Tag: debt settlement plan

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

Post author By Brandon Smith
Post date March 25, 2024

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.

No Legal Filings Required

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.

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.

Quick Resolution and Legal Protections

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.

Legal Process to Settle Debts with Creditors

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.

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.

Tags Bankruptcy, collection agency, credit card, credit card debt, credit score, debt collectors, debt management program, debt relief options, debt settlement, debt settlement plan, debt solution, financial difficulties, monthly budget, nonprofit credit counseling agency, nonprofit credit counselor, protection from creditors, tax debt, unsecured debt, wage garnishments

Brandon Blog Post

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

Post author By Brandon Smith
Post date July 3, 2023

debt relief options

Debt relief options: Introduction

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

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

Debt relief options: What is debt relief?

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

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

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

debt relief options

Debt relief options: Why managing debt is crucial

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

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

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

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

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

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

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

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

debt relief options

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

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

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

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

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

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

Certification and accreditation of the debt relief service provider

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

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

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

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

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

Transparent fee structure

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

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

Customer reviews and rating

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

debt relief options

Debt relief options: Tips for managing your debt

Below are my best tips for finding debt solutions:

Credit counselling

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

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

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

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

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

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

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

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

Debt consolidation

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

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

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

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

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

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

Debt settlement

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

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

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

Consumer proposal

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

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

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

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

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

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

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

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

Bankruptcy

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

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

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

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

debt relief options

Debt relief options: Conclusion

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

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

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

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

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

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

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

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

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

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

Brandon Blog Post

DISCHARGE FROM BANKRUPTCY CANADA: OUR DETAILED STEP-BY-STEP GUIDE

Post author By Brandon Smith
Post date October 10, 2022

discharge from bankruptcy canada

What are the implications of discharge from bankruptcy Canada?

If you are experiencing financial troubles and can’t pay your debts, you can file for bankruptcy in Canada. This legal process lets you off the hook for your debts and start fresh. Once you’re discharged from bankruptcy, you’re no longer responsible for those debts (other than for a few exceptions noted below). Filing for bankruptcy is stressful. We understand how difficult and stressful the bankruptcy process can be, so we hope that this will be a helpful resource for you.

Once the Trustee has completed their duties under the Bankruptcy and Insolvency Act (Canada) with respect to the administration of your property and the bankruptcy estate, the next step in the bankruptcy process is they must apply for a discharge. This will occur after the Trustee has applied for your discharge from bankruptcy Canada, even if you did not get an absolute discharge.

This Brandon’s Blog is for people who have made a bankruptcy filing but have not yet been discharged. If your Licensed Insolvency Trustee has been discharged or is otherwise unable to help you with a second discharge application, this blog will provide you with the information you need to get through the process on your own.

Discharge from bankruptcy Canada: What are the implications if you are not discharged from bankruptcy?

If your previous application for discharge was unsuccessful, you remain an undischarged bankrupt and your Trustee is not obliged to make another application on your behalf. However, you should check with your Trustee first as they may or may not be prepared to do so.

We often receive calls from individuals who claim that their Trustee has been discharged, but they have not been. They express confusion as to why their Licensed Insolvency Trustee will not make an application for their discharge from bankruptcy. A quick search reveals that in these cases, the individual received a conditional discharge, but has not yet fulfilled all of their conditions to get a bankruptcy discharge. That is why their conditional discharge has not yet been converted into an absolute discharge.

If you filed an assignment in bankruptcy and are still an undischarged bankrupt, you may be able to apply for discharge from bankruptcy. An insolvency Trustee only needs to make one application on your behalf. Once the Trustee obtains their discharge, they do not need to make your application for discharge on your behalf again.

The Licensed Trustee cannot be discharged until all bankruptcy administration requirements have been met, including making the first discharge application on behalf of the bankrupt person.

discharge from bankruptcy canada

Discharge from bankruptcy Canada: How do you obtain a bankruptcy discharge in Canada?

Automatic discharge from bankruptcy is typically granted unless there are exceptional circumstances. If there is opposition to the automatic discharge, the discharge application must be brought before the court for a hearing.

If you did not complete all of your bankruptcy duties as the bankrupt person, such as providing income and expense statements, attending required financial counselling sessions, and/or paying surplus income, your Trustee had reasons to oppose your automatic discharge and scheduled a hearing with the court.

The Report of Trustee on Bankrupt’s Application for Discharge sets out the reasons for the insolvency Trustee’s opposition to a bankrupt’s application for discharge. This document is on file with the court.

If a bankrupt does not receive a discharge at the time of the court application, it is usually because they have not yet done what is required. The associate justice/registrar who heard the application at court may have therefore adjourned the application (i.e. stated it was to be heard at a later date, which may or may not have been set).

The court may have adjourned your discharge application or imposed conditions that must be met before you are entitled to a discharge. The disposition sheet from the hearing will state what the court decided in this regard.

Discharge from bankruptcy Canada: What are the steps to clear my bankruptcy?

It’s not unusual for people who didn’t do what they were supposed to at first to try and get back on track and do what’s required to get their discharge. You must comply with your duties during bankruptcy to the best of your ability and be prepared to explain to the court any deficiency in doing so.

For example, to get your discharge, you must be able to provide details and evidence of your income and expenses during bankruptcy. You probably recall that you were required to provide the Trustee with your monthly income and expense reports. If you’re unable to provide the court with those details, the court may want to review your income tax returns for that period. If you want the court to rescind or vary the conditions imposed, you must show that you complied with the conditions to the best of your ability.

There are many examples of trying your best to meet the conditions but maybe not perfectly. If the court orders you to pay a certain sum of money to the Trustee by a certain date, you can make the court-ordered additional payment but not by the specified date. If you were required to make surplus income monthly payments but didn’t make them all, that’s one reason there were conditions attached to your discharge. You can apply to the court to change the date and get your discharge.

Another one is that you didn’t finish all your required credit counselling sessions. You could finish them and then provide proof of completion to the court.

discharge from bankruptcy canada

Completing your own application for discharge from bankruptcy Canada

Making your own application to be discharged from bankruptcy can be a bit daunting, but don’t worry—just follow a few simple steps and you’ll be all set. Here are some tips to help you get your application ready and submitted without the help of a bankruptcy trustee or a bankruptcy lawyer.

To begin, you’ll want to locate your bankruptcy file at the court office. Once you have your file, be sure to look through it thoroughly to find:

your bankruptcy court file number;
the Report of Trustee on the Bankrupt’s Application for Discharge under section 170 of the BIA;
any order issued by the bankruptcy court at the original discharge hearing; and
the court’s disposition sheet from any previous discharge hearing identifies what the court previously ordered or decided.

You will need copies of these documents. You can ask the court office to make copies for you. They will charge you a fee for photocopying. You should check the Report of the Trustee, the court’s disposition sheet, and any court order to see what you failed to do and what conditions the court has imposed. Also, it is not a bad idea to find out who attended your last application for discharge.

You should check the Report of the Trustee, the court’s disposition sheet, and any court order(s) in the file to see what you didn’t do and what conditions (if any) the court has imposed. Lastly, you need to schedule a date for your discharge hearing with the bankruptcy court.

You will be required to prepare the following documents and file them with the court:

a notice of hearing for a bankrupt person’s application for discharge;
your affidavit explaining why you believe you are entitled to the discharge order sought;
an affidavit of service; and
a draft of the order sought.

The Associate Justice/Registrar in Bankruptcy hearing your application for discharge may make any order he or she sees fit. If the order you are seeking is made, he or she may accept and sign it in court on the day you appear, which may save you a period of time later on.

Requisition – Notice of hearing for bankrupt’s discharge from bankruptcy Canada hearing for discharge

The first step in obtaining a discharge in bankruptcy is to file a Notice of Hearing for Bankrupt’s Application for Discharge with the court. That document would have first been filed by the Trustee when the Application for discharge is first scheduled. If you have a copy of it, it will be a good precedent for you to follow.

A requisition must be filed again by you in order to have the matter brought back before the court.

discharge from bankruptcy canada

Discharge from bankruptcy Canada:The Affidavit

An affidavit is a formal, written statement that provides key information in your legal case. Any evidence you want the court to consider in your application must be submitted in an affidavit. Your affidavit should describe the events leading up to your bankruptcy, and your current financial situation.

You must swear or affirm your affidavit before a notary public or commissioner of oaths. Make sure that your affidavit only includes evidence that is relevant to your application for discharge.

The court is familiar with a standard form of affidavit for discharge applications. You should familiarize yourself with that normal format. You should also include:

additional information about why you did not seek a bankruptcy discharge earlier;
is this a 1st-time bankruptcy, 2nd-time bankruptcy or more;
why you have not been able to comply with the bankrupt’s duties or the requirements of an earlier court order; and
state the reasons you are wanting to be discharged now.

You will need to attach any relevant documents to your affidavit in support of your application, including a statement of your current income, expenses, assets, liabilities and any previous bankruptcy information.

