Tag: financial recovery

ACHIEVING YOUR FRESH START IN THE GREATER TORONTO ONTARIO AREA: YOUR PATH TO DEBT FREEDOM

Post author By Brandon Smith
Post date December 15, 2025

Do you feel trapped by debt? The weight of endless bills, non-stop calls from creditors, and sleepless nights can make you feel like there’s no way out. You might believe your situation is hopeless, that you’ll be struggling with payments forever. But that’s not true. There is a way. You deserve a fresh start.

A fresh start means leaving your overwhelming debt behind and regaining control over your finances. It’s not just a wish; it’s a real, achievable outcome in Canada, thanks to specific federal government laws designed to help people like you. There is another good reason for a fresh start. A 2021 study found that people who made a significant change were happier than those who maintained the status quo, proving that the courage to begin again is often rewarded.

At Ira Smith Trustee & Receiver Inc., we help people just like you every single day in Ontario. We understand the stress and fear debt causes, and we’re here to show you a clear path forward. Last week I wrote about overwhelming corporate debt and the options of corporate financial restructuring to have a business fresh start vs corporate bankruptcy, to allow for the orderly and legal way to shut down a business that is no longer viable. That Brandon’s Blog is titled CORPORATE INSOLVENCY & RESTRUCTURING: FRESH STARTS FOR GREATER TORONTO AREA BUSINESSES REVEALED.

This Brandon’s Blog will guide you through your consumer debt options in Ontario, explaining how a true fresh start is possible. It’s not just about erasing debt; it’s about rebuilding your peace of mind and building a stable, brighter future. You don’t have to face this alone.

Fresh Start Key Takeaways

A fresh start from overwhelming consumer debt is truly possible in the GTA. You have legal options, such as Consumer Proposals and Bankruptcy, to manage your debt. These options provide immediate relief, stop collection calls, and offer a clear path to financial recovery.

A Licensed Insolvency Trustee, like Ira Smith Trustee & Receiver Inc., is the only professional legally authorized to help you get a fresh start through these processes. Think of us as a fresh start clinic. Acting early and seeking advice can reduce stress, offer more solutions, and help you regain control faster.

What Does a “Fresh Start” Truly Mean for Your Debt?

A fresh start in Canadian insolvency means legally resolving your overwhelming debts, usually through a formal process like a Consumer Proposal or Bankruptcy. This isn’t just a hopeful phrase; it’s a legal status where you are freed from most or in many cases, all of your old unsecured debts. This allows you to move forward without the constant burden and worry of past financial obligations.

This fresh start is more than just debt elimination; it’s about regaining your peace of mind and control over your financial life. When you get a fresh start, collection calls stop immediately. Interest on your debts freezes. You can start sleeping through the night again. The constant pressure of trying to juggle payments and avoid creditors finally ends. It gives you the space to breathe and plan for a better future.

The entire process is governed by Canadian law, specifically the Bankruptcy and Insolvency Act. This law was created to help honest but unfortunate debtors get back on their feet. It’s a process designed to help you, not to punish you. It provides a structured, legal way to deal with debt that has become too much to handle. We understand these laws inside and out, ensuring you get the full benefit of a fresh start.

Our approach to helping you solve your debt problems takes into account that a new beginning looks different for everyone. It can be a deeply personal journey of healing, a community-wide effort to support its most vulnerable, or a systemic shift that removes barriers to progress. Working with you, we develop the right plan for your unique situation to work through the critical pathways to achieving a true fresh start.

Signs You Need a Fresh Start

Recognizing the signs that you need a fresh start is the first step towards taking action and finding relief. Many people struggle for too long before seeking help, often making their situation worse. If you notice any of these signs, it’s a strong signal that it’s time to speak to a licensed insolvency trustee to explore your options:

Are you only paying minimums on your credit cards? If your payments barely cover the interest, your debt balance cannot shrink, making true repayment impossible.
Are you using credit to pay down other credit? This “robbing Peter to pay Paul” cycle is a clear sign that you’re in over your head and your debt is growing, not shrinking.
Are you receiving constant collection calls or letters? Creditors won’t stop until they get paid, and these persistent calls are a major source of stress and anxiety.
Do you feel overwhelming stress and anxiety because of debt? Debt can affect your sleep, your relationships, and your overall well-being. This emotional toll is a clear indicator that your debt is out of control.
Are bills piling up, or are you ignoring mail from creditors? Avoiding your financial problems doesn’t make them go away; it often makes them worse by adding late fees and further interest.
Are you considering high-interest loans (like payday loans in Toronto) to cover your regular debts? This is a dangerous trap that leads to a cycle of even higher debt and interest, making escape almost impossible.
Are you worried about losing your home, car, or other assets due to debt? This fear is very real, and legal solutions exist to protect what’s important to you.

These are all clear signals that your debt has become overwhelming. You are not alone in experiencing these feelings or situations. Many Toronto area residents face these exact challenges. Recognizing these signs means you’re ready to explore a solution, and that’s exactly what Ira Smith Trustee & Receiver Inc. is here to help you do.

Your Options for a Fresh Start in Ontario

When you are ready for a fresh start from debt in Ontario, you have legal options that are designed to help you. These options are formal processes under the Bankruptcy and Insolvency Act, and they can only be administered by a Licensed Insolvency Trustee. The two primary options are a Consumer Proposal and Bankruptcy. Both offer powerful ways to eliminate debt and rebuild your financial life.

Consumer Proposal: Your Path to a Controlled Fresh Start

A Consumer Proposal is a formal, legal agreement where you offer to make monthly payments to pay back a portion of your unsecured debt to your creditors over a set period of time, usually up to five years. It’s a very common and effective way for many Canadians to get a fresh start without filing for bankruptcy. Instead of trying to pay back all of your debt with high interest, you pay back a smaller, affordable amount.

How it works: You, with the help of your Licensed Insolvency Trustee (LIT), you will create a proposal. This proposal outlines how much you can afford to pay each month, and for how long you will make these payments. Your LIT then presents this offer to your creditors. If the majority of your creditors (by dollar value) agree to your proposal, then all your unsecured creditors are legally bound by it.

This means you only pay back the agreed-upon amount, and the rest of the debt is forgiven once you complete your payments and your other obligations under the law, including your two mandatory credit counselling sessions. The payments are paid to the LIT, acting as the Administrator of your Consumer Proposal. The LIT is responsible for making distributions to your unsecured creditors under the Consumer Proposal.

Benefits of a Consumer Proposal:

Stops Collection Calls Immediately: Once your proposal is filed, a legal “stay of proceedings” comes into effect. This means creditors must stop all collection activities, including calls, letters, and lawsuits.
Interest Freezes: All interest on your unsecured debts stops accruing immediately. This is huge, as interest often makes it impossible to pay down debt.
Keep Your Assets: A major advantage of a Consumer Proposal is that you generally keep all your assets, including your home, car, investments, and RRSPs. You don’t have to give anything up, unless your budget shows you cannot afford to continue the loan payments for a specific asset.
Avoids Bankruptcy: For many, avoiding bankruptcy is a priority, and a Consumer Proposal offers this alternative while still providing significant debt relief.
Flexible Payments: Your payments are tailored to your budget, making them affordable and manageable.
Consolidates Debts: All your unsecured debts are combined into one single, monthly payment that you can afford, simplifying your finances.

Who it’s for: A Consumer Proposal is often ideal for people who have a steady income, significant unsecured debt (up to $250,000, excluding a mortgage on your primary residence), and who want to avoid bankruptcy while still getting substantial debt relief. It’s for those who can afford to make a reasonable monthly payment towards their debts.

How Ira Smith Trustee & Receiver Inc. helps: We are experts in Consumer Proposals. We will sit down with you, understand your financial situation, and help you draft a proposal that is fair to both you and your creditors. We then handle all communication and negotiation with your creditors on your behalf, ensuring the best possible outcome for your fresh start. We manage the entire process, from filing to your final payment.

Bankruptcy: The Ultimate Fresh Start

Bankruptcy is a legal process that provides the ultimate fresh start by eliminating most unsecured debts. While it might sound daunting, it is often the quickest and most effective way for individuals facing overwhelming debt to find relief and begin rebuilding their lives. It’s a legally protected process designed to give you a clean slate.

How it works: When you file for bankruptcy with a Licensed Insolvency Trustee, your unsecured debts are essentially wiped away. Your LIT will guide you through gathering your financial information, completing the necessary paperwork, and filing it with the Office of the Superintendent of Bankruptcy (OSB). Once filed, a legal “stay of proceedings” immediately takes effect, which means creditors cannot continue their collection efforts.

Benefits of Bankruptcy:

Immediate Debt Relief: The biggest benefit is that most of your unsecured debts are eliminated very quickly.
Stops Collection Calls and Legal Actions: Just like a Consumer Proposal, bankruptcy immediately stops all collection calls, wage garnishments, and other legal actions from creditors.
Quicker Resolution: For most first-time bankruptcies, the process can be completed in as little as 9 months, or up to 21 months if you have surplus income.
No Surplus Income? Then No Monthly Payments to Your LIT: Unlike a Consumer Proposal, if you do not have any surplus income, you don’t make regular monthly payments. Instead, you are responsible to only pay the fee to your LIT, which may be structured into affordable monthly amounts.
Focus on Rebuilding: With debt gone, you can focus entirely on budgeting, saving, and rebuilding your credit for the future.
Who it’s for: Bankruptcy is often the best choice for those with little to no non-exempt assets, overwhelming unsecured debt, and no ability to make payments under a Consumer Proposal. It’s suitable for individuals who need a potentially faster, comprehensive solution to get out from under a mountain of debt.

