Tag: debt consolidation

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PAYDAY LOAN COMPANIES TARGETING YOU WITH MOBILE APPS!

online bad credit loans, payday loan, payday loan companies, mobile apps, instant cash, credit, bad credit, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, trustee, canadian payday loan association, living paycheque to paycheque, credit problemsWe’ve been making you aware of the dangers of payday loan companies in our previous blogs – Legitimate Companies Don’t Guarantee Loans If You Have Bad Credit Or No Credit and Payday Loans Are Not The Answer To Your Financial Problems. Payday loan companies will go to any lengths to take your money and now their latest tactic is to target you with mobile apps and easy online access. Technology is making it easier for these unscrupulous operators to take advantage of you. And, if you have been taken advantage of by a payday loan company you are not alone. According to Statistics Canada:

  • Almost 3% of Canadian families said in 2005 they had obtained a payday loan in the preceding three years.
  • On average, Canadians borrow about $300 for a two week term.
  • There are about 1,350 payday loan storefronts in Canada.
  • The industry is worth an estimated $2 billion a year.
  • Payday loan borrowers tend to be young families.
  • Payday loan borrowers typically have poor credit or a previous bankruptcy.

Unfortunately, there are no updated figures from Statistics Canada. However, the Canadian Payday Loan Association in its study titled Payday Loan Users Study Ontario dated April 2013, reported that in 2012, significantly more respondents (65%) would choose payday loan companies over other options if they needed $300 when compared to 2007 (55%). This shows two things: 1. as we previously blogged, many Canadians are living paycheque to paycheque; and 2. this high cost borrowing source is gaining more acceptance and usage among those with credit problems.

Payday loan companies offer you instant cash even if you have bad credit or no credit, with instant approval. With a mobile app you don’t even have to go into a payday loan storefront. You can borrow money from your phone or computer by obtaining online bad credit loans. BUT, these companies aren’t getting you out of debt; they are creating more debt. Although the rules do vary from province to province regarding borrowing, you should expect to pay 25% interest when you borrow from a payday loan company, even if you repay the loan in a few days.

There is no quick fix for serious debt problems and digging a deeper hole for yourself with a high interest payday loan is only going to make matters worse. Stop the downward debt spiral and seek out a professional trustee. At Ira Smith Trustee & Receiver Inc. helping clients deal with serious debt issues is our business. There are a variety of options available to you including bankruptcy alternatives – credit counselling, debt consolidation, and consumer proposals – and bankruptcy. Let us help you end the downward debt spiral so that Starting Over, Starting Now you can live a debt free life.

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SECURED CREDIT CARD

credit score, bad credit, credit history, financial history, licensed trustee, avoid bankruptcy, bankruptcy alternatives, debt consolidation, credit counselling, consumer proposals, starting over starting now, credit scores, financial health, line of credit, rebuilding creditA secured credit card functions in the same manner as a regular credit card. The only exception being that the card is secured by the amount of deposited funds that remain safeguarded in the institution where the individual acquires the card. The card looks like a regular credit card and acts like a traditional credit card. Purchases are limited by the amount of funds backing the card. The majority of institutions require a minimum secure balance of $500. However, individuals or businesses may deposit more if desired.

Who Uses a Secured Credit Card?

The card might be used by anyone with a past or current history of bad credit. When first starting out, many young people or students have no line of credit. The card might serve as a means of establishing a credit history. Someone recently moving to Canada, having recently undergone bankruptcy or having difficulty obtaining a conventional credit card may also look into acquiring a secured card.

Newlyweds starting a life together often look for ways of establishing credit. Anyone having endured a divorce or the death of a spouse may also need to start over and rebuilding credit. Entrepreneurs having difficulty getting financial backing or searching for a means of creating a financial history might also be interested in securing a card.

Benefits of a Secured Credit Card

Getting approved for a secured card is practically guaranteed. Having a card eliminates the need to withdraw and carry cash. However, in case someone needs cash for an emergency, the card enables users to get cash advances. Numerous other conveniences of having a credit card include using the card for making reservations, purchases or services rendered.