Discharge from bankruptcy Canada:Affidavit of Service

To serve documents, you must provide a written copy to the party to be served. You need to obtain a signature or other confirmation, such as an email, to confirm that the document was properly served. You will need to serve the filed Requisition and all filed Affidavits and documents on:

any creditor filed an opposition to your discharge;
creditors who attended an earlier discharge hearing;
your Licensed Insolvency Trustee; and
Office of the Superintendent in Bankruptcy.

These parties may attend your hearing and make submissions.

In order to provide proper service within the required time period before your discharge hearing, you must familiarize yourself with the rules. You must also provide proof of service at the hearing, especially if no one else attends. This proof of service can be the signature of everyone served to show the date they were served.

An Affidavit of Service can also be filed with the court. This Affidavit of Service is separate from the Affidavit filed with the court regarding your reasons for entitlement to anabsolute bankruptcy discharge certificate.

discharge from bankruptcy canada

At the discharge from bankruptcy Canada hearing

When you appear in court for your discharge hearing, you will be able to present your case to either an Associate Justice or Registrar in Bankruptcy. If your application is being opposed, the creditors opposing your discharge need to file a notice of opposition. In this case, the hearing will be in front of a bankruptcy Judge. This is the normal process followed:

You explain why you believe you are entitled to the order you are seeking, for example, an absolute discharge from bankruptcy.
Anyone opposing your application explains his or her position.
The Judge or Registrar may ask questions relating to the affidavits and documents you have filed and make suggestions or give directions.

When presenting your position at the hearing, remember to:

Clearly state what order you are seeking from the Registrar in Bankruptcy or Judge.
Outline the facts supporting your application in a concise manner.
Explain the law on the subject and how it applies to the facts of your case.

Your conduct before and during bankruptcy will be taken into consideration when making a decision on your application for discharge. The Trustee’s report will provide information on your conduct before and during bankruptcy, which will be taken into account. if you did not attend the required financial counselling
sessions, did not file required statements of income and expense, and/or did not make the required surplus income payments to the Trustee for the benefit of your creditors.

The court will consider the relevant factors and make the appropriate order, or it may adjourn the hearing for further information or conditions to be met. Some of the types of orders the court may make are:

An order of discharge that is absolute and therefore you are immediately discharged from bankruptcy.
A conditional discharge may be granted. Examples of conditions are:
- if the debtor pays any unpaid surplus income,
- the debtor pays the outstanding balance for any asset that was agreed to be paid for; or
- if the debtor pays a sum of money to the Trustee toward their debt obligations, as decided by the court.
A discharge that has been suspended.
The court may refuse to issue a discharge order if it is not satisfied that you have made full and adequate disclosure, or if there are issues with your conduct.

Discharge from bankruptcy Canada: Order for discharge

The Judge or Registrar in Bankruptcy will grant a discharge order at the end of the hearing. The type of discharge will be one of the kinds indicated above. If you prepared a draft order and the Registrar in Bankruptcy or Judge finds it acceptable, they will sign it and you can then have it filed with the court. However, if your application was opposed, keep in mind that one of the opposing parties may choose to appeal the discharge order.

If you have not prepared your order before the hearing, you should do so after the hearing and submit the order in duplicate to the court. The court office will then send the order to the Registrar in Bankruptcy or Judge who heard your application for signing. Once you receive your copy of the signed order, your discharge will be official.

When you receive a copy of the signed order, you must provide a copy to the Office of the Superintendent of Bankruptcy. They will in turn notify the credit bureaus and Canada Revenue Agency of your discharge.

When you have received your absolute discharge, you are no longer legally responsible for repaying debts that you incurred before your assignment in bankruptcy. You will get rid of debt with some exceptions set out in Section 178 of the Bankruptcy and Insolvency Act. They are:

payment of child support or alimony;
student loans, if you have not been a full-time or part-time student for less than 7 years;
a fine or penalty imposed by the court; or
debt resulting from fraud.
discharge from bankruptcy canada

Discharge from bankruptcy Canada: Are you tired of being in debt?

Bankruptcy law and the bankruptcy process can be complex, so it may be worth retaining a bankruptcy lawyer to help you apply for your discharge. Ultimately, it is up to you, but hopefully, this guide to discharge from bankruptcy Canada will lay out the steps you need to take if you wish to apply for a discharge yourself.

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

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

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

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

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

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

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

Brandon Blog Post

CERB UPDATE: CERB YOUR ENTHUSIASM AS INTENSE CERB CRA AUDITS BEGIN

Post author By Brandon Smith
Post date October 28, 2020

CERB update

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

CERB update introduction

The Canada Emergency Response Benefit (CERB). CERB update: The Canada Revenue Agency (CRA) has started audits to assess payments made under certain of Canada’s COVID-19 Economic Response Plan. After being slowed down by the coronavirus, auditors are now getting back to their complete workload.

This Brandon’s Blog will concentrate on the Government of Canada CERB update.

CERB update: Who can qualify for CERB?

As a refresher, there were eligibility criteria to be eligible for the $2,000 CERB payment by applying to the CRA, you must have met certain conditions during the period you are applying for. The Government of Canada stipulated the eligibility criteria to be:

You did not look for, or get, CERB or Employment Insurance benefits from Service Canada for the exact same qualification period.
You did not stop your work willingly on your own.
You live in Canada and also are at least 15 years old.
You earned a minimum of $5,000 (before taxes) in the preceding 12 months, or in 2019, from 1 or more of:
- employment earnings
- self-employment income
- provincial benefit payments connected to pregnancy or parental leave

1of:
- Your work hrs have actually been minimized because of COVID-19.
- You have actually quit or will certainly quit working as a result of COVID 19.
- You are incapable to work as a result of COVID-19, for example, because you are looking after a person.
- You have actually been paid EI benefits for at the very least one week of benefits since December 29, 2019, and finished your entitlement to such benefits.

One of:.
- If you are applying for the first time: You have actually stopped or will stop working, or you are working minimized hours due to the coronavirus. Also, you don’t expect to earn over $1,000 in gross employment or self-employment revenue for at least 14 days straight during the 4-week duration.
- If you are looking for a subsequent period: You are still not employed or self-employed, or you are doing reduced hours due to COVID-19. You don’t expect to make over $1,000 in gross employment or self-employment revenue, and you anticipate this to continue during the whole 4-week duration.

One CERB update is that the CERB program has now ended. The CRA is continuing to accept and pay retroactive applications until December 2, 2020.

CERB update: What are the CERB pay periods?

You will see in the above CERB update description, it talks about qualifying for different periods. What were the CERB pay periods? The CERB was available from March 15 to September 27, 2020, inclusive.

The Government of Canada paid out $2,000 per four-week duration for approximately 28 weeks, backdated to March 15. CERB payments were paid out in the gross amount. No deductions for income tax, Canada Pension Plan or Employment Insurance were taken off. CERB is taxable income that must be reported on your 2020 income tax return.

As long as you did not make more than $1,000 for any 4-week period applied for, there was not any CERB claw-back.

So for this CERB update, keep 3 things in mind because it will be important from a CRA audit perspective:

You could apply for CERB through either CRA or Service Canada, but not both.
There were certain eligibility requirements regarding anyone who applied having reduced work hours or no work due to the coronavirus.
You were only allowed to earn $1,000 for any CERB pay period. If you earned more, you were not entitled to apply for the CERB for that pay period or receive payment of CERB.

CERB update: What is replacing CERB?

Now that the CERB has ended, the Government of Canada has created some new benefit programs. These new CERB update programs are retroactive from September 27, 2020, to September 25, 2021, inclusive.

Canada Recovery Benefit (CRB)

The CRB will provide qualified workers with $500 weekly (taxable, and this time tax is deducted) for as much as 26 weeks for those who are not working for an employer or independently as a result of COVID-19.

To qualify, you also must not be eligible for Employment Insurance or had employment/self-employment revenue minimized by a minimum of 50% as a result of the coronavirus.

Canada Recovery Caregiving Benefit (CRCB)

The CRCB will supply $500 each week (taxed, tax deducted from the gross weekly amount) for up to 26 weeks per house. It is for workers incapable of working at least 50% of the week since they must look after a youngster under the age of 12 or a member of the family. The allowed for reasons are since schools, day-cares or treatment centres are closed due to COVID-19, or due to the fact that the youngster or member of the family is sick and/or required to quarantine or is at a high threat of serious health ramifications as a result of COVID-19.

Canada Recovery Sickness Benefit (CRSB)

The CRSB will provide $500 weekly (taxable, and this time tax is deducted) for a maximum of 2 weeks, for workers that are not able to work at the very least 50% of the week because:

they acquired COVID-19;
self-isolated for factors associated with COVID-19; or
have hidden problems, are undertaking therapies or have actually gotten various other sicknesses that, in the opinion of a doctor, nurse practitioner, government or public health authority, would make them much more prone to the coronavirus.

