Tag: Debt

HELP WITH DEBT: WILL THIS NEW METHOD ACTUALLY WORK?

Post author By Brandon Smith
Post date August 5, 2019

Help with debt

If you would prefer to listen to the audio version of this help with debt Brandon’s Blog, please scroll down to the bottom and click on the podcast.

Help with debt introduction

Many people need help with debt; especially credit card debt. They are stuck lugging around this debt. They only make the minimum monthly payment while a high rate of interest cost continues to accumulate. The net result is they never really make a dent in paying down the balance owing.

Canadian household help with debt

In March 2019, Equifax Canada reported that Canadian consumer debt delinquent accounts are increasing. Equifax also reported that the average Canadian household consumer debt is an average of $23,000, not counting mortgages. Bank of Canada Governor Stephen Poloz previously said that the typical Canadian owes about $1.70 for each dollar of income she or he earns each year, after taxes.

This, of course, is not a new story for Canadians. I have been writing about Canadians’ love affair with taking on more debt for several years now.

The Province of Quebec is trying to make a difference for help with debt

On November 15, 2017, Quebec’s Bill number 134, “An Act mainly to modernize rules relating to consumer credit and to regulate debt settlement service contracts, high-cost credit contracts and loyalty programs”, came into force. On August 1, 2019, certain aspects of this legislation, aimed at trying to curb credit card debt in Quebec, come into force.

Now in Quebec, brand-new charge card accounts opened up need the minimum monthly payment to be increased to 5% of the balance owing on those brand-new credit cards. For cards issued before August 1, 2019, cardholders will continue being required to pay a minimum of 2% of the outstanding balance. They have until 2025 to begin paying the new minimum of 5%. However, the minimum payment limit each month will be increased by half a percentage point annually after August 1, 2020, up until it gets to the five percent level.

Consumer advocates feel that other provinces will be viewing carefully what Quebec is doing. The Quebec government obviously believed that debt issues are an essential problem in Quebec that needed to be addressed.

**Will this help with debt work?**

Canadians have actually gone away from being a country of savers to a nation of borrowers. Therefore, if an unanticipated financial emergency hits, on average, Canadians do not have the resources to deal with it.

Many Canadians strung out on credit card debt need credit card debt help. A simple credit card debt calculator shows how problematic unpaid credit card debt is. Take a charge card with a balance owing of $1,000 with an annual 19.9% rate of interest and a two percent minimum monthly payment. It will take 26 years to pay off the balance. As well, it will cost $3,000 in interest. All this with an original balance of $1,000!

If the minimum monthly payment increases to 5%, that same credit card balance of $1,000 will take six years to pay off with $442 of interest. So you can see what the Province of Quebec is trying to achieve for its citizens.

The arithmetic of course works. However, the issue is not one of arithmetic. Better arithmetic won’t save Canadians who go into debt they cannot repay. If their budget does not allow them to pay more than a minimum of 2% each month, where will the extra money come from? Wage growth is stagnant and family expenses rise each year.

The Quebec government feels that having its people experience short-term pain for long-term gain will work.

As noble and well-intentioned this Quebec Bill 134 is, it does not appear that it has thought through what the real consequences will be. Will it help Quebeckers reduce their household debt faster? How will people who can only afford to pay a minimum monthly amount of 2% find the money to pay the higher amount. For Quebeckers in debt, it deserves asking if this sort of the change in policy will really help the people? Or, will it speed up the rate at which people in Quebec will have to make an insolvency filing, be it a consumer proposal or bankruptcy?

**Has Quebec tackled the real help with debt issue?**

High credit card debt is plainly a difficult situation for many. Time will tell exactly how effective a technique it is to raise the minimum monthly payment to 5% on a charge card will be. What Quebec is doing is a step in the right direction but it may not be one of the best high household debt solutions. But I am disappointed that it was not coupled with the requirement for better financial education and financial literacy.

In my opinion, it would have been much more impressive for Quebec to have at the same time developed simple online financial education tools for its citizens in trying to combat the problem of too much debt. What is really needed is to teach people that paying only the minimum monthly balance increases the cost of paying off the balance. Ideally, people need to adjust their household budget to be able to pay the full balance off every month.

Help with debt: Financial education was never on any curriculum

For many Canadians, proper money management and budgeting had not been a large subject in their house growing up. They get to college or university and they obtain that bank card. They just start spending and perhaps they also have student financial debt. They graduate and may or may not get a well-paying job to start off their new career. Then life takes place and living costs increase. Perhaps now a home with a home mortgage, children, automobile loan repayments and all other living costs take hold. Due to stagnant wage growth, or worse, corporate downsizing, there is not enough income in the family to keep up with all these debts. Now all you can do is make minimum payments.

To avoid this mess in the first place, people need to be taught basic budgeting skills. People need to understand that a household cannot spend more money than is earned, after income tax. This is the most basic concept for those in need of help with debt. The concept of having emergency savings funds is also necessary. People need to understand how fast credit card debt can grow and how hard it is to pay it off if the most you are able to pay is the minimum monthly payment.

Money management education and learning are so vital. People need to know that when they purchase things on a credit card, they do really need to have the money available to pay off that credit card at the end of the month. A credit card, unfortunately, is treated by many as an extra source of cash. In reality, it is a financial tool for convenience, but not an additional source of income.

Do you have too much debt?

Do you feel that you don’t have sufficient financial literacy? Do you believe that the lack of knowledge has led to you making financial mistakes? Have these mistakes caused you to now have too much debt? Is the pain and stress of too much debt now negatively affecting your health? Do you need help with debt?

If so, contact the Ira Smith Team today. We have decades and generations of helping people and companies in need of financial restructuring and counselling. As a licensed insolvency trustee (formerly known as a bankruptcy trustee), we are the only professionals licensed and supervised by the Federal government to provide debt settlement and financial restructuring services.

We offer free consultation to help you solve your problems. We understand your pain that debt causes. We can also end it right away from your life. This will allow you to begin a fresh start, Starting Over Starting Now. Call the Ira Smith Team today so that we can begin helping you and get you back into a healthy, stress-free life.

Tags average Canadian household consumer debt, Bankruptcy, bankruptcy trustee, consumer debt, Consumer Proposal, credit card debt, credit card debt calculator, Debt, financial education, financial emergency, financial literacy, help with debt, household consumer debt, household debt, Ira Smith Trustee, licensed insolvency trustee, minimum monthly payment, stephen poloz

Brandon Blog Post

CREDIT KARMA CA: CREDIT KARMA CANADA REVIEWS MILLENNIAL DEBT

Post author By Brandon Smith
Post date July 29, 2019

If you would rather listen to an audio version of this Credit Karma ca Brandon’s Blog, please scroll down and click on the podcast

Introduction

A brand-new Credit Karma ca report on millennial debt is out. Credit Karma Canada reports that its US company has performed a research survey of 1,041 millennial customers in the United States. As far as I can tell, they did not do a similar Canadian survey. However, I highly doubt that a Canadian millennials debt study would produce results drastically different than this survey.

The results reveal that virtually fifty percent (48%) of millennials have spent money they really did not actually have by going into debt. Why? To keep up with their pals.

Unfortunately, this is a significant increase from the findings of the 2018 survey (up from 39% of participants evaluated in 2018).

The nature of the millennial debt

Whether it’s on food or beverages, concerts or tattoos, they discovered that more and more millennials are spending beyond their means as a result of increasing public opinions. Greater than 2 in 5 millennials (44%) from the study stated they’re terrified to miss out on unique or once in-.a-lifetime experiences. Over one-third (36%) don’t want to look like an outsider.

Despite the fact that according to Credit Karma ca, almost 1 in 2 millennials have actually experienced fear of missing out (FOMO) driven debt, they’re mostly being silent about it. Of the participants that have actually entered into debt just to keep up with their mates, 80% claimed they would certainly keep the fact that they have gone into debt quiet and not tell friends or family.

Why do they wish to keep it secret? The survey shows that their reasons are ones of regret, guilt and embarrassment. They do not feel good about the debt they have incurred.

In 2014 their survey showed that millennials were most likely to use the money they really did not have for unique experiences, such as events, nightlife or holidays with their buddies. The new survey also looked at what experiences and purchases were triggering millennials to acquire FOMO debt.

According to their study this year, the #1 point driving millennials to spend beyond your means is food ( 47%), and then clothing (41%). As well as there are some millennials that have entered into FOMO fueled debt on much bigger and long-term items. Cars and trucks (15%), tattoos (11%) and real estate (9%). So out of all the millennials that go into debt, only 9% of millennials go into debt in order to acquire an asset that will grow in value over time, millennial home ownership. Another way of looking at it, 91% of millennials go into debt either for an experience that once it is over, it is over or for a tattoo!

