their debt-collecting operations without the need to hire more agents or allocate additional resources.

Segmentation based on the likelihood of self-cure and prioritization is also crucial in managing multiple past-due accounts effectively. By categorizing accounts based on their risk of non-recovery and legal implications, organizations can focus on addressing older debts with higher risks first and prevent further complications.

The power of online payments in debt recovery lies in its ability to provide customers with a convenient and secure way to repay their debts while streamlining the debt recovery process for organizations. By embracing digital payment solutions and automation, organizations can enhance the customer experience, improve collection rates, and ultimately achieve their debt recovery goals more efficiently.

Debt Collection: Establishing Effective Communication with Debtors

Communication Techniques are crucial in debt collection to maintain professionalism and foster positive relationships with debtors. By practicing active listening and empathy, collectors can better understand the debtor’s situation and work towards mutually beneficial solutions. Clear and transparent communication is key to conveying expectations, deadlines, and consequences effectively. Maintaining a professional demeanour in all interactions helps build trust and credibility, increasing the likelihood of successful debt recovery.

The Importance of Communication in Debt Collection

Clear and transparent communication is essential in debt collection to build trust and maintain positive relationships with debtors. By clearly explaining the debt situation, including outstanding amounts, due dates, and consequences of non-payment, collectors can ensure debtors understand their obligations.

Transparency in communication also involves providing accurate information about payment options, negotiation terms, and any legal implications.

This approach fosters cooperation and reduces misunderstandings, leading to more successful debt recovery outcomes. Maintaining a professional tone throughout all interactions and being open and honest in communication can help collectors establish credibility and increase the likelihood of recovering unpaid debts.

Effective Communication Techniques for Successful Debt Collection

Effective communication is essential in debt collection to build trust, foster transparency, and ultimately achieve successful debt recovery. By implementing the following communication techniques, creditors can enhance their interactions with debtors and improve their chances of recovering outstanding debts.

Personalization: When communicating with debtors, it is crucial to treat them as individuals rather than just an account number. Addressing them by their name and showing empathy towards their situation can help establish a more positive relationship and increase the likelihood of cooperation.

Clarity and Transparency: Communicate the terms of the debt, including the amount owed, due dates, and consequences of non-payment. Avoid using jargon or complex language that may confuse debtors, and be transparent about any fees or charges associated with the debt.

Active Listening: Listen attentively to debtors’ concerns, questions, and reasons for non-payment. By demonstrating active listening skills and showing an understanding of their perspective, creditors can build rapport and potentially find mutually beneficial solutions to resolve the debt.

Maintain a professional demeanour: While it is important to be empathetic and understanding towards debtors, it is equally important to maintain a professional demeanour in all interactions. Avoid using aggressive or threatening language, and always remain courteous and respectful, even in challenging situations.

By implementing these effective communication techniques in debt collection efforts, creditors can build stronger relationships with debtors, increase the likelihood of debt recovery, and ultimately improve their overall financial health. Remember, successful debt collection is about collecting money maintaining positive relationships and fostering trust with debtors.

Leveraging Communication Channels for Maximum Results

Effective communication is key in debt collection efforts, as it plays a significant role in building trust, resolving conflicts, and ultimately recovering debts. By leveraging various communication channels strategically, creditors can enhance their chances of successful debt recovery. Here are some tips on how to maximize the use of communication channels in debt collection:

Utilize Multiple Platforms: In today’s digital age, creditors have a plethora of communication channels at their disposal. Utilize emails, phone calls, text messages, and even social media platforms to reach out to debtors. By diversifying your communication channels, you increase the chances of getting a response from debtors and prompt them to take action on their outstanding debts.

Tailor Your Message: When communicating with debtors, it’s essential to tailor your message to suit their preferences and circumstances. Personalize your communication by addressing debtors by their name, acknowledging their specific debt, and outlining clear steps for resolution. By showing empathy and understanding, you can build a rapport with debtors and encourage them to cooperate in repaying their debts.

Define Expectations Clearly: Clearly outline the terms of the debt, including deadlines, consequences of non-payment, and available options for repayment. By setting clear expectations from the outset, you reduce the likelihood of misunderstandings and disputes down the line. Be transparent about the consequences of non-compliance while also offering assistance and flexibility where possible.

Provide Regular Updates: Maintain consistent communication with debtors by providing regular updates on the status of their debt. Keep them informed of any progress made in resolving the debt, any payments received, and any changes in the repayment plan. By keeping debtors in the loop, you demonstrate your commitment to resolving the issue and fostering transparency in the debt collection process.

By effectively leveraging communication channels in debt collection, creditors can improve their chances of recovering outstanding debts while maintaining positive relationships with debtors. Clear, personalized, and consistent communication can go a long way in facilitating successful debt recovery follow-ups and enhancing cash flow for businesses.woman on phone witih debt collector with money in chains representing she cannot pay her debts

Debt Collection: Maintaining a Healthy Cash Flow and Financial Health

The Importance of Timely Payments for Cash Flow Management

Effective debt collection procedures are essential for maintaining a stable cash flow and financial health. Timely receipt of customer payments is crucial for ensuring that a company has the necessary funds to cover expenses and sustain operations. Prompt payment settlements also help reduce the risk of bad debt and enhance the overall financial well-being of the organization.

Delays or missed payments can significantly impact cash flow, leading to disruptions in the debt collection process. Therefore, businesses must prioritize timely payments to ensure efficient cash flow management and successful debt collection.

Strategies for Overcoming Financial Difficulties and Collecting Outstanding Balances

Many businesses face financial difficulties due to various reasons such as unexpected expenses or economic downturns. As a result, collecting outstanding balances has become a challenging task for debt collectors. To overcome these difficulties, it is important to implement effective debt collection strategies that not only help in recovering the outstanding balances but also maintain a positive relationship with the debtors.

Strategies include proactive communication, offering flexible payment plans, and utilizing the services of professional debt collection agencies. By using these strategies, debt collectors can navigate through financial difficulties and successfully collect outstanding balances while maintaining professionalism and empathy towards the debtors.

Legal Considerations and Risk Management in Debt Collection

Legal considerations and risk management are pivotal components in the realm of debt collection practices. The provinces establish the laws that debt collectors must abide by. In Ontario, debt collectors are obliged to abide by the Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14. Lenders regulated at the federal level, must adhere to appropriate federal laws, to avoid negative legal repercussions. This entails upholding accurate and timely communication with debtors, respecting their privacy, and refraining from engaging in any form of harassment or deceitful methods.

Furthermore, debt collectors must possess a comprehensive understanding of the potential risks entailed in debt collection, such as potential lawsuits or detrimental effects on their own or their clients’ reputations. By implementing effective risk management strategies, such as meticulous documentation and compliance procedures, these risks can be mitigated, ultimately ensuring that debt collection practices are conducted ethically and lawfully.

Through the prioritization of legal considerations and risk management, debt collectors can uphold a professional and esteemed image, while effectively recovering debts.woman on phone witih debt collector with money in chains representing she cannot pay her debts

Debt Collection Conclusion

I hope you enjoyed this debt collection from Brandon’s Blog. This is the final blog in our “Lawyers and Accountants” series. Individuals and business owners must take proactive measures to address financial difficulties, consumer debt and company debt 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 with debt problems 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 and more associated with your company debt are obviously on your mind.

