Tag: GTA

Canadian Mortgage Delinquency Hotspot: Equifax Q1 2026 Report Says It Is Brampton Ontario

Post author By Brandon Smith
Post date June 15, 2026

Mortgage Delinquency: Introduction

At Ira Smith Trustee & Receiver Inc., we hope you and your family are staying safe and well during these challenging economic times. We know that behind every statistic is a real person, a real home, and a real family trying to navigate a complex financial landscape. If you are feeling the pressure of rising costs, please know that you are not alone, and there is a professional, compassionate path forward.

Key Takeaways

Insolvency Peak: National insolvency volumes have surged to levels not seen since the 2009 financial crisis.
Brampton Hotspot: Brampton has recorded a 0.64% mortgage delinquency rate, the highest in Canada for Q1 2026.
Ontario Surge: Mortgage delinquency rates across Ontario have jumped by a staggering 52% year-over-year.
Debt Relief Solutions: A consumer proposal is often the most effective tool for GTA homeowners to protect their equity while eliminating unsecured debt.
Early Action: Consulting a Licensed Insolvency Trustee Toronto early can prevent a Power of Sale and secure your financial future.

Highlights

The “Sticker Shock” of Q1 2026
Why are Insolvency Levels Mirroring 2009?
Brampton in the Crosshairs: Breaking Down the 0.64%
Ontario’s 52% Surge: A Warning for the GTA
Is Your Home an Exempt Asset?
Comparison: Consumer Proposal vs. Personal Bankruptcy
Frequently Asked Questions (FAQ)

Mortgage Delinquency: The “Sticker Shock” of Q1 2026

The latest Equifax Canada Q1 2026 Market Pulse report has sent ripples through the Greater Toronto Area (GTA). For many homeowners, the data confirms what they have felt at the kitchen table for months: the “buffer” is gone. With insolvency volumes hitting a 17-year high, the Canadian economy is witnessing a level of financial distress comparable to the 2009 Great Recession.

However, unlike 2009, this crisis is deeply rooted in the housing market. As mortgage renewals hit significantly higher rates than the previous five-year cycle, many families in Brampton, Mississauga, and Vaughan are finding their monthly payments unmanageable. We call this payment shock, and it is the primary driver behind the current spike in mortgage defaults.

Mortgage Delinquency: Why are Insolvency Levels Mirroring 2009?

When we look at the data, the comparison to 2009 is sobering. Insolvency levels have reached these heights because the cost of borrowing has remained elevated for longer than most analysts predicted. This has created a “perfect storm” for those with high debt-to-income ratios.

Many individuals who were able to maintain their lifestyle through credit cards and lines of credit are now finding those limits maxed out. When the credit runs out, the mortgage is the next thing to suffer. This leads to an increase in the mortgage delinquency rate.

It is important to remember that insolvency simply means being unable to pay your debts as they come due. It is not a moral failing; it is a mathematical reality of the current Ontario economy.

Brampton in the Crosshairs: Breaking Down the 0.64% Mortgage Delinquency Rate

Perhaps the most alarming statistic in the Equifax report is that Brampton has emerged as the mortgage delinquency hotspot of Canada. With a delinquency rate of approximately 0.64%, Brampton’s rate is more than double the national average.

Why Brampton? Our experience as a Licensed Insolvency Trustee Toronto serving the GTA, including Vaughan, Mississauga and Brampton, suggests a few factors:

High Loan-to-Value Ratios: Many Brampton buyers entered the market at the peak, leaving them with little equity to weather a downturn.
Private Lending: A significant number of homeowners in Brampton rely on private or “alternative” lenders, whose rates are often much higher than the big banks.
The “Squeeze” of Large Households: Larger families common in Brampton face higher grocery and utility costs, leaving less room for mortgage fluctuations.

A delinquency is defined as a mortgage payment that is 90 days or more past due. Once you hit this mark, the lender may initiate a Power of Sale, which is the legal process in Ontario where a lender sells your home to recover their funds.

Ontario’s 52% Surge in Mortgage Delinquency: A Warning for the GTA

While Brampton is the focus, the rest of Ontario is not far behind. A 52% year-over-year increase in mortgage delinquencies across the province indicates that the financial rot is spreading. This is not just a localized problem; it is a systemic shift.