Regardless of the product or experience, social networks play a huge component in driving the millennials’ need to spend beyond their means. The survey results show that 2 in 5 participants (40%) claimed they spent money on something a minimum of one time per year simply to publish that fact on social media sites.

Why do millennials really feel forced to spend too much?

According to the survey, the main reasons that millennials really feel pressured to go into debt to keep up with their close friends are:

A concern of losing out on a unique or unbelievable experience 44%
Worry of not being included in future outings 41%
The concern of being treated like an outsider 36%
Worry of being evaluated 25%
Concern over losing close friends 24%

As you can see, 4 out of the top 5 responses has to do with what their friends may think. This makes sense. The majority of the things millennials go into debt for, such as vacations, concerts and restaurants, are things that you do with friends.

So what is the answer?

Obviously, no one can keep going into debt on an unlimited basis, especially when the reason is to keep up with others. I have some tips on how to deal with friends that either has more money than you or are willing to go deeper into debt than you. Or, at least are not concerned about their debt like you are.

Hang out together in ways that don’t force you to spend

Consider how you can invest in quality time but not your cash. Time spent with close friends and loved ones is an experience that can be valued over something that pushes you into debt. Those good times also last forever.

There is no need to be embarrassed about being not able to pay for an evening out or a costly getaway. As I pointed out previously, 80% of millennials that spend beyond their means hide it from others. However, by being straightforward with your buddies, you may be amazed to discover they really feel similar to you.

Speak to your pals concerning your worries and also do cost-free or much more modest cost things that let you hang out with each other.

Control your funds, do not allow it to control you

Eighty-one percent of participants stated they have a month-to-month budget that they attempt to stick to, which is wonderful. Nonetheless, the millenials that have such a plan seem to have a hard time keeping within it once they feel the peer pressure being applied.

If you’re amongst those that have a problem with budgeting, it can be handy to be a lot more conscious about the consequences of buying something. Take into consideration whether you can really afford it and if you didn’t buy it, will it really hurt your life. If not, then reevaluate, don’t buy it and build up some savings.

Another tip is to lock your debit and credit cards away and spend only cash. By using real cash and not plastic (or a debit card) you get a better sense of what you are spending on extras and how much you need to still have for essentials until the next paycheque. When cash is gone, it is gone. This behaviour will force you to think about how much money you need for essentials for the number of days until the next payday – which is a good thing.

Will this item or experience be important in 5 years?

In some cases, the answer is no, and sometimes it is yes. If the answer is yes, then slot it into your budget and see if you can afford it. Make sure your budget also has a line for savings. That way you will be building up a fund for investing. This fund can also be called upon in the event of a real emergency that could not have been planned for. Examples are increased health costs or reduced income through job loss.

It is essential to have an emergency fund that you can tap into in the event of a real crisis. It isn’t so bad to also have further savings and investments. It is never too early to start planning for retirement. If you wait until you are closer to retirement than the start of your career, you will never be able to catch up.

Conclusion

I hope you found the Credit Karma ca study as informative as I did. Of course, budgeting and debt issues are not limited to only millennials. Financial problems can affect anyone. Whenever I sit down with a person to talk about his or her insolvency, or with an owner of a company to discuss business financial problems, I make sure that we have an entire discussion. I not only talk to them about what process I recommend for their unique situation, but I also walk them through the entire process and what all the rights and responsibilities are.

Are you or your business experiencing money troubles? Are you on the verge of bankruptcy? Do not wait till it is far too late to understand how you can restructure your financial affairs and avoid bankruptcy. You do not need to be one more person or company declaring bankruptcy in Canada.

As a licensed insolvency trustee (formerly called a bankruptcy trustee), we are the only specialists certified, accredited and overseen by the federal government to provide insolvency guidance and to apply remedies under the BIA. We will certainly help you to choose what is best for you to release you from your debt problems.

Call the Ira Smith Team today so we can get rid you of the stress, anxiety, pain and discomfort that your money issues have created. With the distinct roadmap, we establish simply for you, we will without delay return you right into a healthy and balanced problem-free life, Starting Over Staring Now. Call the Ira Smith Team today.

Tags Bankruptcy, budget, credit karma ca, credit karma canada review, Debt, fear of missing out, fomo, fomo debt, Ira Smith Trustee, licensed insolvency trustee, millennial home ownership, millennials debt, trustee in bankruptcy

Brandon Blog Post

BANKRUPTCY ACT CANADA: ARE YOU REALLY PREPARED FOR IT?

Post author By Brandon Smith
Post date July 10, 2019

Introduction

No person wishes to go make a filing under the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (Bankruptcy Act Canada), however occasionally it is inevitable. You might think that people who file are just those that are careless with their finances. However, with most of the people I see, it is usually an event outside of their control that pushes them over the edge.

In personal bankruptcy, things such as illness, divorce, job loss, unanticipated catastrophes, identity theft and fraud are many times the causes of insolvency. Of course, lack of proper budgeting, overspending and inappropriate uses of credit are also involved. In corporate insolvency, the #1 cause always seems to track back to management.

Insolvency filings happen every year. In 2018, a total amount of 128,846 insolvency filings were made with the Office of the Superintendent of Bankruptcy (OSB). This is 2.4% more from 2017. Consumer insolvency filings increased 2.5% (125,266 filings), while company filings dropped 0.8% to 3,580.

At the very same time, people choosing to avoid bankruptcy by filing a proposal continued increasing in 2018, bringing this number to a brand-new level. Proposals represented 52.6% of consumer filings in 2017. In 2018, they expanded by 6.6% to 56% of all personal filings.

Are you considering a Bankruptcy Act Canada filing, or at least speaking to a Licensed Insolvency Trustee (formerly called a trustee in bankruptcy) (Trustee)? In order to help you start your fact-finding, I want to tell you what will happen to your bank accounts, retirement accounts and your other important financial funds. Understanding what to anticipate can assist you to stay clear of some pricey blunders.

Bankruptcy or (consumer) proposal

Being insolvent is that you are not able to settle your financial debts. People with severe financial problems can make Bankruptcy Act Canada filing by filing either for bankruptcy, a consumer proposal or Division I proposal.

Proposals are official methods controlled by the Bankruptcy Act Canada for personal filings. Dealing with a Trustee you make a proposal to:

Pay your creditors a portion of what you owe them over a particular time period not going beyond 60 months
Extend the time you need to settle the debt
Or a mix of both

The Proposal is made via the Trustee, who uses the money in your proposal fund to pay the cost of administration and distribution to each of your creditors their pro-rata share. A consumer proposal needs to be finished within 5 years from the day of filing.

Proposal

People with severe financial problems can apply for bankruptcy. They can also try to avoid bankruptcy by using the Proposal provisions of the Bankruptcy Act Canada.

There are numerous advantages to avoiding bankruptcy. The main differences between proposals and bankruptcy are:

Unlike informal debt settlement, a Proposal produces a binding discussion forum where each of your unsecured creditors has to participate in for your debt restructuring.
You can keep your property, including your home, if you can afford to in your budget.
Lawsuits against you and enforcement proceedings, such as wage garnishments, cannot begin or continue.
In a successfully completed Proposal, you do not need to file for bankruptcy.

Keep in mind that financial institutions have “set-off” legal rights, implying that if you declare bankruptcy or file for bankruptcy when you’re behind in payments to them, they will take the funds in your accounts to try to cover all or some of what you owe them. This is notwithstanding that there is a stay of proceedings once a Bankruptcy Act Canada filing takes place and such an offset really should not take place.

So if you are thinking of filing either for bankruptcy or a proposal, I want you to be prepared for what might happen to your financial assets.

Your bank account

In a bankruptcy, the cash in your bank account is a property which must be paid over to the Trustee. Upon your filing, the Trustee will put all your banks on notice to provide the funds in any accounts maintained with them to the Trustee. As noted above, the bank may very well offset cash in your savings or chequing account against the money you may owe them, including credit card debt.

In a Proposal, you do not lose control of the money in your bank accounts. Rather, they are considered by the Trustee in formulating the type of Proposal you should offer your creditors. Remember, your Proposal must offer your creditors a better alternative than your bankruptcy would. However, even though there is a stay of proceedings invoked once you file your Proposal, it is not uncommon for a bank where you maintain an account and to whom you owe money, to take the money in your account and offset it against what you owe them.

So the moral of this story is that you are best to have bank accounts at financial institutions to whom you do not owe any money.

In a bankruptcy, your RRSP, RRIF or DPSP are excluded from seizure. However, the Trustee is entitled under the Bankruptcy Act Canada to receive the equivalent to any amounts contributed to these accounts in the 12 months preceding your filing date. In a Proposal, this 12-month amount must be included by the Trustee in the calculation of what amount your Proposal should offer your creditors.