Employment Insurance

If you received the CERB by applying to Service Canada after you got your last CERB amount, continue completing records for Service Canada. For the most part, you do not require to make a special application for EI benefits.

Service Canada will automatically examine your data and your Record of Employment. They will review your case and let you know if you qualify for EI.

If you got the CERB by applying to CRA, you are required to first get all your CERB payments before applying for EI benefits. You can apply after the end of your last CERB eligibility period for the CERB update benefits.

CERB update: Can CRA audit CERB?

Definitely. They will be looking for two things. People who made an honest mistake in their application and those who committed out and out fraud.

The CRA isn’t going to fool around with these CERB payments. If you made a mistake on your application and therefore got more money than you should have, the CRA will want those funds back.

The Canadian federal government has spent billions on the CERB program. That’s a lot of money calling for accountability. If you do not think the CRA will audit applications, you may want to rethink just how easy auditing is with the CRA computers.

Taxpayers who inaccurately claimed CERB benefits by mistake may just be required to pay back the incorrectly claimed amount. But here is the CERB update – there will be, if there aren’t already, additional procedures to successfully penalize taxpayers who purposefully claimed COVID-19 subsidies they did not qualify for.

These actions will include penalties and interest and possibly prosecution for the, especially more grievous tax fraudsters. COVID-19 benefits or subsidies have come at a significant cost to the government. They will be keeping an eye out for those attempting to abuse the system.

The very best security against flunking an audit where the CRA chooses you is to have taken simple preventative steps. The simplest way to come out clean from a CERB update audit was to make sure that you qualify before applying for the money!

CERB update: What if you can’t (re) pay?

There are going to be three kinds of people that may very well have trouble paying money to the government. People went on the CERB because of very low, or no, employment earnings. Nobody got rich from the CERB. So people are now flush with cash after having received CERB payments.

The first type is those that made an honest error in their applications. If caught through an audit, they may very well not have the funds to repay.

The second type is those that committed fraud in getting the CERB. Perhaps they never qualified but falsely applied. Or, perhaps on the surface they did qualify, and then while receiving the CERB were able to pick up work and got paid in cash.

The third type will be those people who did everything right and needed all the CERB to put food on the table and make their rent or mortgage payment. Remember that CERB is taxable and was paid at the gross amount. No income tax was deducted at the source. So, next winter or spring, when filling out their 2020 income tax return, they may have a nasty surprise. That nasty CERB update surprise will be income tax payable for which they do not have the cash to make the tax payment they are required to.

So now they will have income tax debt to add to credit card debt or other types of debt. These people will need income tax debt relief. CRA will definitely contact you if you do not pay.

If you find that you will be in need of a debt settlement plan to deal with your debts, including any income tax debt, contact a licensed insolvency trustee (Trustee).

A Trustee will review your situation and make specific recommendations on how you can settle your debts. Our aim is always to help people avoid bankruptcy. We have helped many people who have received bad news from a CRA audit. We can also help anyone with a CERB update problem.

CERB update: Summary

I hope you have enjoyed this CERB update Brandon’s Blog. Hopefully, you have better insight now into the fact that a sick insolvent company’s business can be saved by doing a sale of its assets to a healthy organization.

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

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

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

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

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

Call us now for a free consultation.

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

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Brandon Blog Post

OFFICE SUPERINTENDENT BANKRUPTCY CANADA – COVID-19 AND “THROWBACK THURSDAY”

Post author By Brandon Smith
Post date May 11, 2020

The Ira Smith Team is absolutely operational and both Ira, as well as Brandon Smith, are right here for a telephone appointment, conference calls and also virtual meetings.

Stay healthy and safe everybody.

If you would rather listen to an audio version of this Brandon’s Blog, please scroll to the bottom and click on the podcast.

Introduction

As issues about COVID-19 in Canada grows, insolvency practitioners are doing their part by having determined it is needed to take steps to reduce in-person contact. The Office Superintendent Bankruptcy Canada has helped Licensed Insolvency Trustees (formerly called bankruptcy trustees) (Trustee) in these initiatives while keeping all aspects of Canada’s insolvency system running.

In my April 29 Brandon’s Blog, CONSUMER PROPOSALS IN ONTARIO TEST POSITIVE FOR COVID-19, I described how the Superintendent of Bankruptcy went to Court in Ontario. They made a motion to have the Court direct how certain procedures would change during the state of emergency lockdown. Part of that will be how the government wants to have Trustees resurrect an old methodology in personal debt settlement plans and corporate restructuring plans not really been used in the last 25 years.

Since then the government has come out with additional information and clarifications on how they see the bankruptcy Canada process continuing to work during the coronavirus shutdown. In Brandon’s Blog, I talk about these issues.

There are many ways that the Office Superintendent Bankruptcy Canada has approved social distancing for Trustees.

Initial free strategy session – Most if not all Trustees will provide a no-cost consultation for a personal or corporate insolvency discussion. In the pre-coronavirus era, most of these were done in a face to face meeting. Trustees can and do use methods aside from in-person assessments. These methods were always reserved for extraordinary circumstances. Boy, are we in one now!

So, the Office Superintendent Bankruptcy Canada has reminded Trustees that the COVID-19 pandemic is such a phenomenal circumstance and Trustees can conduct assessments making use of approaches other than face to face. Where video-conferencing is not viable, assessments may be done using a mix of telephone conversations and e-mail.

Credit counselling in personal debt settlement or bankruptcy cases – Trustees can offer counselling through telephone conversations or videoconference. The government is updating its software to allow for Trustees to file confirmation of credit counselling done this way as before it was not available. I am finding that our “customers” like this way of being able to deal with credit counselling. They don’t need to travel to our office and appreciate that we are still checking in with them.

Meetings of Creditors – The Office Superintendent Bankruptcy Canada is encouraging Trustees as the Chair of the creditors’ meeting to hold the meetings on time using either telephone conference call or video methods. Trustees can rely on the oral representation from everyone on the call as proof of attendance. The notice and legal ad calling the meeting of creditors looks a bit different than we are normally used to seeing because of this change. At the top of this Brandon’s Blog is an image of the legal notice I ran in a local newspaper.

Signatures/Oaths – I am now circulating papers that call for signature by means of e-mail. I then supply debtors the necessary support to explain the papers via videoconference. I then ask the debtor over the Zoom meeting if they swear or affirm that what is in the document is true. When they respond affirmatively, I then ask them to sign in the space provided. I then commission the document on my end, ask them to email me a copy of the signed document and put the original signed paper in the mail to me. So far it has been working smoothly.

Closure of non-essential businesses

The provinces have ordered the closure of non-essential businesses. So far, the businesses of lawyers and accountants have been deemed essential. The Office Superintendent Bankruptcy Canada has confirmed to Trustees that it wants the Canadian insolvency system to continue operating smoothly. So, the Trustee business is considered to fall under these same categories as being essential.

As you are aware, creditors right now seem to be choosing to either explicitly or implicitly forbear on amounts owing to them. They are trying to be supportive of people by recognizing that with reduced or no income, they need some breathing room. Although there are media reports to the contrary, as of now, debtors seem to be getting a break. Trustees are also encouraged to do the same if someone is having trouble making a surplus income payment in their bankruptcy right now. In fact, Trustees will probably be held to a very high standard when their conduct is reviewed by the Court.

In my April 29 Brandon’s Blog, I spoke about the whole issue of a debtor in a consumer proposal who misses three payments. If that happens, the consumer proposal is considered annulled. In this case, the Order the Ontario Court issued essentially gives debtors up to the end of 2020, and in some cases, beyond that date, to make up the missed payments.

COVID-19 insolvency frequently asked questions

There are some frequently asked questions that are coming up. So, I want to give the questions and answers to help people better understand what is going on right now in the Canadian insolvency system.

Q: Do consumer proposal debtors need to make up all missed payments by December 2020?

Response: This was not previously well explained. The answer is No. As much as an extra three monthly payments can be missed between March 13, 2020, and December 31, 2020, before a consumer proposal is considered annulled. Missed payments will need to be made up by the end of the proposal or a modified proposal will certainly need to be authorized by creditors. I am advising debtors to carefully think about whether it is necessary to miss making payments. There is no guarantee that later on, debtors will be able to make up the missed payments. So I am telling debtors that if they can still afford to make the payments, they should. Don’t choose to miss payments you otherwise can afford to. What if you can’t catch up? Do you really want your consumer proposal to be annulled later on after potentially you have paid everything except a few payments? That would be terrible..

Q: If a proposal was deemed annulled before April 27, 2020, when does it need to be revitalized to be covered by the order?

Response: A proposal that is revived by the steps taken under the Bankruptcy and Insolvency Act (BIA) on or prior to June 30, 2020, will certainly be covered by the order.

Q: If three payments were missed on or before April 27, 2020, but the Trustee did not send notices of deemed annulment, does anything require to be done to be covered by the order?