For homeowners in Toronto, Vaughan, Markham, Brampton and Mississauga, this serves as a critical warning. If you are currently “robbing Peter to pay Paul”, using credit cards to pay your mortgage, you are in a cycle that leads directly to insolvency.

Mortgage Delinquency: Is Your Home an Exempt Asset?

One of the biggest fears we hear from clients is, “Will I lose my house if I file for debt relief?” In Ontario, certain possessions are protected from creditors; these are known as exempt assets.

Under the Execution Act of Ontario, a portion of the equity in your principal residence may be exempt from seizure. However, if your home has significant equity, you need a strategic plan to protect it. This is where a Consumer Proposal Ontario becomes your best lifeline. Unlike bankruptcy, a consumer proposal allows you to keep your assets, including your home and car, while negotiating a settlement with your creditors.

Comparison: Consumer Proposal vs. Personal Bankruptcy

Choosing the right path depends on your specific financial “health.” Below is a comparison to help you understand your options.

Feature	Consumer Proposal	Personal Bankruptcy
Asset Protection	You keep all assets, including your home equity and vehicles.	Non-exempt assets may be surrendered to the Trustee for creditors.
Monthly Payments	One fixed, interest-free monthly payment based on what you can afford.	Payments may vary based on your surplus income.
Credit Impact	R7 rating; removed 3 years after completion.	R9 rating; removed 6–7 years after first discharge.
Legal Protection	Immediate Stay of Proceedings (stops all collections and lawsuits).	Immediate Stay of Proceedings (stops all collections and lawsuits).
Debt Reduction	Typically reduces unsecured debt by 70% to 80%.	Eliminates most unsecured debts entirely.

How Can a Licensed Insolvency Trustee Help?

If you are facing Brampton mortgage delinquency or general debt relief Toronto and you have many questions about finding a lasting solution to your financial challenges, a Licensed Insolvency Trustee (LIT) is the only professional in Canada authorized by the government to file a consumer proposal.

We act as a neutral party to facilitate a deal between you and your creditors. By filing a proposal, we can often eliminate your credit card debt, tax debt, and personal loans. This “clears the deck,” freeing up the cash flow you need to keep your mortgage current and stay in your home.

Mortgage Delinquency: Frequently Asked Questions (FAQ)

Q: Can a consumer proposal stop a Power of Sale?
A: If the Power of Sale process has begun because of your mortgage delinquency and has already reached a certain legal stage, a proposal may not stop it directly. However, by eliminating your other debts before you default on your mortgage, you can prevent the Power of Sale from ever starting.

Q: Will my bank cancel my mortgage if I file a consumer proposal?
A: Generally, no. As long as your mortgage payments are up to date, most lenders are happy to continue the relationship. They want their monthly interest payment, not your house.

Q: How much does a consumer proposal cost?
A: The fees for a Licensed Insolvency Trustee are set by federal law and are paid out of the monthly payments you make to your creditors. There are no “upfront” costs for the filing itself.

Q: I live in Brampton, and my mortgage is up for renewal soon. What should I do?
A: Contact us for a free consultation. We can help you “stress test” your budget against new rates. If the numbers don’t add up, we can help you restructure your other debts now so you are ready for renewal.

Why We Believe in “Starting Over, Starting Now”

We know the tension put upon you when the mail arrives or the phone rings. It is not your fault that the economy has shifted so dramatically. Our philosophy is simple: identify the problem, take immediate action, and restore your quality of life. You don’t have to live in fear of the Q1 2026 report or any future mortgage delinquency statistics.

Starting Over, Starting Now

Don’t let financial uncertainty dictate your future. If you or your business is struggling with debt, losing sleep, or facing legal action, contact Ira Smith Trustee & Receiver Inc. today.

We offer a free, confidential consultation to discuss your situation, explain your options in plain language, and help you develop a clear, actionable plan. Our team of Licensed Insolvency Trustees is dedicated to providing the compassionate, professional support you need to regain control and achieve a debt-free life.

Take the first step towards a brighter financial future, call us now.