How Ira Smith Trustee & Receiver Inc. helps: We understand that filing for bankruptcy can feel intimidating. That’s why we are here to guide you through every single step. We will explain the process clearly, help you understand what assets might be affected (most common household items and certain others are exempt under provincial law), and ensure you understand your rights and responsibilities. Our goal is to make the process as smooth and stress-free as possible, ensuring you achieve your ultimate fresh start. We handle all the paperwork and interactions with creditors and the government, allowing you to focus on your future.

The Insolvency Process: How We Help You Get Your Fresh Start

Getting a fresh start from debt might seem complex, but with Ira Smith Trustee & Receiver Inc., the process is clear, supportive, and straightforward. As Licensed Insolvency Trustees, we are the only professionals in Canada legally authorized to administer Consumer Proposals and Bankruptcies. Our role is to be your compassionate guide through this legal journey. Here’s how we help you achieve your fresh start:

Initial Free, No-Obligation Consultation: Your journey starts with a confidential meeting with one of our experienced LITs, Ira Smith or Brandon Smith. This first step is absolutely free and comes with no pressure or obligation. We want to understand your unique situation without judgment.
Reviewing Your Financial Situation: During the consultation, we’ll ask about your income, expenses, assets, and debts. We gather all the necessary information to get a complete picture of your financial health. We listen carefully to your concerns and goals.
Explaining All Your Options Clearly: Based on our review, we will explain all the available options to you. This includes Consumer Proposals, Bankruptcy, and any other non-insolvency options that might be suitable (though for overwhelming debt, insolvency options are often the most effective). We will clearly outline the pros and cons of each, helping you understand which path offers the best fresh start for you. We ensure you fully grasp how each option works and what it means for your future.
Preparing and Filing the Necessary Documents: Once you decide on a path, we will meticulously prepare all the legal documents required for your Consumer Proposal or Bankruptcy. This can be complex, but we handle all the paperwork to ensure everything is filed correctly and on time with the Office of the Superintendent of Bankruptcy (OSB).
Dealing with Creditors on Your Behalf: As soon as your Consumer Proposal or Bankruptcy is filed, we take over all communication with your creditors. This means no more collection calls, no more harassing letters, and no more legal actions against you. We become your shield.
Financial Counselling: A mandatory part of both Consumer Proposals and Bankruptcy is attending two financial counselling sessions. These sessions are designed to help you understand the root causes of your debt, develop better budgeting skills, and create strategies for a healthy financial future. We provide these sessions to help you rebuild with confidence.
Support Throughout the Entire Process: From your very first call until you receive your bankruptcy discharge or complete your proposal, we are there to answer your questions, address your concerns, and provide continuous support. We pride ourselves on our non-judgmental, empathetic approach, ensuring you feel respected and understood every step of the way. We want you to feel empowered as you move towards your fresh start.

Life After Your Fresh Start: Rebuilding and Thriving

Achieving your fresh start is a major accomplishment. The debt is gone, the collection calls have stopped, and the heavy burden has lifted. But what happens next? This isn’t just about debt elimination; it’s about setting yourself up for a stable and prosperous future. Life after your fresh start is about rebuilding and thriving, and we help prepare you for this new chapter. Family support is also crucial to you accomplishing your fresh start.

One of the most common questions we hear is about credit. Yes, both Consumer Proposals and Bankruptcy affect your credit rating. However, it’s important to see this as a temporary reset, not a permanent problem. Many people who file are already in a poor credit situation due to their overwhelming debt. A fresh start allows you to address the debt directly and then begin to proactively rebuild your credit history.

Steps To Rebuild Your Credit

Secured Credit Card: This is often the first step. You deposit money into a bank account, and that amount becomes your credit limit. Using it responsibly and paying on time helps improve your score.
Small Loan: After a period of good financial habits, a small, installment loan (e.g., a “credit builder loan” or an “RRSP loan”) can also help demonstrate your ability to manage credit.
Monitor Your Credit Report: Regularly check your credit report to ensure accuracy and track your progress.

Budgeting and Financial Literacy

The mandatory financial counselling sessions you attend during your insolvency process are designed specifically for this. They help you:

Understand your spending habits.
Create a realistic budget that you can stick to.
Learn strategies for saving and managing your money effectively.
Identify and avoid common financial pitfalls.

Setting New Financial Goals

With debt out of the way, you can now set realistic and exciting new financial goals. Maybe it’s saving for a down payment, a child’s education, or retirement. Your fresh start provides the foundation for achieving these dreams.

The feeling of freedom and control that comes with being debt-free is immense. It allows you to make financial decisions based on your best interests, not just reacting to creditor demands. We don’t just help you get rid of debt; we equip you with the tools and knowledge to live a financially secure life moving forward. Your fresh start is the beginning of a brighter financial journey.

Consumer Proposal vs. Bankruptcy: Which Fresh Start is Right for You?

Choosing between a Consumer Proposal and Bankruptcy depends on your specific financial situation, your goals, and your ability to make payments. Both are powerful tools for a fresh start, but they work differently. Here’s a clear comparison to help you understand the key distinctions. We will discuss these in detail during your free consultation.

Feature	Consumer Proposal	Bankruptcy
Debt Reduction	Pay back a portion (often 20-50%) of unsecured debts	Eliminates most unsecured debts (usually 100% forgiven)
Assets	Generally, keep all assets (home, car, investments, RRSPs)	Non-exempt assets surrendered to the Trustee for sale
Monthly Payments	Yes, fixed, agreed-upon monthly payment for up to 5 years made to LIT for distribution to unsecured creditors	No monthly payments directly to creditors; fees and any surplus income are paid to LIT
Credit Impact	Initial R9 rating upon filing, and then R7 rating for 3 years after completion of the proposal	R9 rating for 6-7 years after discharge
Duration	Up to 5 years (maximum) for repayment	9 months (first-time, no surplus income) to 21 months (surplus income)
Creditor Contact	Stops immediately upon filing	Stops immediately upon filing
Public Record	Yes, public record, but generally less stigma than bankruptcy	Yes, public record, often perceived as more significant
Who it’s for	Steady income, want to keep assets, avoid bankruptcy, can make affordable payments	Overwhelmed by debt, few non-exempt assets, need fast, complete relief

Fresh Start FAQ Section

Many people have questions when they consider a fresh start from debt. Here are some of the most common ones we hear at Ira Smith Trustee & Receiver Inc., along with clear answers to help you understand your options better.

Q: Can I keep my house and car if I get a fresh start?

A: Often, yes. A Consumer Proposal is specifically designed to help you keep your assets, including your home and car, as long as you continue to make your secured loan payments (like mortgage or car loan payments). In bankruptcy, most common household goods, your primary home equity up to a certain point (as defined by Ontario law), and a modest car are typically protected as “exempt assets.” We will thoroughly explain how your specific assets are treated during your free consultation, ensuring you understand any potential impact. Our goal is to protect what’s important to you.

Q: How will a fresh start affect my credit rating?

A: Both a Consumer Proposal and Bankruptcy will impact your credit rating. This is a legal record of your insolvency. Upon the filing of your Consumer Proposal, your credit rating goes to R9. The successful completion of your Consumer Proposal results in an R7 rating on your credit report, which remains for two to three years after you successfully complete your Consumer Proposal.

Bankruptcy results in an R9 rating, which stays on your report for six to seven years after your discharge. While this is a temporary reset, the good news is that by eliminating your debt, you can start rebuilding your credit immediately. Many people find their credit improves faster after a fresh start than if they continued to struggle with overwhelming debt and missed payments.

Q: How much does a fresh start cost?

A: The costs for a fresh start are built into the process and are fully transparent. For a Consumer Proposal, the payment you offer covers a portion of your debts and also includes the Licensed Insolvency Trustee’s fees. These fees are set by law and are deducted from the funds collected from your proposal payments.

For bankruptcy, the fees are also set by law and are typically paid in an arrangement between you and your LIT. During your initial free consultation, we will discuss all potential costs upfront, with no hidden fees, so you have a complete understanding of your financial commitment. Our priority is making the process affordable and accessible.

Q: Can I choose my Licensed Insolvency Trustee?

A: Absolutely, yes. You have the right to choose which Licensed Insolvency Trustee firm you work with. It is very important to choose an LIT whom you trust, feel comfortable with, and who makes you feel understood and respected. The relationship with your LIT is crucial as they will be guiding you through a significant financial decision. We encourage you to speak with us and see if Ira Smith Trustee & Receiver Inc. is the right fit for your needs.

Q: Will my employer know if I file for a fresh start?

A: In most cases, no. Your employer will generally not be notified if you file a Consumer Proposal or Bankruptcy. However, the fact that you filed and basic details of your filing is a public record. There are rare exceptions where your employer may find out. This happens in situations where your:

job requires a special financial license or bonding (e.g., certain roles in the financial sector);
employer happens to be one of your creditors; or
salary or wages had been subject to garnishment, and now the LIT advises your employer that it is no longer effective as a result of your fresh start insolvency filing.