Response: Yes. When three payments prior to April 27, 2020, are missed out on the BIA states that a consumer proposal is regarded annulled despite administrative actions that may or might not have been taken. Thus, where the equivalent of three or even more payments has been missed out on, the consumer proposal will certainly need to be revived according to the BIA on or before June 30, 2020, in order to be active under the order.

Q: Is the duration under which a consumer proposal can be automatically revived likewise extended?

Response: No. The order allows the equivalent of as much as three extra payment defaults or an added three months time during the March 13 to December 31, 2020 timeline, prior to a deemed annulment of a consumer proposal. After this happens, a notice of revival has to still be filed within 30 days of the deemed annulment.

Q: Will the five-year restriction on consumer proposals be lengthened in order to offer debtors the time required to make up the missed out on payments?

Response: The BIA says that a consumer proposal needs to say that it will be completed within 5 years. Consequently, all payments, including missed repayments, have to be made during this same timeline. The only thing that will change that is if an amended proposal is filed and approved. After saying that, the BIA does not offer instant repercussions for defaults that lead to non-performance during this 5 year time period. If a consumer proposal has exceeded the five-year period but has actually not been annulled, it remains in force and therefore, in my view, can be completed.

This assumes no interested party goes to Court to ask for a court-ordered annulment. The Office Superintendent Bankruptcy Canada has formally stated that where hold-up in completion is due to COVID-19 reasons, they will not be seeking an annulment.

Everything old is new again or “Throwback Thursday”

There is one area that has not yet been covered off by the Order obtained by the Office Superintendent Bankruptcy Canada. When a person who does not fit under the $250,000 debt limit of consumer proposals, and for all companies, debt settlement restructuring plans under the BIA are done under Part III Division I Proposal section.

If a restructuring proposal cannot be filed straight away, the BIA allows for the filing of a Notice of Intention To Make A Proposal (NOI). The BIA statute says that unless extended by the Court, a Proposal needs to be filed within 30 days after the filing of the NOI. The Court can extend the timeline for a period not exceeding 45 days for any individual extension. In total, extensions cannot be more than 5 months. So in total, a debtor who has filed an NOI can be operating under the NOI for a maximum of 5 months and 30 days.

The Court has to order the extension prior to the expiry of the earlier time period trying to be extended. But the Courts are currently closed. They are only hearing emergency applications via telephone conference call or videoconference. Are a bunch of businesspeople fighting over money with the debtor asking for more time to file a Proposal an emergency? I can’t answer that right now. So if they can’t get into Court, what is the answer?

The Office Superintendent Bankruptcy Canada has recommended an old method. In the “old days”, before 1992, there was no NOI provision. So what did a person or company who needed more time to formulate and file a Part III Division I Proposal debt settlement plan, but needed to hold off creditors right now, do? They filed what was called a “holding proposal”. A holding proposal is no more than a proposal that says I promise to file a debt settlement plan that will clearly say how I plan to settle my debts either by a certain date or when a specific set of events happen.

The benefit was that the debtor got help from the immediate stay of proceedings. If the debtor could, he, she or it filed an amended proposal at the meeting of creditors which really said how the debts would be settled and then paid. If not, the creditors could consider the issues holding up the filing of the real proposal. If they felt it was in their best interests, they voted in favour to give the debtor the necessary time. If not, they voted it down and the debtor was immediately deemed to have filed an assignment in bankruptcy.

Where the creditors gave the debtor more time under the holding proposal, the Court approved them as long as the requirements the Court had to review were met. It was ultimately the creation of the NOI that was made to make it easier for debtors who were not ready to file a definitive proposal but needed relief from creditors to get it.

So now, the Office Superintendent Bankruptcy Canada is recommending for those cases where you just can’t get into Court, file a holding proposal. I am glad that Ira has kept a copy of a holding proposal in our document template file!!

Summary

I hope you found this case review helpful. It should be of particular interest to contractors, developers and builders in Ontario.

The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses. This is especially true these days.

If anyone needs our assistance, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

Are you now worried just how you or your business are going to survive? Those concerns are obviously on your mind. This pandemic situation has made everyone scared.

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

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

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

The Ira Smith Team is absolutely operational and both Ira, as well as Brandon Smith, are right here for a telephone appointment, conference calls and also virtual meetings.

Stay healthy and safe everybody.

Tags Bankruptcy, Bankruptcy and Insolvency Act, bankruptcy trustee, Consumer Proposal, coronavirus, corporate restructuring, covid-19, credit counselling, debt settlement, debt settlement plan, debt settlement restructuring, insolvency, Ira Smith Trustee, licensed insolvency trustee, meeting of creditors, office superintendent bankruptcy canada, part III division I proposal, social distancing

Brandon Blog Post

HOW TO FILE FOR BANKRUPTCY IN CANADA: PERSONAL BANKRUPTCY MODUS OPERANDI

Post author By Brandon Smith
Post date September 16, 2019

If you would prefer to listen to the audio version of this how to file for bankruptcy in Canada Brandon’s Blog, please scroll to the bottom and click on the podcast below

Introduction

I am most often asked by people how to file for bankruptcy in Canada. When I receive that question, I tell people that there are a few steps that need taking before the actual filing. These steps are the process I use to make sure that the person can actually benefit from personal bankruptcy. I don’t just put someone into bankruptcy and hope that it will work out alright for them. I have to make sure upfront that there is a benefit for them. It has to make sense.

Getting over the initial fear

It takes a lot for a person to overcome that initial fear and reach out to phone me. They are admitting that they have financial problems. I understand the fear a person has. My role in that first phone call or meeting, for which there is no charge, is to help the person get over their fears. I answer the most important questions the person wants to be answered. I also need to remind them that the answers are by necessity, generic. Once I have their specific information, then I can answer their questions in a way that is specific to their situation.

How do I apply for bankruptcy in Canada?

The first step in the application process is providing me with detailed information about your specific situation. We get this information by having you complete our initial assessment intake sheet. We call ours the Debt Relief Worksheet.

The Debt Relief Worksheet collects the information we need to do a proper initial assessment. The information collected includes:

Basic details such as name, address and marital status.
A listing of all your assets and your debts.
Your employment.
Your household monthly cash flow/budget.
Questions whose answers are important to understanding who you are.

You can click here to see a copy of our Debt Relief Worksheet.

The free assessment

Once I have a fully completed Debt Relief Worksheet, I can then analyze the information and provide you with an assessment designed specifically for you. Normally, when you first submit the information to me, I will have to follow up on questions for you to answer. This is all normal.

Once I have the full picture, I can properly assess what bankruptcy will mean for you. This will lead us to a discussion of alternatives to avoid bankruptcy that is right for you. It may be that you have a specific issue that can be dealt with outside of bankruptcy. Once resolved, the rest of your situation is manageable without resorting to a filing under the Bankruptcy and Insolvency Act, RSC 1985, c B-3 (BIA).

The next possibility is you can’t fix things on your own, but you still do not need a licensed insolvency trustee (formerly known as a trustee in bankruptcy) (Trustee) to do a BIA filing on you. Perhaps with credit counselling, you can get your budget under control and pay down your debts.

If the right answer is that you do not need to file under the BIA, I will tell you so and connect you with the proper help that you need. The cost for me to review your situation and provide you with the right alternatives available to you is zero. It will not cost you anything.

Consumer proposal vs bankruptcy

If you do need a formal insolvency filing, we have to figure out which one. We are still looking at if you can avoid bankruptcy. We do this by looking at your whole situation. We first look at what bankruptcy means to you. What would the outcome of your bankruptcy be?

Some of the factors we consider are:

Your assets that would not be exempt and therefore would be handed over to us as your Trustee.
Have you ever been bankrupt before?
Are your debts $250,000 or higher, not including any mortgages or other loans secured by your principal residence?
Do you owe $200,000 or more to Canada Revenue Agency (CRA) for unpaid income tax?
Are all your tax filings up to date?
Your income and do you have a surplus income?
If you do have surplus income, what would your monthly payment be and can you afford it in your budget?
Based on the information you gave us, can we determine the likelihood of any creditor opposing your discharge from bankruptcy?
Any other special circumstances you have told us about.

The answers to these questions help us determine if you need to file for bankruptcy or not. In many cases, I help people avoid bankruptcy by filing a consumer proposal. As I have written before, in many cases, it is possible to avoid bankruptcy.

By filing a viable consumer proposal debt settlement plan, you are offering to pay your creditors a fraction of what you owe. You are promising to make monthly payments for a time period not greater than 60 months. A successfully completed consumer proposal will release you from your debts that exist at the time of your filing.

Those that are eligible to file a consumer proposal choose this option. They are happy to avoid bankruptcy. Our assessment and the advice we give you on consumer proposal vs bankruptcy is still free.