Canada Pension Plan (CPP) and Old Age Security income (OAS)

Canada Revenue Agency (CRA) is the only one permitted to garnish your CPP earnings if you have an unpaid personal income tax. By filing either for bankruptcy or a Proposal, the stay of proceedings will be invoked and CRA will have to stop the garnishment of your CPP and you will get the CPP payments you are qualified for.

However, the earnings obtained from CPP and OAS will certainly be taken into account by the Trustee in determining if you have any surplus income payment obligation in bankruptcy. In a Proposal, that amount also has to be considered in developing your Proposal.

Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP) and other non-registered account investments

In a bankruptcy, just like any other non-exempt property, the amount held in your TFSA and any other non-registered investment account must be paid to the Trustee. In a Proposal, these amounts need to be taken into account in determining what type of Proposal to make. It may very well be that these accounts are collapsed in order to help fund a Proposal.

Similarly, RESPs are not excluded in personal bankruptcy. In a Proposal, the amount must be considered as an asset in calculating how much must be offered in your Proposal to stand a chance for success.

The reason that an RESP is not excluded from seizure in bankruptcy is relatively straightforward. Your child does not acquire ownership or other entitlement to the RESP funds as parents can take possession of the funds prior to the child becoming a post-secondary school student. For that reason, it is the parents who have ownership of the funds.

Consequently, the Trustee of an insolvent mother or father that has an RESP can collapse it. If the parent in bankruptcy wants the RESP to not collapse, adequate arrangements need to be made with the Trustee for the equal amount of funds in the RESP at the filing date be paid to the Trustee for the bankruptcy estate and the bankrupt’s creditors.

Annuity revenue in bankruptcy

Annuities are agreements where you pay a company (normally an insurance company) a specific amount, in order to get regular monthly payments for a specific period of time or for the remainder of your life.

If an annuity contract is properly set up with an insurance company, it will be exempt from seizure in bankruptcy. However, the income stream it produces will be considered by the Trustee in determining whether the bankrupt person has a surplus income obligation.

Your RRIF can also be considered as an annuity as it provides a legislated stream of payments. The RRIF is exempt from seizure in a bankruptcy, other than for any contributions in the 12 months immediately prior to filing. Like an annuity, the entitlement to payments will be considered by the Trustee in doing the surplus income calculation.

In a Proposal, you don’t give up ownership of an annuity contract or RRIF, but the income must be considered in preparing a suitable Proposal.

Bankruptcy Act Canada summary

Do you have financial problems? Do you not have enough money to pay your bills in full when due?

As a Trustee, we are the only professionals licensed, authorized and supervised by the federal government to offer insolvency advice and to implement solutions under the Bankruptcy Act Canada. A consumer proposal is a federal government licensed debt settlement plan to eliminate your debt. We will help you to select what is best for you to free you from your debt issues.

Call the Ira Smith Team today so we can eliminate the anxiousness, tension, discomfort and pain from your life that your cash problems have caused. With the unique roadmap, we develop just for you, we will promptly return you right into a healthy and balanced problem-free life.

Call the Ira Smith Team today. We have generations and decades of experience helping people and companies looking for debt restructuring and a debt settlement plan to AVOID bankruptcy.

You can have a no-cost consultation so we can work with you to fix your money 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 avoid bankruptcy, avoiding bankruptcy, Bankruptcy, bankruptcy act canada, Bankruptcy and Insolvency Act, Consumer Proposal, Debt, debt settlement, Division I Proposal, informal debt settlement, insolvent, Ira Smith Trustee, licensed insolvency trustee, personal bankruptcy, proposal, stay of proceedings, trustee in bankruptcy, wage garnishment

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

BANK OF CANADA NEW STUDY ON CANADIAN HOUSEHOLD DEBT

Post author By Brandon Smith
Post date May 22, 2019

Bank of Canada: Introduction

There has been talking for many years now about the Canadian housing market and more particularly about the Toronto and Vancouver markets. The Bank of Canada (BOC) recently published a staff analytical note titled: Reassessing the Growth of HELOCs in Canada Using New Regulatory Data. This Brandon’s Blog discusses this new study which shows Canadians have been tapping into the equity in their homes using them as automated teller machines (ATM).

Recent Bank of Canada Staff Analytical Note

The BOC staff warned that home equity may be concealing financial distress. They go on to warn that Canadian real estate owners may be hiding financial vulnerability using complex debt products.

BOC staff published this analytical note examining new home equity data. The new data gives more insight into home equity borrowing. The home equity line of credit (HELOC) borrowing has now been formally analyzed. HELOCs are usually advertised as a component of combined plans, provided with a mortgage and often, other credit items, such as personal lending and credit cards. Such a mixed plan can generally be broken down into a HELOC element, which is non-amortizing, as well as a home mortgage component, which is amortizing. Additionally, a part of the home mortgage component in such a combined strategy might be readvanceable, even though it is amortized.

The borrowing limit in combined plans is commonly tied to regional house prices. As market value increases, households can borrow much more. In the last few years, integrated mortgage-HELOC plans have actually expanded in importance. The BOC’s new analysis shows that it currently accounts for close to 40 percent of household residential debt owing to the chartered banks. In this way, Canadians are using their homes like debit cards at an ATM, but without having to go to the Bank to take out the money.

New reporting requirement for HELOCs

A new reporting standard has now been developed. A brand-new reporting form has been established to systematize the reporting on HELOCs. This new reporting is the end result of a years-long collective effort between the BOC, the Office of the Superintendent of Financial Institutions (OSFI) and the Canadian financial institutions. It is designed to improve the surveillance of financial stability concerns. The new reporting classifies household secured lending into:

stand-alone HELOCs
conventional home mortgages
integrated mortgage-HELOC plans

Also, it supplies a reporting on the consolidated plans into individual HELOC (non-amortizing) and mortgage (amortizing) parts. This will allow a better understanding of home equity debt.

I am sure that readers of my Brandon’s Blog are already familiar with the traditional segments of personal residential debt; first mortgage, second mortgage and secured line of credit. As the BOC statistics show, the less familiar combined mortgage HELOC product has become increasingly popular. No doubt some of that new popularity has been due to the heavy marketing of this new hybrid product by the chartered banks.

The readvanceable mortgage

I think in the future it will be better known by a name reflecting what it really is, such as readvanceable mortgages. They combine the fixed-rate mortgage with a variable rate HELOC. The amount of HELOC credit extended automatically increases with payments against the mortgage portion. So, borrowers can immediately replace the traditional mortgage debt with a new HELOC debt in exchange for the monthly payment against the mortgage principal.

Canadian homeowners can use the funds advanced by the HELOC portion for basically any use they want, including, home renovations, paying down higher interest rate debt or for investment. Under the readvanceable mortgage, borrowers, of course, will pay more interest on their total residential debt. The reason being that as you pay down the mortgage principal, the HELOC element availability increases.

It will be very tempting for Canadians to use this extra credit to pay down higher interest household debt they may be falling behind on, or at least, now be able to make the monthly payments on that higher interest rate debt, such as credit cards. So, the chartered banks, of course, will love this readvanceable mortgage credit product. More interest will be paid on the debt secured against the home while the higher interest rate payments continue to be made. A win-win for the bank, but not so much for Canadian household debt.

Canadian household debt can now replace higher rate debt with perpetual debt. There will be no incentive for Canadian households to reduce overall debt as long as interest rates stay low. It is great for the banks but not exactly a reason for households to celebrate.

Canadian household debt has a new love of these more complex loans

Let us go over Canada’s new love of these more complex loans. The BOC analysis confirms an increase in consolidated mortgage-HELOC plans, at 6.7 percent year over year. These plans appear to be taking market share from the conventional stand-alone mortgages and also traditional HELOCs; stand-alone home mortgages grew by a modest 2.0 percent,

While stand-alone HELOCs contracted by 7.6 percent during this time period. Furthermore, the new information on elements of combined plans shows that the growth of these plans is driven by the amortizing home mortgage element, which grew by 7.7 percent while the non-amortizing portion grew by 3.3 percent. These are all the same year over year statistics.

The balance of HELOCs (both stand-alone HELOCs and the non-amortizing part of the integrated mortgage-HELOC plans) is $173 billion as at the fourth quarter of 2018, $70 billion less than the previous amount of $243 billion. The overall balance of HELOCs reduced by 1 percent year over year. The overall balance of home mortgages (both stand-alone home loans and the amortizing element of mixed plans) increased by 3.8 percent.

So what does this Bank of Canada study really mean?

Against the background of the fear of climbing interest rates, tighter home mortgage qualification requirements and the stagnation in household spending throughout 2018, the information from existing regulatory filings reveals that HELOC balances expanded much faster than home mortgages. This suggests that families were had not stopped to borrow against the value of their residences even as borrowing tightened.

The convenience of accessibility to rotating credit supplied by standalone HELOCs and the new combined plans might help with the buildup of Canadian household debt. It will come at the cost of building equity in one’s home. Canadians collecting huge amounts of debt secured by their real estate may find themselves with marginal (or even negative) real estate equity if the value of their home falls.