For the vast majority of people, your employer will not know.,

Brandon’s Fresh Start Take

As Senior Vice-President of Ira Smith Trustee & Receiver Inc., I’ve seen firsthand the immense relief a fresh start brings to people’s lives. It’s truly transformative. People walk into our office feeling utterly defeated, embarrassed, and completely lost under the weight of their debt. They often believe there’s no escape, that they’re failures. But after just one conversation, after we explain their options and lay out a clear plan, you can see the hope return to their eyes. They leave with a plan, renewed confidence, and a revived sense of dignity. You can check out our 5-star Google reviews which confirms this relief people get.

The most important thing I want you to understand is that you are absolutely not alone. Millions of Canadians face debt challenges at some point in their lives. The Canadian insolvency system exists specifically to help people like you get back on your feet. Our role as Licensed Insolvency Trustees is to be your compassionate guide through this system. We bridge the gap between your overwhelming debt and a truly fresh financial beginning.

We are not here to judge your past financial decisions. We are here to listen without prejudice, without judgment, to understand your current situation, and provide the expert legal solutions you need to reclaim your financial future. Waiting only prolongs the stress, the sleepless nights, and the harassment from creditors. Taking that first step – reaching out for help – is often the hardest, but it is also the most powerful. It’s the very moment your fresh start truly begins. We are ready to help you take that step.

Don’t Let Debt Control Your Life Any Longer

Don’t let the burden of debt dictate your future for another day. A fresh start is not just a dream; it’s a legal reality available to you in Toronto, Vaughan, Woodbridge, Thornhill, Richmond Hill and all of the GTA It is designed to help you regain control and peace of mind.

Ira Smith Trustee & Receiver Inc. is here to help you navigate your options with unparalleled expertise, genuine empathy, and unwavering professionalism. As Licensed Insolvency Trustees, we are the only professionals authorized by the Canadian government to provide these powerful debt relief solutions. We understand the legal framework and how to apply it to your unique situation to achieve the best possible outcome.

Take the crucial first step towards your debt-free future today. You don’t have to carry this burden alone. Contact Ira Smith Trustee & Receiver Inc. now for a FREE, no-obligation consultation. Let us help you find your clear path to a brighter, financially secure tomorrow. Your fresh start is waiting.

Ira Smith Trustee & Receiver Inc. is licensed by the Office of the Superintendent of Bankruptcy and is a member of the Canadian Association of Insolvency and Restructuring Professionals.

Contact Ira Smith Trustee & Receiver Inc. Today:

Phone: 905.738.4167
Toronto line: 647.799.3312
Website: https://irasmithinc.com/
Email: brandon@irasmithinc.com

Disclaimer: This analysis is for educational purposes only and is based on the cited sources and my professional expertise as a licensed insolvency trustee. The information provided does not constitute legal or financial advice for your specific circumstances.

Every situation is unique and involves complex legal and factual considerations. The outcomes discussed in this article may not apply to your particular situation. Situations are fact-specific and depend on the particular circumstances of each case.

Please contact Ira Smith Trustee & Receiver Inc. or consult with qualified legal or financial professionals regarding your specific matter before making any decisions.

About the Author:

Brandon Smith is a Senior Vice-President at Ira Smith Trustee & Receiver Inc. and a licensed insolvency trustee serving clients across Ontario. With extensive experience in complex court-ordered receivership administration and corporate insolvency & restructuring proceedings, Brandon helps businesses, creditors, and professionals navigate challenging financial situations to achieve optimal outcomes.

Brandon stays current with landmark developments in Canadian insolvency law. He brings this cutting-edge knowledge to every client engagement, ensuring his clients benefit from the most current understanding of their rights and options.

Tags Bankruptcy, bankruptcy canada, Consumer Proposal, debt relief Ontario, escape debt, family support, Federal government, financial recovery, fresh start, fresh start clinic, Ira Smith Trustee, licensed insolvency trustee, Ontario debt forgiveness Canada, Ontario debt solutions, Ontario personal bankruptcy, personal bankruptcy, stop collection calls

Brandon Blog Post

BUSINESS DEBT CRISIS OPTIONS COMPLETELY EXPLAINED BY A TORONTO LICENSED INSOLVENCY TRUSTEE

Post author By Brandon Smith
Post date August 4, 2025

debt crisis

The Greater Toronto Area is facing its worst business debt crisis in decades. As a licensed insolvency trustee who has helped many GTA businesses navigate financial challenges, I’m seeing alarming trends that every business owner needs to understand.

The GTA Business Landscape: Canada’s Economic Powerhouse Under Pressure

Toronto is Canada’s business and financial capital. It is the second-largest financial centre in North America. Our diverse economy spans technology, manufacturing, retail, hospitality, and professional services. This diversity usually protects us during downturns, but today’s debt crisis and the need for GTA business debt relief are hitting all sectors.

The IBISWorld Ontario Economic Overview report shows the numbers that tell the story:

Commercial banking generates $117.9 billion in revenue
Retail trade employs 884,368 people in Ontario
Professional services support 562,343 workers
Manufacturing provides 560,630 jobs

Yet despite this economic strength, a June 2025 IPSOS poll found that only 26% of Toronto residents say our economy is in good shape. Most concerning? 41% believe we’re heading in the wrong direction – away from economic prosperity.

How COVID-19 Started Toronto’s Debt Crisis

The Initial Shock That Changed Everything

When COVID-19 hit in March 2020, Toronto’s downtown core emptied overnight. Restaurants, hotels, retail stores, and service businesses saw customers disappear. Some sectors lost 25% of their business immediately.

The Canadian government responded with the Canada Emergency Business Account (CEBA) program. The Government of Canada has reported that over 898,000 Canadian businesses received $49 billion in emergency loans. At the time, this felt like a lifeline.

But here’s what many business owners didn’t realize: CEBA wasn’t free money. It was a loan with a delayed payment schedule.

Permanent Changes That Hurt Businesses

COVID-19 didn’t just create a temporary problem. It permanently changed how people work and shop:

Remote work became permanent – Downtown Toronto office vacancy hit 18.2%
Online shopping exploded – Many customers never returned to physical stores
Business travel disappeared – Hotels and restaurants lost corporate clients
Consumer habits shifted – People became more price-conscious and cautious

Source: The Toronto Metropolitan University June 5, 2025 media release titled “New Economic Report Underscores Urgency to Revitalize Downtown Toronto”.

These weren’t temporary changes. They represent a “new normal” that many businesses still struggle to adapt to.

debt crisis

Current State of the Debt Crisis: The Numbers Are Alarming

The CEBA Cliff Hit Hard

Business failures in Canada jumped by 87.2% in early 2024 – the biggest increase in 37 years. This debt crisis spike happened right after the CEBA loan forgiveness deadlines passed.

Source: The Canadian Association of Insolvency and Restructuring Professionals (CAIRP), July 5, 2024, media release titled: “Q1 2024 Canadian Insolvency Statistics”.

Here in Toronto, CAIRP stated that GTA business insolvency rates climbed from 0.4 per 1,000 businesses in 2021 to 0.7 in 2023. While that sounds small, it represents hundreds of local businesses closing their doors because of the debt crisis.

Source: Canadian Association of Insolvency and Restructuring Professionals (CAIRP) July 5, 2024 media release titled: “Q1 2024 Canadian Insolvency Statistics”

Most Failures Are Permanent Closures

Unlike consumer debt problems, which often involve payment plans, business failures are mostly bankruptcies. This means permanent closure, not restructuring. Business owners are giving up entirely rather than trying to reorganize.

Rising Delinquencies: A Warning Sign of Worse to Come

The debt crisis isn’t just about businesses that have already failed. Over 309,000 Canadian businesses missed at least one credit payment in early 2025 – that’s 11.3% of all businesses with credit.

For GTA businesses, these are some missed payment rates:

Restaurants and hospitality: 16.9%
Retail stores: 13.2%
Overall business loans 60+ days overdue: 3.4%

Ontario leads the country in business payment debt crisis problems, with an 18.8% increase year-over-year.

Why Businesses Can’t Pay Their Bills

Customer spending is down. The average consumer cut credit card spending by $107 per month in early 2025. When your customers have less money, your revenue drops.

Operating costs keep rising. Food costs are up 5.8%, rent up 6.0%, and wages up 4.8%. Profit margins are getting squeezed from both sides.

Household debt is crushing consumers. Canadian consumer debt hit $2.55 trillion. Ontario homeowners saw mortgage payments jump by over $680 monthly after renewal. When families are financially stressed, they stop spending on non-essentials.

CEBA loans are now due. As of January 19, 2024, 161,000 businesses still owed $7.8 billion in CEBA loans. Interest started charging at 5% annually, turning “emergency help” into another monthly payment. Outstanding CEBA loans are due for full repayment on or before December 31, 2026.

New Regulatory Pressures Adding to Business Costs

While the government talks about cutting red tape, Toronto businesses face new municipal-level regulations that add costs:

New Rules Taking Effect

Toronto nightclub licensing changes (January 2025)
Digital platform worker protections (July 2025) – affects delivery and ride-share businesses
New building codes (January 2025) – impacts construction companies
“Renoviction” bylaws (July 2025) – add costs for landlords
Civil litigation procedure changes – increases legal costs

Each regulation may be well-intentioned, but they all add compliance costs when businesses can least afford them.