How to file for bankruptcy in Canada

If we decide that bankruptcy is necessary, we will then prepare the required documents. These documents include your sworn Statement of Affairs and your monthly cash flow budget. The Statement of Affairs is a document that:

Identifies you.
Lists your assets with their respective estimated realizable value.
Indicates which assets are exempt from seizure, if any.
Lists your creditors by name and amount owing.

Part of the filing process is that the insolvent person swears that the document is accurate. This is done in our office as our Trustees are also commissioners for taking oaths for the work we do. All of this is done in my office.

I then electronically file the sworn Statement of Affairs and other required documents with the Superintendent of Bankruptcy. Once the Official Receiver, who is the Superintendent of Bankruptcy’s local official, reviews and accepts the filing, the insolvent person is officially bankrupt.

This is how a person files for bankruptcy in Canada.

What happens if I declare bankruptcy in Canada?

Once you declare bankruptcy (or file a consumer proposal), all collection and enforcement action against you stops. Creditors can no longer sue you or harass you trying to collect the outstanding debts. You are now protected by the stay of proceedings.

Then the Trustee needs to take possession of your assets that are not exempt from seizure under provincial law. Before you file, I always tell you what those assets are and what will happen.

If you declare bankruptcy (or file a consumer proposal), you will have to attend two counselling sessions. Those sessions are conducted in my office by the Trustee who is also a qualified credit counsellor.

If you have met all of your duties and responsibilities in your bankruptcy, including the payment of surplus income if required, you are then entitled to a discharge from bankruptcy. If no creditor or the Trustee objects to your discharge, then you receive an absolute discharge. If there is something in your activities or your background where there is an objection to your discharge, then the matter must be heard in the bankruptcy court.

Before you file, I will give you my best-educated guess on the likelihood of an objection to your discharge arising.

Will I lose my house if I file bankruptcy in Canada?

If you declare bankruptcy, there are various ways and conditions in bankruptcy that you will NOT lose your house.

Everybody who owns a house and also experiences financial issues is worried about losing their house. Losing your home is possibly among the most terrible concerns people with a huge debt load that is crushing them have. This is exactly how it functions if you file for personal bankruptcy in Ontario.

In Ontario, the provincial regulation that describes what is excluded from seizure is called the Execution Act, R.S.O. 1990, c. E.24. For a full checklist of all bankruptcy Ontario exemptions, please review my Brandon’s Blog, BANKRUPTCY IN ONTARIO CANADA SECRETS EXPOSED.

The exemption in Ontario for your house is $10,000 of equity. The present thinking is that if your equity is $10,000 or less, if you go bankrupt, then your entire equity is excluded from seizure by the Trustee. Nonetheless, if your equity is $10,001 or greater, your whole equity in your home is NOT exempt and also is readily available to your Trustee for the benefit of your creditors.

Keep in mind that we are talking about your equity. In determining your equity, we first have to determine the market value of the house. We then deduct any mortgages or other loans registered against the property. The net result of this calculation represents your equity. If you own the home jointly with your spouse, then it is half of that number that is your equity. The other half belongs to your spouse.

If someone is available and willing to purchase your equity from the Trustee for its value, then the Trustee will collect that money. Once the Trustee sells its interest in the equity of your home, the Trustee no longer has an interest. If the person purchasing your equity is your spouse, another relative or friend, they are doing it so that you will not have to leave your home.

If that happens, then you will not lose your house if you file for bankruptcy. If you have no equity because the loans registered against your home is equal to the home’s value, again, you will not lose your home.

How much does it cost to file bankruptcy in Canada?

The expense of declaring bankruptcy is something you will certainly need to take into consideration. Just how much you will need to pay to go bankrupt relies on a number of variables, including:

your month-to-month income;
what assets you own;
the size of your family members; and also
whether you have ever been bankrupt in the past.

You are required to your surplus income into your estate every month. Surplus income is defined by the federal government. If your household makes over a certain amount every month, you pay a component of your earnings over that base set by the government each year. That base is essentially the poverty line.

The surplus income computation is reasonably complicated. I recommend you bring your current pay stubs to your meeting with me to make sure that I can accurately estimate it for you.

The fee a Trustee is entitled to charge in an ordinary personal bankruptcy must be approved by the Court. In a bankruptcy where there really are no assets, the fee is set in the statute.

If you have non-exempt assets, the Trustee sells them and receives the proceeds of the sale(s). If you have surplus income to pay, the Trustee collects those payments from you. The Trustee’s fee, which is the cost of the bankruptcy, comes from the money collected by the Trustee. So, in this example, where the Trustee has collected more than the cost of the bankruptcy approved by the Court, there is no additional cost to you at all. In this way, the Trustee is free!

If there are no assets or surplus income, then the bankrupt has to make monthly payments to the Trustee to cover the cost of the bankruptcy. If the bankrupt person cannot afford to, then you will have to get a relative to put up the money necessary to pay for the cost of your filing for bankruptcy. In this case, the government approved fee is in the range of $1,800.

Summary

I hope this Brandon’s Blog gives you a good idea of how to file for bankruptcy in Canada. We know that having too much debt is very stressful.

The Ira Smith Team understands how to help you rid yourself of your debts. However, more importantly, we understand your emotional needs. You are worried because you are facing significant financial challenges. You are worried not only about yourself but also your family.

The stress placed upon you due to your financial challenges is enormous. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we deal with your problems and devise a debt settlement plan, we know that we can help you.

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

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

Tags Bankruptcy, bankruptcy in Canada, Consumer Proposal, consumer proposal vs bankruptcy, Debt, debt relief, debt relief worksheet, debt settlement, debt settlement plan, file bankruptcy in canada, how do i apply for bankruptcy in canada, how much does it cost to file bankruptcy in canada, how to file for bankruptcy in canada, Ira Smith Trustee, personal bankruptcy, surplus income, what happens if i declare bankruptcy in canada, will i lose my house if i file bankruptcy in canada

Brandon Blog Post

CONSUMER PROPOSALS: HOW MANY ARE REJECTED?

Post author By Brandon Smith
Post date July 3, 2019

Introduction

When people with high debt come to see me for their free consultation, many times I shock them. They are shocked when I tell them that bankruptcy might not be required. I then tell them about consumer proposals. I also explain why I think they would be able to successfully complete a consumer proposal (CP) and therefore avoid bankruptcy.

What are consumer proposals?

I have written on the topic many times. In summary, a consumer proposal is a streamlined process under the Bankruptcy and Insolvency Act (Canada) (BIA). This process allows insolvent people to make a formal deal with their creditors. This government approved debt settlement plan is to repay only a portion of what you owe and you can take as long as 5 years of regular monthly payments to do so.

To qualify, the person must be insolvent and owe $250,000 or less to all creditors, other than for any debts secured by way of registration against your principal residence, such as a mortgage.

The person will then ask me how many we have done were rejected. They are trying to determine what the odds are for their deal to be accepted by their creditors. What I tell them is that I first do an assessment and tell them what amount of offer I think they need to make to gain the approval of their creditors. I also tell them that so far, anyone who has followed my advice has had their consumer proposal accepted by their creditors. Therefore, the number of those rejected by people who follow my advice is ZERO.

The benefits

There are benefits to submitting a successful debt settlement payment plan sanctioned under the BIA. The benefits include:

Unlike an informal debt arrangement, the CP develops a forum where each of your unsecured creditors has to participate in for your debt restructuring.
You maintain your assets and don’t have to give them up.
Lawsuits against you or your property and financial debts, or enforcement actions such as wage garnishments, cannot proceed.
You do not need to submit an assignment in bankruptcy

The process

Once prepared, the CP is submitted to the Office of the Superintendent of Bankruptcy Canada (OSB), the government department that controls Licensed Insolvency Trustees (formerly called bankruptcy trustees) (Trustee). The Trustee acts as the Administrator of the CP.

Once it is submitted, you will quit paying your unsecured creditors for past debts. The Trustee will send a notice of the filing along with a copy of the CP to all creditors affected by the CP. This includes anyone suing you or garnishing your earnings. Those activities against you will stop also.

Your creditors will have 45 days to accept or decline the debt settlement CP deal. If your unsecured creditors are disappointed with the proposal, they can vote against. In that case, the Trustee will discuss modifications with you that the Trustee believes the creditors might accept. That discussion will take place prior to the against vote counting. Usually, this means offering more money to them over the maximum 5 year period. The key is that you have to be able to afford to make those higher monthly payments. It will still be only a portion of the total you owe.

In order for consumer proposals to be accepted, a simple majority of your creditors by dollar value who has filed a proof of claim must approve it. If creditors who have filed a proof of claim choose not to vote, that is considered a vote in favour. You also may not even need to have a meeting of creditors. Unless creditors holding 25% in dollar value of the claims filed to request a meeting, or the OSB requests a meeting, there is no need to hold one. If a meeting is not requested, the proposal is deemed to be accepted by the creditors. This is all part of the streamlining.