The Ira Smith Team understands these overwhelming debt financial health concerns. More significantly, we know the requirements of the business owner or the individual who 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, to begin your debt-free life, Starting Over, Starting Now.woman on phone witih debt collector with money in chains representing she cannot pay her debts

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DEBT MANAGEMENT PROGRAM VS. BANKRUPTCY: OUR CHEAT SHEET HELPS YOU TO CHOOSE THE RIGHT OPTION FOR YOUR FINANCIAL SITUATION

A split picture. On one side is a woman sitting at a neat and clean desk symolizing that all of her debts are under control. On the other half of the split screen is a worried man standing in front of a messy desk with bills spilling all over the place to symbolize a person with debts out of control and needing a debt management plan or to file for bankruptcy.

Debt Management Program: Introduction

Are you drowning in credit card debt, tax debt or any other debt and feeling overwhelmed by mounting interest charges? Are you behind in some or all of your debt payments? Is there a collection agency hounding you? It’s a common struggle, especially with the recent increases in interest rates. But fear not, there are debt relief options available to help you regain control of your finances. Two popular choices are a debt management program and bankruptcy, but there are key differences to consider.

In this Brandon’s Blog post, we will explore the differences between these two options and guide you on how to choose the right one for your unique financial situation. Read on to discover the path to financial freedom.

Understanding a Debt Management Program

A debt management program offers a way to pay off high-interest credit card balances without resorting to bankruptcy. However, it’s important to note that a debt management program may not be the best solution for everyone. It is most effective when your debt amount is manageable and you have assets you want to protect.

If you find yourself in this situation, a debt management plan can help you lower your overall payment to a more affordable amount, without the need for legal filings or interventions. This means you can keep your valuable possessions, such as homes, cars, and other assets. Additionally, debt relief allows for a more gradual approach, giving you the flexibility to regain your financial footing over time.

Is a debt management program right for you?

When you find yourself overwhelmed by debt, exploring debt management program options may provide a much-needed solution. However, determining whether a debt management plan is ideal for your situation requires careful consideration.

Debt Amount Consideration

A debt management program tends to be most effective when your debt amount is manageable. While the specific threshold varies depending on individual circumstances, having a debt level that you can realistically work to pay off over time is typically more conducive to successful debt management program outcomes.

You also need to separate secured debt from unsecured debt. Secured debt is what its name sounds like. The debt is secured against one or more of your assets, such as an auto loan. If you need the asset and its value is greater than the amount of debt against it, the secured lender will not be motivated to amend the amount you owe.

One of the key advantages of a debt management program is that it generally does not necessitate any legal filings or interventions. This streamlines the process and makes it more accessible to individuals seeking relief from their financial burdens. By avoiding legal procedures, a debt management program can offer a more straightforward and efficient path to debt resolution.

Use of Credit and Affordability

A debt management program allows you to continue using credit while you work towards repaying your debts. This can be particularly beneficial for maintaining essential expenses and managing unexpected costs during the debt management program process. Additionally, a debt repayment program often offers an affordable and gradual approach to debt repayment, making it suitable for individuals looking to regain financial stability without experiencing overwhelming financial strain or having the negative impact on your credit score that happens with bankruptcy.

Overall, the decision to pursue a debt management program should be based on a comprehensive evaluation of your financial situation and goals. By considering factors such as the amount of debt you owe, the convenience of the process, and the affordability of the options available, you can determine whether a debt management program aligns with your needs and priorities.A split picture. On one side is a woman sitting at a neat and clean desk symolizing that all of her debts are under control. On the other half of the split screen is a worried man standing in front of a messy desk with bills spilling all over the place to symbolize a person with debts out of control and needing a debt management plan or to file for bankruptcy.

Debt Management Program: Considering Bankruptcy

A bankruptcy filing, on the other hand, provides a more immediate solution for those facing crushing debt loads. It can be the right choice when you owe significant amounts of credit card debt, unsecured personal loans, or other unsecured debts that far exceed your means. The bankruptcy process offers unparalleled debt elimination, but it comes with serious trade-offs.

Your credit score may be negatively impacted for a period of seven to ten years, making it a less favourable option if you have good or marginal credit and owe only a few thousand dollars. However, if your credit is already severely impaired, filing bankruptcy may be a quicker and more efficient way to resolve your debt burdens.

Is bankruptcy right for you?

Bankruptcy is a difficult financial decision that many individuals may consider when they find themselves overwhelmed by debt and unable to manage their financial obligations. While bankruptcy is a serious process under the Bankruptcy and Insolvency Act (Canada) with long-term consequences, it can also provide a fresh start for those in dire financial circumstances.

Relief from Crushing Debt Load

One of the primary reasons individuals opt for bankruptcy is the overwhelming burden of debt they carry. When debts become unmanageable, it can lead to constant stress, sleepless nights, and strained relationships. Filing for bankruptcy can provide relief by allowing individuals to eliminate or restructure their debts to a more manageable level.

By working with a Licensed Insolvency Trustee (LIT), individuals can develop a repayment plan or proceed with liquidating assets to pay off debts. This process can help individuals regain control of their finances and start anew with a more sustainable financial future.

Solution for Badly Damaged Credit

For individuals with severely damaged credit, bankruptcy can offer a way to address their financial challenges and start rebuilding their credit history. While bankruptcy harms credit scores initially, it also provides an opportunity for a fresh start.

By discharging debts through bankruptcy, individuals can eliminate the burden of overdue payments and past defaults that have been dragging down their credit rating. With a clean slate, individuals can gradually rebuild their credit by managing new credit responsibly and demonstrating improved financial habits.

Unlike other debt management program options, bankruptcy offers a relatively quick resolution to financial problems. Depending on the type of bankruptcy filed, individuals can receive a discharge of their debts within less than 1 year to a few years, depending on the circumstances. This allows them to move forward without the weight of excessive debts.

Keep in mind that your discharge of debt does not take place until you are discharged from your bankruptcy. A few kinds of debt cannot be discharged through bankruptcy, but most people get their entire debt discharged.

Additionally, bankruptcy provides legal protections against creditors, wage garnishment, and foreclosure. Once an individual files for personal bankruptcy, an automatic stay goes into effect, preventing creditors from taking collection actions such as wage garnishment or repossession of assets.

This legal protection can provide individuals with much-needed relief and breathing room to address their financial situation. The downside of bankruptcy of course is that your non-exempt assets must be turned over to the Trustee to be sold.

The only Debt Management Program Approved By The Canadian Government

There is only one debt management program approved by the Canadian Government and it is an excellent option for those with a steady income. This government-approved form of debt relief is called a consumer proposal. It is the only government-approved debt settlement plan available in Canada and is an alternative to a liquidation bankruptcy. It is not as drastic as personal bankruptcy but has most of the bankruptcy protection elements making it more potent than in a debt management program.

A consumer proposal is a legal process also under the BIA designed to help individuals settle their debts with creditors in a manageable way. It provides a structured framework for debt repayment while offering protection from creditors’ collection actions. Let’s delve deeper into the key aspects of a consumer proposal.

When an individual is struggling with overwhelming debt and is unable to keep up with payments, a consumer proposal can be a viable solution. This process involves working with a LIT to create a formal proposal to creditors outlining a revised payment plan. The proposal typically includes an offer to repay a portion of the total debt over a set period, based on the individual’s financial situation.

Once the consumer proposal is submitted to the creditors, they have the opportunity to review and vote on the proposal. If the majority of creditors accept the terms of the proposal, it becomes a legally binding agreement, and the individual is bound to fulfill the revised payment plan.