A secured credit card offers an ideal way to establish or improve credit scores, which are typically required when needing to apply for loans. By making monthly payments for goods or services, in the same way that one would if having a traditional credit card, you can learn how to create and stick to a budget.

Many secured credit cards don’t carry the same fees that are required by traditional cards so using them is not only convenient but less expensive.

Ensuring Good Credit

After applying for and acquiring the credit card, maintaining good credit means:

i. Paying off the balance monthly

ii. Paying more than the minimal monthly amount required

iii. Making payments on time

Get a Secured Credit Card Today

Regardless of your current financial situation we can help. To find out more about secured credit cards, and even to apply for a secured credit card, click on this link for the application form. If you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We are a licensed trustee and will listen to your issues and provide compassionate, professional assistance to assist you to avoid bankruptcy.

We will explore alternatives to bankruptcy, such as debt consolidation, credit counselling and consumer proposals. Starting Over, Starting Now, we will assist you to regain your financial health.

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RECEIVERSHIP IN BANKRUPTCY – WHAT DOES THAT MEAN?

receivership in bankruptcyFor those looking at insolvency, you may have heard the phrase –receivership in bankruptcy – and wondered what it meant. This phrase is both inaccurate, and in the area of the Canadian insolvency process, yet still possible. Are you confused yet? What is the source of the confusion? Most likely, people confuse the job of a licensed insolvency trustee with the job of a receiver. This is because one of the functions of a licensed trustee is to take possession of the assets of the bankrupt person or company, sell those assets, receive the money and then distribute the money to the creditors as prescribed in the Bankruptcy and Insolvency Act (Canada) (BIA).

In this situation, the trustee is receiving funds, but in no way is regarded as a receiver in any legal way. What does a licensed bankruptcy trustee do? In Toronto, and all of Canada, a bankruptcy trustee is licensed by the Federal government and works on behalf of all the unsecured creditors; this is the case even though the individual or company is the one who chose the licensed trustee prior to assigning itself into bankruptcy. Creditors have rights and are entitled to get their portion of the money owed to them when it is possible from the licensed trustee administering the bankruptcy. But in corporate insolvency, there is no term called receivership in bankruptcy.

For an individual, a licensed trustee can also help the person look at bankruptcy alternatives, such as debt consolidation, credit counselling and consumer proposals to deal with creditors and avoid bankruptcy. Consumer proposals reduce and reorganize an individual’s debt and if accepted, the successful consumer proposal helps the person recover from their debt and not do as much damage to their credit score. What is a receivership?

Receivership is a process that is available to lenders or other secured creditors only (as opposed to bankruptcy which is a remedy for unsecured creditors) to seize the assets of the company subject to the lender’s security through the appointment of a receiver. The receiver, who also must be a licensed trustee, will determine if the highest recovery can be gained from running the company or shutting it down, all while devising and implementing a plan to sell the assets. This is done in order to recover the greatest amount of money possible under the circumstances for the lender who appointed the receiver.

So how can there be a receivership in bankruptcy? As described in this blog, receivership is a remedy for secured creditors, while BIA proceedings, other than receivership, are a remedy to benefit the unsecured creditors. In some cases, it is necessary to have a bankruptcy administration, at the same time there is a receivership. The reasons why are much too complex for the purposes of this blog, but now you know, that although the phrase is inaccurate, it is still possible.

Receivership in bankruptcy summary

Before receivership or bankruptcy becomes your only option, there are alternatives including credit counselling, debt consolidation, and consumer proposals. Contact us today. The team at Ira Smith Trustee & Receiver Inc. will work with you to ensure that Starting Over, Starting Now you can regain financial health.

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NEED $2000 FAST – COULD YOU COME UP WITH IT?

