Tag: debt settlement

CONSUMER PROPOSAL VS DEBT SETTLEMENT

Post author By Brandon Smith
Post date October 1, 2015

Consumer proposal vs debt settlement vs. debt settlement companies

If you have serious financial problems, there is an option available to you to avoid debt settlement companies and bankruptcy. In fact, more Canadians are now choosing consumer proposals instead of declaring personal bankruptcy. The purpose of this Brandon’s Blog is to explain the benefit of consumer proposal vs. debt settlement companies.

The advantages of consumer proposals with a Trustee can save you from debt settlement companies. Here’s how. Unlike a trustee in bankruptcy, debt settlement
companies have long been a hot-button issue and as a result, we’ve posted several blogs on the subject:

How successful is consumer proposal vs. debt settlement companies?

One of the advantages of consumer proposals vs. debt settlement companies is a high chance of success. Consumer proposals filed by a trustee have an excellent chance of being accepted by creditors. The consumer proposals our office files have experienced almost 100% acceptance by creditors. We know of other trustees who say their success rate with consumer proposals is in the high 90% range.

According to the Canadian Bankers Association, only 10% of offers received from debt settlement companies are accepted and it’s estimated that only 3% are successfully completed. As you can see, consumer proposals vs. debt settlement win hands down!

Advantages of using a licensed trustee in a consumer proposal vs debt settlement company

The reason for the advantages of consumer proposals is because a licensed trustee understands the behaviour of your creditors, is obligated to check all options with you and explain why a consumer proposal is a better option than other ones available, including personal bankruptcy. A trustee can recommend you properly on how to reach a mutually satisfactory compromise on your debt that you can actually complete it successfully, taking your family income and situation into consideration.

If you are considering consumer proposal vs. debt settlement companies

The advantages of consumer proposal vs. debt settlement companies are simple; a trained, educated, licensed financial services professional delivers results. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice and a solid financial plan for Starting Over, Starting Now.

Tags alternative to bankruptcy, Bankruptcy, bankruptcy vaughan, Consumer Proposal, consumer proposal vaughan, consumer proposal vs debt settlement, consumer proposals, consumer proposals vs. debt settlement, debt settlement, debt settlement companies, Ira Smith Trustee & Receiver Inc., licensed trustee, Ontario, personal bankruptcy, serious financial problems, starting over starting now, vaughan bankruptcy, vaughan consumer proposal

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BANKRUPTCY QUESTIONS VIDEO: THE BEST ADVICE WE EVER HEARD

Post author By Brandon Smith
Post date September 10, 2015

:You probably have many bankruptcy questions if you’re experiencing serious debt problems and you are no doubt going through a very stressful time in your life and you may not know where to turn. Ira Smith Trustee & Receiver Inc. is here to tell you that there is help available, answers to your bankruptcy questions and there are solutions to your debt problems. The best thing that you can do is contact a Licensed Trustee as soon as possible. There is a popular misconception that Licensed Trustees only deal with bankruptcy, but that is only one of our many functions. We can and do help with debt problems considering various alternatives to bankruptcy also.

http://youtu.be/4tJwFT36FPI

Contact Ira Smith Trustee & Receiver Inc. for a free consultation today. We can help you with your debt problems and answer your bankruptcy questions. Starting Over, Starting now you can live a debt free life.

Tags alternatives to bankruptcy, Bankruptcy, bankruptcy alternatives, bankruptcy questions, Debt, debt problems, debt settlement, debt settlement companies, licensed trustee, starting over starting now, trustee

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CANADIAN REAL ESTATE BUBBLE BURST: WHEN?

Post author By Brandon Smith
Post date June 12, 2014

Will the Canadian real estate bubble burst has been the subject of several articles in the newspapers recently quoting Canadian and American economists. So far from what I have read, half of the economists quoted say there is not a Canadian real estate bubble, with statistics to show that there is a healthy real estate market and therefore we will not have a Canadian real estate bubble burst.

The other half of the economists, provide statistics to show that there is a Canadian real estate bubble, it has reached the same unsustainable levels as was the case in 2008 in the United States and that there will be a Canadian real estate bubble burst to drag all of us down.

Although my Firm has done many real estate receiverships, the most famous so far being the Court-appointed receivership of the highly publicized The Suites at 1 King West, built by Harry Stinson, my crystal ball is no better than yours. I cannot tell you if:

a Canadian real estate bubble burst will not happen since we are in a safe real estate market where Canada is attractive to immigrants from around the world looking for a safe haven for their money, and they truly believe Canadian real estate is it; or
real estate prices are unreasonably high and that there will be a Canadian real estate bubble burst.