The Pandemic’s Effects Still Linger

Consumer Behaviour Changed Forever

In our practice, we see businesses still struggling with permanent shifts in customer behaviour:

Customers shop differently now:

More online shopping, less in-store browsing
Greater focus on local businesses
More price-conscious decision-making
Delayed major purchases (cars, appliances, travel)
Higher expectations for health and safety

Businesses must operate differently:

Heavy investment in technology and e-commerce
Flexible work arrangements affect office space needs
Enhanced health and safety measures
More resilient supply chains
Higher service level expectations

The Technology Investment Burden

Every business now needs robust online capabilities. This means ongoing costs for:

E-commerce platforms
Cloud-based systems
Process automation
Cybersecurity
Staff training

For businesses already struggling with a debt crisis, these necessary investments create additional financial pressure.

debt crisis

Economic Pressures: The Double Hit of Recession and Inflation

Inflation Squeezes Profit Margins

Even though headline inflation dropped to 3.8% nationally, key business costs remained high:

Food prices: up 5.8%
Shelter costs: up 6.0%
Overall consumer prices: up 11.4% over two years

Toronto businesses face a cruel math problem: costs rise faster than what customers can pay.

Recession Fears Become Reality

Ontario’s economic growth fell to just 0.8% in 2025, with unemployment rising for eight straight quarters to 7.5%. When unemployment rises, consumer confidence falls, and spending drops further.

The vicious cycle: Higher costs → Higher prices → Fewer customers → Lower revenue → Unable to pay debts

Tightening Credit Markets Make Everything Worse

High interest rates created a credit crunch that hit businesses hard:

Borrowing became expensive: 63% of businesses say high interest rates prevent expansion or investment.

Credit demand dropped: 6% fewer businesses applied for new credit in early 2025. New credit card applications fell 10.3%.

Consumer credit tightened: When customers can’t get credit, they spend even less at your business.

Mortgage renewal shock: Ontario homeowners face mortgage renewal shocks. Payments increase by an average of $680 monthly. This leaves less money for extra spending.

Managing Financial Crises: What Works?

Cash Flow Management Must Be Daily

In this debt crisis, managing cash flow isn’t a monthly task – it’s a daily survival skill.

Track money every day:

Check bank balances each morning
Use a 13-week cash flow forecasting financial model
Know exactly what’s due when
Plan every payment carefully

Speed up money coming in:

Accept all payment methods (cards, e-transfer, mobile)
Offer discounts for quick payment (2% for 10 days)
Call overdue customers personally
Send invoices immediately

Slow down money going out:

Pay critical suppliers first (those who could shut you down)
Use electronic payments to control timing
Negotiate payment plans before you’re in trouble
Consider temporary hour reductions before layoffs

Strategic Payment Prioritization

When cash is tight, not all debts are equal. Here’s the priority order I recommend:

Payroll and source deductions (CRA will shut you down)
Critical suppliers (those who keep you operating)
Rent and utilities (you need a place to operate)
Secured loans (they can seize collateral)
Unsecured loans and credit cards (last priority)

Strategies for Addressing the Debt Crisis

Debt Restructuring Options That Work

Informal arrangements: Sometimes you can negotiate with creditors before formal proceedings. Recent success: a dining establishment reduced its monthly payments from $12,000 to $4,000.

Consumer proposals: If you’ve personally guaranteed business debts, this can reduce personal liability by up to 80%.

Business proposals: For companies, a formal proposal can reduce payments to all creditors simultaneously, thereby eliminating a debt crisis.

Strategic bankruptcy: Sometimes, closing one business cleanly allows you to start fresh without old debts following you.

Asset Management Approaches

Smart asset management can generate cash and reduce the debt crisis:

Sale-leaseback arrangements: Sell equipment or property, then lease it back. This generates immediate cash while keeping operational assets.

Asset liquidation: Sell non-essential assets. That unused equipment or excess inventory can become debt payments.

Intellectual property monetization: You can make money from intellectual property by licensing your processes, customer lists, or trademarks for ongoing income.

Real estate optimization: Consider subleasing unused space, downsizing, or moving to cut overhead costs.

debt crisis

Closing the Funding Gap: Where to Find Money

Government Programs Still Available

Canada Small Business Financing Program:

Up to $1 million in loans
Government backs 85% of lender risk
Better rates than regular business loans
Available through most banks and credit unions

Business Development Bank of Canada (BDC):

Patient capital for struggling businesses
Industry-specific expertise
Flexible repayment terms
Will work with businesses other lenders won’t touch

Ontario-specific programs:

Advanced Manufacturing and Innovation Competitiveness (AMIC)
Canadian Digital Adoption Program (CDAP)
Various regional development funds

Alternative Financing When Banks Say No

Invoice factoring: Sell your accounts receivable for immediate cash (typically 80-90% of invoice value).

Merchant cash advances: Get cash now based on future credit card sales (expensive but fast).

Peer-to-peer lending: Online platforms connect you directly with individual investors.

Revenue-based financing: Repayments are based on monthly revenue rather than fixed payments.

Crowdfunding: Crowdfunding works well for businesses that serve customers directly and have strong stories.

Learning from Denmark: How Copenhagen Handles Debt Better Than North America

Denmark, especially Copenhagen, does things differently – and better in many ways.

As a licensed insolvency trustee, I’ve seen what works and what doesn’t. Denmark’s approach offers real lessons for Canadian businesses struggling with a debt crisis.

How Denmark’s Government Manages Money (And What Businesses Can Learn)

Denmark keeps things simple and clear when managing government debt. Here’s what they do right:

They Have Clear Fiscal Oversight Rules In Denmark everyone knows who’s responsible for what. The Finance Minister makes the big decisions. The Danish National Bank handles the day-to-day money management. No confusion, no finger-pointing.

Everything Is Out in the Open Danish debt management is transparent. They publish their plans, explain their decisions, and stick to clear goals. This builds trust with lenders and keeps borrowing costs low.

They Plan for Problems The Danish National Bank actively watches for risks. They don’t just hope things work out – they prepare for trouble before it happens.

They Focus on Long-Term Costs Instead of looking for quick fixes, Denmark focuses on keeping borrowing costs low over many years. They accept some risk to achieve better long-term results.

How Denmark Helps People With Too Much Debt

Denmark’s consumer debt relief system is much simpler than ours:

One Program, Not Many Unlike Canada, where people might get confused by multiple options, Denmark has one clear debt relief program. Everyone knows how it works.

Pay What You Can, Then You’re Done People pay back what they can afford for five years. After that, the remaining debt disappears. It’s that simple.

This approach reduces stress and gives people a clear path to financial freedom.

What Danish Business Debt Rules Teach Us

Denmark has clear rules for dealing with a business debt crisis:

Clear Collection Process When businesses can’t pay, there’s a step-by-step process everyone understands. No surprises, no unclear rules.

Fair Bankruptcy System If a business truly can’t continue, bankruptcy is available. But there are clear requirements – you can’t just walk away from debts without a good reason.

Some Debts Come First When paying back creditors, certain debts get priority – like employee wages and government fines. This protects workers and ensures fair treatment.

Four Key Lessons for Toronto Businesses

After studying Denmark’s system, here are the most important lessons for GTA businesses:

1. Have Clear Financial Rules Just like Denmark’s government, your business needs clear financial procedures. Know who makes spending decisions. Set borrowing limits. Create rules for paying suppliers.

Whenever we do a financial restructuring under either a BIA Proposal or a CCAA Plan of Arrangement, businesses with clear financial procedures survive crises better than those making it up as they go.

2. Manage Risk Before Problems Start Denmark doesn’t wait for a debt crisis – they plan. Your business should do the same.

Ask yourself:

What could go wrong with my cash flow?
Which customers might stop paying?
What happens if my biggest supplier demands cash only?
How would a recession affect my business?

3. Be Open About Your Financial Situation Denmark’s transparency builds trust and keeps borrowing costs low. The same works for businesses.

Be honest with:

Your bank about cash flow challenges
Suppliers about payment timing
Key customers about any service issues
Your accountant about all financial concerns

I’ve seen businesses get better deals from creditors simply by being upfront about their situation.

4. Think Long-Term Economic Resilience, Not Just Survival Denmark focuses on long-term borrowing costs, not just immediate needs. Businesses should think the same way.

Don’t just ask: “How do I pay this month’s bills?” Instead, ask: “How do I build a business that can handle future challenges?”

This might mean:

Accepting higher costs now for more reliable suppliers
Building cash reserves instead of maximizing current profits
Investing in systems that reduce future risks
Developing multiple revenue streams

Why These Lessons Matter for Canadian Businesses

Denmark’s approach works because it’s predictable and fair. Everyone knows the rules. There are clear consequences for breaking them. People can plan.

Canadian businesses facing debt crisis often struggle because:

Rules seem to change constantly
Different creditors want different things
No one explains the options clearly
Business owners feel lost and alone

Denmark’s system shows there’s a better way.

Applying Danish Lessons in Your Business

You can start using Danish-inspired approaches today:

Create Financial Transparency

Prepare monthly financial reports (even simple ones)
Share appropriate information with key stakeholders
Document your financial decision-making process
Keep clear records of all business debts and payments

Develop Risk Management Habits

Review your biggest financial risks monthly
Create backup plans for your most important suppliers
Maintain relationships with multiple lenders
Build cash reserves when times are good

Establish Clear Procedures

Write down who can authorize spending
Create a priority list for paying bills during tight times
Develop criteria for extending credit to customers
Set clear policies for managing business debt

When Danish-Style Approaches Aren’t Enough

Sometimes, despite good financial management, businesses still face an overwhelming debt crisis. That’s where professional help becomes necessary.