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living paycheque to paycheque, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, trustee, need $2000 fast, need 2000 dollars fastNeed $2000 fast? Could you come up with it? We all know that we should have a rainy day fund, but how many of us actually do? In Ontario 60% of the population is living paycheque to paycheque so what do you think would happen if you need $2000 fast in 30 days for an emergency situation? When the rainy day comes will you stay dry or get drenched? A new study by the National Bureau of Economic Research shows that:

  • 28% of Americans would NOT be able to come up with $2000 in a pinch
  • 22% said they probably would not be to able to come up with $2000
  • 34.2% said they would have to ask family and friends for help
  • 29.5% said they would have to resort to credit cards, a home equity line of credit, reverse mortgage or unsecured loan

In Canada Harris Decima did a similar survey and like in America, just over 25% Canadians said that they were not very or not at all confident that they could come up with it if they need $2000 fast in 30 days if faced with an unexpected financial emergency. 92% of all Canadians said they would consider some form of borrowing – lines of credit, credit cards, bank loans, and borrowing from friends and family.

It seems that we are financially fragile on both sides of the border. And what may surprise you is that this problem is not the exclusive domain of low income families. The study just published by the National Bureau of Economic Research reports that of households making between $100,000 and $150,000 annually, nearly one-quarter said they “certainly” or “probably” would be unable to come up with the money if they need $2000 fast.

The reality is that if you are earning $100,000 and $150,000 annually, need $2000 fast and would be unable to come up with the money, you are living in a house of cards. The best advice I can offer is to make an appointment to see a professional trustee as soon as possible, before disaster strikes. Before bankruptcy becomes your only option, there are bankruptcy alternatives including credit counselling, debt consolidation, and consumer proposals. Contact us today. The team at Ira Smith Trustee & Receiver Inc. will work with you to ensure that Starting Over, Starting Now you can regain financial health.

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NEGOTIATING DEBT VS BANKRUPTCY

negotiating debt vs bankruptcy, bankruptcy, bankruptcy faqs, debt, trustee, professional trustee, licensed trustee, debt settlement companies, financial plan, consumer proposals, consumer bankruptcies, bankruptcy alternatives, alternatives to bankruptcy, credit counselling, debt consolidation, Bankruptcy and Insolvency Act, BIA, Office of the Superintendent of Bankruptcy CanadaNegotiating debt vs bankruptcy. Of course you would not pick bankruptcy as your first choice. If you are considering the options of negotiating debt vs bankruptcy, you must be mired in serious financial difficulty and have few options available to you.

You need the help of a professional, licensed trustee now! Don’t be seduced by the bogus claims of debt settlement companies who promise to negotiate with your creditors for pennies on the dollar and get you out of debt in no time flat. Although you are being bombarded with messages like this on radio, television and online, don’t fall prey to these scam artists.

Debt settlement companies have already been banned in the United States and now several Canadian provinces have introduced strict regulations in the debt settlement industry. A professional trustee will evaluate your individual situation fairly and in an even-handed manner, and present you with a solid financial plan for moving forward and getting out of debt, including all of the advantages and disadvantages of negotiating debt vs bankruptcy.

According to the Office of the Superintendent of Bankruptcy Canada, consumers continue to opt in large numbers for negotiating debt vs bankruptcy.

What are the alternatives to bankruptcy? There are 3 Formal Bankruptcy Alternatives:

  1. Credit Counselling
    Credit counselling is in reality debt counselling. Professionals provide assistance with a host of issues related to debt including budgeting, finding debt solutions, working with your creditors and rebuilding credit.
  2. Debt Consolidation
    Debt consolidation is a single loan that allows you to repay your debts to several or all of your creditors at once, leaving you with only one outstanding loan.
  3. Consumer Proposals
    Consumer proposals are formal offers made to your creditors under the Bankruptcy and Insolvency Act (BIA) to modify your payments. e.g. paying a lesser amount each month for a longer period of time and paying a total lesser amount than you owe. In a consumer proposal you are choosing not to go bankrupt so this is actually negotiating debt vs bankruptcy.

Ira Smith Trustee & Receiver Inc. is a professional, licensed trustee who can help you get back on the road to financial health Starting Over, Starting Now. A licensed trustee can properly advise you on negotiating debt vs bankruptcy. If you wish to do some self-study, please review our bankruptcy FAQS. But don’t delay. Contact us today.