As far as the economist’s statistics, which are being used to prove both sides of the argument, all I can do is quote British Prime Minister Benjamin Disraeli when he said there are “Lies, damned lies, and statistics“, to describe the persuasive power of numbers, particularly the use of statistics, to bolster weak arguments.

In our recent blog, FINANCIAL CRISIS IN CANADA: CAN REAL ESTATE PRICES TRIGGER ONE?, we reported that:

7.5% of the Canadian workforce is in the construction industry, while 7% of the Canadian economy is based on residential construction – both record highs;
the Canadian unemployment rate rose from 6.9% to 7.2%;
the Canadian debt-to-income ratio has soared to a record 164%, above levels experienced in the U.S. before the financial crisis; and
the Canadian Bankers Association reports that 70% of all household debt in Canada is made up of residential mortgage debt.

But there is one certainty I can tell you about. Even if there is a slowdown in the Canadian real estate industry, and not a Canadian real estate bubble burst, residential construction workers and real estate agents will suffer. A slowdown in residential construction, and less residences being sold, does not bode well for these two groups. So it will be the severity of the slowdown, and the effect on real estate prices, to know whether or not there actually is to be a Canadian real estate bubble burst.

So, what can they do to stop a Canadian real estate bubble burst? The answer is nothing. However, they should always have arranged their affairs so when there is a slowdown, they were always:

living within their means by spending less than they earn so that they would not have problems living paycheque to paycheque;
using proper budgeting techniques to make sure they were paying down a portion of their debt with every pay;
paying themselves first by maintaining a program to make sure that they were putting away a portion of every pay into savings for investment so that they would be able to weather any downward blips in their income;
making sure their income tax was paid up on time so that they would not have any large amounts outstanding from past years in a time when their incomes were reduced;
only charging to credit cards what they would be able to pay off in full every month so as not to incur credit card debt with high interest costs; and
reviewing their credit report to make sure their credit rating was accurate, and if they were experiencing any credit problems availing themselves of a proper credit counselling agency, NOT one of the debt settlement companies.

So as you can see, there is no magic pill that you can take to solve your financial problems if there is a Canadian real estate bubble burst, an illness, an emergency, or when life just throws a curve ball at you. The best time to have guarded against financial challenges, if you truly were worried about a Canadian real estate bubble burst, was before it happened.

If you’re financial well-being, and that of your entire family depends on the value of your real estate always rising, and you will be doomed if there is a Canadian real estate bubble burst, whether you wish to admit it or not, you have serious financial problems. Before disaster strikes as a result of a Canadian real estate bubble burst or otherwise, contact Ira Smith Trustee & Receiver Inc.

We can review your situation with you, in a no charge initial consultation meeting, and provide you with real options. If we meet early enough, we can discuss various bankruptcy alternatives such as credit counselling, debt consolidation or consumer proposals, all in order to avoid personal bankruptcy. We will go over all of your options, and encourage and help you to implement the one that is right for you.

Together we can solve your problems with immediate action and the right plan so that Starting Over, Starting Now will become your reality.

Brandon Blog Post

DEBT SETTLEMENT COMPANIES FINALLY TAKEN TO TASK IN ONTARIO

Post author By Brandon Smith
Post date December 17, 2013

Debt settlement companies have been preying on consumers for far too long. We’ve warned you about them in two previous blogs – Beware of Debt Settlement Companies and The Latest on Debt Settlement Companies. In 2010, after a decade of massive growth in the U.S. debt settlement industry, the FTC brought in new regulations that effectively banned debt settlement companies and forced many of them to migrate north of the border. Currently there are 18 companies and 34 credit counselling providers offering debt settlement services in Ontario. With ever mounting numbers of complaints about unsuspecting consumers being taken advantage of by unscrupulous debt settlement companies, the Ontario government has finally taken action and passed Bill 55.

What will Bill 55 do? It creates new standards of conduct for debt settlement companies:

Banning them from charging upfront fees
Limiting the amount of fees consumers are charged and prohibiting the payment of fees before services are provided
Requiring clear, transparent, and detailed contracts that include information about the effect of the contract on the consumer’s credit rating
Requiring credit counsellors to disclose information to the consumer about how their organization is funded
Establishing a 10-day cooling-off period, providing consumers more time to consider their agreements with companies
Allowing the licences of non-compliant companies to be revoked

Bill 55 is certainly a great step toward protecting consumers from debt settlement companies. Hopefully it will be restrictive enough that they will disappear from the landscape as they did in the U.S.