As a licensed insolvency trustee, I help businesses when:

Clear procedures aren’t enough to solve cash flow problems
Risk management didn’t prevent a major crisis
Transparency reveals more problems than solutions
Long-term thinking shows the business isn’t viable

Even then, Danish lessons help. Transparent businesses, planned, and managed risks professionally, have more options when a crisis hits.

The Bottom Line for Toronto Businesses

Denmark proves that simple, clear, fair approaches to debt work well. Their success comes from:

Clear rules everyone understands
Transparency that builds trust
Risk management that prevents problems
Long-term thinking over quick fixes

You can apply these principles whether your business is thriving or struggling. The earlier you start, the better your results will be.

If your business is already in debt crisis, these Danish lessons can still help guide your financial recovery. Combined with professional advice from a licensed insolvency trustee, they provide a roadmap back to financial health.

debt crisis

When to Call a Licensed Insolvency Trustee

Don’t wait until creditors are knocking down your door. The best outcomes happen when business owners seek help early.

Call immediately if:

You’re using credit cards for business expenses
Missing any loan payments
CRA is demanding payment
Suppliers put you on cash-only terms
Considering borrowing against your home
Losing sleep over business finances

What to expect in our first meeting:

Free consultation and options review
Honest assessment of your situation
Clear explanation of all solutions
No pressure to file if other options exist

Your Action Plan: Recovery Is Possible

Toronto’s business debt crisis is serious, but recovery is always possible with the right approach. I’ve guided hundreds of GTA business owners through financial difficulties.

Your immediate next steps:

Face the numbers honestly – create that daily cash flow tracker
Get professional help – talk to a licensed insolvency trustee
Communicate proactively – call creditors before they call you
Focus on cash flow – every decision should consider cash impact
Plan for recovery – what will your business look like post-crisis?

Remember: The longer you wait, the fewer options you have. But even in the worst situations, there’s usually a path forward.

Why Experience Matters in a Debt Crisis

Not all insolvency trustees understand business; some focus only on the consumer market. We specialize in owner-managed business insolvencies, working in the GTA and the wider Ontario market. We know local conditions and have relationships with Toronto-area lawyers, accountants, banks, and others. We know which solutions work for different business types.

Our approach is straightforward: preserve what can be saved, eliminate what can’t, and help you move forward with confidence.

debt crisis

Frequently Asked Questions About Toronto’s Business Debt Crisis

Answers from Ira Smith Trustee & Receiver Inc., Licensed Insolvency Trustee with years of experience helping GTA businesses

What is the current state of Toronto’s business debt crisis?

Toronto is facing its worst business debt crisis in decades. The numbers are shocking, and every business owner needs to understand what’s happening.

Here’s the reality: Business failures in Canada jumped 87.2% in early 2024 – the biggest increase in 37 years. Right here in Toronto, business closures climbed from 0.4 per 1,000 businesses in 2021 to 0.7 in 2023. That represents hundreds of local businesses shutting their doors permanently.

What’s really concerning is that over 309,000 Canadian businesses missed at least one credit payment in early 2025. That’s more than 1 in every 10 businesses struggling to pay their bills. Ontario leads the country in payment problems.

How did COVID-19 contribute to the debt crisis, and what permanent changes did it bring?

COVID-19 didn’t just create a temporary problem – it permanently changed how business works in Toronto. As someone who helped many businesses through the pandemic and since then, we saw this transformation firsthand.

The Initial Shock When lockdowns hit in March 2020, downtown Toronto emptied overnight. Restaurants, hotels, retail stores, and service businesses lost customers immediately. Some sectors saw 25% revenue drops in weeks.

The government launched the CEBA program, giving $49 billion in loans to nearly 900,000 businesses. At the time, this felt like a lifeline. However, many business owners didn’t realize that CEBA wasn’t free money – it was a loan with delayed payments.

Permanent Changes That Hurt Businesses The pandemic created a “new normal” that many businesses still can’t adapt to:

Remote work became permanent – Downtown Toronto office vacancy hit 18.2%
Online shopping exploded – Many customers never returned to physical stores
Business travel disappeared – Hotels and corporate catering lost their biggest clients
Consumer habits shifted – People became more price-conscious and cautious about spending

The Technology Investment Burden Every business now needs strong online capabilities. This means ongoing costs for e-commerce platforms, cloud systems, and staff training. For businesses already struggling with a debt crisis, these necessary investments create additional financial pressure.

In our practice, we see businesses that survived the initial COVID shock but are now failing because of the costs of adapting to these permanent changes.

What are the main reasons businesses are struggling to pay their bills?

After helping many GTA businesses, we see the same problems over and over. It’s not just one issue – multiple factors are hitting businesses at the same time.

Customers Have Less Money Your customers are financially stressed too. Average credit card spending dropped $107 per month in early 2025. When families cut back on spending, your revenue drops immediately.

Consumer debt in Canada hit $2.55 trillion. Ontario homeowners saw mortgage payments jump after renewal. When your customers are struggling with their own bills, they stop spending on non-essentials.

Operating Costs Keep Rising While customer spending drops, your costs keep climbing:

Food costs: up 5.8%
Rent and utilities: up 6.0%
Employee wages: up 4.8%

This creates a profit squeeze from both directions – less revenue coming in, more costs going out.

CEBA Loans Are Now Due This is a big one many business owners forgot about. As of January 2024, 161,000 businesses still owed $7.8 billion in CEBA loans. These loans now charge 5% annual interest. What felt like “emergency help” became another monthly payment.

New Regulations Add Costs Toronto keeps adding new rules that sound good but cost money:

New nightclub licensing requirements
Digital platform worker protections
Updated building codes
“Renoviction” bylaws for landlords

Each regulation adds compliance costs when businesses can least afford them.

How do tightening credit markets and inflation make the debt crisis worse?

High interest rates created a perfect storm that’s crushing Toronto businesses. Let me explain how this works.

Borrowing Became Expensive Our entrepreneurial business clients say high interest rates prevent them from expanding or investing. When you can’t borrow money to grow or even maintain your business, you’re stuck.

The Mortgage Renewal Shock Ontario homeowners face payment increases averaging $680 monthly when their mortgages renew. This leaves families with even less money to spend at local businesses.

The Inflation Squeeze While national inflation dropped to 3.8%, key business costs stayed high:

Food prices: up 5.8%
Shelter costs: up 6.0%
Overall prices: up 11.4% over two years

The Vicious Cycle Here’s how it all connects: Higher costs force businesses to raise prices → Higher prices mean fewer customers → Fewer customers means lower revenue → Lower revenue makes it impossible to pay debts.

Add unemployment rising for eight straight quarters to 7.5%, and you have a situation where businesses face higher costs and fewer customers at the same time.

What cash flow management strategies work for struggling businesses?

Cash flow management isn’t a monthly task anymore – it’s daily survival. Here’s what actually works, based on my experience with hundreds of struggling businesses.

Track Money Every Day Check your bank balance every morning with your coffee. Use a simple 13-week cash flow forecast to know exactly what’s due when. This isn’t busy work – it’s survival.

Speed Up Money Coming In

Accept all payment methods (credit cards, e-transfer, mobile payments)
Offer 2% discounts for payments within 10 days
Call customers with overdue accounts personally
Send invoices the same day you deliver goods or services

Slow Down Money Going Out

Pay critical suppliers first (those who could shut you down)
Use electronic payments to control timing
Negotiate payment plans before you’re in trouble
Consider temporary hour reductions before layoffs

Priority Order for Tight Times When cash is extremely tight, pay in this order:

Payroll and government deductions (CRA will shut you down)
Critical suppliers (those who keep you operating)
Rent and utilities (you need a place to work)
Secured loans (they can seize your assets)
Unsecured loans and credit cards (last priority)

What debt restructuring and financing options actually work for businesses in trouble?

We use every option available to help Toronto area companies conquer GTA busines insolvency. Here’s what actually works in real situations.

Debt Restructuring Options

Informal arrangements – Sometimes I can negotiate directly with creditors. Last month, I reduced a restaurant’s monthly payments from $12,000 to $4,000.
Consumer proposals – If you’ve personally guaranteed business debts, this can reduce your personal liability by up to 80%.
Business proposals – For larger companies, we can propose reduced payments to all creditors at once.
Strategic bankruptcy – Sometimes closing one business cleanly lets you start fresh without old debts following you.

Asset Management That Generates Cash

Sale-leaseback – Sell your equipment or building, then lease it back. This generates immediate cash while keeping what you need to operate.
Asset liquidation – That unused equipment or excess inventory can become debt payments.
Intellectual property licensing – License your processes or customer lists for ongoing revenue.
Real estate optimization – Sublease unused space or downsize to reduce overhead.

Financing When Banks Say No

Canada Small Business Financing Program – Up to $1 million with government backing
Business Development Bank of Canada – They’ll work with businesses other lenders won’t touch
Invoice factoring – Sell your unpaid invoices for immediate cash (usually 80-90% of value)
Revenue-based financing – Repay based on monthly sales rather than fixed payments

What can Toronto businesses learn from how Denmark handles a debt crisis?

After studying international approaches to a business debt crisis, Denmark offers four practical lessons for Toronto companies.