Phone: 905.738.4167
Toronto Line: 647.799.3312
Evenings and Weekends Line: 289.670.7500
Website: irasmithinc.com
Email: brandon@irasmithinc.com

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

, , , , , , , , , , , , , , , , , , , , , , , , , , –

Disclaimer: This analysis is for educational purposes only and is based on the cited sources and 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; the outcomes discussed may not apply to your particular case. Please contact Ira Smith Trustee & Receiver Inc. to discuss your specific needs.

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. His experience includes consumer insolvency and complex court-ordered receivership and corporate bankruptcy administration, giving him practical insight into navigating challenging financial situations to achieve optimal outcomes for businesses, creditors, and professionals. Brandon stays current with landmark developments in Canadian insolvency law, ensuring his clients benefit from a cutting-edge understanding of their rights and options.

#BramptonRealEstate #DebtRelief #ConsumerProposal #OntarioMortgage #Insolvency #TorontoFinance #IraSmithTrustee

Tags Brampton, Brampton mortgage help, consumer proposal ontario, debt relief toronto, Equifax Q1 2026 report., GTA, Ira Smith Trustee, licensed insolvency trustee Toronto, Mississauga, mortgage delinquency, mortgage delinquency Ontario 2026, Vaughan

Brandon Blog Post

Too Late for CCAA Restructuring: The True Cost Of Waiting Too Long To Restructure

Post author By Brandon Smith
Post date June 1, 2026

CCAA Restructuring Introduction

Hello and welcome. We hope this Brandon’s Blog finds you well and that you are navigating your day with a sense of security and peace. At Ira Smith Trustee & Receiver Inc., we understand that the weight of financial uncertainty can be overwhelming. Whether you are an individual struggling with personal debt or a business owner in the Greater Toronto Area facing corporate insolvency, please know that you are not alone, and there is a path forward.

In the world of corporate restructuring, timing is everything. A recent and highly publicized legal decision on May 15, 2026, in the Ontario Superior Court of Justice Commercial List, has sent a clear message to business owners and creditors across Ontario. Waiting until the last minute to seek bankruptcy protection can be a fatal mistake. The Companies’ Creditors Arrangement Act restructuring (CCAA restructuring) case of Lion Force Transport Inc. serves as a sobering reminder that the court’s patience has its limits, especially when a company’s financial deterioration has gone too far.

Key Takeaways

Early Intervention is Critical: Courts are less likely to grant CCAA restructuring protection if a company waits until it is “too far gone” before seeking help.
Credible Plans Matter: A restructuring bid must be supported by a realistic and financeable plan, not just a desperate “Hail Mary” attempt.
Justice Myers’ Ruling: Justice Myers rejected Lion Force’s CCAA restructuring bid in favour of immediate receivership due to long-standing defaults and a lack of a viable path forward.
Starting Over, Starting Now: Our philosophy emphasizes taking control early to avoid the harsh consequences of a court-ordered shutdown.
Protecting Stakeholders: Receivership is often triggered when a company can no longer meet basic obligations like paying drivers, taxes, or insurance.

What Happened in Brampton? The CCAA Restructuring Case of Lion Force Transport

Lion Force Transport Inc., a prominent trucking carrier based in the Brampton and Mississauga, Ontario area of the GTA, recently found itself at the centre of a significant legal battle. The company, which at its peak operated hundreds of power units across North America, fell into deep financial distress. Their primary secured creditor, Royal Bank of Canada (RBC), was owed approximately $53 million. Part of RBC’s security package was a mortgage on its Brampton property.

The situation was dire. Lion Force had not only defaulted on its bank loans but had also accumulated a mountain of other arrears. These included:

Unpaid drivers and carriers essential to the daily operation of a transport business.
Property tax arrears exceeding $500,000 to local municipalities.
A WSIB (Workplace Safety and Insurance Board) garnishment of over $600,000.
Ongoing issues with fuel supply arrears and insurance coverage cancellations.

When RBC moved to appoint a receiver to take control of the assets, Lion Force responded with a last-minute application for protection under CCAA restructuring. They were seeking a stay of proceedings, a court-ordered pause that stops creditors from taking enforcement action, to allow them time to restructure.