Acceptance and performance

If your CP is accepted, the OSB (or any type of other interested parties) has 15 days to ask the Trustee to go to court to have the deal court approved. If no such demand is made, the debt plan is deemed to have actually been accepted by the court. More streamlining.

After acceptance and approval, the person is then accountable for making the regular monthly payments to the Trustee that was promised in the debt management plan. There will also be 2 counselling sessions for the person to attend with the Trustee to help them with their financial issues and behaviour.

If you miss 3 monthly payments, or you are greater than 3 months overdue since your last payment, the proposal will be considered annulled. This indicates to your creditors that they are now able to either resume or begin collection actions against you. Not a good thing.

Full performance

As I previously mentioned, the person must successfully complete the debt management settlement plan by making all the required payments and attending the 2 counselling sessions. When completed, the person is entitled to receive a Certificate of Full Performance. This means that you have successfully completed the CP and that all debts caught by it are discharged.

The Trustee will then finalize the administration of your debt settlement plan, get the necessary OSB approval and distribute the money to all the creditors who have filed a proof of claim. The Administrator also is entitled to the government approved fee.

Summary

Consumer proposals must provide your creditors with a better outcome than what they would get in your bankruptcy. I have never had a consumer proposal rejected for someone who took my advice and made all the payments required.

Are you in financial distress? Do you not have enough funds to pay your bills as they come due?

As a Trustee, we are the only professionals acknowledged, accredited and also managed by the federal government to provide insolvency advice and services. A consumer proposal is a federal government licensed debt settlement approach to eliminate your debt. We will certainly help you to pick what is best for you to clear your own debt issues.

Call the Ira Smith Team today so we can eliminate the stress, anxiety, discomfort and pain from your life that your cash problems have produced. With the distinct roadmap, we develop just for you, we will swiftly return you right into a healthy and balanced problem-free life.

We have years and generations of experience assisting people and companies looking for debt restructuring to PREVENT bankruptcy. You can have a no-cost analysis so we can help you to fix your financial troubles. Call the Ira Smith Team today. This will certainly allow you to go back to a new healthy and balanced life, Starting Over Starting Now.

Tags assignment in bankruptcy, Bankruptcy, Bankruptcy and Insolvency Act, bankruptcy trustee, BIA, Consumer Proposal, consumer proposals, Debt, debt management, debt management plan, debt settlement, debt settlement plan, informal debt, insolvent, Ira Smith Trustee, licensed insolvency trustee, OSB, Superintendent of Bankruptcy

Brandon Blog Post

CONSUMER PROPOSAL CALCULATOR REVIEW FOR YOU

Post author By Brandon Smith
Post date July 1, 2019

If you would prefer to listen to the audio version of this consumer proposal calculator Brandon’s Blog, please scroll down to the bottom of the page and click on the podcast

Introduction

A consumer proposal calculator is important to figure out what sort of debt settlement plan should be offered to your creditors. But to have a truly successful one, you really need clear language. In Brandon’s Blog, I review a recent court case that explains why.

Shelly Gail Corriveau bankruptcy

I recently read the Reasons for Decision dated June 13, 2019 by Registrar in Bankruptcy L.A. Smart of Court of Queen’s Bench of Alberta. This case is in the matter of the bankruptcy of Shelly Gail Corriveau. The case reference is Corriveau (Re), 2019 ABQB 438 (CanLII).

Ms. Corriveau filed an assignment in bankruptcy in April 2012. She had unsecured creditors of roughly $73,000. The reason for her insolvency was stated as offering monetary help to her child’s business. She was by all accounts a perfect example of an honest but unfortunate debtor. At the time of the bankruptcy, her only asset was her house.

In June 2012, Ms. Corriveau got a gift from her mom of $46,000. It featured instructions that $6,000 of those funds be utilized for children and certain other matters. She spent the $6,000 as instructed, with the balance of the $40,000 being paid to her licensed insolvency trustee (formerly called a trustee in bankruptcy) (the Trustee) for the benefit of her creditors.

The home was sold in October 2012. From the sale, she received her provincial exemption of $40,000 with the balance of $3,916.21 being paid to her bankruptcy estate.

Ms. Corriveau files a consumer proposal

On May 12, 2013, Ms. Corriveau advised her Trustee she had received an inheritance of $15,000 from her Mother’s estate. On May 26, 2013, Ms. Corriveau submitted a consumer proposal. The Trustee served as the Administrator of the consumer proposal.

The proposal in paragraph 4 states:

“4. That the following payments be made to [Name omitted to not embarrass the guilty] Trustee in Bankruptcy, the administrator of the consumer proposal, for the benefit of the unsecured creditors:

Proposal payments to total $10,000.00. The of (sic) funds will be provided to the Administrator as follows – $300.00 filing fee to be paid at time of filing and then a lump sum payment of $9,700.00 due 60 days after the proposal is court approved (all payments to be made within the 60 months proposal period)

The debtor reserves the right to accelerate payments should funds become available.

*** NOTE *** – There will be a significant dividend paid from the bankruptcy administration.”

In accordance with the requirements of the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (BIA), the consumer proposal Canada read that the payments must be completed within 60 months.

The Trustee recommended acceptance of the proposal. In his report to creditors he stated:

“This proposal will provide the debtor with relief and allow the debtor’s affairs to be restructured in an orderly fashion. It will allow the debtor to annul her bankruptcy and provide for a greater return to the creditors when compared to the bankruptcy option.”

The consumer proposal was deemed accepted by the creditors and approved by the Court. Ms. Corriveau made all the required payments and received her Certificate of Full Performance on August 2, 2013.

Have you “Noted” the problem yet?

Under the BIA, a bankrupt is allowed to lodge a proposal with the Trustee; either a consumer proposal or a Division I Proposal. In either format, it is a debt settlement plan that the bankrupt is proposing for acceptance by the debtor’s creditors. By definition, if the proposal is fully carried out, then the person or company’s bankruptcy is annulled.

When bankruptcy is annulled, it is declared to have had no legal existence. It is as if it never happened. The annulment of the bankruptcy takes place upon the approval or deemed approved by the court of the consumer proposal. There will never be a distribution to the creditors from the bankruptcy administration. The Trustee, in this case, did not issue any funds from the bankruptcy, yet.

So the Note that the Trustee added, “There will be a significant dividend paid from the bankruptcy administration.” is problematic. Actually, it is more than problematic. It is just plain wrong.

Now the Trustee wishes to complete the bankruptcy administration. The Trustee submits its Statement of Receipts and Disbursements as required to the Superintendent of Bankruptcy (OSB) for approval. This issue came before the Court because of the OSB’s unfavourable comment letter dated June 15, 2018.

The Court’s analysis

Section 66.4(2) of the BIA states:

“Where consumer debtor is bankrupt

(2) Where a consumer proposal is made by a consumer debtor who is a bankrupt,

(a) the consumer proposal must be approved by the inspectors, if any, before any further action is taken thereon;

(b) the consumer debtor must have obtained the assistance of a trustee who shall act as administrator of the proposal in the preparation and execution thereof;

(c) the time with respect to which the claims of creditors shall be determined is the time at which the consumer debtor became bankrupt; and

(d) the approval or deemed approval by the court of the consumer proposal operates to annul the bankruptcy and to revest in the consumer debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the consumer debtor, unless the terms of the consumer proposal otherwise provide.”

There is a similar provision for Division I Proposals.

The Court looked at the:

Statute
wording of the consumer proposal
Trustee’s report to the creditors on the consumer proposal; and the
Trustee’s actions in administering the proposal.

The Court had to decide if the Note was a term of the proposal or not. The Registrar took all factors into consideration, including that the Trustee issued to Ms. Corriveau the certificate evidencing full completion of the proposal upon her payment of $10,000.

The Registrar decided that the Note was an unfortunate error and that the only intention was for the creditors to share in the distribution from the consumer proposal with a gross value of $10,000.

Now for the treatment of the funds collected by the Trustee under the bankruptcy that is now annulled. The Registrar further concluded that consumer proposals that purport to also include a distribution from the funds held in the bankruptcy administration, must include clear and precise language in the proposal. The Registrar said that the Trustee failed to do so.

Therefore, the Registrar concluded that subject to any entitlement to fees by the Trustee from the bankruptcy administration, the funds held in the annulled bankruptcy are Ms. Corriveau’s property and should be returned to her. Costs of the application will be dealt with at the taxation of the Trustee’s account. The Trustee was directed to arrange a suitable date for that taxation to proceed before that Registrar.

Consumer proposal calculator summary

A proposal must offer the creditors a better result than what they would get in a person or company’s bankruptcy. So although a consumer proposal calculator is important, I think clear language is more important.

Are you in financial distress? Do you not have sufficient funds to pay your commitments as they come due?

Call the Ira Smith Team today so we can remove the anxiety, stress, pain and discomfort from your life that your money troubles have created. With the distinctive roadmap, we establish simply for you, we will quickly return you right into a healthy and balanced problem-free life.