These complex loan products may likewise be hiding emerging financial distress if Canadians are taking equity out of their homes to manage various other financial debt obligations or to fund their everyday expenses because they lack other cash resources. These are all factors to consider when tracking and analyzing both stand-alone HELOCs and the strategies of the combined plan.

Do you have too much debt?

Are you or your business in financial distress? Do you not have adequate funds to pay your debts as they come due?

If so, call the Ira Smith Team today. We have years and generations of experience aiding individuals and companies searching for financial restructuring or a debt settlement arrangement. As a licensed insolvency trustee (previously called a bankruptcy trustee), we are the only experts certified, acknowledged as well as overseen by the federal government to provide bankruptcy and insolvency guidance as well as execute methods to assist you to remain free from bankruptcy and your debts.

Call the Ira Smith Team today so you can reduce the tension, anxiety, and discomfort from your life that your financial problems have triggered. With the unique roadmap, we develop simply for you, we will promptly return you right into a healthy and balanced problem-free life.

You can have a no-cost evaluation so we can assist you to repair your credit and your debt problems. Call the Ira Smith Team today. This will certainly enable you to return to a brand-new healthy and balanced life, Starting Over Starting Now.

Tags amortizing, ATM, bank of canada, bank of canada staff, Canadian household debt, Debt, financial distress, fixed-rate mortgage, heloc, home equity, home equity line of credit, Ira Smith Trustee, mortgage, mortgage-HELOC plans, non-amortizing, OSFI, readvanceable mortgage, variable rate HELOC

Brandon Blog Post

FINANCIAL SECURITY REPORT: HALF OF CANADIANS CAN’T MAKE ENDS MEET

Post author By Brandon Smith
Post date May 1, 2019

Financial security Introduction

Brand-New Ipsos study findings were released on April 22, 2019, simply 2 days prior to the next Bank of Canada interest rate announcement. This brand-new survey shows exactly how Canadians really feel about their financial security or its absence. Ipsos claims almost fifty percent of Canadians cannot make ends meet on a monthly basis.

Fifty percent of Canada is worried about the effect of increasing rates of interest on their financial resources. They feel even worse about their debt load from just a couple of months back.

Canadians maxed out on debt

Canadians are maxed out on debt with 48% of Canadians on the edge of bankruptcy. They claim that they go by the end of every month to within $200 or less far from financial insolvency.

In regards to Canadians and their beliefs, people are worried about their debt levels and financial security. Forty-eight percent of those questioned claim they cannot make ends meet. They understand that they are most likely to take on even more debt at the end of each month to pay all of their expenditures. So practically fifty percent of all Canadians need to handle even more debt to satisfy their current expenses, which in part includes existing debt repayments!

It’s no longer about purchases – that ship has already sailed!

It ends up from the survey that this isn’t about the fact that we’re in a low-interest-rate atmosphere any longer. It also isn’t about people making high-end or lifestyle new purchases that are considered unnecessary.

They have actually already done all that. Especially people in Toronto and Vancouver that have stretched to buy costly houses, home furnishings and appliances. They used the low-interest rate mortgages and home equity credit lines to do it.

New debt on top of old debt

So now they understand that they better not take on even more debt. However, guess what? It is currently far too late for almost half of Canada. People are claiming they currently just cannot make ends meet. Therefore, they have no choice but to take on even more debt.

Brand-new debt to make old debt repayments! Undoubtedly, these individuals stay in a hazardous downward spiral. People are questioning whether can continue in this way and are thinking about personal bankruptcy.

It is true that the survey has a small sample size. This Ipsos survey reveals growing tension and grief. Nevertheless, personal bankruptcies remain historically low in this nation. Undoubtedly, there are local distinctions. Albertans are experiencing far more personal insolvencies as a result of the slowness in the energy market.

I think there are 2 really basic reasons for almost half of Canadians dealing with financial insolvency yet personally bankruptcy levels are down. First, financially troubled Canadians are utilizing the consumer proposal arrangements section of the Bankruptcy and Insolvency Act (Canada) (BIA). This is a good thing because they are avoiding bankruptcy.

Second, people still have adequate equity in their houses. So, they are still able to borrow for brand-new debt to satisfy old debt payments other living costs. This is not a good thing. The thing Canadians do not seem to be doing yet is tightening their belts and lowering month-to-month expenses.

Bank of Canada

The Bank of Canada (BOC) increased its overnight interest rate 5 times since mid-2017. At the end of 2018, everyone, including the BOC assumed that fad was most likely to continue. Nevertheless, in its first 2019 interest rate announcement, the Bank altered its signals and currently appears completely satisfied to hold steady on the interest rate for what might be for the rest of 2019.

On April 24, 2019, the BOC announced that it was maintaining the overnight bank rate target at 1 ¾ percent. The BOC did so based on its observations of the Canadian and global economies.

Their statement included, that in Canada:

economic development throughout the very first half of 2019 is anticipated to be slower than was forecast for in January 2019.
The oil price decrease and recurring transport restrictions have actually suppressed financial investment and exports in the oil industry.
Financial investment and exports outside the oil market, at the same time, have been adversely impacted by unpredictability and the global downturn.
Beyond the oil and gas market, the financial investment will be sustained by high prices of other commodities and exports will broaden with reinforcing international need.

As far as the global market, the BOC stated:

The global economy reduced by greater than the Bank projected in its January Monetary Policy Report.
Continuous unpredictability connected to trade disputes has weakened business views.
Stagnation throughout many countries has resulted.
In reaction, several reserve banks have reported a slower speed of monetary plan normalization.

As a result, the BOC kept its target for the overnight rate at 1 3/4 percent.

Financial questions for Canadians

Virtually fifty percent of Canadians currently are sorry for the debt they have. I believe what this does is brings recognition for you to have a serious discussion in your home. The discussion requires to be about:

Exactly how near the margin are you living?
What household costs could you drop?
Could you survive if one of you were to lose your job?
If not, what can you do now to prepare for that if it were to one day happen?
Have you filed all your income tax returns and paid all your tax obligations?
Did you get a tax refund and what are you most likely to do with that cash to help with your situation?
Are your Christmas gifts expenses all paid or are you still rolling those costs on your credit card bill every month?

Despite that the job market has seen wage strength, the Canadian economic situation has not produced great financial signals. There are spots that seem to be a little murkier. Our rising cost of living is nearing 2% on an annualized basis and we’re paying much more for gas at the pump. We’re paying a lot more for produce. So there are things that are costing us even more simple to manage. So if income is increasing a bit, costs are climbing much more.

So Canadians are currently really feeling a little sweaty. They aren’t certain what is most likely to take place. Currently, there appears to be a little bit of a rest on the interest rates.

Canadians need to set up a proper household budget

I would certainly suggest that not everybody has taken a hard look at their financial situation. There’s plenty of presumptions that can take place due to the fact that you just do not understand your numbers. I see that occurring all the time.

So perhaps people really feel a little even worse off than they actually are due to the fact that they do not understand their numbers. They understand they stay in difficulty, however, do not have the capability to assemble a roadmap for saving themselves.

A truth check is needed instantly. Most likely fifty percent of those that claim they cannot make ends meet can save themselves without turning to an insolvency process. If they just recognized their realities about their very own money situation. The other half of the half, or 25% of Canadians, probably do meet the financial insolvency definition and need professional help.

The trick might just be that Canadians need to promptly get a good handle on what their month-to-month income and expenses truly are. Share that info with the entire household and make and follow a household budget that has everybody’s agreement. Your financial security in retirement may depend upon it.

Readers of my Brandon’s Blog will know that I always state the advantages of correct budgeting. To check out this budgeting topic you can look as far back as my collection of blogs that began late in 2014 with A BALANCED BUDGET IS TO FINANCIAL HEALTH WHAT A BALANCED DIET IS TO PHYSICAL HEALTH. You can additionally check my more recent 2019 blogs, USEFUL TIPS FOR SAVING MONEY CANADA: THIS PRO ATHLETE TEACHES US and also MY BILLS ARE HIGH: 6 THINGS TO IMMEDIATELY DO.

What about you or your company?

Do you have way too much debt? Are you having difficulty making your month-to-month expenses? Is your company having a hard time handling its economic difficulties that you cannot figure how to get out of?

If so, call the Ira Smith Team today. We have decades and generations of experience assisting people and companies looking for financial restructuring or a debt settlement plan. As a licensed insolvency trustee, we are the only experts recognized, accredited and supervised by the federal government to provide insolvency advice and carry out alternatives to aid you to stay clear of bankruptcy.

Call the Ira Smith Team today so you can end your tension, stress and anxiety that your financial problems have triggered. With the special roadmap, we develop unique for you, we will right away return you right into a healthy and well-balanced hassle-free life.