The Judge’s Decision: Why “Too Late” is a Dealbreaker

Justice F.L. Myers of the Ontario Superior Court of Justice Commercial List was not convinced. In a decisive ruling, he rejected the company’s CCAA restructuring application and granted the receivership requested by RBC. The reasoning was clear and serves as a vital lesson for any business owner in the GTA.

The “Too Late” Factor

Justice Myers held that Lion Force’s CCAA restructuring application came too late in the deterioration of its financial position. The defaults were not new; they were long-standing and severe. By the time the company asked the court for help to restructure, it had already failed to pay the very people and institutions required to keep the business running safely and legally.

The Lack of a Credible Plan

The court found that Lion Force’s proposed CCAA restructuring plan lacked substance. It was described by some observers as a “Hail Mary” pass, a desperate attempt to avoid the inevitable without a concrete, financeable strategy to back it up. In Canadian insolvency, the court will not grant a CCAA stay of proceedings if there is no reasonable prospect that the company can actually survive.

Prejudice to Stakeholders

Justice Myers expressed significant concern for the unpaid drivers, carriers, and other creditors who were being harmed by the continued operation of a business that was effectively insolvent. When a company cannot meet its basic operational costs, continuing to “try” for a CCAA restructuring can actually make the situation worse for everyone involved.

BIA vs CCAA Restructuring Proceedings: Making the Right Choice Early

For many large corporations in Toronto and the surrounding areas, the choice between the Bankruptcy and Insolvency Act (BIA) and a CCAA restructuring is a strategic one.

Feature	CCAA Restructuring	Court-Appointed Receivership
Control	“Debtor-in-Possession” (Management stays in control)	The Receiver takes full control of assets and operations
Primary Goal	To restructure the business and keep it operating	To maximize recovery for secured creditors (often through sale or liquidation)
Flexibility	Highly flexible, allows for creative settlements	Strictly governed by the court order and provincial law
Threshold	Generally, for larger companies with >$5M in debt	Available to creditors when a security agreement is breached
Supervision	Monitored by a court-appointed Monitor	Managed directly by the Receiver

The Lion Force case demonstrates that while the CCAA restructuring offers flexibility, it is not a “get out of jail free” card. If a company waits until a receiver is at the door, the court may find that a Corporate receivership process for GTA creditors is more appropriate than allowing the debtor to remain in control.

The “Starting Over, Starting Now” Philosophy

At Ira Smith Trustee & Receiver Inc., we live by the philosophy of “Starting Over, Starting Now.” We know the tension put upon you when your business is struggling. It is often not your fault; market shifts, rising fuel costs, and unforeseen economic pressures can hit even the most seasoned entrepreneurs.

However, the Lion Force case proves that the worst thing you can do is wait and hope things will get better on their own. Early intervention is your most powerful tool. When you seek professional advice early, you have more options. You can negotiate with creditors from a position of relative strength rather than desperation.

If you are facing pressure from secured creditors or the CRA, either our BIA or CCAA Financial Restructuring and Turnaround Services or our Receiver Manager services in the GTA can help. In some cases, we act as the court-appointed officer; in others, we work as a privately appointed receiver.

How to Avoid the “Lion Force” Trap

If your business is showing signs of distress, such as unpaid taxes, difficulty meeting payroll, or constant calls from creditors, here are the steps you should take immediately:

Face the Facts: Honestly assess your cash flow. If you are insolvent, admitting it is the first step toward a solution.
Consult a Licensed Insolvency Trustee: We are the only professionals licensed by the federal government to handle these matters. We can explain BIA vs CCAA restructuring proceedings in Toronto in plain language.
Prioritize Critical Payments: If you stop paying your employees or your insurance, you lose the ability to operate, which makes a court-ordered receivership much more likely.
Develop a Realistic Plan: Don’t rely on “overly optimistic” assumptions. Your plan needs to be grounded in reality and backed by financial data.

Frequently Asked Questions (FAQ)

1. What is the difference between receivership and CCAA restructuring?

In a receivership, a secured creditor (like a bank) asks the court to appoint a Receiver to take control of the assets to ensure the debt is repaid. In a CCAA restructuring proceeding, the company remains in control of its business (debtor-in-possession) under the supervision of a Monitor, while it tries to negotiate a plan with its creditors.