Allows Debtor to Make a Formal Proposal to Creditors

One of the key benefits of a consumer proposal is that it allows debtors to take an active role in addressing their financial difficulties. Instead of facing aggressive collection actions from creditors or considering bankruptcy as the only option, individuals can work with a LIT to craft a proposal that is fair and feasible for both parties.

By making a formal proposal to creditors through a consumer proposal, debtors have the opportunity to demonstrate their commitment to repaying their debts in a structured manner. This not only helps in resolving financial issues but also allows individuals to regain a sense of control over their financial future.

Provides Protection from Creditors’ Collection Actions

Like bankruptcy, one of the significant advantages of opting for a consumer proposal is the protection it offers from creditors’ collection actions. Once the proposal is filed, an automatic stay of proceedings is initiated, which prevents creditors from pursuing legal actions, such as wage garnishments or asset seizures, against the debtor.

This protection provides individuals with relief from the constant stress and pressure of dealing with aggressive collection attempts. It allows them to focus on adhering to the terms of the consumer proposal and working towards becoming debt-free without the fear of immediate consequences from creditors.

In conclusion, a consumer proposal is a valuable tool for individuals facing overwhelming debt and seeking a structured way to settle their obligations with creditors. By understanding the legal process, the opportunity it provides to make a formal proposal, and the protection it offers from debt collectors’ collection efforts and legal actions, individuals can make informed decisions to improve their financial situation and work towards a debt-free future.A split picture. On one side is a woman sitting at a neat and clean desk symolizing that all of her debts are under control. On the other half of the split screen is a worried man standing in front of a messy desk with bills spilling all over the place to symbolize a person with debts out of control and needing a debt management plan or to file for bankruptcy.

Meeting with a nonprofit credit counsellor to assess your financial situation

Consider credit counseling sessions with a certified nonprofit credit counsellor for expert recommendations. If you’re unsure about the best course of action to take regarding your debt, seeking advice from a certified nonprofit credit counselor can provide invaluable insights. These professionals working at a nonprofit credit counseling agency can assess your financial situation, provide personalized recommendations, and guide you toward effective debt management strategies.

WARNING: Stay away from for-profit debt settlement companies. A nonprofit credit counselor or a bankruptcy trustee can provide you with the same advice at no charge.

Choose between a debt management program or bankruptcy based on your specific circumstances

When deciding between a debt management program and bankruptcy, several factors should be taken into account. First, carefully assess your full financial situation and long-term goals. Consider the amount of debt you owe, your ability to make payments, and the impact on your credit score.

If you have assets you want to protect and prefer a more affordable and gradual approach, a debt management program might be the better option. On the other hand, if you are facing wage garnishment, or foreclosure, or need a quicker resolution, bankruptcy may be the right debt solution choice for you.

A consumer proposal or bankruptcy can be a viable option for individuals facing insurmountable debt, damaged credit, and the threat of financial instability. While it is a significant decision with long-lasting consequences, bankruptcy offers a path to financial relief, a fresh start, and legal protections against creditor actions.

It is essential for individuals considering bankruptcy to seek the advice of a financial advisor or bankruptcy professional to fully understand their options and make an informed decision about their financial future.

Debt Management Program: The bottom line

When it comes to managing debt, making informed decisions is crucial. Here are some key takeaways to help you navigate this challenging situation:

  • Carefully assess your financial situation and long-term goals.
  • Before taking any steps toward resolving your debt problems, it’s essential to have a clear understanding of the current financial position of your assets and all your outstanding debts.
  • Take stock of your monthly income and living expenses, so that you can create an accurate monthly budget to see where your money is being spent. Don’t forget to deduct from your monthly income your actual income taxes deducted from your monthly pay.

Debt Management Program: Conclusion

Assess your finances and goals, seek advice from a nonprofit credit counselor, and decide between a debt management program, consumer proposal or bankruptcy based on your specific circumstances. You can also have a no-cost consultation with a LIT to get personalized advice and find out how a consumer proposal or bankruptcy would work in your specific situation.

Dealing with overwhelming debt is no easy task, but there is hope. By understanding the differences between a debt management program, consumer proposal and bankruptcy, you can choose the right option for your financial situation. A debt management program offers a manageable and gradual approach, protecting your assets while you work towards becoming debt-free.

Bankruptcy, on the other hand, provides a quicker resolution and is best suited for those with significant debt loads and impaired credit. Remember to carefully evaluate your circumstances and consult with an expert if needed. With the right choice and determination, you can pave the way to a brighter financial future. Don’t let debt hold you back any longer – take control today and improve your financial health and your life.

I hope you enjoyed this debt management program Brandon’s Blog. Individuals and business owners must take proactive measures to address financial difficulties, consumer debt and company debt 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 with debt problems 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 and more associated with your company debt are obviously on your mind.

The Ira Smith Team understands these financial health concerns. More significantly, we know the requirements of the business owner or the individual who 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, to begin your debt-free life, Starting Over, Starting Now.A split picture. On one side is a woman sitting at a neat and clean desk symolizing that all of her debts are under control. On the other half of the split screen is a worried man standing in front of a messy desk with bills spilling all over the place to symbolize a person with debts out of control and needing a debt management plan or to file for bankruptcy.

 

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BUY NOW PAY LATER IN CANADA: 4 PRACTICAL THINGS TO KNOW BEFORE GETTING A BUY NOW PAY LATER PLAN

As the COVID-19 pandemic continues, we hope that you, your family, and your friends are safe, healthy, and secure. Ira Smith Trustee & Receiver Inc. is fully operational, and both Ira and Brandon Smith are readily available for phone or video consultations.

Buy now pay later in Canada plans: Introduction

The holiday shopping season is over. Your bills have arrived. A buy now pay later in Canada program attracted many Canadians. In Canada, people may not realize that they are borrowing money to pay for their purchase when they opt for a buy now pay later in Canada plan. Such a financial product is also known as a BNPL, instalment loan, or retail credit services. A BNPL is a credit product that is best suited for purchases of large-ticket items such as furniture, televisions, and home appliances. This kind of payment option is available both from brick and mortar retailers and for online shopping too.

The buy now pay later in Canada industry is pumping out millions of dollars, as many people rush to buy big-ticket items. However, many people can’t afford to pay for these items, and the buy now pay later in Canada industry is swallowing these people up. We are talking about people who have a bad credit score, unpaid bills, could not pass credit checks and just plain don’t have the money.

In this Brandon Blog, I discuss how for some people a buy now pay later in Canada plan might be too good to be true as there are hidden risks.

buy now pay later in canada

What is a buy now pay later in Canada plan?

The buy now pay later in Canada plan is popular with consumers who don’t qualify for a credit card or other financing, but who would still like to purchase a large item and spread out the payments. Customers can make purchases and pay them back at a future date, often interest-free, using this short-term financing vehicle.

Examples of BNPL agreements include:

  • an agreement where the purchaser commits to purchase a product or service from the retailer;
  • the retailer’s agreement with a lender to finance purchases;
  • the customer’s agreement with a financial service provider which usually specifies:
    • The amount of each monthly payment.
    • Payment frequency.
    • The number of payments.
    • Rate of interest. If there is an interest-free period, the rate of interest upon default of making either a monthly payment or paying off the balance on time.
    • Any fees.
    • The payment method.