Have Clear Financial Rules Like Denmark’s government, your business needs clear procedures. Know who can authorize spending. Set borrowing limits. Create rules for paying suppliers.

In my experience, businesses with clear financial procedures survive crises better than those making it up as they go.

Manage Risk Before Problems Start Denmark doesn’t wait for a debt crisis – they plan ahead. Ask yourself:

What could go wrong with my cash flow?
Which customers might stop paying?
What happens if my biggest supplier demands cash only?
How would a recession affect my business?

Be Transparent About Your Situation Denmark’s openness builds trust and keeps borrowing costs low. Be honest with your bank about cash flow challenges, suppliers about payment timing, and your accountant about financial concerns.

I’ve seen businesses get better deals from creditors simply by being upfront about their situation.

Think Long-Term, Not Just Survival Don’t just ask “How do I pay this month’s bills?” Instead ask “How do I build a business that can handle future challenges?”

This might mean accepting higher costs now for more reliable suppliers, building cash reserves, or developing multiple revenue streams.

When should I call a licensed insolvency trustee for help?

Don’t wait until creditors are knocking down your door and you are in full debt crisis mode. The best outcomes happen when business owners seek help early, while they still have options.

Call immediately if you’re:

Using credit cards for business expenses
Missing any loan payments
Getting demands from CRA
Being put on cash-only terms by suppliers
Considering borrowing against your home
Losing sleep over business finances

What to expect in our first meeting:

Complete confidentiality (everything is protected by law)
Free consultation with no obligation
Honest assessment of your situation
Clear explanation of all available options
No pressure to file for bankruptcy if other solutions exist

Why timing matters: The earlier you call, the more options you have. I can often help businesses restructure and continue operating. If entrepreneurs are early enough, perhaps informal workouts are a possibility. Otherwise, perhaps Division I Proposals are the answer. But if they wait too long, your only choice might be permanent closure.

In my years as a licensed insolvency trustee, I’ve learned that business owners who seek help early have the best chance of saving their companies. Those who wait until the last minute often have fewer choices.

Remember: Asking for professional help isn’t admitting failure – it’s taking control of your future and finding the best path forward for your specific situation.

Take Action Today

The Toronto business debt crisis won’t solve itself. But with proper guidance, your business can not only survive but also emerge stronger and more resilient.

If you’re struggling with a business debt crisis, don’t suffer in silence. Contact me for a confidential consultation. We’ll review your situation, explore all options, and create a plan that works for your specific circumstances.

Asking for help isn’t admitting failure – it’s taking control of your future.

As someone who has helped many Canadian businesses and business owners, I’ve seen companies survive and thrive even in the toughest times. The businesses that succeed are those that face reality honestly, adapt quickly, and aren’t afraid to ask for help when they need it.

If your business is facing financial challenges, don’t wait until it’s too late. Early intervention provides more options and better outcomes. Contact Ira Smith Trustee & Receiver Inc. today to discuss your situation confidentially and explore your options.

You’re not alone in this. There’s a path forward, and it starts with reaching out for the right kind of help. Take that step—you deserve it. If you’re a GTA resident dealing with an overwhelming debt crisis, don’t wait for your credit situation to get worse. As a licensed insolvency trustee serving Toronto, Mississauga, Brampton, Markham, and surrounding areas, I’m here to help you understand your options.

Free consultation available:

No obligation to proceed
Complete review of your Canadian business debt and credit situation
Practical next steps you can take immediately

Remember: Your current financial situation doesn’t define your future. With the right help and information, you can overcome both a debt crisis and credit score problems.

As a licensed insolvency trustee in the Greater Toronto Area, I tell consumers and business owners to see financial problems not as failures but as challenges. Proper guidance can solve them. By knowing the warning signs of insolvency and getting professional advice early, many people and businesses find a way forward. They can restructure, make strategic changes, or wind down in an orderly way that protects future chances.

Remember: The earlier you seek help for company insolvency concerns, the more options you’ll have.

If you or someone you know is struggling with too much debt, remember that the financial restructuring process, while complex, offers viable solutions with the right guidance. As a licensed insolvency trustee serving the Greater Toronto Area, I help Canadian entrepreneurs understand their options and find a path forward during financial challenges.

At the Ira Smith Team, we understand the financial and emotional components of a debt crisis. We’ve seen how traditional approaches often fall short in today’s economic environment, so we focus on modern debt relief options that can help you avoid bankruptcy while still achieving financial freedom.

The stress of financial challenges can be overwhelming. We take the time to understand your unique situation and develop customized strategies that address both your financial needs and emotional well-being. There’s no “one-size-fits-all” approach here—your financial solution should be as unique as the challenges you’re facing.

If any of this sounds familiar and you’re serious about finding a solution, reach out to the Ira Smith Trustee & Receiver Inc. team today for a free consultation. We’re committed to helping you or your Canadian company get back on the road to healthy, stress-free operations and recover from financial difficulties. Starting Over, Starting Now.

The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc., and any contributors do not assume any liability for any loss or damage.

debt crisis

Brandon Blog Post

IF YOU DECLARE BANKRUPTCY WHAT HAPPENS? A COMPREHENSIVE OVERVIEW

Post author By Brandon Smith
Post date July 8, 2024

if you declare bankruptcy what happens

If You Declare Bankruptcy What Happens? Introduction to Financial Hardships

In life, we often face unexpected challenges that test our resilience and determination. Such is the experience of people we help who have encountered financial hardships due to an unforeseen event outside of their control such as job loss. The burden of mounting debts and looming financial uncertainty weighs heavily on people, pushing them to explore solutions that would lead them toward a path of financial recovery.

That is who we help – the honest but unfortunate debtor. Dealing with financial hardships is a journey that tests our resilience and determination. It’s a path filled with unexpected twists and turns, challenging us to find the strength within ourselves to overcome the obstacles that come our way.

People with financial difficulties, particularly in the face of job loss, credit card debts, income tax debts and the contemplation of bankruptcy, learn valuable lessons about financial recovery, overcoming challenges, and the empowerment that comes from taking control of your financial future. That and if you declare bankruptcy what happens, is what this Brandon’s Blog is about.

Impact of That Unforeseen Event Outside Of Your Control On Your Financial Situation

The impact of that uncontrollable event such as losing your job goes beyond just the loss of income. It disrupts the stability we have worked so hard to build, leaving us feeling vulnerable and uncertain about the future. When someone becomes unemployed, they struggle to make ends meet, juggling bills and expenses with a limited budget. The stress and anxiety that come with financial insecurity can be overwhelming, but it’s during these challenging times that we discover our inner strength and resilience.

Struggles with Credit Card Payments and Bills

One of the most daunting aspects of financial hardships is the burden of credit card payments and bills that seem to pile up with each passing day. People find themselves caught in a cycle of debt, where the minimum payments barely make a dent in the overall balance. The constant worry about falling behind on payments and the fear of accumulating more debt can weigh heavily on our minds, affecting our peace of mind and overall well-being.

Considering Bankruptcy as a Viable Option

When individuals are confronted with substantial debt and limited solutions, the prospect of bankruptcy may arise as a challenging but potentially necessary step toward financial recovery. In my capacity as a licensed insolvency trustee (formerly known as a bankruptcy trustee), I assist individuals through a process of thorough research and consultation. My role involves guiding and comprehending the bankruptcy process, and its ramifications and exploring viable alternatives to bankruptcy. Opting for bankruptcy is a significant decision that individuals are supported in making through a careful evaluation of their financial circumstances, prospects, and personal aspirations.

Throughout the bankruptcy process, the individuals I work with gain invaluable insights into financial empowerment and the importance of seeking assistance when encountering financial challenges. While bankruptcy may lead to temporary implications on one’s credit rating, it also presents an opportunity for a fresh start and the possibility to rebuild a secure financial foundation. Engaging in the bankruptcy process fosters financial resilience and enhances individuals’ ability to navigate future financial decisions effectively.

If You Declare Bankruptcy What Happens? Exploring Options: The Role of Licensed Insolvency Trustees

A journey towards financial recovery will lead you to a consultation with a licensed insolvency trustee. This no-cost initial consultation will become a guiding light offering insights and solutions to your financial challenges.

Engaging in consultations with a licensed insolvency trustee marks a crucial juncture in your financial path. Our proficiency and empathy equip debtors to comprehend the various solutions at their disposal and make well-informed choices regarding their financial destiny. By engaging in transparent and candid dialogues, you acquire the requisite insight to navigate the intricate bankruptcy process with strength and resolve.

In your journey towards your financial empowerment, the Trustee serves as a pivotal figure in facilitating the bankruptcy application process with the Office of the Superintendent of Bankruptcy Canada (OSB) and guiding you every step of the way. By taking this initial step, you are relieved of the responsibility of making direct payments to unsecured creditors and are granted a stay of proceedings, preventing creditors from initiating or pursuing collection or legal actions against you. This offers a sense of comfort and security, shielding you from additional financial pressures.

Despite the challenges you may be facing, you will find solace in knowing that certain assets may be safeguarded by provincial and federal laws, ensuring a measure of stability during this turbulent time. The Trustee’s guidance on surplus income payments, credit counselling sessions and debt repayment strategies instills a sense of discipline, confidence and commitment toward overcoming financial obstacles.

While the journey toward financial recovery may have its hurdles, the Trustee reassures you that every step taken will lead you closer to a brighter future. Though some people may have a narrow category of debts that may not be discharged, the prospect of rebuilding your financial foundation fills you with hope and optimism.