2. Can a company be forced into receivership even if it wants to do a CCAA restructuring?

Yes, as seen in the Lion Force case. If the court believes the company has waited too long, has no viable plan, or is acting in a way that prejudices its creditors, the judge can reject the restructuring bid and appoint a receiver.

3. What happens to the employees in a corporate receivership?

Typically, the receiver will decide whether to continue operations or shut them down. If the business is sold as a “going concern,” some employees may keep their jobs. If not, employees may be entitled to claim unpaid wages through the Wage Earner Protection Program (WEPP).

4. Why did Justice Myers call the Lion Force bid a “Hail Mary”?

The term was used to describe a last-ditch, desperate effort that lacked the necessary financial backing or operational stability to succeed. The court felt that the company was simply trying to buy time without any real hope of a turnaround.

5. How can I protect my business from a similar fate?

The key is early action. Engaging with a Licensed Insolvency Trustee at the first sign of trouble allows for a controlled restructuring, such as a Notice of Intention to Make a Proposal, or a court filing for CCAA restructuring protection, which provides immediate protection from creditors.

CCAA Restructuring Conclusion: Taking Control Before the Court Does

The Lion Force Transport case is a landmark reminder for the Ontario business community. The court is a place of law and equity, but it is not a sanctuary for those who ignore their financial realities until the eleventh hour. By the time a business is “too far gone,” the opportunity to restructure is often lost, leaving liquidation as the only remaining path.

We understand the stress and confusion that comes with a financial crisis. Our goal is to help you navigate these complex legal waters so that you can achieve a fresh start. Whether you need a Corporate receivership process for GTA creditors explained or you are looking for a way to save your business through a financial restructuring, we are here to help.

Starting Over, Starting Now

Don’t let financial uncertainty dictate your future. If you or your business is struggling with debt, losing sleep, or facing legal action, contact Ira Smith Trustee & Receiver Inc. today.

Take the first step towards a brighter financial future, call us now.

Phone: 905.738.4167
Toronto Line: 647.799.3312
After hours and weekends: 289.670.7500
Website: irasmithinc.com
Email: brandon@irasmithinc.com

, , , , , , , , , , , , , , , , , , , , , , , , , , –

About the Author:

#CCAARestructuring #CorporateInsolvency #Receivership #CCAA #GTA #BusinessRestructuring #IraSmithTrustee #BramptonBusiness #FinancialRecovery

Tags Bankruptcy and Insolvency Act, BIA, BIA vs CCAA proceedings Toronto, Brampton insolvency, business restructuring Ontario, CCAA, CCAA restructuring, Companies’ Creditors Arrangement Act, Corporate receivership process for GTA creditors, financial restructuring, GTA, Ira Smith Trustee, Justice Myers, Lion Force Transport, Mississauga insolvency, Receiver Manager services GTA, Toronto insolvency

Brandon Blog Post

BANKRUPTCY LAWYER IN TORONTO VS. BANKRUPTCY TRUSTEE IN TORONTO: WE EXPLORE AND EXPLAIN COMPLETELY THE DIFFERENCES FOR YOU

Post author By Brandon Smith
Post date July 19, 2021

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to an audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Bankruptcy lawyer in Toronto introduction

Canada is recognized for its cultural diversity, but it can be a battle to locate trustworthy information on the nation’s laws. Bankruptcy is a difficult topic to learn about; both learning the technical side and dealing with the emotional one.

If you or your company are thinking about bankruptcy, you might think you need a bankruptcy lawyer in Toronto. However, you do not necessarily require one. A licensed insolvency trustee in Toronto (formerly called a bankruptcy trustee in Toronto) can help you pick the perfect insolvency process for you and make certain that you survive it as best as possible.

In this Brandon Blog, I discuss the roles of a bankruptcy lawyer in Toronto and a licensed insolvency trustee. Sometimes they can overlap and many times they do not. We will take a detailed look at a bankruptcy lawyer in Toronto vs a licensed insolvency trustee. We will discuss the differences between the two and exactly how they can each help you.