Retailers can obtain BNPLs from a variety of financial service providers. This type of financing option is available from financial institutions, such as banks, credit unions, caisses populaires, financing companies and money services businesses, including fintech.

buy now pay later in canada

Buy now pay later in Canada plan: Here are some things to consider before choosing to use one

With a buy now pay later in Canada plan, you can pay for nearly any large household item such as appliances, furniture, a furnace, or a central air conditioning system. BNPLs have their advantages for some people. These plans have the risk of getting you into uncontrollable debt very (very) quickly.

Pros of buy now pay later in Canada plans

Buy now pay later in Canada programs offer consumers some benefits. No fees, no interest, and you know that unlike with a credit card, the full amount of your purchase will not hit you all at once. Retailers bear the fee involved.

A soft credit inquiry is all that is required to approve a buy now, pay later loan. A soft credit check with the major credit bureaus does not impact your credit score. Furthermore, BNPLs have the advantage of being different from traditional layaways. Layaway plans entail making a down payment to the seller and paying a small amount each week for the balance. Only after you have fully paid for the item can you take it out of the store. A BNPL allows you to leave with your item or have it delivered so that you can use it immediately without paying the entire purchase price.

A buy now pay later in Canada plan allows consumers to obtain instant gratification.

Cons of buy now, pay later plans

A BNPL is ideal for those who can make all the payments on time and pay the outstanding balance in full on the due date. It is also good for those who have a steady income and the discipline to make sure the entire amount is paid off at the end of the interest-free period. There are unfortunately more cons than pros to a buy now pay later in Canada plan.

They are:

  • Depending on your payment history, as well as the policies of the retailer, financial tech companies set limits on the amounts you can defer.
  • It’s convenient to spread payments out, however, there are fewer protections than if you used a credit card.
  • BNPL programs also present the risk that those seemingly affordable payments may lead you to splurge.
  • The BNPL statement is strangely designed. According to one buy now pay later in Canada study, two-thirds of those who fell behind said they simply forgot about the payments, not that they did not have the cash.
  • In lending, a company wants to make sure the consumer can handle the new account and will be able to repay it. An unpaid buy now, pay later balance will be sent to collections, damaging your credit.
  • By transforming one big price tag into an array of smaller payments, deferred payment plans in BNPLs lower sticker shock. Impulse spending goes up as a result.
  • This can lead to a rapid accumulation of debt. You may forget how much you need to set aside for your BNPL payments if you’re not tracking your expenses and budgeting.
  • Not all BNPLs require regular payments. They instead require the sum to be paid by a certain date in the future (usually 6-12 months from the time of purchase). Notices, reminders, and invoices may not be sent until almost the end of the period. Once the BPNL due date passes, the full sum becomes due, plus interest and late payment charges and fees for missed payments.buy now pay later in canada

Buy now pay later in Canada: 8 Options when you buy now and can’t pay later

During the interest-free period, you can spread out large expenses over a period of time, but you should be ready to pay the full balance by the due date. If you cannot pay off the balance on your account after the interest-free period expires, what are your options? Unemployment or a family emergency may have changed your financial situation due to circumstances beyond your control.

Here are some options you can consider:

  1. Speak with your lender. There may be a financial hardship program that you can utilize, enabling you to get more deferrals and thus more breathing room. Changing the due dates may also be an option.
  2. Take a look at your finances and household budget to see where opportunities exist. Focus on saving money in other areas while prioritizing essentials like housing, food, utilities, and medicine.
  3. Let go of the purchased item. You might be able to return the item to the merchant for a refund. Although some buy now, pay later companies do not refund interest payments, you may be able to get your money back. During the refund process, payments may still be due. Consider selling the item to recoup some of the money if a merchant won’t accept a return. Online marketplaces, apps or websites may help you find a buyer. It’s important to understand the terms before listing an item on an online marketplace since they may take a cut of the sale.
  4. Get a side gig to make money. Increasing your work hours or earning supplemental income through a side job, such as driving for a rideshare company or delivery service, can help you pay down your buy now, pay later debt faster.
  5. Perhaps you can qualify for a debt consolidation personal loan if your credit score is good enough in order to reduce the interest charges on all high-interest rate debts, such as credit card debt. The cash you free up can be used to pay off the BNPL.
  6. Contact a non-profit credit counselling agency for free help. Avoid going to a for-profit debt relief company.
  7. To discuss your realistic options, contact a licensed insolvency trustee for a no-cost consultation.buy now pay later in canada

Buy now pay later in Canada plan: Summary

In summary, you may find that getting a buy now pay later in Canada plan is a good option for you and your financial situation. A buy now pay later plan could help you with those unforeseen expenses, such as when an old furnace breaks down for good. Just make sure you understand everything involved in the buy now pay later plan before signing up, and you can see yourself being able to be debt-free when the interest-free period ends.

I hope you found this buy now pay later in Canada Brandon Blog informative. Although nothing is guaranteed, managing your debt in a way that will allow you to be able to afford it, will lead to your financial success. It will also give you the best shot at having a financially stress-free life.

Are you or your company in financial distress and a debt crisis? Are you embroiled in costly litigation or a crushing debt load and need a time out in order to restructure? Do you not have adequate funds to pay your financial obligations as they come due? Are you worried about what will happen to you? Do you need to search out what your debt relief options and realistic debt relief solutions for your family debt are? Is your company in financial hot water?

Call the Ira Smith Team today. We have decades and generations of experience assisting people looking for life-changing debt solutions through a debt settlement plan and AVOID the bankruptcy process.

As licensed insolvency professionals, we are the only people accredited, acknowledged and supervised by the federal government to provide insolvency advice and to implement approaches to help you remain out of personal bankruptcy while eliminating your debts. A consumer proposal is a Government of Canada-approved debt settlement plan to do that. It is an alternative to bankruptcy. We will help you decide on what is best for you between a consumer proposal vs bankruptcy.

Call the Ira Smith Team today so you can eliminate the stress, anxiety, and pain from your life that your financial problems have caused. With the one-of-a-kind roadmap, we develop just for you, we will immediately return you right into a healthy balanced problem-free life.

You can have a no-cost analysis so we can help you fix your troubles.

Call the Ira Smith Team today. This will allow you to go back to a new healthy and balanced life, Starting Over Starting Now.

buy now pay later in canada

As the COVID-19 pandemic continues, we hope that you, your family, and your friends are safe, healthy, and secure. Ira Smith Trustee & Receiver Inc. is fully operational, and both Ira and Brandon Smith are readily available for phone or video consultations.

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Brandon Blog Post

STATUTE OF LIMITATIONS IN ONTARIO: THE UNCERTAINTY BEHIND ONTARIO’S LIMITATION PERIOD IN BANKRUPTCY NOW ABSOLUTELY SETTLED

statute of limitations in ontario
statute of limitations in ontario

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version, please scroll to the very bottom and click play on the podcast.

Statute of limitations in Ontario: The uncertainty behind Ontario’s limitation period for debt collection

Many individuals have a problem determining the statute of limitations in Ontario for financial debt collection under the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. This confusion is all-natural because the time duration is computed based upon the moment when a creditor knew, or ought to have actually recognized that it had a claim to get legal advice on and initiate legal action for recovery.

The unpredictability emerges because the point you need to begin determining from is not necessarily a certain date you can indicate on the calendar. Rather, it may need to be presumed from the realities in any specific situation.

Why does the limitation period matter? It matters because if a creditor does not initiate legal action within the allowed period of time in Ontario within 2 years of knowing, or having out to have known, that it had a claim to litigate, the claim is then statute-barred. What this means is that the claim can no longer be pursued as a valid debt.

In this Brandon Blog, I describe what seems to be the final word now on the statute of limitations in Ontario and proving your claim in bankruptcy.