As a Trustee, we are the only experts recognized, licensed and supervised by the federal government to give insolvency recommendations and to carry out insolvency procedures. A consumer proposal is a federal government authorized debt negotiation strategy to do that. We will assist you to choose what is best for you to rid yourself of your debt problems.

Call the Ira Smith Team today. We have years as well as generations of experience helping people and companies searching for debt restructuring, a debt negotiation strategy, or a consumer proposal Ontario to AVOID bankruptcy. You can have a no-cost evaluation so we can aid you to repair your financial problems. Call the Ira Smith Team today. This will let you return to a brand-new healthy and balanced life, Starting Over Starting Now.

Tags annul, assignment in bankruptcy, Bankruptcy, Bankruptcy and Insolvency Act, BIA, canlii, Consumer Proposal, consumer proposal calculator, consumer proposal canada, consumer proposal ontario, debt settlement, debt settlement plan, Ira Smith Trustee, licensed insolvency trustee, Superintendent of Bankruptcy, trustee in bankruptcy

Brandon Blog Post

4 TOP MONEY SAVING APPS CANADA SECRETS

Post author By Brandon Smith
Post date March 11, 2019

If you would rather listen to the audio version of this money saving apps Canada Brandon’s Blog, please scroll to the bottom and click on the podcast.

Money saving apps Canada: Introduction

If you have followed Brandon’s Blog for any time, you will know that I have written many articles on:

You will also know that I am a big cheerleader for always having an emergency savings fund in the event of, well, an unforeseen emergency. Technology has now met the world of finance. There are apps for both the iPhone and Android that you can use to automatically put money away to build up an emergency fund. These apps that help you save money Canada also help you invest the money. The purpose of this blog is to introduce you to some of these money saving apps Canada that help you save money in Canada.

All of the four money saving apps Canada I mention here are Canadian applications. These apps are for both iPhone and Android. They are apps to help you save money. All links to these fintech apps indicated below are for information only used for this review. They are not affiliate links and I do not earn any money if you end up registering for any of them.

Money saving apps Canada: KOHO

This is one of several Canadian fintech applications. This is how Koho works. When you join and download and install the application, you’ll enter your details. Koho will send you a card powered by Visa. The easiest way to think of it is that Koho works like a prepaid Visa Card. What you want to do is put funds on it as soon as you get your Koho Visa card. You can do this by e-transfer. E-transfers are normally accepted the same-day. You can also set up regular transfers from your pay.

As an example, let’s say you place directly from your regular pay a total of $1,000 a month on your Koho card for your regular spending. Set it up for your groceries, restaurants, coffee purchases as an example. Anything that you would either use cash, a debit card or credit card for. So things like your monthly rent or mortgage payment would not be paid for from your Koho card.

Once your funds are on your Koho card, you trigger it by going to buy your normal purchases with it. The first time you use the Koho card for a purchase you simply enter your PIN to activate it.

Koho is truly great about being a no-fee financial solution. There are no account charges, there are no transfer costs. If you spend a service charge for loading your Koho card with an e-transfer, they refund it back to you. That is why I include it in this list of money savings apps Canada.

Money saving apps Canada: Koho turn your savings on

Koho is my favourite of all the apps to save cash. When your card is turned on, you want this to be your only way of spending. This is because it is actually going to keep you in line. Koho tracks your spending for you. Wherever you spend your cash making use of the Koho card, it will instantly be tracked and classified in the app. Koho will also send you an alert saying, “you’ve spent this much in this place.” Koho provides all the information to you digitally, so it can avoid the need to keep spreadsheets or notes of your spending.

What is unique about Koho is it, in fact, alters your spending behaviour. It will:

record all your transactions, once it obtains some information;
will actually tell you your average costs by the week or the month; and
make predictions of how much you’re possibly going to spend based upon your present spending behaviour.

When you see those numbers, you start to reconsider the purchases you make.

The other manner in which it alters your behaviour is since you can only spend the cash that you’ve packed onto your Koho card, you look for deals and ways to save a lot more carefully than you would on a credit card or even your debit card.

When you open up the Koho application, your spendable amount is right at the top which is all the cash that you have to spend, so you’re very cautious with how you use it. You may not think this would be a method to substantially change your spending actions, but it really is.

Koho is an app that can really stop you from buying stupid things. Now you are saving. Now you have to be religious about transferring those savings every month to an investment account so that you start building up your emergency savings fund.

Money saving apps Canada: Royal Bank of Canada NOMI

The next of my money saving apps Canada is from Royal Bank. You have already probably seen commercials on television for the Royal Bank of Canada (RBC) fintech app NOMI (named for “know me”). The commercial shows two friends talking. One tells the other about his bank’s app that squirrels away cash to his savings account automatically and wonders why RBC is not called the “Squirrely Bank”.

RBC NOMI app is another one of the Canadian apps that help you save cash. It advertises itself as a simple way to manage your day-to-day spending. It makes handling your day-to-day spending as basic as can be. While you’re out living your hectic life, NOMI keeps an eye on your cash and ensures you’re on the right financial track.

NOMI assists you handle your day-to-day finances by offering you personalized and timely information based upon your spending and saving routines by:

Summarizing your daily financial transactions throughout all your accounts, including credit cards. NOMI knows when the deposit you made the other day is received or if your hydro bill is more than usual in a specific month.
Telling you when there has been an uncommon or new activity. Remember that gym subscription auto-renewal you registered for? Well NOMI knows that, and will even tell you if they’ve raised your charges this year.
Classifying your spending, with deep dives and easy-to-understand summaries to help you stay on the right financial track.

NOMI Find & Save can even set cash apart automatically to help you build up your emergency fund faster.

Money saving apps Canada: Scotiabank Bank the Rest

The third money saving apps Canada comes from Scotiabank (BNS). BNS has a savings program called Bank The Rest tied into any spending you do with your BNS debit card. It rounds up your purchases to your choice of either the closest $1 or $5. The additional amount is automatically moved to a Bank of Nova Scotia savings account for you.

This is a fun method of saving and is a clever way for this application to save you cash. Your purchases are assembled to the nearest multiple of 1 or 5. This allows you to bank extra funds due to the rounding up. If you purchase something for $6.45, you’ll bank $0.55 if you assemble to the nearest buck. Assemble to the nearest multiple of 5 (to $10 in this case), and you’ll bank $3.55. That’s a better and faster way for automatic savings from your spending.

Note that it is only for purchases on your BNS debit card, and not a credit card. This is a very smart thing. That way, the debit card, being just like cash, forces you to budget your cash spending and then makes an automatic savings program for you. This too will certainly help you build up that emergency savings fund. For this reason I call it the smartest of the money saving apps Canada in this list.

Money saving apps Canada: TD Canada Trust Track My Spend

The last in my list of money saving apps Canada is called Track My Spend. TD Canada Trust (TD) has developed an application that I believe will certainly be able to help you in keeping your budget plan. The app is called Track My Spend. Once activated, this app allows you to:

Attach to your eligible TD Accounts. TD instantly tracks your transactions and classifies them for you. No need to go into it to manually add expenses or link your TD Accounts. It will do it automatically for you.
Utilize the Spending Insights Meter to aid you to track how you’re doing compared to your common month-to-month spend. You will have the ability to get access to your Spending History (about the previous 12 months), so you can see precisely where your funds went.
Help control your spending by setting regular monthly group targets and attempt to not surpass them. Additionally, you can split a single transaction into greater than one group.
Get real-time notifications every time there’s a transaction in an eligible group, and assess your spending from the previous day with daily digest alerts. That way, you can keep an eye on your spending.

Although this app doesn’t automatically set money aside in an investment account, similar to Koho, it will change your spending patterns to allow you to save for that emergency fund.

Do you need more than just an app on your phone to deal with your debts?

Are you captured in the trap of excessive debt and only making minimal regular monthly repayments? Do you need more than just money saving apps Canada? Are you worried that future rates of interest increases will make currently affordable debt repayments entirely unaffordable? Is the stress, anxiety, and discomfort of your debt negatively influencing your health and wellness? Do you need a fresh kick-start and you don’t know where to begin? Do you believe that you need more than just an app on your phone?

If so, call the Ira Smith Team today. We have decades and generations of experience helping people and companies requiring financial restructuring. As a licensed insolvency trustee, we are the only professionals licensed and overseen by the Federal government to supply financial restructuring solutions.

Call the Ira Smith Team today to make sure that we can start assisting you. We will quickly return you right into a healthy and well-balanced stress-free life. We can create a debt settlement plan just for you to avoid bankruptcy, where we can even make the interest clock stop. This way, all your payments go only against the principal balances owing.

You can have a no-cost appointment to help you to fix your loan troubles. We recognize the pain financial debts and economic distress causes. We can end it from your life. This will absolutely allow you to start a fresh start, Starting Over Starting Now.