You can have a no-cost evaluation so we can help you repair your debt difficulties. Call the Ira Smith Team today. This will most certainly permit you to return to a brand new healthy life, Starting Over Starting Now. financial security

Tags bank of canada, Bankruptcy, Bankruptcy and Insolvency Act, BIA, budget, Consumer Proposal, cost of living, credit card, Debt, financial insolvency, financial security, household budget, household debt, Ipsos, Ira Smith Trustee, make ends meet, personal bankruptcy

Brandon Blog Post

WILL BANKRUPTCY VS CONSUMER PROPOSAL EVER GO TO THE DOGS?

Post author By Brandon Smith
Post date April 10, 2019

Bankruptcy vs consumer proposal: Introduction

In this Brandon’s Blog, we discuss the issues about bankruptcy vs consumer proposal. We will use a real-life case study involving a woman and her pet, to show the reasons why consumer proposals are better than bankruptcies.

First, I should provide a very brief outline of how a dog or cat pet medical insurance works. A pet medical insurance policy runs just like those for humans. They typically have a yearly insurance deductible, need you to pay regular monthly costs and include you filing a claim for benefits after paying your vet for pet care.

When a family pet isn’t acting normal, the last thing you need is to be fretting over is just how you’re most likely be spending a lot of money for their emergency treatment. That’s why pet medical insurance coverage intends to exist. They cover your pet’s treatment when it comes to an unforeseen illness. This way you do not need to select between your pet’s health and wellbeing and your savings.

With pet medical insurance, you are financially in charge of paying your vet for all services and treatments. Like human medical insurance coverage, you then file a claim with the insurance company. They pay your claim for all eligible expenses, subject to any deductible in your policy.

Bankruptcy vs consumer proposal: Case study dog facts

When our potential client came to our office for a free first consultation, she provided us with a list of all of her assets, including her pet dog. Her dog was not a “Best in Show” winner of any prestigious dog shows. Therefore, the dog’s value was emotional to the owner but had no real financial value. Therefore, under Ontario law, technically speaking, the dog, along with her other personal property, was exempt from seizure by a licensed insolvency trustee (formerly called a bankruptcy trustee) (Trustee) in a bankruptcy!

She also listed as an asset, a health benefit claim. In our discussion, she advised that this was a pet medical insurance claim she filed for vet services for her dog and she was awaiting payment. The amount was significant to this woman and it got me thinking.

If the woman was insolvent, how did she pay the vet? Did she use a credit card that had room on it that will never be repaid? The woman told me that she is single. Did a friend or relative pay the vet on her behalf and when the insurance claim comes in, she will give them the money?

Bankruptcy vs consumer proposal: Case study issues

These seemingly innocuous facts contain various issues in bankruptcy versus a consumer proposal. Here are the various issues that I was pawing around with.

Paid by credit card and DID RECEIVE insurance claim proceeds before filing

If she paid by credit card and received the insurance claim payment before filing for bankruptcy, that is not a problem. This was actually the case. Any amount received not used to live on would presumably be a balance in her bank account. That cash balance would have to be accounted for in her bankruptcy.

In her case, based on the information she told me, there was a very small amount of cash on hand and no other non-exempt assets for a Trustee to seize. The surplus income calculation also showed that she had none. Therefore, in that case, there would not be any dividend paid from her bankruptcy estate to the unsecured creditors.

As you will recall from earlier Brandon’s Blogs, other than for exempt assets, upon bankruptcy, the assets of the insolvent person vest in the Trustee. The Trustee then sells the assets and distributes the money in the order established by the Bankruptcy and Insolvency Act (Canada) (BIA). Surplus income, is a calculation set by the Superintendent of Bankruptcy that a Trustee must do, to decide what amount of an insolvent person’s income they must contribute to their bankruptcy estate if any.

You may have a moral issue with the fact that she was repaid for the vet cost she put on her credit card and the credit card company will not receive a payment. However, in bankruptcy, there is no legal issue. The credit card company may choose to oppose her discharge from bankruptcy for this or other reasons. If they did, she could not receive an automatic discharge from bankruptcy. The matter would go to Court for a discharge hearing.

In a consumer proposal, it is a non-issue. The creditors must vote either in favour of or oppose the consumer proposal. The consumer proposal, by definition, has to be a better offer to the creditors than what they would receive in bankruptcy. In this case, in bankruptcy, they would receive nothing. In a consumer proposal, the creditors would receive a payment. If the required majority of creditors voted or were deemed to have voted in favour of the consumer proposal, the Court (was deemed to have) approved it and the insolvent person fully paid the entire amount promised, the creditors are better off with their choice.

Paid by credit card and DID NOT receive insurance claim proceeds before filing

If this was the situation, and the woman filed for bankruptcy, then it is really simple. The amount receivable from the insurance company under her claim would be an asset of the bankruptcy estate, payable to the Trustee. The Trustee would have to put the insurance company on notice of the bankruptcy, and demand that the insurance company pay the claim to the Trustee. When paid, those funds become part of the Bankruptcy Estate.

In a consumer proposal, the value of this asset must be taken into account when formulating the offer to creditors. As previously mentioned, a consumer proposal must offer a better alternative for the creditors.

A friend or relative pay the vet on her behalf and she DID NOT REPAY the person before filing

In this situation, the person who paid the vet bill is an unsecured creditor of the woman. In either a bankruptcy or a consumer proposal, the person would have the right to file a proof of claim in the insolvency proceeding. If the claim was approved by the Trustee, which it would be if submitted with proper proof of payment, the person would be entitled to any dividend to be paid. This is a very simple situation.

A friend or relative pay the vet on her behalf and she DID REPAY the person before filing

In the bankruptcy of the woman, this is a big problem for the friend or relative. The reason the repayment would have been made prior to filing is simple. The money was owed, and the insolvent woman did not want to see her friend or relative go unpaid before filing. The issue is that there are other creditors too, and they are being treated differently than this friend or relative.

Section 141 of the BIA states “…all claims proved in bankruptcy shall be paid rateably”. The corollary is that all ordinary unsecured creditors should be treated equally. The friend or relative who made the payment to the vet on behalf of the insolvent woman, who is an ordinary unsecured creditor, must be treated the same as the rest of them. So how is this to be done?

Sections 95 and 96 of the BIA are the sections which deal with how to enforce this principle of the BIA. Section 95 deals with Preferences. Section 96 deals with any transfer of property by the insolvent person at undervalue (Transfer at undervalue). In this example, the preference section comes into play.

A preference is defined as the transfer of any property, including a cash payment, made by the insolvent person to any creditor who is dealing either at arms’ length or non-arms’ length with the insolvent person. The transaction must be one that has the intention of preferring that creditor over the others. In this example, the definition certainly fits.

Such transactions, limited only in time, are attackable by the Trustee in bankruptcy. If the friend or relative is dealing at arms’ length with the insolvent person, then the Trustee can challenge any transactions which occurred within the 3 months before the date of the first bankruptcy event and ending on the date of the bankruptcy. If the friend or relative was deemed to not be dealing at arms’ length with the woman, then the time period is extended from 3 months to 12 months.

An initial bankruptcy event for a person is essentially the first day an insolvency proceeding started. For a person, the most likely initial bankruptcy events would be the date on which one of the following filings occurred:

How would the Trustee challenge it? The challenge starts with a letter to and a conversation with the bankrupt person and the friend or relative. The Trustee would outline the powers of the Trustee to get a Court order against the friend or relative for the repayment to the Trustee of the insurance repayment in question. The Trustee would make a demand for payment on the friend or relative. There should be evidence of the payment being demanded in the Trustee’s files. We wouldn’t want the Trustee to be barking up the wrong tree.

If the friend or relative pays the amount over to the Trustee, then it is over. The Trustee has recovered the funds intended to prefer the friend or relative over the other unsecured creditors. The Trustee now has the funds so that all ordinary unsecured creditors can be treated equally.

Should the Trustee’s demand goes unpaid, the Trustee could then make application to Court for an order against the friend or relative declaring that a preference was given and that the funds must be paid over to the Trustee. The evidentiary bar for the Trustee is not set high at all. As long as the transaction has the effect of giving the friend or relative a preference, it is assumed to have been a preference. It is up to the friend or relative to have to prove by way of evidence to the contrary, that it was not a preference.

As I mentioned previously, a consumer proposal must offer the creditors a better alternative than in the case of the person’s bankruptcy. So, the preference payment must be taken into account in assessing what type of consumer proposal to offer. This includes the total payment to be made by the insolvent woman to the Trustee to pay a dividend to the unsecured creditors.

For best practices in the consumer proposal administration, the Trustee should add a clause in the consumer proposal that states that the provisions of the preference section of the BIA do not come into play. The reason for doing so is to make it clear that the Trustee, acting as Administrator in the consumer proposal, has no right to demand payment from the friend or relative. The reason is that the amount was already taken into account in formulating the total amount paid under the consumer proposal.