Statute of limitations in Ontario: Time limits, collections and bankruptcy

If you think it was confusing for only the average Ontario citizen, think again. It was also confusing for lawyers and licensed insolvency trustees. In my March 15, 2021, Brandon Blog titled “STATUTE OF LIMITATIONS: IS STATUTE BARRED DEBT A BASIC PROPER BANKRUPTCY CLAIM IN ONTARIO?“, I described the decision of Master Mills (as she then was) who has since been elevated to the position of a Judge.

Her decision released on March 8, 2021, in. the legal proceeding of In re: John Trevor Eyton, 2021 ONSC 1719 (CanLII), has changed the way we look at creditors who file a proof of claim in either a consumer proposal, restructuring proposal or a bankruptcy. Just to refresh your memory, she decided that if a claim was past the two-year limit under the statute of limitations in Ontario, then the creditor could not even file a proof of claim in bankruptcy on that debt.

In that blog, I also described what the statute means for debt collectors. I also said that the Eyton decision was going to be appealed. Well, it was and we now have the ruling from a Judge of the Ontario Superior Court of Justice (In Bankruptcy and Insolvency).

statute of limitations in ontario
statute of limitations in ontario

Statute of limitations in Ontario and bankruptcy

The appeal raises a rarely-considered and narrow issue: is a claim which is statute-barred under the statute of limitations in Ontario able to be included by a creditor in filing a Form 31 proof of claim in the bankruptcy of the debtor?

On May 19, 2021, Justice S.F. Dunphy released his decision regarding the appeal of the Eyton decision. I won’t repeat the original decision here because I discussed it in detail in my above-noted blog.

Suffice to say that the basis of this litigation is that the Trustee disallowed the creditor’s filed proof of claim because the last payment made on the debt was in April 2016. The creditor did not take legal action against the debtor.

This made the claim now more than two years old before the date of bankruptcy. Therefore the Trustee said since the claim is statute-barred, it cannot be a debt to be proved in this bankruptcy.

Statute of limitations inForm 79 Ontario: When it is too late to sue?

As previously mentioned, the creditor appealed the Trustee’s decision to Master Mills and lost. Now the creditor was appealing the Master’s decision to the Judge.

The issue to be decided was when:

  • it is far too late to take legal action to try to collect on the debt;
  • the debtor has actually submitted either for a restructuring proposal or for bankruptcy under the Bankruptcy and Insolvency Act (Canada) (BIA);
  • the debtor has actually included the amount of that creditor’s claim in the sworn Statement of Affairs; and
  • under the statute of limitations in Ontario, the financial debt is statute-barred yet is not extinguished,

can the creditor file a claim for that financial obligation in the insolvency proceeding?

statute of limitations in ontario
statute of limitations in ontario

Statute of limitations in Ontario and the Effect of Form 79 Statement of Affairs

The creditor’s first point in the appeal was that its debt was listed in the debtor’s sworn Statement of Affairs. Since the debtor recognized the debt, and the debt is not extinguished, then a proof of claim for the amount should be admitted by the Trustee.

The Judge did not think much of this argument. He stated that just because an amount is listed as a liability on the Statement of Affairs, each creditor is still required to prove their claim. The distinction is that a debtor may think that the debt is a provable claim, but a creditor still has to prove their claim. Stated another way, every claim is a potential claim until proven in accordance with the BIA.

In most restructuring proposals or bankruptcy administrations, the debtor’s listing of claims for at least the unsecured debt will never exactly match the final list of proven claims. That is just the way it is.

Can statutes of limitation barred claims be proved in bankruptcy?

As the BIA is federal law, then all provincial limitations laws in Canada are in play. Not just the two-year limitation period in the statute of limitations in Ontario. The creditor’s legal counsel advanced the following arguments regarding civil claims in bankruptcy:

  • The BIA does not define provable claims with any reference or qualification relating to any provincial applicable limitation periods.
  • The Supreme Court of Canada in Schreyer v. Schreyer, 2011 SCC 35 (CanLII), [2011] 2 SCR 605 decided that the meaning of the term provable claims in the BIA is that if the debt exists and can be liquidated and if the underlying obligation exists as of the date of bankruptcy and if no provincial exemption rule applies, the claim will be deemed to be provable.
  • The two-year limitation period in the statute of limitations in Ontario is procedural in nature because it does not extinguish the debt, it just says that a proceeding, such as the issuance of a statement of claim, cannot begin.
  • In one of the Ontario cases I mentioned in my earlier blog (Re: Temple), the Judge, in that case, found that a claim that was older than the basic limitation period in Ontario could be used as a debt owing for the purpose of launching a Bankruptcy Application seeking a Bankruptcy Order being made against a debtor.

The Judge was not persuaded by any of these arguments. He shot them down one by one. I can summarize all of his comments as follows. The purpose of the BIA is to have an equitable distribution of the bankrupt’s assets amongst the creditors, in the priority laid out in the BIA. The claims of all unsecured creditors are to be treated equally and each unsecured creditor is to receive their pro-rata share.

If a creditor who cannot enforce its claim in respect of payment can receive the same share as a creditor who still can enforce its claim for payment, then the claims of all unsecured creditors are not being treated equally.

So Judge Dunphy of the Ontario Superior Court of Justice (In Bankruptcy and Insolvency) dismissed the appeal. I have been told by the lawyer for the creditor who appealed the Master’s decision to the Judge that he does not feel he has a chance to win an appeal to the Court of Appeal for Ontario. So the law on claims barred by the statute of limitations in Ontario in an insolvency proceeding is now settled. Such a claim is not a claim provable and probably cannot even be used as the basis of a claim in a Bankruptcy Application.

statute of limitations in ontario
statute of limitations in ontario

What does this mean for proceedings and intended proceedings in Ontario?

As far as what this means for debt collectors trying to collect a claim in respect of any statute barred debt and for a debt collection agency, whether they are trying to collect on personal debts such as a credit card debt or on commercial debts, look at my previous blog where I discuss what it means for a debt collection agency.

As far as what it means for an insolvency process, there are several takeaways for me on this. First, whenever a creditor files a completed Form 31 proof of claim, there needs to be a schedule attached to the form that clearly shows how the debt is calculated. If there is not going to be any distribution to the unsecured creditors then there is no need to vet every claim to the nth degree.

However, where there will be a distribution to the unsecured creditors, then the Trustee is going to have to take great care in reviewing and vetting each claim. The Trustee will have to make a determination in each case if the claim is barred by the statute of limitations in Ontario or not. If there is insufficient detail in the schedule attached to the Form 31 proof of claim, the Trustee will have to go to each such creditor and get more details. I suspect there will be a whole lot more claims being disallowed than in the past.

Of course, each creditor whose claim has been disallowed by the Trustee because it is barred by the statute of limitations in Ontario has the right to appeal the Trustee’s decision to the Master sitting in the Ontario Superior Court of Justice in Bankruptcy and Insolvency).

Statute of limitations in Ontario: Get a personalized debt free plan today

I hope that you found this statute of limitations in Ontario Brandon Blog interesting. If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding 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 check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. 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 consultation.

statute of limitations in ontario
statute of limitations in ontario

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

 

Categories
Brandon Blog Post

STATUTE OF LIMITATIONS: IS STATUTE BARRED DEBT A BASIC PROPER BANKRUPTCY CLAIM IN ONTARIO?

statute of limitations
statute of limitations

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Know Your Limitations: The Basic Limitation Period in Ontario

The basic limitation period in Ontario is 2 years from the date knowledge of the claim arises. The phrase “statute of limitations” is used to describe this time period. This is the time period between when you discover you have a claim and when you are legally permitted to bring that claim forward in a court of law. If you do not file your lawsuit within the 2-year limitation period, your right to sue will be extinguished and your claim will be forever lost. This is known as your claim being statute barred.