Tags apps that help you save money canada, apps that make you money in canada, apps that save you money Canada, apps to make you money Canada, apps to save money canada, bank of canada, Bank of Nova Scotia, Bankruptcy, debt settlement, debt settlement plan, Finance, financial restructuring solutions, Ira Smith, licensed insolvency trustee, money saving apps canada, royal bank of canada, Squirrly Bank, TD Canada Trust

Brandon Blog Post

INCOME TAX DEBT RELIEF: DO YOU KNOW THE WAY TO INCOME TAX DEBT RELIEF?

Post author By Brandon Smith
Post date December 31, 2018

Income tax debt relief: Introduction

As 2018 draws to a close, I want to wish all of our readers a very happy, healthy and prosperous New Year. I hope that 2019 will be a great year for all of us. You have no doubt been bombarded so far with emails, articles, and programs on getting income tax debt relief for 2018 by making sure that you have taken advantage of all possible deductions before the year ends tonight. I thought I would take a slightly different approach to talk about another rich and famous person who is in hot water with the IRS.

Income tax debt relief: Even the rich and famous have income tax debt problems

We have previously written about rich and famous people who have debt problems and who have filed for bankruptcy. Their debt problems arose mainly out of irresponsible spending, financial mismanagement and income tax problems. These blogs were written to show you that it is not only ordinary people who run into trouble. People who many would think to have “all the money in the world” can also have financial problems. Financial mismanagement is not only an illness of the poor or middle class. It can strike anywhere or anyone.

Income tax debt relief: Some of our past rich and famous financial disaster blogs

Our previous financial mismanagement of the rich and famous includes:

FAMOUS CELEBRITY BANKRUPTCIES HAPPEN TOO

In this blog, I pointed out that many rich and famous people have gone bankrupt, including:

Samuel Clemens (Mark Twain)
Michael Jackson
Abraham Lincoln
Dorothy Hamill – Gold Medal Skater
Johnny Unitas – Football Hall of Fame
Milton Hershey – Founder Hershey’s
H.J. Heinz – Founder Heinz
Marvin Gaye
Mick Fleetwood – Fleetwood Mac
Walt Disney
Larry King
Burt Reynolds
PT Barnum
Tom Petty
David Cassidy
David Crosby
Ed McMahon
Henry Ford
M.C. Hammer
Toni Braxton
Natalie Cole
Robin Williams
78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce within two years of retirement.
The National Endowment for Financial Education says that 70% of all people who suddenly receive large amounts of money will lose it within a few years.

FORMER PRO ATHLETES WHO ARE BROKE: EARN OVER $400 MILLION & GO BANKRUPT?

In this blog, I talked about former pro athletes who are broke. Former NBA star and broadcaster Charles Barkley estimates that 60% – 70% of professional athletes go broke for all or any of the following reasons:

Buying lavish gifts and giving money to family and friends
Unsupportable lifestyles
Mansions around the world
Yachts
Exotic cars
Bad business ventures
Bad money managers
Not understanding financial matters
Zero savings
No rainy day fund
No retirement plan

DEBT FORGIVENESS CRA: CANADA REVENUE AGENCY BEATS DONOVAN BAILEY

In this blog, I wrote about Canadian Olympian. Donovan Bailey and his income tax debt problems with Canada Revenue Agency (CRA). We also described his income tax debt relief settlement plan to cut his income tax debt.. It seems that Mr. Bailey was not able to outrun CRA. Therefore he needed a formal debt settlement plan.

DEBT SETTLEMENT VS CONSUMER PROPOSAL CANADA: ENGLISH REALITY TV STAR KATIE PRICE NEEDS

This blog was about UK celebrity Katie Price who had many financial problems. I spoke about her financial issues and her UK bankruptcy proceedings.

Income tax debt relief: Dionne Warwick

Grammy Award-winning vocalist Dionne Warwick has filed for bankruptcy because she was in need of income tax debt relief. The 72-year-old vocalist, well-known for hits such as “Do You Know the Way to San Jose” and “That’s What Friends Are For” submitted the bankruptcy documents in New Jersey, where she lives.

She listed assets of $25,500 and liabilities of greater than $10.7 million in her bankruptcy filing. Her largest debt is income tax debt of near $7 million owed in back tax obligations to the Internal Revenue Service (IRS) as well as greater than $3 million in tax obligations to the state of California. This includes interest and penalties.

She declared her present income as $20,950 a month, with monthly expenditures just $10 less than that. Dionne Warwick’s press agent, Kevin Sasaki, claimed that the vocalist’s personal bankruptcy was primarily the outcome of “irresponsible and gross financial mismanagement” in the late 1980s to the mid-1990s.

Income tax debt relief: Start 2019 off the right way

No one likes to pay taxes, but everyone hates having CRA tax debt problems. Do you require CRA debt forgiveness? If you’re considering bankruptcy because of income tax debt, or for any reason. We can show you bankruptcy alternatives to get CRA debt forgiveness. We can end your debt pain through a consumer proposal, debt consolidation, and credit counselling. Contact a professional that you can trust – Ira Smith Trustee & Receiver Inc.

The Ira Smith Team has decades and generations of experience dealing with diverse issues and complex files, including negotiating with CRA. We deliver the highest quality of professional service. Don’t settle for less. Give us a call today and Starting Over, Starting Now you can overcome your financial difficulties.

Again I wish all of you a healthy, happy and prosperous New Year.

Tags Bankruptcy, Canada Revenue Agency, Consumer Proposal, CRA, cra debt forgiveness, Debt, debt relief, debt settlement, debt settlement plan, dionne warwick, Dionne Warwick Grammy, donovan bailey, income tax debt, income tax debt relief, Internal Revenue Service, Ira Smith Trustee & Receiver Inc., irs, Katie Price

Debt Management Program: Introduction

Understanding a Debt Management Program

Is a debt management program right for you?

Debt Amount Consideration

No Legal Filings Required

Use of Credit and Affordability

Debt Management Program: Considering Bankruptcy

Is bankruptcy right for you?

Relief from Crushing Debt Load

Solution for Badly Damaged Credit

Quick Resolution and Legal Protections

The only Debt Management Program Approved By The Canadian Government

Legal Process to Settle Debts with Creditors

Allows Debtor to Make a Formal Proposal to Creditors

Provides Protection from Creditors’ Collection Actions

Meeting with a nonprofit credit counsellor to assess your financial situation

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

Debt Management Program: The bottom line

Debt Management Program: Conclusion

Debt relief options: Introduction

Debt relief options: What is debt relief?

Debt relief options: Why managing debt is crucial

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

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

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

Certification and accreditation of the debt relief service provider

Transparent fee structure

Customer reviews and rating

Debt relief options: Tips for managing your debt

Credit counselling

Debt consolidation

Debt settlement

Consumer proposal

Bankruptcy

Debt relief options: Conclusion

What are the implications of discharge from bankruptcy Canada?

Discharge from bankruptcy Canada: What are the implications if you are not discharged from bankruptcy?

Discharge from bankruptcy Canada: How do you obtain a bankruptcy discharge in Canada?

Discharge from bankruptcy Canada: What are the steps to clear my bankruptcy?

Completing your own application for discharge from bankruptcy Canada

Requisition – Notice of hearing for bankrupt’s discharge from bankruptcy Canada hearing for discharge

Discharge from bankruptcy Canada:The Affidavit

Discharge from bankruptcy Canada:Affidavit of Service

At the discharge from bankruptcy Canada hearing

Discharge from bankruptcy Canada: Order for discharge

Discharge from bankruptcy Canada: Are you tired of being in debt?

CERB update introduction

CERB update: Who can qualify for CERB?

CERB update: What are the CERB pay periods?

CERB update: What is replacing CERB?

CERB update: Can CRA audit CERB?

CERB update: What if you can’t (re) pay?

CERB update: Summary

Introduction

Office Superintendent Bankruptcy Canada approves social distancing

Closure of non-essential businesses

COVID-19 insolvency frequently asked questions

Everything old is new again or “Throwback Thursday”

Summary

Introduction

Getting over the initial fear

How do I apply for bankruptcy in Canada?

The free assessment

Consumer proposal vs bankruptcy

How to file for bankruptcy in Canada

What happens if I declare bankruptcy in Canada?

Will I lose my house if I file bankruptcy in Canada?

How much does it cost to file bankruptcy in Canada?

Summary

Introduction

What are consumer proposals?

The benefits

The process

Acceptance and performance

Full performance

Summary

If you would prefer to listen to the audio version of this consumer proposal calculator Brandon’s Blog, please scroll down to the bottom of the page and click on the podcast

Introduction

Shelly Gail Corriveau bankruptcy

Ms. Corriveau files a consumer proposal

If you would rather listen to the audio version of this money saving apps Canada Brandon’s Blog, please scroll to the bottom and click on the podcast.

Money saving apps Canada: Introduction