Through this experience, will learn that resilience in finance is not just about overcoming challenges but also about embracing the opportunity for growth and renewal. As you navigate through the bankruptcy process support provided by the Trustee paves the way for a new beginning filled with hope and possibilities.

If You Declare Bankruptcy What Happens? What is bankruptcy?

Definition of bankruptcy

Canadian bankruptcy is a legal process where an individual, a business or a company declares they are insolvent and are unable to meet their financial obligations. They work with a licensed insolvency trustee to legally file an assignment in bankruptcy. They do so to assign their unencumbered assets to the Trustee and get relief from their overwhelming debt load.

Laws governing bankruptcy in Canada

Navigating the intricate realm of bankruptcy in Canada is a dance choreographed by the Bankruptcy and Insolvency Act (Canada) (BIA). This piece of legislation orchestrates the delicate balance between debtors, creditors, and Trustees, each playing a unique role in the bankruptcy waltz.

When a debtor takes the courageous step of filing for bankruptcy, they are required to bear their financial soul to the Trustee, laying out their assets, liabilities, and monetary intricacies. The Trustee, like a wise conductor, then ensures a harmonious distribution of the debtor’s assets among their creditors, aiming to untangle the financial web that binds them.

For individuals, bankruptcy offers a chance at rebirth, a fresh canvas on which to paint a new financial future. However, for a company or business, it may signify the final curtain call for that legal entity. Yet, there exists a glimmer of hope in the form of selling core assets to a willing successor, potentially salvaging jobs and keeping the business flame alive.

In this intricate ballet of financial redemption, the Bankruptcy and Insolvency Act stands as the maestro, guiding the players toward a resolution that seeks to balance the scales of financial responsibility.

If You Declare Bankruptcy What Happens? Who qualifies for bankruptcy?

Criteria for qualifying for bankruptcy

In Canada, debtors facing significant debt challenges and unable to meet their financial obligations to creditors may be eligible for bankruptcy relief. To qualify for bankruptcy, debtors must have a minimum of $1,000 in unsecured debt and have been residing in Canada for at least the previous six months before filing, or have a substantial connection to the country.

Alternatives to bankruptcy – Individuals

Depending on how pressing the person’s debts are, there are several alternatives to personal bankruptcy that a licensed insolvency trustee can walk you through. The most common alternatives are:

Credit counselling and budgeting assistance: Sometimes people just need help understanding where their family income comes from and how it is spent. In cases like this, going to a non-profit credit counselling service to get some tips and help in developing a monthly household budget and sticking to it is all that is necessary for the household to get back on track.
Debt consolidation: If you still can borrow money at a rate lower than the amounts you are currently being charged on high-interest-rate credit cards and payday loans, you need to look at debt consolidation. Rather than having several to many high-rate debts, if you can borrow the total amount of your debt from a bank or credit union at a much lower rate than you are currently paying and use that new loan to pay off your high-interest rate debts, that will help immensely. Now you have one lower interest rate loan to repay.
Consumer proposal: A consumer proposal is a formal filing under the BIA, however, it is not bankruptcy. It is where you make a contract with your creditors to pay less than you owe in total. It is based on your monthly income, to offer making monthly payments to the Trustee towards your debt. Normally you pay around 25% of your total debt to the Trustee. If your creditors agree, you can take up to 60 months to complete a consumer proposal. When you have finished making your payments, you get a Certificate of Full Performance and the balance of your debt is wiped away.

Alternatives to bankruptcy – Companies

Asset sales: Are there underused or redundant assets in the company that could be sold to raise needed cash to significantly reduce or eliminate corporate debt? This should first be explored.
Refinancing: Can the company refinance to take advantage of a loan opportunity that will help with its cash flow through lower interest, monthly payments or both? Retiring expensive debt and replacing it with more manageable debt is another avenue to explore.
Formal restructuring – BIA Proposal: Companies that have a viable but insolvent business can look at a formal restructuring. Although it is an alternative to avoid bankruptcy, it is commonly referred to as bankruptcy protection. A proposal under the BIA is where the company can negotiate with creditors to come up with a plan to repay its debts over some timeperiod of time. Just like in a consumer proposal, the company pays less than 100% of its debt load, but upon completion, eliminates all of its unsecured debt.
Formal restructuring – Companies’ Creditors Arrangement Act (CCAA): Companies that owe $5 million or more can also restructure as long as they have a viable business. The CCAA allows a company to restructure its debts and business operations under the supervision of a court-appointed monitor. It is essentially the same as a BIA Proposal, but just under a different Canadian statute.
A BIA Proposal and a CCAA restructuring a similar processes you always hear under the US bankruptcy law of bankruptcy chapter 11.

If You Declare Bankruptcy What happens to your assets, debts, and income during bankruptcy?

Going through a financial crisis can be incredibly challenging, but it’s important to remember that there is always a way forward. The people we help who go through the bankruptcy process are a testament to the resilience in finance and the power of financial empowerment as they use bankruptcy to turn their lives around.

Treatment of assets in bankruptcy

One of the concerns people have when considering bankruptcy is what happens to their assets. When someone goes bankrupt, they may not have to give up all of their assets. Let me explain as follows:

Secured debts: When you have assets where there are secured loans against those assets, such as a house or a motor vehicle, the Trustee’s interest is only the bankrupt’s equity in that asset. If there is little or no equity, and your monthly budget shows that you can afford to make the monthly loan payments and you wish to keep the asset, then you can do so. The Trustee will discuss with you ways in which the Trustee can realize the bankrupt’s equity without that asset being taken away.

Exempt assets: Certain provincial and federal laws safeguard some of your possessions when you file for bankruptcy. As provincial laws vary, you need to get the complete list from a licensed insolvency trustee in the area where you live.

Non-exempt assets: Non-exempt assets refer to assets owned by a bankrupt individual that are not protected by a secured creditor’s security interest or are exempt under provincial or federal laws. These assets fall within a category that the Trustee must liquidate to benefit the creditors involved in the bankruptcy proceedings.

Treatment of debts in bankruptcy

Once the bankruptcy application is filed with the OSB, a significant burden is lifted off the bankrupt’s shoulders. Direct payments to creditors cease, and the Trustee notifies all the creditors and there is an immediate stay of proceedings.

This means that any legal actions cannot be commenced or continued against the bankrupt and all collection activities, such as wage garnishment are put on hold. This offers the person much-needed relief from the constant financial pressure.

Some debts cannot be discharged, such as alimony, child support, valid secured loans and certain types of student loans. A Trustee in your no-cost initial consultation will look at the details of your debts and advise you if any would not be discharged from your bankruptcy estate.

While the decision to make the bankruptcy filing may seem daunting, it is a necessary step toward regaining control of your finances and eliminating the stress in your life. Knowing that your wages are protected from garnishment provides a sense of security during this challenging time.

Treatment of income during bankruptcy

While in bankruptcy, the Trustee monitors the person’s monthly income and expenses. The Trustee is required by the OSB and under the BIA, to do a calculation to determine if the bankrupt person has sufficient income to contribute towards his or her total debts by making surplus income payments to the Trustee.

The Trustee is required to do this calculation both at the time of the bankruptcy filing and throughout the time the person is an undischarged bankrupt. If the person’s income changes, either up or down, this will affect the calculation.

Although judgment creditors cannot garnish wages, it is possible that until the person gets their bankruptcy discharge, they may have to contribute something from their monthly income under the surplus income calculation. A licensed insolvency trustee can explain the calculation to you.

If You Declare Bankruptcy What Happens? How long does personal bankruptcy last?

Personal bankruptcy typically lasts for 9 months for a first-time bankrupt in Canada. Your first-time bankruptcy will extend to 21 months if you have to pay surplus income. If this isn’t your first bankruptcy, it will last longer.

At the end of this time, if you have fulfilled all of your bankruptcy duties and neither the Trustee nor any creditor who has proven their bankruptcy claim opposes your discharge, then you are entitled to your bankruptcy discharge. It is at the time you receive your discharge from bankruptcy, that your debts can be discharged.

If You Declare Bankruptcy What Happens? What Are Your Duties During Bankruptcy?

Responsibilities and obligations during bankruptcy

The primary responsibilities entail the disclosure of all assets, liabilities, income, and expenses. It is required to provide bank statements and other relevant records to support the information provided. In the event of a creditors’ meeting, attendance is mandatory.

Attendance at credit counseling sessions

Participating in the two mandatory counselling sessions is an essential component of a bankrupt’s journey toward financial recovery. Each counselling session is held with a person from the Trustee’s office who the OSB has licensed as a credit counsellor.

If You Declare Bankruptcy What Happens? What Is The Impact On Your Credit Score?

Impact on credit score during and after bankruptcy

Filing for bankruptcy in Canada can have a significant impact on your credit score, both during and after the bankruptcy process. Here’s a breakdown of what you can expect:

During Bankruptcy:

Initial Credit Score Decline: Upon filing for bankruptcy, it is common for individuals to experience a substantial decrease in their credit score, typically by 100-200 points or more. This decline is largely attributed to the fact that bankruptcy is a matter of public record, leading lenders to perceive it as a high-risk event.
Credit Reporting: Your credit report will reflect the bankruptcy filing and remain on your report for at least 6 years from the date of discharge (more on discharge below).
Credit Inquiries: Lenders may conduct credit inquiries to assess your creditworthiness, which can further lower your credit score.