Statute of limitations: Limitations Act, 2002, S.O. 2002, c. 24, Sched. B

Each province has its very own rules, but the policies are comparable throughout the nation. In Ontario, the period is set by the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B (Act). The Act sets out a time limit as to when legal proceedings might be commenced by suing. It defines the time in which an aggrieved person can start a claim developing from any type of injury, loss, or damage that happened as a result of an act or an omission.

The Act sets out the two-year limitation period as follows:

“Basic limitation period

4 Unless this Act provides otherwise, a proceeding shall not be commenced in respect of a claim after the second anniversary of the day on which the claim was discovered. 2002, c. 24, Sched. B, s. 4″

This is where the 2-year statute barred period of time is set in Ontario limitations law.

Can Your Debt Be Eliminated by the Statute of Limitations in Ontario?

Most people don’t realize that their debts can expire, just like the milk at the back of your fridge. In fact, while you can’t get rid of your debt by throwing it in the garbage, it can be eliminated by the basic statute of limitations under the Act. Debt is not considered timeless in Ontario.

There are two other main concepts under the Act also, which are not part of the discussion in this statute of limitations Brandon Blog. The two other main concepts are:

To keep it simple, when it comes to unsecured debt, the proceeding in respect of trying to recover on a debt by initiating legal action, and the focus of this blog, the applicable limitation period is the 2 year time statute of limitations period.

statute of limitations
statute of limitations

Statute of Limitations: How long can a debt collector pursue an old debt in Ontario

Last week I wrote a blog on various experts predicting that as the economy reopens, there will be increased activity by collection agencies and debt collectors. In that blog, I discuss the role of the debt collection agency and that they are all governed by provincial law. I also highlighted that they get their work either by trying to collect on the debts of their clients or they purchase accounts in default for less than the total amount owed and then try to collect as principal. Outstanding credit card debt is fertile ground for debt collectors and the debt collection process.

What do you do when a debt collector is pursuing you for an old debt? If it’s one you know you can’t pay, your first step should be to contact the agency and inform them of your situation. It’s important, to be honest, and precise when you tell them why you can’t pay what you owe.

Debt can be a very scary thing. When you owe money, you can feel like your life is one big bill you need to pay. It’s easy to want to hide from your creditors, but the more you avoid them, the more likely they will be to take drastic measures to collect their money. If you find yourself in such a situation, the best thing you can do is to face the music and get the matter settled. If you are in Ontario and have questions about your debt, or how to get it resolved, you can contact a Licensed Insolvency Trustee.

Statute of limitations: What does Ontario limitations law say about making a claim on debts even if I can’t sue?

In Ontario, there used to be substantial support for the interpretation that the right to be paid is not extinguished by the Act, but only the remedy of starting legal action in respect of the debt was eliminated. Various other provinces in Canada have passed provisions in their legislation that expressly states that upon the expiration of a limitation period, civil liberties are extinguished.

However, Ontario has not. In Ontario, the old way of thinking was that a financial obligation is snuffed out if an action on the financial debt is not brought within two years of its being due. Instead, the financial obligation continues to be owed.

There was even Ontario judicial authority for this position in:

But that is now in doubt given the recent decision of Master J. E. Mills (as she then was) who is now Justice J.E. Mills (the Registrar in Bankruptcy). Her decision released on March 8, 2021, In re: John Trevor Eyton, 2021 ONSC 1719 (CanLII), may have changed that. I say may, because the Temple and Duca cases were decided by a judge in the Ontario Superior Court of Justice. The Registrar in Bankruptcy sits below the Justices. However, she distinguished the Eyton case before her from the above two judicial decisions.

As you will read below, that decision may very well lead to a great statute of limitations period in respect of defence against any debts that a debt collector is trying to recover on, either by themselves or through legal action, where the debt went into default 2 years or more before.

Statute of limitations: Time limits, collections and bankruptcy

So what is the Eyton bankruptcy decision all about? The issue was a creditor appealing the Trustee’s decision disallowing the creditor’s proof of claim pursuant to s. 135(4) of the Bankruptcy and Insolvency Act (Canada) (BIA) (Form 77—Notice of Disallowance of Claim). The basis of the disallowance was that the Trustee took the position that the claim was statute barred.

The claim was for an unsecured loan where the last payment made was more than 2 years before the date of bankruptcy. Although there may have been some security agreement entered into, it was not perfected under Ontario law at the time of the bankruptcy. Therefore, there was no valid and enforceable security agreement in place.

The Trustee decided that the creditor, being a reasonable person, would have known about the default on the unsecured loan when the next scheduled payment was missed. That was more than 2 years before the bankruptcy and they did not take any action, including legal action. The Trustee went on to say that if the claim in respect of this unsecured loan could no longer be made, then the debt no longer exists.

statute of limitations
statute of limitations

Limitations analysis by the Court

It was indisputable by the creditor that the financial obligation owed by the bankrupt person was statute-barred under the Act and was not enforceable by way of legal action. The creditor relied upon the Temple and Duca cases listed above. They said that it stood for the proposition that although there was finality in respect of the fact that the creditor could not sue in court, the liability in respect of this unsecured debt remained.

The Trustee countered with a long background of case law which has held that in order to be a provable claim in bankruptcy, the financial obligation must be recoverable by legal process. If the financial obligation is statute-barred at the date of bankruptcy, the proof of claim is not sustainable. This principle was adopted by the Privy Council in 1943, the Alberta Court of Appeal in 1988 and the Court of Appeal for Ontario in 1996.

The court considered both lines of cases and decided that the cases cited by the Trustee, especially the 1996 Ontario Court of Appeal decision, bound the Registrar in Bankruptcy. She decided that the Temple and Duca cases could be distinguished and did not bind her decision.

Therefore, the creditor’s appeal was dismissed and the Trustee’s decision that if you can’t sue the debt is no longer a valid one was the correct interpretation.

What the Eyton statute of limitations analysis by the Court means for bankruptcy proceedings

There are some crazy results flowing from this Eyton decision which I am sure will result in more court decisions down the road.

First, the Registrar in Bankruptcy’s decision was in line with the Ontario Court of Appeal, but not certain judges’ decisions as decided in the Temple and Duca cases. The Temple and Duca cases were decided in a court lower than the Court of Appeal for Ontario but higher than the court in which the Registrar in Bankruptcy sits. So until a judge adopts her reasoning that the Temple and Duca cases are distinguishable, the first crazy result is that you have the various levels of the Ontario court system misaligned on this issue.

As a result of this decision in Eyton, we now have a second anomaly. In Temple, one of the judge’s findings was that a debt that is statute barred because of the statute of limitations can be used as the basis for qualification to launch a Bankruptcy Application against a debtor.

The Registrar in Bankruptcy noted that the line of cases relied upon by the Trustee in Eyton was not put before Justice Newbould (as he then was) when he heard Temple. Justice Newbould found in Temple that there was no Canadian authority for the suggestion that a statute barred debt could not support an application for a Bankruptcy Order.