Please stay away from debt settlement companies! If you are having serious debt problems, contact Ira Smith Trustee & Receiver Inc. We are professionals, federally regulated, licensed and subject to a strict code of ethics. Our fees are regulated by the Federal Government and are usually much less than the debt settlement companies who make unsubstantiated claims. We can help. Starting Over, Starting Now you can live a debt free life.

Tags Bill 55, credit counsellors, debt settlement, debt settlement companies, debt settlement industry, debt settlement services, trustee

Brandon Blog Post

THE LATEST ON DEBT SETTLEMENT COMPANIES

Post author By Brandon Smith
Post date August 7, 2013

Back in February we did a blog warning the public to Beware of Debt Settlement Companies. At the time the U.S. Federal Trade Commission had effectively shut down debt settlement companies, but no action had been taken in Canada. Although there have been numerous consumer alerts issued about debt settlement companies by the Financial Consumer Agency of Canada (FCAC), many people are still falling victim to them. Consumers are taken in by false claims offering to settle your debts for pennies on the dollar quickly and easily. The reality is that when something seems too good to be true, it usually is. Debt settlement companies exist for only one reason – to take your money! They will not help you solve your debt problems. There is no instant or quick fix for serious debt issues.

Finally this spring the Ontario Ministry of Consumer Services publicly declared it is moving ahead with tough legislative measures to protect consumers from these unscrupulous companies know as debt settlement companies, debt reduction companies, debt relief companies and debt negotiation companies. The Ontario Ministry of Consumer Services intends to introduce legislation that will:

Ban companies from charging upfront fees for debt settlement services
Limit the amount of fees consumers are charged
Require clear, easy-to-understand contracts
Establish a 10-day cooling-off period, providing consumers more time to consider their agreements
Allow the licenses of non-compliant debt settlement companies to be revoked

The best advice that we can offer is beware! There are currently 60 debt settlement companies operating in Ontario just waiting to take advantage of your situation.

If you are experiencing serious debt problems, there is help available. Contact Ira Smith Trustee & Receiver Inc. We are licensed by the Government of Canada and subject to a stringent code of ethics. As trustees in bankruptcy we will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. If ultimately consumer proposals or bankruptcy is the best option for you, you will have to use a trustee in bankruptcy. Contact us today and take your first step towards living a debt free life Starting Over, Starting Now.

Tags Bankruptcy, bankruptcy alternative, Consumer Proposal, credit counselling, debt consolidation, debt negotiation, debt reduction, debt relief, debt settlement, debt settlement companies, toronto, Vaughan

Brandon Blog Post

SHOULD SOCIAL MEDIA BE USED TO DETERMINE YOUR CREDIT SCORE?

Post author By Brandon Smith
Post date April 23, 2013

Are you experiencing problems with debt management or having trouble getting credit due to a bankruptcy or a consumer proposal? If so, you are going to be delighted to hear that there are companies who believe that online reputations can tell lenders more about a person’s trustworthiness than the traditional credit score. Your credit score is established on the basis of how you pay your bills while companies like Lenddo and Neo Finance are analyzing data from social networks like Twitter, Facebook and LinkedIn, and other factors to reach people who have a hard time getting loans. The Lenddo score is based upon:

Number of followers
Background of peers
Education and employers
Repayment history of friends

The Neo Finance score is based upon the following information in a person’s LinkedIn profile:

How long the user has held jobs
The number and quality of connections in their industry
The seniority of their connections

Should social media be used to determine your credit score? Probably not. Basing anything on the number of social media followers is categorically unreliable. Social media networks have become a numbers game where there is the mistaken belief that “whoever has the most, wins”. Fake Twitter followers have become a multi-million dollar business. Open networkers on LinkedIn have thousands of followers that they don’t know and the same goes for people who collect Facebook friends. The other problem is that the consumer would have to be willing to connect the financial service to their social media networks’ data which of course brings up privacy issues. Although in theory, this sounds like an interesting idea, I’m afraid that there is no quick fix for bad credit.

If you are experiencing problems with debt management or having trouble getting credit due to a bankruptcy or a consumer proposal, contact Ira Smith Trustee & Receiver Inc. for information on how to fix bad credit so that you can live a debt free life Starting Over, Starting Now.