It also acts as a signal to the unsecured creditors, to highlight the issue of the preference. The Trustee should explain the issues to the creditors and show how the amount of the preference has already been taken into account. In this way, full disclosure has been accomplished.

Bankruptcy vs consumer proposal: Is a consumer proposal a good idea

A successful consumer proposal is one of the bankruptcy alternatives. It is always a good idea to avoid bankruptcy if you can. There are many reasons why consumer proposals are better than bankruptcies. By having a successful consumer proposal, you will avoid:

having to file monthly income and expense statements;
being subject to a surplus income recalculation;
a bankruptcy on your credit record;
bankruptcy negatively affecting your credit score;
having a discharge process that could be opposed; and
a court discharge hearing

Bankruptcy vs consumer proposal: What about you?

Do you have excessive debt? Are you having trouble making your month-to-month payments? Is your business not taking care of financial challenges that you simply cannot figure out how to escape from?

If so, call the Ira Smith Team today. We have years and generations of experience assisting people and companies trying to find a financial restructuring or a debt negotiation strategy. As a licensed insolvency trustee, we are the only professionals identified, accredited and monitored by the Federal government to give insolvency help and services to assist you to avoid bankruptcy.

Call the Ira Smith Team today so you can finish with the tension and anxiousness debt issues produce. With the unique roadmap, we establish special to you, we will quickly return you right into a healthy and balanced worry-free life.

You can have a no-cost assessment to help you so we can fix your debt issues. Call the Ira Smith Team today. This will certainly allow you to return to being productive and healthy, Starting Over Starting Now.

Tags avoid bankruptcy, Bankruptcy, bankruptcy alternatives, bankruptcy and insolvency act canada, bankruptcy trustee, bankruptcy versus consumer proposal, bankruptcy vs consumer proposal, BIA, Consumer Proposal, credit card, Debt, Ira Smith Trustee, Is a consumer proposal a good idea, licensed insolvency trustee, Office of the Superintendent of Bankruptcy, pet medical insurance, reasons why consumer proposals are better than bankruptcies, surplus income

Brandon Blog Post

SOMETIMES EVEN A BONA FIDE SHARK NEEDS BANKRUPTCY AND INSOLVENCY HELP

Post author By Brandon Smith
Post date April 8, 2019

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

Bankruptcy and insolvency: Introduction

Not every innovation that is seen on The Shark Tank is bound to be one of the very best. Among the winners, Fizzics is a machine that makes use of sound waves that improve the taste and quality of a beer. Not even a Shark can stop its company from being driven to bankruptcy and insolvency Chapter 11 bankruptcy protection. This proves that often an ingenious and fantastic invention being marketed with the assistance of a Shark might not truly interest people.

bankruptcy and insolvency

Fizzics was seen on the season 8 première of The Shark Tank. The judges, in spite of the early skepticism, accepted this pitch. It currently seems to be backfiring in a huge way. The idea of making a bottle of beer taste better, just like a draft beer from the tap, isn’t a silly way to invest your time. But a better tasting beer is a big luxury. Many people may check out is the brand-new shiny plaything on the block. It is something wacky and cute but not completely effective or needed.

What is difference between bankruptcy and insolvency in Canada?

What is insolvency? – Individuals are considered to be insolvent when they are not able to pay the financial debts they owe their creditors on their respective due dates. If you become insolvent, you might choose to declare bankruptcy, or you could handle your financial debts with other options such as a consolidation loan or a debt settlement consumer proposal.

Insolvency and bankruptcy are 2 terms that are often very closely associated when discussing debt. However, they have very different meanings. Insolvency describes an economic state. It is when you cannot afford to pay your debts when due. If you liquidated all of your assets, there would not be enough money to pay off all your debts in full.

What is bankruptcy? – Bankruptcy is a legal process. It means that a creditor has gone to court and obtained a Bankruptcy Order to place a person or company into the legal status of bankruptcy. Or, the person or company has filed an Assignment in Bankruptcy. The Bankruptcy and Insolvency Act (BIA) is the Canadian bankruptcy law legislation regulating all administrations of the BIA in Canada.

The various kinds of insolvency proceedings under the BIA are:

corporate bankruptcy;
personal bankruptcy; either a summary administration bankruptcy or an ordinary administration.
consumer proposals;
Part III Division I Proposal; and
receiverships.

Canadian BIA insolvency proceedings and bankruptcy proceedings can only be administered by licensed insolvency trustees (formerly called trustees in bankruptcy). The short form for a trustee in bankruptcy is now LIT, licensed insolvency trustee (Trustee). Trustees are licensed and supervised by the Office of the Superintendent of Bankruptcy (Canada) (OSB) which is part of Industry Canada. The OSB is responsible for the administration of bankruptcies in Canada.

Bankruptcy and Insolvency: Does the consumer really need it?

Eventually, these types of ideas are those that often tend to seem like the most effective thing since sliced bread. Their shiny brand-new finish tends to subside promptly given the expense of creating them. Even tougher, is finding a large enough market of people who truly intend to quit the dependable and old ways to carry out something. The uniqueness will swiftly wear away. The equipment will then come to be a chunk of scrap that is most likely to rest on the counter and seldom gets used. That might seem unkind, however, usefulness and need to at some point seem to divide the wheat (or barley) from the chaff!

So Fizzics, for all that it is able to do, turned out to be not the sort of device that has the ability to make a great deal of sense in a business setting. It is just for home-usage. In a bar, people go to consume alcohol and socialize. They are not there to wait on a number of sound waves to make their drink preference taste and look better. If they want a draft beer, they will order from the tap. If they want a bottled beer, that is what they will order.

For home usage, it is an excellent novelty. Everyone has their favourite beer. People anticipate it to taste the way they know it too – straight out of the bottle or can.

The Fizzics Business: The Sharks bit and invested money

Philip Petracca and his partner, David McDonald, made it to ABC’s “Shark Tank” in 2016, offering beer to a hesitant panel. They eventually turned most of the judges into followers. Lori Greiner and fellow Shark Mark Cuban agreed to spend $2 million into Fizzics for a consolidated 16.67 percent equity. Fizzics attained its objective of expanding its selling networks.

With the help of the Sharks, Fizzics entered Target, Best Buy, Brookstone, on Amazon, and several other areas– including Bed, Bath & Beyond. They have been reviewed in many renowned publications, and on several websites such as Yahoo! Tech as well as CNet. The Fizzics beer-making device was called absolutely nothing short of a wonder.

They increased their patented modern technology and generated a much more portable item called the Fizzics Waytap. Beer fanatics were still going crazy about the original dispenser in magazines.

On March 12, 2019, Fizzics Group, Inc. applied for Chapter 11 bankruptcy in Delaware under the United States insolvency and bankruptcy code. It reported assets of between $100,000 as well as $500,000 and debts of between $1 million and $10 million (based on contingencies and disputed claims). Time will tell if the business can be reorganized and saved, or if the remaining product inventory will end up in the clearance area!

Bankruptcy and insolvency: Do you need help?

I hope you enjoyed this Fizzics Shark Tank bankruptcy and insolvency blog. Do you or your business have excessive debt? Are you having an issue making your month-to-month expenses? Is your company handling its financial obstacles something you simply can’t figure the way out of? Are you looking for a business restructuring plan or an individual debt negotiation plan?

If so, call the Ira Smith Team today. We have years and generations of experience helping people and companies seeking financial restructuring or a debt settlement strategy. As a licensed insolvency trustee, we are the only specialists recognized, accredited and supervised by the Federal government to give insolvency advice and remedies to assist you and to prevent bankruptcy.

Call the Ira Smith Team today so you can end the stress and anxiety financial problems create. With the special roadmap, we will develop with and special to you, we will promptly return you right into a healthy, balanced hassle-free life.

You can have a no-cost appointment to assist you so we can fix your debt troubles. Call the Ira Smith Team today. This will certainly allow you to make a fresh start, Starting Over Starting Now.

Tags Bankruptcy, bankruptcy and insolvency, bankruptcy protection, chapter 11, chapter 11 bankruptcy, chapter 11 bankruptcy protection, counter fizz, Debt, Fizzics, fizzics bankruptcy, fizzics shark tank, insolvency, insolvency and bankruptcy, insolvency and bankruptcy code, Ira Smith Trustee, shark tank

Brandon Blog Post

WHAT IS A GOOD CREDIT SCORE IN CANADA? THE UNTOLD CREDIT SCORE SECRETS

Post author By Brandon Smith
Post date April 3, 2019

What is a good credit score in Canada: Introduction

I have previously written reviews of the two main companies that can give you your credit score for free in Canada. The two are Credit Karma Canada and Borrowell. It is one thing to know what your credit score is. But what does that number mean? Do you have control over how to increase your credit score? To answer those questions, you must know the topic I am writing about in this Brandon’s Blog. What is a good credit score in Canada?