Bankruptcy lawyer in Toronto – Do you need one to file personal bankruptcy?

Whether it is personal bankruptcy proceedings, or one of the formal alternatives to bankruptcy such as a consumer proposal or a Division I Proposal that are being contemplated, a bankruptcy lawyer in Toronto or elsewhere is not involved in the actual bankruptcy filing. or the Canada – restructuring & insolvency filing. That is what trustees in bankruptcy do.

When a person or company is contemplating an insolvency process, they can get a no-cost consultation with any one of the bankruptcy trustees they choose to meet with. During the consultation, information is gathered by the Trustee, analyzed and possible solutions are discussed.

Trustees must always be careful to not tread into areas that could possibly give them a conflict in providing their financial services. People wanting advice on asset transfers, asset protection, or preferring one or more creditors over others are areas that Trustees should not wade into.

In situations like that, I always advise potential bankruptcy clients that as there is no privilege in our discussions and we should not talk about those things so that I will not be conflicted. Rather, the person should get advice from a bankruptcy lawyer in Toronto or elsewhere where the discussions and the legal advice are protected by solicitor-client privilege.

Do You Need a personal bankruptcy lawyer in Toronto to get your bankruptcy discharge?

As I have written before in several Brandon Blogs, there are 6 possible outcomes in a bankrupt’s application for discharge. This depends on whether the discharge is being opposed by either the Trustee and/or one or more creditors. The possible bankruptcy discharge outcomes are:

Automatic – This discharge is absolute and is given by the Trustee at the earliest possible time the bankrupt person is entitled to a discharge. It means that the bankruptcy has performed all of his or her duties, has fully cooperated with the Trustee and nobody has opposed the discharge.
Absolute – An absolute discharge is obtained when the Trustee issues the automatic discharge. it is also possible to obtain an absolute discharge when a creditor opposes the bankrupt’s discharge, the matter goes to court for a hearing, but the court does not believe the evidence presented by the opposing creditor is persuasive and the court orders an absolute discharge.
Conditional – In this type of discharge, there was opposition to the bankruptcy receiving an absolute discharge. The court considered the evidence and concluded that the bankrupt must fulfill one or more conditions before being entitled to a discharge from bankruptcy. More often than not, a conditional discharge includes a certain amount of money the bankrupt must pay to the Trustee for the general benefit of the creditors.
Suspended – A suspended discharge is given when there is opposition to the bankrupt’s discharge and the matter goes to court for a discharge hearing. Based on the evidence, the court believes that the bankrupt, either before or during the bankruptcy estate file administration, has conducted himself or herself in such a way that although a discharge will be given, it should be delayed. The suspension acts to delay the discharge and can be combined with conditions.
Refused – The bankrupt’s discharge is opposed probably by at least the Trustee and probably one or more creditors. There is sufficient evidence before the court that the bankrupt has not lived up to his or her duties and has probably failed to fully cooperate and provide full disclosure to the Trustee. The court, based on the evidence, refuses to consider the bankrupt’s application for discharge until such time as the bankrupt performs all duties and discloses all information.
No order – This is not an actual discharge type, but can be the outcome of a discharge hearing. The court can issue a “no order” instead of a refusal. The facts are probably similar to when the court can issue a refusal. However, in a “no order” situation, the bankrupt remains in bankruptcy but the Trustee is then free to pursue its discharge. Once the Trustee gets its discharge, the bankrupt lose the protection offered by the stay of proceedings. Creditors are then free to pursue all of their rights and remedies against the bankrupt in the enforcement of their trying to collect their respective debts.

When the time comes for the bankrupt to get his or her discharge from bankruptcy, if the Trustee or a creditor opposes, the bankrupt would be well advised to consult with a bankruptcy lawyer in Toronto or elsewhere. The Trustee cannot give an automatic discharge and the matter is going to court for a trial. The bankrupt should get the benefit of legal advice and probably will need to retain the lawyer to provide legal services in representing the bankrupt in court. That is not the job of the Trustee.

Corporate Bankruptcy in Canada – Corporate bankruptcy lawyer in Toronto, Canada – Do you need one to file corporate bankruptcy?