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BANKRUPTCY TRUSTEE TORONTO: HELPING YOU STARTING OVER, STARTING NOW

living paycheque to paycheque, alternatives to bankruptcy, bankruptcy, bankruptcy alternatives, Bankruptcy and Insolvency Act, bankruptcy faqs, bankruptcy process, bankruptcy trustee in toronto, bankruptcy trustee toronto, collection agencies, credit, credit counselling, credit score, consumer proposal, debt consolidation, rebuild your credit, starting over starting now, wages, bankruptcy trustee torontoA bankruptcy trustee Toronto understands that insolvency and filing for bankruptcy can be a very distressing time in someone’s life. Many people feel like failures at this time and need to have someone to whom they can turn to help them understand their options. People filing for bankruptcy can choose a federally regulated bankruptcy trustee Toronto they feel the most comfortable with to assist them in the process.

When Bankruptcy Becomes Necessary

When a person becomes insolvent, they cannot pay back what they owe to their creditors; in fact, what they owe may far outweigh the assets that they have. At this point, an individual may consider declaring bankruptcy. There are several clues, such as the following, that indicate that one is nearing this point of no return and should consult with a bankruptcy trustee Toronto:

▪ Garnished wages from each paycheque

▪ Contact from one or more collection agencies

▪ Utilities or household services that have been stopped from lack of payment

▪ You can no longer make ends meet living paycheque to paycheque

Bankruptcy and Its Benefits

Although it should be noted that bankruptcy is not the perfect solution for everyone because it will be quite costly and destructive to one’s credit score, it does have several advantages. Of course, there will be no more harassment from creditors or collection agencies during and following the bankruptcy process, and the person involved will be able to feel a greater peace of mind. In addition, many times people are allowed to keep their homes and property during bankruptcy. Finally, employers cannot discriminate against individuals who file for bankruptcy.

What a Bankruptcy Trustee Toronto Does

Anyone filing for bankruptcy in the GTA can choose the bankruptcy trustee Toronto they feel the most comfortable with to assist them. A bankruptcy trustee Toronto has numerous tasks. In general, the trustee is an impartial intermediary who will make sure that every part of the process is performed correctly, that there is no fraud and that assets are liquidated appropriately. Before the actual bankruptcy filing, he or she will meet with the person to review the individual’s situation, consider all alternatives to bankruptcy, including credit counselling, debt consolidation and consumer proposals.

After this initial assessment, if bankruptcy is the best option, the federally regulated bankruptcy trustee will explain the bankruptcy process to you, prepare and look over any paperwork before it is filed, if necessary will hold a meeting of creditors for the individual and will ensure that creditors are paid their pro rata share in accordance with the provisions of the Bankruptcy and Insolvency Act.

Some people fear that a bankruptcy trustee Toronto will make their lives miserable each step of the way. However, although the trustee may have some difficult and painful tasks to fulfill, they will ensure that each step of the process is performed thoroughly, accurately and with complete professionalism. Those people who are in a position to benefit from declaring bankruptcy will find the work of a trustee to be invaluable and allow you after your discharge from bankruptcy to rebuild your credit.

Bankruptcy Trustee Toronto

If you feel you are a candidate for bankruptcy, you can first do some self-study by reviewing our bankruptcy faqs. After reviewing the bankruptcy alternatives, if the best solution for you is bankruptcy, you should feel comfortable that your choice of trustee will treat you with the compassion and respect you deserve. Contact Ira Smith Trustee & Receiver Inc. and Starting Over Starting Now you’ll be on your way to living a debt free life.