After Bankruptcy:

Credit Score Recovery: After bankruptcy, your credit score will gradually recover over time. The rate of recovery depends on your credit habits and the steps you take to rebuild your credit (see next discussion).
Credit Reporting: The bankruptcy notation on your credit report will remain for roughly 6 years from the date of discharge. After that, it will be removed from your report.
Credit Score Objectives: Strive to attain a credit score ranging between 600 and 650 within 2-3 years post-bankruptcy. This will enhance your eligibility for improved loan conditions and interest rates.

Discharge:

In Canada, bankruptcy typically lasts for 9-21 months, depending on your financial situation and the type of bankruptcy you file for (e.g., consumer proposal or personal bankruptcy). Once you’ve completed the bankruptcy process and received a discharge, the bankruptcy notation will be removed from your credit report.

Rebuilding credit after bankruptcy

Tips for Rebuilding Credit After Bankruptcy:

Monitor your credit report: Conduct a thorough review of your credit report to verify its accuracy and pinpoint any potential areas for improvement.
Make on-time payments: It is imperative to make payments on time for all financial obligations to showcase a commendable track record of credit responsibility.
Keep credit utilization low: Maintain a disciplined approach to managing credit by ensuring your credit utilization remains low and refraining from excessive spending. Additionally, exercise caution when seeking new credit opportunities by minimizing credit inquiries and refraining from submitting multiple applications within a condensed timeframe.
Avoid new credit inquiries: Limit the number of credit applications you make and try to avoid applying for multiple credit products within a short timeframe. This will help you maintain a stable credit profile and minimize the impact of new credit inquiries on your credit score.
Credit Score Rebuilding: If you’re looking to improve your credit after facing financial challenges, some practical steps you can take include applying for a secured credit card, becoming an authorized user on a family member’s credit account, or taking out a small loan. One relatively accessible option post-bankruptcy is getting an RRSP loan, where the RRSP is held at the same financial institution you’re borrowing from.

These kinds of loans must normally be repaid within 1 year. Making all loan payments on time and doing the same thing again the following year not only will rebuild your credit, but also build your savings.

If You Declare Bankruptcy What Happens? What are the consequences for your spouse’s credit and assets?

Spouse’s liability for joint debts

In Canada, when one spouse files for bankruptcy, sometimes it can have consequences for the other spouse’s credit and assets, depending on the type of bankruptcy and the couple’s financial situation. Here’s a breakdown of the most common issues.

Credit Score Impact: The non-bankrupt spouse’s credit score could be affected if they are jointly liable for certain debts with the bankrupt spouse. This is because it may view the non-bankrupt spouse as being the next to default.
Joint Debts: If the couple has joint debts, such as a mortgage, car loan, or credit card, the non-bankrupt spouse will still be responsible for paying those debts. This is because joint debts are considered a shared responsibility.
Assets at Risk: Any of the non-bankrupt spouse’s assets that are jointly owned with the bankrupt spouse, will be at some level of risk. For example, if the couple owns a jointly held property, the Trustee must recover the non-exempt equity of the bankrupt spouse’s assets. In jointly held property, this will on a practical level impact and involve the non-bankrupt spouse, who is the natural purchaser of the bankrupt spouse’s equity.
Credit Reporting: The non-debtor spouse’s credit report may reflect the bankruptcy filing depending on the type of bankruptcy, the credit reporting agency and any joint debts or debts guaranteed by the non-bankrupt spouse.

Types of Bankruptcy and Their Impact on the Non-Debtor Spouse

Consumer Proposal: A consumer proposal is a debt settlement agreement between the insolvent spouse and their creditors. In this case, the non-insolvent spouse is not directly affected by the consumer proposal filing, but they may still be responsible for paying joint debts.

Personal Bankruptcy: Personal bankruptcy is a more severe type of bankruptcy that involves the liquidation of assets to pay off debts. In this case, the non-insolvent spouse’s assets may be at risk if they are jointly owned by the bankrupt spouse.

Protection of spouse’s assets during bankruptcy

The time to put plans in place to protect the assets of each spouse is upon the acquisition of each asset when neither spouse is insolvent. Any transfers of assets aiming to shield them from creditors, will not be successful. Here are some tips:

Separate Property: If the non-insolvent spouse has separate property, such as a separate bank account or a separate property, it is generally protected from the bankrupt spouse’s creditors.

Exemptions: In Ontario, individuals going through bankruptcy can keep certain assets as exempt property. These include household furnishings and appliances valued up to $14,180, livestock, tools, and other items used in farming up to $31,379 for farmers, tools of trade up to $14,405 for self-employed individuals, one motor vehicle worth up to $7,117, equity in a primary residence not exceeding $10,783, and funds in registered plans like RRSPs, RRIFs (other than contributions in the 12 months preceding the bankruptcy), and life insurance policies with designated beneficiaries such as a parent, spouse or child.

Credit Counseling: Additionally, credit counselling might be a good idea for the non-bankrupt spouse.

If You Declare Bankruptcy What Happens After You Are Discharged From Bankruptcy?

Discharge from bankruptcy

The effects of an absolute discharge from personal bankruptcy for the person are substantial. As soon as an outright discharge is granted, the debtor is no longer accountable for any type of unsecured debts that existed at the date of bankruptcy (with a few specific exceptions). The debtor is launched from needing to pay back debts that they took on before applying for bankruptcy.

This indicates that the debtor no longer has to stress over paying back those financial debts and can move on with their life. This supplies a clean slate for the borrower and helps them return to their feet.

There are different types of bankruptcy discharges. The one every bankrupt person wants is an absolute discharge. However, sometimes there is a reason for either a creditor, the licensed insolvency trustee (formerly called a trustee in bankruptcy), or both, to oppose a bankrupt person’s discharge. When this happens, there must be a court hearing to determine what form of discharge the bankrupt is entitled to.

The purpose of the discharge hearing is for the court to view the evidence put forward by those opposing an absolute discharge, the bankrupt who believes they are entitled to one and to review the Trustee’s report and gain further information about the conduct of the bankrupt person, both before and during bankruptcy, and to hear about the administration of the bankruptcy.

At the discharge hearing, the court is attempting to balance the right of a bankrupt person to receive a discharge and the rights of the creditors to be paid. The court will also be concerned that the administration of the bankruptcy is not only fair to all parties but is also seen to be fair. I recently came across a decision of the Court of King’s Bench of Alberta which exemplifies this finding of balance.

Suspension of discharge from bankruptcy: When can a bankrupt person be discharged? If you have filed for bankruptcy for the first time, you may qualify for an automatic discharge after a 9-month bankruptcy period. To qualify for this automatic discharge, you must have:

attended the two mandatory financial counselling sessions with the Trustee;
no requirement to pay surplus income, being a portion of their income is paid to the bankruptcy estate
according to guidelines set by the OSB or Official Receiver); and no opposition to his or her discharge. The only party that can authorize an
automatic discharge
in bankruptcy is the Trustee.

If you have made an assignment in bankruptcy before and so this subsequent bankruptcy is your 2nd bankruptcy, you will need to wait at least 24 months before you can receive a discharge. If you have a surplus income payment requirement, your bankruptcy will be prolonged to 36 months.

If you have filed for bankruptcy twice before, you can expect the timeline for a third bankruptcy to be the same as your 2nd. However, the Trustee or creditors may be more resistant to your discharge this time. The court may extend the timeline if it deems necessary.

Rehabilitation and rebuilding finances after bankruptcy – A Path to Financial Freedom

Rehab after personal bankruptcy entails a combination of finance management, debt administration, and as indicated above, credit rebuilding. The goal is to produce a sustainable economic strategy that permits you to manage your debt, reconstruct your credit, and achieve lasting financial security.

The key steps to rehabilitation are:

Get your bankruptcy discharge: Attend the two mandatory financial counselling sessions with your licensed insolvency trustee firm, fulfill all your other duties in the bankruptcy administration and obtain your discharge from bankruptcy
Create a Budget: Continue tracking your income and expenses to identify areas where you can cut back and allocate funds more effectively. A budget will help you prioritize your spending and make informed financial decisions.
Prioritize Debt Repayment: Focus on starting within your budget spending so that you can pay your bills every month on time in full.
Rebuild Credit: Use the tips I listed above to rebuild your credit.
Screen Credit Reports: Obtain a duplicate of your credit report and correct any type of mistakes or errors to guarantee your credit score is accurate.
Seek Professional Guidance: If you feel you need an element of accountability to help you in your rehabilitation, seek out a non-profit credit counsellor or financial coach to give you personalized guidance and support to help you navigate the rehabilitation process and achieve your financial goals.

Rehabilitation after bankruptcy can have numerous benefits, including:

Improved credit scores
Reduced debt burden
Increased financial stability
Greater financial flexibility
A fresh start
if you declare bankruptcy what happens

If You Declare Bankruptcy What Happens? Looking Towards a Brighter Future Conclusion

The people we help through personal bankruptcy for their journey of financial recovery are filled with a sense of gratitude and hope. The impact of understanding their credit rating, navigating the bankruptcy process, and embracing the steps toward recovery are profound. It not only tests their resilience in finance but also empowers them to envision a brighter future filled with possibilities through a fresh start.

I hope you enjoyed this if you declare bankruptcy what happens Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or someone with too much personal debt.

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

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

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

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

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

The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.

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