As I will explain, every Canadian corporate insolvency file requires probably several, not just one bankruptcy lawyer in Toronto or elsewhere. Insolvency law is complex and lawyers will help all the parties involved.

The current economic climate in Canada is going to be challenging for Canadian businesses and I expect there will be many financial difficulties. Government COVID-19 support programs are scheduled to end soon. Companies have been tapped out while shut down just trying to stay alive with little or no revenue being earned. Companies will need cash now that it is time to start everything up again. No doubt there will be business casualties.

However, not all businesses are created equal. Some will be able to restructure, some will file for bankruptcy and others will merely shut their doors and fade away.

Among the keystones of a restructuring proceeding under either the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act is the debt workout. The restructuring is designed to maintain the debtor’s business and negotiate a financial debt repayment strategy with its creditors. The aim is to save jobs, allow the company to continue while avoiding bankruptcy liquidation.

Key components of a debt workout normally include debtor-in-possession lending (DIP lending) while the company is reorganizing, new capital for the company coming out of its restructuring and getting unsecured creditors, and possibly secured creditors, to agree to accept less than they are owed. In the very large corporate restructuring files, there are normally lending syndicates due to large and complex lending arrangements. They too will need lawyers to help them with the insolvency law.

If a restructuring proceeding is not possible or does not succeed, then either the company’s secured creditor will begin receivership enforcement proceedings or the company will file an assignment in bankruptcy or a creditor will launch a bankruptcy application to put the company into bankruptcy.

In every corporate insolvency file, legal services are required by all the stakeholders. Canadian counsel plays an important part in providing advice. In the larger files, a large team of lawyers will be needed for both the company and its main creditors. The Board of Directors will need their own independent legal team. The bankruptcy trustee in Toronto will also need a dedicated team of lawyers to help navigate through the formal restructuring in court or help in a court-appointed receivership, private receivership or bankruptcy.

As you can see, in pretty well every corporate file, a bankruptcy lawyer in Toronto or elsewhere is pretty well a must-have requirement. Lawyers will be able to help the company, its Board of Directors, its creditors and the insolvency professional create effective solutions. The best ones will also make sure that they are also practical solutions.

**Other situations where you could need a bankruptcy lawyer in Toronto, Barrie, GTA, or elsewhere**

When looking for a bankruptcy lawyer in Toronto, Barrie, GTA and elsewhere, you want to find one that has substantial experience. Depending on the situation you or your company are involved in, the experience could be in one or more of:

financial reorganizations;
debt reorganizations and debt restructurings;
debtor legal rights and creditor rights;
security enforcement;
forbearance/standstill arrangements;
lender liability suits;
receivership and related matters for banks or other secured lenders, court and privately appointed receivers;
insolvency and bankruptcy litigation or other complex matters; and
acting for receivers and Trustees, debtors, secured creditors, unsecured creditors or any other stakeholder in an insolvency process.

Take Your First Step Towards A Debt Free Life

I hope that you found this bankruptcy lawyer in Toronto Brandon Blog interesting and that you now have a better appreciation for when getting bankruptcy legal advice is necessary. Problems will arise when you are cash-starved and in debt. There are several insolvency processes available to a person or company with too much debt.

If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as alternatives to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline and practical financial advice. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost bankruptcy consultation.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Tags alternatives to bankruptcy, bankrupt's application for discharge, Bankruptcy and Insolvency Act, bankruptcy discharge, bankruptcy filing, bankruptcy lawyer in Toronto, Bankruptcy lawyer in Toronto - Do you need one to file personal bankruptcy?, bankruptcy litigation, bankruptcy trustee in toronto, bankruptcy trustees, barrie, Board of Directors, Canada, Canada - restructuring & insolvency, Canadian counsel, Companies’ Creditors Arrangement Act, company into bankruptcy, complex matters, Consumer Proposal, Corporate Bankruptcy in Canada - Corporate bankruptcy lawyer in Toronto, corporate insolvency, creditor rights, debt restructurings, dedicated team, Division I Proposal, Do You Need a personal bankruptcy lawyer in Toronto to get your bankruptcy discharge?, effective solutions, financial difficulties, GTA, insolvency law, legal advice, legal services, legal team, lender liability suits, lending syndicates, licensed insolvency trustee, licensed insolvency trustee in toronto, practical solutions, restructuring proceeding, team of lawyers, trustees in bankruptcy, unsecured creditors

Brandon Blog Post

SUBPRIME LENDER RESORTS TO BORROWING AT SUBPRIME: CANADIAN MORTGAGE RATES TO MOVE HIGHER?