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DEBT IS INCREASING IN CANADA ACROSS ALL DEMOGRAPHICS

DEBT IS INCREASING IN CANADA ACROSS ALL DEMOGRAPHICSThe last few weeks we’ve been discussing seniors in debt and baby boomers plagued with debt, but the sad reality is that debts are increasing in Canada across all demographics, and at alarming rates. In July 2013 we discussed how even high flyers can’t sustain the income to fund their lifestyles, so all demographics means the rich and famous included. According to the Royal Bank’s poll:

  • Canadians’ debt loads have grown 21% in the past year, and more consumers are running into the red.
  • For every dollar Canadians earn, they owe $1.63.
  • Just 24% of Canadians say they are debt free.
  • Canadians who are in debt have increased their non-mortgage burdens to $15,920. That’s an extra $2,779 over the past year compared to growth of just $83 in the year prior.
  • 38% of Canadians are anxious about their debt levels.

Unfortunately Canadians are digging themselves deeper by taking advantage of low interest rates and continuing to borrow, yet wages can’t keep up leading to Canadians being anxious about their debts. As a result debt loads have skyrocketed. A new survey shows debt levels are climbing fast, to a record $1.422 trillion in the fourth quarter of 2013, according to credit agency Equifax Canada. TransUnion reported the average Canadian consumer owes $27,355 – not including mortgages. Installment loans, largely made up of car loans, were the fastest growing segment of debt, up 11% year over year. Credit card debt rose 5.9% from a year ago. It is especially true for seniors with credit card debt, as they can tap into existing credit cards to borrow where they could not longer qualify for new credit.

As Canadian sink deeper in debt, many will be living paycheque to paycheque and struggling to make the minimum payments until eventually they become insolvent. Don’t wait for disaster to strike before seeking professional help. If you are facing a debt crisis, contact a professional bankruptcy trustee as soon as possible. The earlier you seek help the more options you’ll have. Bankruptcy is not the only option for serious debt problems. There are bankruptcy alternatives including credit counselling, debt consolidation, and consumer proposals in addition to bankruptcy as solutions. Contact Ira Smith Trustee & Receiver Inc. as soon as possible and Starting Over, Starting Now you’ll be on your way to living a debt free life.

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CREDIT CARD DEBT IS MORE THAN A 4-LETTER WORD

 

CREDIT CARD DEBT IS MORE THAN A 4-LETTER WORDCredit card debt. There’s a lot of discussion about it in the news these days and the news is all bad; but the reality is that there is good debt and bad debt. As you will read, debt, including credit card debt is more than a 4-letter word. However, no one is denying that debt is a serious issue for many Canadians. According to the Canadian Institute of Chartered Accountants surveys conducted in December and June, 2012:

  • 50% of Canadians think reducing debt is a high priority
  • 48% of Canadians would have difficulty making mortgage payments if interest rates rose significantly
  • 43% of Canadians carried over a balance on their credit cards
  • 17% of Canadians borrowed to cover day-to-day living expenses

According to Statistics Canada, between 1984 and 2009, household debt (which includes credit card debt) in Canada more than doubled from $46,000 (in 2009 dollars) to $110,000. In February 2011 the Vanier Institute of the Family reported that the average Canadian family had hit $100,000. If there is such a thing as good debt and bad debt, what’s the difference? The distinction is based on the purpose for which it is taken on. Good debt can be defined as anything that builds your assets or increases the potential for you to earn more money. Bad debt is typically incurred to purchase things that have no value or quickly lose their value and usually carries a very high interest rate – which more often than not is found in credit card debt.

Some examples of good debt:

  • Mortgage
  • Real estate
  • Student loans from the provincial or federal government
  • Investment loans

Some examples of bad debt:

If you are having trouble paying the monthly bills, and have out of control credit card debt, it really doesn’t matter if you have good debt or bad debt; it’s time to see a professional trustee. Ira Smith Trustee & Receiver Inc. will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution are bankruptcy alternatives like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. You can even do some advance study with our bankruptcy faqs. Contact us today.