The Registrar in Bankruptcy said that declaration was appropriate in the Temple case. As a result of these decisions, the legislation as it presently stands in Ontario is that a debt that is statute barred due to the statute of limitations, can be used in support of a Bankruptcy Application but after that could not constitute a provable claim in that same bankruptcy. This of course makes no sense.

Statute of limitations for unsecured debts and bankruptcy – What next?

My understanding is that the Eyton decision is being appealed. The appeal must be heard by a judge. Whatever the outcome of the appeal is, it will hopefully do away with these anomalies that currently exist.

UPDATE: THE APPEAL DECISION HAS BEEN RELEASED. TO READ OUR DISCUSSION ABOUT THE APPEAL RESULT, CLICK HERE.

The things to further consider are:

  • Has the debtor given written confirmation of the existence and enforceability of the debt prior to the expiration of the limitation period and before the date of bankruptcy? If yes, then it is a valid debt and is a provable claim in bankruptcy.
  • The disclosure of a statute barred financial obligation in the sworn Statement of Affairs by the insolvent debtor does not make up a recognition of the debt or the waiver of any limitation period for Limitations Act purposes.
  • In respect of claims, the debtor is unsure of and the debtor has not given the written confirmation identified above, then the best treatment would be to include the creditor on the Statement of Affairs but as a contingent creditor. This will give that creditor notice of the bankruptcy and they can decide whether or not to file a proof of claim with backup. If filed, the Trustee will then review the claim and make a determination as to its validity and amount.

    statute of limitations
    statute of limitations

Statute of limitations summary

I hope that you found this statute of limitations Brandon Blog interesting. If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

 

Categories
Brandon Blog Post

FILE FOR BANKRUPTCY: CAN YOU FILE FOR BANKRUPTCY CANADA FROM THE LUXURIOUS CARIBBEAN?

file for bankruptcy
file for bankruptcy

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the bottom and click play on the podcast.

File for bankruptcy introduction

You have all probably read about or heard about the Ontario judge who presided over Toronto-area court cases from the Caribbean. With today’s technology, it is electronically possible to attend Zoom court from anywhere in the world. That got me thinking. Can a Canadian file for bankruptcy from the Caribbean or anywhere else in the world?

So I did the research. In my opinion, using what is right now permissible technology, I think it is possible for a licensed insolvency trustee to either accept a Canadian filing bankruptcy or make it happen from the luxurious Caribbean or anywhere else outside of Canada. In this Brandon Blog, I will explain the bankruptcy process and why I think a person or company can file for bankruptcy from outside Canada.

You owe money: Considering bankruptcy?

To file for bankruptcy is a difficult decision to make, especially considering the financial and personal consequences it has on you and your family. But sometimes, there is no other option. If you find yourself unable to pay your debts, filing for bankruptcy may be your best bet for a fresh financial start. But before you decide to file for bankruptcy, you must assess your situation and understand the consequences.

It’s easy to be overwhelmed when you’re facing the prospect of filing for bankruptcy. Bankruptcy is a complicated legal proceeding, and the law has established procedures that must be followed in a specific order. If you’re considering bankruptcy, it’s important that you understand how the process works and the critical role a licensed insolvency trustee (formerly called either a trustee in bankruptcy or a bankruptcy trustee (Trustee) plays in that process.

As a Trustee, I can tell you that bankruptcy is a serious undertaking. It can have a big impact on you financially and emotionally, and there are many important decisions you must make before, during, and after the process. The decisions you make now will have a big impact on your future. As a Trustee, I always first try to help people and companies look at the alternatives to bankruptcy in order to avoid bankruptcy, rather than file for bankruptcy. Personal bankruptcy or business bankruptcies are truly a last resort when there is no other choice.

How to file for bankruptcy Canada: Let the licensed insolvency trustee no-cost consultation happen first

You may be considering filing for bankruptcy in Canada because you have debts that you can no longer pay. If you are drowning in debt, you might feel like there is no way out. But bankruptcy isn’t the end of the world. In fact, it can help many people get a fresh start by eliminating debts they can no longer pay. But as I always say, an individual or company may not need to file for bankruptcy. You have to consider all of your options. But in this section, we will focus on the bankruptcy filing process.

It all starts with you going to see a Trustee for a free, no-obligation initial consultation. The Trustee will listen to the facts you describe and ask you some questions to gain a better and deeper understanding of your specific situation. The Trustee will then tell you about the various debt relief options he or she believes are available to you. The Trustee will then provide you with his or her recommendation as to what is best for your situation and why.

Many factors will play into the Trustee’s recommendations, especially around your debt issues, including:

  • The types of debts.
  • Your unsecured debt vs. secured debts.
  • Do you have any student debt and if so, when did you graduate from the program that you acquired the student loan debt for?
  • The total amount of your Canadian debts and any foreign debt you may have.
  • Is Canada Revenue Agency hounding you for tax debt?
  • How appropriate are all the various debt options for your situation?
  • What percentage of debts are related to your assets that you cannot afford to lose.
  • What is the nature and extent of all of your assets?
  • Which assets are exempt from seizure and which are non-exempt?
  • Do you have any joint (co-signed) debt and how will your insolvency filing affect the other person?
  • Is the pressure from debt you are feeling right now require an immediate filing or could you wait a bit to see how some things play out over the short-term future?
  • Do you need immediate protection from debt and the related creditors or debt collectors taking collection actions right now such as trying to enforce against your assets, sue you or garnish your wages under a judgement?
  • How is your burden of debt currently affecting you and your family?
  • Comparing your current debt situation pre-filing to what your debt after filing and after your discharge will look like under each of the available alternatives.
  • How does the Trustee’s debt assessment factor into the realistic alternatives available to you to avoid bankruptcy?
  • Does your debt level at this stage that of overwhelming debts or are you right now only feeling mild indigestion? Perhaps you could work out of your debt problems on your own with just one or two strategies the Trustee will share with you at the no-cost consultation stage.

The Trustee considers all of this to see if you have an unmanageable debt to determine the best options available to you, including having you file for bankruptcy. You don’t want to do a consumer bankruptcy filing for yourself or have your company filing bankruptcy if it is not necessary to fix the debt problems.

How to file for bankruptcy – How the bankruptcy process starts

Alright, now for getting to answering the question I posed in the title and at the beginning of this Brandon Blog. Can a Canadian file for bankruptcy from the luxurious Caribbean? Can Canadian bankruptcy filings start from outside of Canada? To answer this question, we must look at what are the requirements of both the debtor, be it a person or company, and the Trustee, for a bankruptcy file to begin? All of my comments below, with appropriate amendments for context, will apply to:

  • an individual filing a debt settlement consumer proposal;
  • a person filing for personal bankruptcy;
  • either a person or a company filing a debt settlement financial restructuring proposal under Part III Division I of the Bankruptcy and Insolvency Act (Canada) (BIA); or
  • a company filing an assignment in bankruptcy.

Before the COVID-19 pandemic, the debtor and Trustee met in-person at the Trustee’s office in order for the Trustee to assess the debtor’s financial situation. If an insolvency process was required to help fix the debtor’s financial problems, then there was also an in-person meeting at the Trustee’s office to sign up the filing documents. Since the pandemic began, the Office of the Superintendent of Bankruptcy Canada (OSB) Messages to LITs concerning COVID-19 gave Trustees the authority to hold meetings by video conference. This is how the whole world has been operating for almost 1 year now. So this is how the insolvency process begins.