Brandon Blog Post

WHAT IS A SECURED CREDIT CARD CANADA & HOW TO GET ONE

Post author By Brandon Smith
Post date April 16, 2013

In our last blog “How to Fix Bad Credit”, one of the points that we touched upon was the use of a secured credit card to help you build a good credit history. Since the blog was published we’ve had several inquiries about secured credit card offers and how to get one.

What is a secured credit card? Secured credit cards require you to leave a deposit with the credit card issuer as a guarantee. The deposit is usually equivalent to the card limit, but it can be higher. The advantage of a secured credit card is that individuals with no credit history or a history of bad credit have the opportunity to build a positive credit history because most companies report regularly to the major credit bureaus. You can use your secured credit card in the same way as you would use any credit card. Be diligent and pay the balance regularly!

What is the difference between a secured credit card and a prepaid credit card? A secured credit card gives you a credit limit. A prepaid credit card works like a debit card; you have to keep reloading it with your own money. In addition, prepaid credit cards don’t give you the chance to build a credit history because no payment information is reported to the major credit bureaus. So, when you receive those secured credit card offers and prepaid credit card offers, you should know the difference between the two.

How do I qualify for a secured credit card? Most people will qualify for a secured credit card because you deposit the funds to secure the card in advance.

Can I get a secure credit card if I’m in bankruptcy or in a consumer proposal? In most cases, a secured credit card Canada is available as soon as are fully discharged from your bankruptcy. If you are in a consumer proposal, once it has been accepted by your creditors, you are eligible to apply for a secured credit card, but not necessarily guaranteed to be accepted.

Are all secured credit cards the same? No, not all secured credit cards are the same. According to the North Shore Advisory Inc., here are some precautions you should take when looking for a secured card:

Be cautious about secured card offers from unknown institutions. If you have doubts about the integrity of a secured credit card offer, contact FCAC toll-free at 1-866-461-3222.
Beware of secured card offers from issuers outside Canada. If you have problems, it may be difficult to resolve them if the company is not located in Canada.
Avoid offers for secured cards that do not have a recognized brand name such as VISA, MasterCard or American Express. These cards may only be accepted at a small number of stores or may require you to make purchases from a specific catalogue.
Read and make sure you understand all the terms and conditions associated with a secured card before you accept it.

How can I apply for a secured credit card from a reputable and recognized brand? For information on a Home Trust Secured Visa* Card click here.

Contact Ira Smith Trustee & Receiver for more information on secured credit cards and for professional advice on insolvency, bankruptcy and managing debt. You can live a debt free life Starting Over, Starting Now.

Tags bad credit, Bankruptcy, Consumer Proposal, consumer proposals, credit bureaus, credit history, debt relief, debt settlement, insolvency, prepaid credit card, prepaid credit cards, secured credit card, secured credit card Canada, secured credit card offers, secured credit cards, Vaughan, Woodbridge

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When you have Debt problems contact a licensed Trustee

Post author By Brandon Smith
Post date February 13, 2013

If you’re experiencing serious debt problems you are no doubt going through a very stressful time in your life and you may not know where to turn. Ira Smith Trustee & Receiver Inc. is here to tell you that there is help available and there are solutions to your debt problems. The best thing that you can do is contact a Licensed Trustee as soon as possible. There is a popular misconception that Licensed Trustees only deal with bankruptcy, but that is only one of our many functions. We can and do help with debt problems.

In a world of uncertainty filled with companies making promises that they can’t keep, a Licensed Trustee stands for trust, honesty, transparency, and integrity. We are federally licensed and federally regulated. Licensed Trustees are subject to a stringent code of ethics and we complete ongoing mandatory professional development each year. You’ll never get ripped off because our fees are regulated by the Federal Government unlike the non-regulated, unlicensed companies that make outlandish claims, charge exorbitant fees and often leave you in worse shape than you started from.

There are many great advantages to working with a Licensed Trustee. We:

Are required to perform an assessment
Review and counsel you on available alternatives
Ensure that your rights are not abused
Ensure that you are provided with mandatory counselling and access to mediation services if there is a dispute regarding any income you are required to contribute
Have the flexibility within the parameters of the legislation to develop a settlement solution that if fair to both sides; there is no one size fits all solution
Don’t just throw a number at you to pay whether or not you can afford it
Can assist you to make a single offer to negotiate with all of your creditors

Contact Ira Smith Trustee & Receiver Inc. for a free consultation today. We can help you with your debt problems. Starting Over, Starting now you can live a debt free life.

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Tags Bankruptcy, Consumer Proposal, Credit, Debt, debt settlement, Federal regulations, licensed trustee