Your credit rating

There are three main points you need to learn about your credit rating. In Canada, your credit score is a number between 300 and 900. Lenders use this to forecast just how likely you are to be responsible with the money they are considering providing you. Will you pay back the cash you are asking they fund you?

The greater your score number, the more probable you are to be an excellent wager to be able to pay back what you owe. Your credit history is composed of five elements:

Your payment history composes 35%.
How much debt you owe comprises 30%.
The length of your history makes up 15%.
10% comes from the sorts of loans or credit cards you have.
Just how often you typically apply to borrow has a 10% effect.

A better understanding

Let’s drill down on this a little more. The greatest chunk is your repayment history. This checks out whether you’re making your payments on time. If you’re late on repayments, exactly how often are you late or are there financial obligations in the enforcement and collection process. How much debt you owe takes into account how much debt is owed and how much borrowing room is still available to you.

The length of your borrowing history considers how long you’ve had your loan products for. The longer you’ve had them the better it is for your history. Types of credit look at the range of items you have. A brand-new application is when you ask for a new loan. New loan applications stay on your report for three years. Applying many times decreases your score.

The theory is that if you keep applying, you are having 2 problems. The first is that you keep needing new loans for some reason. The second problem is that you must keep being turned down in order for you to need to keep applying.

Hard and soft hits

When you apply for a new loan, the potential lender performs a check on you. This produces what is known as a hard hit which can negatively impact your score. When you pull your own reports, such as through Credit Karma Canada or Borrowell, this makes what they call a soft hit. This won’t negatively impact your score.

How often should I check my score?

You might be wondering do you need to look at your own score monthly? I am here to tell you that you don’t. Your rating adjusts throughout the month based on the five items I spoke of above. So your rating can look different from month to month.

If you’re exercising excellent credit rating behaviour a new report will certainly show that. Likewise, if you are not acting responsibly, your report and your score will show that. What I do recommend you do is check your rating by pulling an annual credit report. You do this to ensure that your record is exact and there are no errors in it.

The most effective time to check the accuracy of your report would certainly be prior to you making a huge purchase for something like a home or vehicle. You recognize that your lender will certainly perform a check. It is to your benefit to make sure everything on your rating profile looks good and is error free.

In that situation, where a lot is riding on the precision and completeness of your report, you would go directly to the two main score rating companies in Canada; Equifax Canada and TransUnion Canada. You will certainly have to pay for them to generate an Equifax or TransUnion score and history report for you. What you pay them to understand that your record is precise and totally error-free is worth that peace of mind.

4 things you must know about your score

To summarize, the 4 things you must know about your score are:

Your credit score in Canada is a number between 300 and 900.
Lenders use your credit score to forecast just how likely you are to be responsible with the credit they are considering providing you.
The greater your credit score number, the more probable you are to be an excellent wager to be able to pay back what you owe.
Your credit history is composed of five elements:
1. your payment history composes 35%;
2. how much debt you owe comprises 30%;
3. the length of your credit history makes up 15%;
4. 10% comes from the sorts of credit you have;
5. just how often you typically apply for new credit has a 10% effect; and
6. lastly, you don’t need to check the credit score all the time.

You might have a concern about, and ask yourself, is Credit Karma Canada safe? Is Borrowell safe? The answer is yes, but you still may have a concern. You are providing each of them with very personal information about yourself when you first sign up for their respective services. Then they do on a regular basis perform a credit score check on you. These are soft hits, so it won’t affect your score. However, they are updating your private personal information which stays on their database. Anytime such sensitive information is on a computer server, there is, of course, a danger from hackers.

The reason they regularly check your credit situation is so they can then send you an email about any change to your credit score – good or bad. They do this for two reasons. The first is to alert you about their latest finding of your credit report. The second reason is to give you a reason to go to their website. Their hope, of course, is while you are on their site seeing the change to your credit score, perhaps you will stay and look at some of the products they offer to produce revenue for themselves.

What is a good credit score in Canada: What about you?

I hope this what is a good credit score in Canada blog has helped you gain a better understanding. Question: Have you lost the ability to borrow because of a bad credit score? Are you having trouble making your monthly payments? Is your business dealing with financial challenges that require to be addressed immediately?

Call the Ira Smith Team today if so. We have years along with generations of experience aiding people and companies looking for financial restructuring or a debt settlement plan. As a licensed insolvency trustee, we are the only professionals recognized, licensed and supervised by the Federal government to provide insolvency advice and services to assist you to stay clear of bankruptcy.

Call the Ira Smith Team today so you can end your stress, anxiety and pain today. With the roadmap we develop unique to your situation, we will swiftly return you right into a balanced, healthy and carefree life.

You can have a no-cost assessment to assist you to repair your credit and debt troubles. With you, we will uncover your financial discomfort points and use a method to rid them from your life. This will absolutely allow you to begin a fresh start, Starting Over Starting Now.

Tags annual credit report, borrowell Canada, credit history, credit karma canada, credit rating, credit report, credit score, Debt, Equifax Canada, good credit score, Ira Smith Trustee, is credit karma canada safe, licensed insolvency trustee, repayment history, transunion canada, what is a good credit score in canada

Brandon Blog Post

BANKRUPTCY IN ONTARIO CANADA SECRETS REVEALED

Post author By Brandon Smith
Post date March 27, 2019

Bankruptcy in Ontario Canada: Introduction

Most people are afraid of filing for bankruptcy in Ontario Canada and rightly so. It should be a last resort. There are many options available to people in financial trouble. All of them should be canvassed before deciding to declare bankruptcy.

In my professional practice, during the first free consultation appointment, we look at all options with the person to avoid bankruptcy. We naturally have a discussion about what it is and how it will affect the person. That way, the potential client is aware of all the options and can make an educated decision.

In this Brandon’s Blog, I discuss the questions that I am most often asked about the process. Hopefully, by the end of this blog, I will have demystified the process for you and helped in aiding your understanding.

The secrets we will show

Bankruptcy in Ontario Canada is definitely something nobody wants to talk about. So, therefore, it makes it seem very mysterious and secretive. It is also very scary. Therefore, from now on in this blog, so as not to scare you unnecessarily, I will try to refer to it only as “the B word”. I will only use the B word if the context requires it. This Brandon’s Blog will hopefully pull back the curtain in answering the most often asked questions thereby reducing the mystique and hopefully, your anxiety about this topic.

Where do I begin?

The first step is recognizing that you have financial problems and that bankruptcy in Ontario Canada might be your new reality. If you are having difficulty meeting all of your financial responsibilities or have actually quit paying all of your bills on time, you have a financial problem. As a licensed insolvency trustee (Trustee) we are the only professional licensed and supervised by the Federal government – Industry Canada (OSB).

If you are having financial problems, you must contact a Trustee as soon as possible, to have a free consultation to check your situation and to understand all the options available to you, including the B word. In that free appointment, you will learn that the B word may not be your only alternative to leave your debt behind. There are a number of choices that include, however, are not restricted to:

Should I declare the B word and what happens immediately if I do?

Declaring the B word is obviously a very serious step and a difficult personal choice. If the Trustee has properly explained all the realistic options available to you, it will make your choice much less scary. The first question is do you even qualify to file for the B word. You must be insolvent, owe more than $1,000 in unsecured debt to qualify for it in Canada.

As far as filing for the B word in Premier Doug Ford’s province, you must have:

carried on business in the province during the year immediately preceding your B word; or
lived in the province during the year before your B word; or
where 1 or 2 above don’t apply, the majority of your property is in the province.

Note that the first test is that you are actually insolvent. Insolvent or insolvency is a financial condition. It means that you are:

Unable to meet your obligations generally as they become due.
You have ceased paying your current debts as they come due.
The fair value of all of your assets is less than the total amount of your debts.

The B word is a legal state. Insolvency is a financial condition.

If I go for the B word, will I lose everything?

If you declare the B word, no, you will certainly not lose everything. There is a listing of things that are excluded from seizure in Ontario. The list is:

Necessary clothing for you and your dependants.
Home furnishings and appliances that are of a worth not more than $13,150.
Tools and various other personal effects not worth more than $11,300, made use to earn revenue from your business. If you are an Ontario farmer, this amount increases to $29,100 for everything, including your livestock.
One car or truck that is worth not more than $6,600.
The cash surrender value of life insurance if your beneficiary is what is called a “Designated Beneficiary”.
Your Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) or Deferred Profit Sharing Plan (DPSP) other than for any amounts contributed in the 12 months immediately preceding your date of bankruptcy.
$10,000 of equity in your home but only if your share of the equity is less than $10,000 in total.

So if you go the way of the B word, based on this listing, you won’t lose everything. However, as you can see, if your share of the equity in your home is significant, the B word very likely is not for you. One of the other options is probably more suitable and you should pursue one of them.