In addition to the initial consultation and signup. other meetings are also held via video meetings. Examples are a Meeting of Creditors and the two credit counselling sessions. Although the OSB’s guidance does say that Trustees can use methods other than in-person…..” for those areas where they have an approved resident or non-resident office…” keep in mind that a Trustee is licensed to act within an entire province! I won’t get into the semantics of the apparent conflict between the OSB’s guidance and its licensing approval process in this Brandon Blog.

file for bankruptcy
file for bankruptcy

Who can file for bankruptcy?

Any insolvent person can file for bankruptcy. Section 2 of the BIA defines an insolvent person as:

“insolvent person means a person who is not bankrupt and who resides, carries on business or has property in Canada, whose liabilities to creditors provable as claims under this Act amount to one thousand dollars, and

  • (a) who is for any reason unable to meet his obligations as they generally become due,
  • (b) who has ceased paying his current obligations in the ordinary course of business as they generally become due, or
  • (c) the aggregate of whose property is not, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would not be sufficient to enable payment of all his obligations, due and accruing due;”
  • So to file for bankruptcy, amongst other requirements, the person or company must reside, carry on business or have property in Canada.

The locality of the debtor

Once all the documents are signed up to file for bankruptcy, the Trustee has to file them with the OSB in the “locality of the debtor“. Section 2 of the BIA defines “locality of the debtor” as:

“locality of a debtor means the principal place

(a) where the debtor has carried on business during the year immediately preceding the date of the initial bankruptcy event,

(b) where the debtor has resided during the year immediately preceding the date of the initial bankruptcy event, or

(c) in cases not coming within paragraph (a) or (b), where the greater portion of the property of the debtor is situated;”

If the debtor has been living in the Caribbean for 4 months immediately preceding the date of the filing of the assignment in bankruptcy, do they qualify? The answer is yes. Court decisions have determined that the word “during” means “at some time” during the year preceding the date of bankruptcy. It does not mean continuously. So during these pandemic days where we meet with everyone online, it is possible for the Canadian person to be in the Caribbean, meet with the Trustee for the initial consultation, decide on an insolvency process, in this case, bankruptcy and then initiate the bankruptcy proceedings, all from the luxury of a Caribbean vacation spot.

Let’s not delve into how a debtor who needs to file for bankruptcy can afford to live in the Caribbean or whose villa it is. That is beyond the scope of this Brandon Blog.

What about the Trustee?

The same way the debtor, or a judge, can transact business by video meeting from outside Canada, the same is true for the Trustee. As long as the Trustee can access all his or her office documents and systems online from outside of the office, there is no reason why the Trustee could not operate from the Caribbean as well to handle the person or company that wants to file for bankruptcy.

I am not advocating for this position, especially when you consider both the danger of and the appropriateness of travelling during these times of hardship and sacrifice. But since the question was “Can a Canadian file for bankruptcy from the Caribbean or anywhere else in the world?”, the answer is YES.

So whether you are a judge in the Ontario court, an insolvent debtor or a Trustee, I do not see any legal reason why someone could not file for bankruptcy from the Caribbean or anywhere else in the world.

File for bankruptcy summary

I hope you enjoyed the file for bankruptcy Brandon Blog post. If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

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DEBT COLLECTORS: WHAT TO DO IF THEY ARE CALLING YOU

debt collectorsDebt collectors.

Their job is to make you so miserable that you will pay off the amount they are attempting to collect. Last week we discussed debt issues that become so serious they’re referred to collection agencies. For many Canadians living paycheque to paycheque, any unexpected expense that comes up can disturb a very delicate balance and before you know it, you’ve missed a payment or defaulted on a loan. This triggers an unfortunate series of events and now in addition to the serious debt, you are being pursued by debt collectors from the collection agency. Some of them can make your life very unpleasant but you do have rights.

What are your rights? Collection agencies are regulated and each province has its own rules and regulations. In Ontario, the Ministry of Consumer Services regulates collection agencies through the administration of the “Collection Agencies Act”. If a collection agency behaves inappropriately, file a complaint with the Ministry. You have rights:

  • You must be notified in writing through the mail (not email) that your file has been given to a collection agency before they can start calling
  • The notice must include the name of the creditor (the person or business that says you owe them money), the amount the creditor says you owe, and the name of the collection agency and its authority to demand payment on behalf of the creditor
  • After sending the notice, the agency must wait 6 days before they can contact you in person or by phone.

The collection agency cannot:

  • Contact you on Sunday, except between the hours of 1 PM and 5 PM
  • Contact you on any other day of the week between the hours of 9 PM and 7 AM
  • Contact you on a statutory holiday
  • Use threatening, profane, intimidating or coercive language
  • Use undue, excessive or unreasonable pressure

The collection agency cannot continue to contact you if:

  • You send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court.
  • You (or your lawyer) send a registered letter to the agency providing your lawyer’s contact information and notifying the collection agency to communicate only with your lawyer.
  • You have told them that you are not the person they are looking for unless they take reasonable precautions to ensure you are that person.

What should you do? The best thing to do about a collection agency and its debt collectors calling you is to deal with not only the people from the collection agency are trying to collect, but all of your debts. The best time to deal with them ideally is once you sense there is a problem and before they are referred to a collection agency.

If the debt collectors are calling you, it’s not too late to call a trustee. Ira Smith Trustee & Receiver Inc. is full-service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Contact us today for a solid plan for dealing with your debts so that you can get back on track to living a debt free life.

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DEBT COLLECTORS CALLING: COLLECTION AGENCY AFTER YOU?

debt, debt collector, debt collectors, collection agencies, collection agency, credit record, student loan debt, credit card debt, bankruptcy, trustee, debt collectors calling, starting over starting nowAre debt collectors calling? I recently read an article where the headline was 35% In US Facing Debt Collectors and it’s based on a study by the Urban Institute. This astonished me. How is it possible that 35% of Americans have debts and unpaid bills that have been reported to collection agencies? This means that one in three people in America is being hounded by a collection agency having their debt collectors calling for unpaid bills.

Imagine that one in three of your friends and coworkers are facing serious financial challenges and you probably don’t even know it. According to the study 35.1% of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The Association of Credit and Collection Professionals reports that healthcare related bills account for 37.9% of the debts collected. Student loan debt represents another 25.2% and credit card debt make up 10.1%. Other collections are monies owed to the government, retailers, telecoms and utilities. That is giving this industry a lot of work for their debt collectors calling one third of the American population!

This is not just an American problem although in Canada we are extremely fortunate that we don’t incur the amount of healthcare related debt that plagues the U.S. But that doesn’t make us immune from serious debt and debt collectors calling. According to an RBC poll which only measures non-mortgage debt such as credit cards, lines of credit and loans:

  • The average level of personal debt in Canada rose 21% per cent this year to $15,910
  • Albertans were the hardest hit with a 63% jump to $24,271 in debt
  • British Columbian personal debt loads went up by 38% to $15,549
  • Manitoba and Saskatchewan went up 32% to $16,145
  • Average debt in Ontario was up 13% to $17,416
  • Average debt in Quebec was up 3% to $10,458
  • Average debt was up in Atlantic Canada by 12% to $15,243

Before you get to the stage that the collection agencies are after you with their debt collectors calling, make an appointment with a professional trustee and deal with your debt; don’t hide from it. Contact Ira Smith Trustee & Receiver Inc. We help people everyday who are facing a financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t wait, especially if the collection agencies are hounding you with their debt collectors calling, call us today.

Watch for our next blog when we’ll be discussing what to do if the collection agencies are after you with their debt collectors calling.

Call a Trustee Now!