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FINANCIAL INFIDELITY IN MARRIAGE LEADS TO DIVORCE

FINANCIAL INFIDELITY IN MARRIAGE LEADS TO DIVORCE

Financial infidelity in marriage: Introduction

Financial infidelity in marriage is a recurring problem. Couples heading to divorce argue about many things – the kids, sex, in-laws, the house, division of labour – but a study from Utah State University and recent statistical findings from online divorce service MyDivorcePapers.com (MDP) have re-confirmed that the cause of money, not sex, is the top predictor of divorce. The study and the data show that couples who engage in financial infidelity in marriage routinely argue about their finances are setting a steady course for divorce. Many studies echo these findings, including a 2012 longitudinal study that found that money is the number one cause of tension in relationships and as a result, it’s also the top predictor of divorce.

Financial infidelity in marriage: Our definition

Financial infidelity in marriage occurs when a spouse commits to serious spending that affects the entire household without first consulting their mate. To avoid becoming a statistic couples should be doing a lot of talking about finances before saying I Do and throughout the marriage. It may not be romantic but avoiding the conversation may doom your relationship to failure. You are no doubt discussing your compatibility in many areas of life. You are more than likely not discussing your financial compatibility. The likelihood of financial infidelity in marriage may be increased as a result.

Financial infidelity in marriage: Some important considerations

Have you considered:

  • How you’re planning to pay for your lifestyle?
  • Saving for retirement?
  • If your spending habits are compatible?
  • What your financial priorities are?
  • Your assets?
  • Your debts?
  • A prenup?

Financial discussions need to be frank and transparent. The health of your marriage may depend on your financial health. If in the course of your financial discussions you uncover serious debt issues, it’s better to deal with the debt sooner than later.; stay away from divorce by not committing financial infidelity in marriage.

Financial infidelity in marriage: We can help you

Start your life off debt free and with a go forward plan to stay that way. For sound professional help and advice contact Ira Smith Trustee & Receiver Inc. today. We can’t guarantee you a happy marriage but Starting Over, Starting Now we can help you deal with serious debt issues and put you on a path to living a debt free life.

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BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?

BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?Baby boomers debt crisis. The subject of inheritance is always highly charged – especially if you are in a Baby Boomers debt crisis. Parents seem to be divided into several camps. There are those who are self made and who believe that their kids will learn more from making it on their own than by receiving it on a silver platter. Others have spoiled their kids with a lavish lifestyle that only an equally lavish inheritance will be able to support. And there are those like billionaire Bill Gates who fall somewhere in the middle. This is his take on his wealth and inheritance for his children.

“It will be a minuscule portion of my wealth. It will mean they have to find their own way. They will be given an unbelievable education and that will all be paid for. And certainly anything related to health issues we will take care of. But in terms of their income, they will have to pick a job they like and go to work. They are normal kids now. They do chores, they get pocket money”.

Sadly there are many people who are living well beyond their means and waiting for an inheritance to bail them out of serious debt issues. They are living the life they believe is their right and as a result have an enormous mortgage, leased cars, maxed out credit cards and nothing but a mountain of debt to call their own.

  • An HSBC Bank report released in September, 2013, found 39% of working people are banking on some type of inheritance with the median value expected to be $77,213.
  • A report by Moneyville calculates that baby boomers are poised to inherit about $1 trillion over the next two decades as their parents and other close old relatives die.
  • According to MoneySense, 36% of the wealthiest families have received an inheritance; the average amount of that inheritance was $136,000.

However a BMO report shows that what many Canadians expect and what they may receive are quite different:

  • About 1.5 million Canadians are relying on their inheritance as the primary source of capital to fund their retirement.
  • On average, Canadians expect to receive a total of $150,600 in cash or cash equivalents, and $151,200 in non-cash inheritance.
  • In reality, inheritance sums received were significantly less – the average inheritance received was $56,000; certainly not enough to provide a solution to the question – Will I ever be able to retire?

Waiting for an inheritance to bail you out of a baby boomers debt crisis or other serious financial problems is clearly not a sound plan. If you have serious debt issues you need a professional. Contact Ira Smith Trustee & Receiver Inc. today. As professional trustees we can offer a sound financial plan and a way out of your baby boomers debt crisis for Starting Over, Starting Now. Take the first stop towards living a debt free life.

Call a Trustee Now!