Post author By Brandon Smith
Post date June 12, 2017

Subprime lender: Introduction

Toronto’s real estate market has changed in May 2017. Many more listings have come onto the market and the Canadian subprime lender mortgage landscape has changed. The regulations for qualifying for a traditional mortgage have tightened significantly. Canadians in ever-increasing numbers have turned to alternative mortgage lenders or subprime lenders. For a higher interest rate subprime lenders give mortgages to people who are higher risk and don’t meet the criteria demanded by traditional financial institutions.

Subprime lender: Now the subprime lender is in trouble

The problems started in July 2015 when Home Capital Group disclosed it had cut ties with 45 mortgage brokers. An internal investigation revealed that certain borrower applications contained false income and employment information to get loans. The Ontario Securities Commission (OSC) alleges that the company broke securities law by making misleading disclosure after the company believed it discovered some brokers had falsified loan applications. All hell broke loose!

Subprime lender: No Capital = No Mortgages = No Business

Alternative mortgage lender Home Capital Group is now in big trouble. Its stock dropped 60% in a single day. A run on deposits have taken them into a deep dive to $391 million from $2 billion. Home Capital’s ability to attract new funding is now seriously in doubt.

Subprime lender: The subprime lender resorts to borrowing at subprime

Home Capital Group has taken out a $2 billion loan from the Healthcare of Ontario Pension Plan. With a 10% interest rate plus other fees and charges, the company is effectively paying 22.5% on the first $1 billion it borrows. This falls to 15% if it uses the full $2 billion available to it, according to Jaeme Gloyn, an analyst at National Bank of Canada. The subprime lender has borrowed at subprime rates so in effect the predator has become the prey!

Subprime lender: How can a subprime lender’s troubles affect you?

Home Capital’s problems have tainted the entire subprime mortgage lending in Canada industry. Stocks of other subprime lenders have also dropped. “Home Capital contagion has spread to the entire mortgage market, in particular, alternative mortgage lenders,” says National Bank of Canada analysts Jaeme Gloyn and Victor Dri.

Home Capital Group won’t be able to continue to fund at the same volume as they have in the past. This means that mortgage brokers and borrowers will approach other subprime lenders. This demand will probably lead to subprime lenders charging even higher interest rates, making mortgages unaffordable to many Canadians. 3bestaward

Subprime lender: What does this mean for the Toronto real estate market?

If fewer people can get mortgages then the entire real estate market is going to feel the crunch. The Canadian financial services industry is much different from that in the USA. Although no one wants to set off alarm bells, what happened to Home Capital Group sounds all too reminiscent of the New Century Bank story in 2007 in the U.S. They too faced a liquidity crunch which eventually left them with no alternative but to declare bankruptcy – a move which set off the 2007-2008 financial crisis.

Is the subprime lender borrowing at subprime rates a warning? We are already seeing the Toronto real estate market slowing. It now resembles a very active market, but not the overheated market of the past year or so. Will it slow down more? Is the Toronto real estate market still a bubble about to burst? Only time will tell.

Subprime lender: Have you borrowed all you can borrow but still need more money to make ends meet?

Buying more house than you can afford is never a good idea. If you’ve bought more house than you can afford or are experiencing serious debt issues for any reason, the Ira Smith Team is here to help. We’re experts in debt, serving companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Give us a call today.

Tags alternative mortgage lenders, canadian mortgage rates, canadian subprime lender, GTA, Home Capital Group, Ira Smith Trustee, mortgage rates, New Century Bank, subprime lender, subprime lenders, subprime lending industry, subprime mortgage lending in canada, subprime rates, toronto real estate, toronto real estate market, toronto real estate market crash