What happens to the money I owe?

Once you go with the B word, all of your unsecured debts are frozen. Creditors cannot begin or continue any legal action against you. Any garnishee on either your wages or your bank account must come off. Normally if you owe money to Canada Revenue Agency (CRA) and have not kept up with a payment plan to them, they will garnishee your bank account which stops you from using it. The B word stops a CRA garnishee against your bank account or salary or wages also.

Similarly, a creditor who sues you and gets a judgement against you cannot continue any execution against your assets.

Once you are in the B word, the Trustee sends a notice to all of your creditors, along with a proof of claim form and instructions. With certain limited exceptions, the only remedy your unsecured creditors have is to file a proof of claim with the Trustee.

This does not apply to any of your debts owed to lenders who hold valid security against a specific asset. Examples would be a bank holding a mortgage against your home in return for the mortgage money or a lender who has security against your car for an auto loan.

What takes place to my salary or wages once I file?

Your income is not impacted by the B word process. You will continue to receive your normal salary or wages as you always have. You will need to complete Income and Expense Forms throughout detailing your and your spouse’s earnings and expenses. This is part of your budgeting procedure to meet one of the aims of the B word process; financial rehabilitation.

If your family income goes beyond specific requirements developed by the OSB, you will need to pay a part to the Trustee. This is called a surplus income payment requirement. In the first free consultation, I always tell potential clients whether they will have such a requirement. We also then look at that requirement, if any, to see if a consumer proposal would be more beneficial to the person than the B word.

Will the B word process get rid of my student loans?

If the B word date is within 7 years of when you stopped being a full-time or part-time student, your student loan debt will not be released by the B word process. Nevertheless, in particular situations, you might have the ability to make an application to the court for a discharge of your student loan financial obligations under the “hardship provision.” It is almost impossible to get that court-ordered discharge, but the slim possibility is there.

Will I still owe money after I file?

Only for a limited amount of debts. A discharge from the B word process does not cover:

secured loans – home mortgage or vehicle loan;
certain student loans (remember the 7-year rule I just mentioned?);
penalties or fines enforced by the court;
spousal support and alimony you have to make in your separation agreement or divorce proceedings; and
any debts from a fraud.

What length of time will I be in the B word system?

The length of time you will be in the B word system depends on whether this is an initial or 2nd time and whether you have surplus income. The minimum length of time is 9 months. That is if you don’t have any surplus income, none of your creditors oppose your discharge and it is your first time.

If it is your first time, none of your creditors oppose your discharge and you do have surplus income, then the 9 months increases to 21 months.

If it will not be your first time, the length of time before you can get a discharge will depend on many factors. We certainly discuss it during your first free consultation.

Who will find out that I have filed?

As soon as you declare the B word your Trustee will tell your creditors, the CRA, the credit bureaus and the OSB. The filing is public information and it will show up in your credit history.

Where your non-exempt assets given to the Trustee are worth more than $15,000, there must be a legal notice of your B word filing in the local paper.

Exactly how will it impact my credit score?

A person who files drops down to the least favourable credit rating (R9) immediately. After you declare the B word, you must start to work on improving your credit score. Once you are discharged, you will have more options to improve on your credit score and rebuild your credit.

Notice of the B word process will stay on your credit record for 7 years after you get your discharge.

How is my partner or spouse affected by my filing?

Your spouse or partner is not directly impacted by your filing. Your spouse or partner will have to show his or her income as part of your surplus income calculation. The partner or spouse will be liable to repay any loan they have co-signed or guaranteed for you. They will also have to repay any credit card balance on your account for which they have and used a supplementary card to make purchases.

Will my bankruptcy impact my ongoing divorce case?

In Canada, the B word rules do not conflict with most of the family law system and process. So the Trustee will not get involved in your family law proceedings, with two main exceptions.

There is an aspect of your divorce in Ontario that will be affected because Ontario is an equalization province. There are generally only 2 parts of your divorce proceedings your Trustee will certainly get involved in. One is when it pertains to the person who filed legal rights to entitlement to an equalization payment. Second is when the debtor owns property (either jointly with the spouse or alone) and such property has not already been dealt with in the family law proceedings.

How do I choose the right Trustee for me?

Sometimes people just say that “I want to go to the closest Trustee near me”. If travelling or time is an issue for you then that approach is quite legitimate.

The better way is making an appointment for a cost-free no commitment first consultation with a Trustee. If you can, it is best to get a referral from someone you trust. Otherwise, perform an online search and see which Trustee’s website resonates best with you. Ask any kind of questions you might have about your particular situation and the options you may have.

If after that appointment you feel comfortable with the knowledge and demeanour of the Trustee, and you felt confident that you received proper answers to your questions, then great. If not, make an appointment for a free first consultation with a different Trustee. Use that experience to compare both to see who you would like to put your trust in. At the end of the day, you have to know who you will be dealing with and feel comfortable with them. You have to know that your Trustee gets you!

Do you have too much debt? Are you having a problem making your month-to-month bill payments? Is your company dealing with financial obstacles that you just can’t figure the way out of?

If so, call the Ira Smith Team today. We have years and generations of experience aiding individuals and businesses looking for financial restructuring or a debt settlement plan. As a licensed insolvency trustee, we are the only experts recognized, licensed and supervised by the Federal government (the OSB) to provide insolvency recommendations and solutions to help you prevent the B word.

Call the Ira Smith Team today so you can end the stress and anxiety financial problems create. With the special roadmap, we develop unique to you, we will promptly return you right into a healthy and balanced stress-free life.

You can have a no-cost consultation to aid you so we can repair your debt problems. Call the Ira Smith Team today. This will definitely enable you to make a fresh start, Starting Over Starting Now.

Tags Bankruptcy, bankruptcy in ontario, bankruptcy in ontario canada, bankruptcy trustee, Canada Revenue Agency, Consumer Proposal, CRA, Debt, DPSP, financial problems, insolvency recommendations and solutions, Ira Smith Trustee, licensed insolvency trustee, Ontario, OSB, RRIF, RRSP, surplus income

Help with debt introduction

Canadian household help with debt

The Province of Quebec is trying to make a difference for help with debt

Will this help with debt work?

Has Quebec tackled the real help with debt issue?

Help with debt: Financial education was never on any curriculum

Do you have too much debt?

If you would rather listen to an audio version of this Credit Karma ca Brandon’s Blog, please scroll down and click on the podcast

Introduction

The nature of the millennial debt

Why do millennials really feel forced to spend too much?

So what is the answer?

Conclusion

Introduction

Bankruptcy or (consumer) proposal

Proposal

Your bank account

Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) or Deferred Profit Sharing Plan (DPSP)

Canada Pension Plan (CPP) and Old Age Security income (OAS)

Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP) and other non-registered account investments

Annuity revenue in bankruptcy

Bankruptcy Act Canada summary

Introduction

What are consumer proposals?

The benefits

The process

Acceptance and performance

Full performance

Summary

Bank of Canada: Introduction

Recent Bank of Canada Staff Analytical Note

New reporting requirement for HELOCs

The readvanceable mortgage

Canadian household debt has a new love of these more complex loans

So what does this Bank of Canada study really mean?

Do you have too much debt?

Financial security Introduction

Canadians maxed out on debt

It’s no longer about purchases – that ship has already sailed!

New debt on top of old debt

Bank of Canada

Financial questions for Canadians

Canadians need to set up a proper household budget

What about you or your company?

Bankruptcy vs consumer proposal: Introduction

Bankruptcy vs consumer proposal: Case study dog facts

Bankruptcy vs consumer proposal: Case study issues

Bankruptcy vs consumer proposal: Is a consumer proposal a good idea

Bankruptcy vs consumer proposal: What about you?

Bankruptcy and insolvency: Introduction

What is difference between bankruptcy and insolvency in Canada?

Bankruptcy and Insolvency: Does the consumer really need it?

The Fizzics Business: The Sharks bit and invested money

Bankruptcy and insolvency: Do you need help?

What is a good credit score in Canada: Introduction

Your credit rating

A better understanding

Hard and soft hits

How often should I check my score?

4 things you must know about your score

What is a good credit score in Canada: What about you?

Bankruptcy in Ontario Canada: Introduction

The secrets we will show

Where do I begin?

Should I declare the B word and what happens immediately if I do?

If I go for the B word, will I lose everything?

What happens to the money I owe?

What takes place to my salary or wages once I file?

Will the B word process get rid of my student loans?

Will I still owe money after I file?

What length of time will I be in the B word system?

Who will find out that I have filed?

Exactly how will it impact my credit score?

How is my partner or spouse affected by my filing?

Will my bankruptcy impact my ongoing divorce case?

How do I choose the right Trustee for me?

**Will this help with debt work?**

**Has Quebec tackled the real help with debt issue?**