Tag: Ira Smith Trustee

Categories
Brandon Blog Post

DIMINISHED CAR VALUE CLAIM: ARE CAR AND TRUCK DEALERSHIPS FORCING YOU TO CAR LOAN DEBT CONSOLIDATION BECAUSE OF DIMINISHED CAR VALUE

2

Diminished car value claim: Introduction

You need to know just how car and truck manufacturers and dealerships have achieved higher sales in Canada. By forcing a diminished car value claim on you. Everything starts with pitches like this: 112 bi-weekly at 0%, reduced payments extended over a longer time period. Over half of brand-new vehicle loans are for 7 years or longer. This is a huge change from exactly what was the standard for perhaps 5 years.

Diminished car value claim: What is the best term for a car loan?

The very best time period for an auto loan, on average, is no greater than 5 years. If you are the type of person that hangs on to your car for a very long time, then you could also opt for a 7 or 8 year loan. Regardless of your choice, the key is that you have to hang on to your car for at least the length of the loan.

Letting go of your car earlier than when the loan is fully paid off, either through a forced sale, accident write-off or trade-in for a new set of wheels, will cause you to suffer the dangers of negative equity. This will produce a diminished car value claim. Continue reading below as I make the case.

Diminished car value claim: “Oh I could manage that vehicle payment”

Canadians have purchased much more pricey cars and trucks as a result of those reduced monthly payments. The typical customer sees that they believe “Oh I could manage that vehicle payment, I could handle that no worry”. For the vehicle manufacturers and dealers, it is simply an extra means of bringing customers right into the car dealership. They are marketing them something that they actually cannot pay for. It doesn’t take much to produce a diminished car value claim.

Diminished car value claim: A recipe for problems

Seven year financing, “that to me is short-sighted just a recipe for problems” says John Carmichael, Chief Executive Officer of the Ontario Motor Vehicle Industry Council (OMVIC). Salesmen ought to be discussing all the financing choices and the dangers of the financing choices and negative equity. Customers need a lot more information about a diminished car value claim. Thus people can easily get involved in a treadmill of debt.

Diminished car value claim: There is so much negative equity in a car being financed

Let me show you an example of how a diminished car value claim works. Here is a negative equity comparison on a $31,300 car with a 4% interest rate.

Source: Government of Canada, Financial Consumer Agency of Canada

diminished car value
diminished car value claim

This chart highlights 2 vital factors:

  1. With five-year financing, you would not start gathering “favourable or positive equity,” until completion of the 4th year. By comparison, with an eight-year term, you would stay in an adverse or negative equity circumstance up till the 7th year of your financing.
  2. Negative equity has the tendency to be greater in the first 2 years of an auto loan. This is since automobiles drop rapidly in the very first year of use. Thus, a bigger section of each of your payments goes to interest in the very first couple of years.

You can find a diminished car value calculator website online. You can calculate how much negative equity you have in your vehicle for free online.

Diminished car value claim: The economic dangers of negative equity

If something unforeseen occurs and you should have to offer your auto for quick sale, you will probably lose on the loan. What you will be able to sell the car for will be less than what you owe on it. If this were to happen, you would need to have to put your hands on cash to cover your loss, i.e. the difference between the sale price and what you still owe on it.

If you are in an accident and your insurance company tells you that your car is a write-off, the cash you get from the insurer won’t cover what you still owe on your vehicle loan unless you have added insurance policy protection. Then if your insurer decides the current value of your auto is $10,000 however you still owe $16,000 on your financing, you will be required to cover the $6,000 shortage.

If your car is worth less than the amount you owe on your vehicle loan and you trade-in your vehicle at a car dealership to purchase another, you could wind up paying a great deal of extra money. You would spend for the brand-new car and have to cover the amount still owing on the old loan.

All these examples show how you could be forced to part with your car before you planned to. You will be taking on more debt because your vehicle was worth less than the amount of the loan against it. This would amount to a bigger financing and even more interest costs.

This will then snowball to produce a larger negative equity on your new vehicle because you are starting with a loan equal to more than your new car is worth. That is if you can find someone who would even lend on that basis to you. Certainly they would need more than just the new car as collateral.

Diminished car value claim: What to do if you have debt problems

Do you have debt problems, negative equity in your vehicle and zero or not enough equity in your other assets? If so, you need professional help and you need it now. More debt isn’t an answer for you. Don’t seek out a car loan debt consolidation lender.

Contact the Ira Smith Team. We can help you get out of your debt problems. We will put you back on track for debt and stress free living Starting Over, Starting Now. Book an appointment for a free, no obligation consultation today and take the first step to ending the cycle of debt.

diminished car value claim 0
diminished car value claim
Categories
Brandon Blog Post

FINANCIAL SKILLS: FINANCIAL EDUCATION WILL NOW BE PART OF ONTARIO HIGH SCHOOLS

FINANCIAL SKILLS 2
financial skills

Financial skills: Introduction

Schools typically provide a standard curriculum – mathematics, literature, languages, history, geography and the like; but conspicuously absent are any life skills such as a financial education. We have students graduating from high school that know when the Magna Carta was signed, but often with no concept of money. Finally Ontario is going to begin teaching financial skills to high school students.

Financial skills: Why do we need the schools to teach financial literacy?

“Canadians don’t understand the basics,” says Laurie Campbell, CEO of Credit Canada Debt Solutions. Many adults, she says, struggle with simple concepts like spending less than they earn.

As we recently pointed out, Canadians are among the most indebted in the world! A borrowing binge fueled by low-interest rates, is putting many Canadians in a financial danger zone and not setting an example for young people. They’re growing up seeing debt accumulation – not saving and budgeting.

Financial skills: The Investor Education Fund study

An Investor Education Fund study revealed:

  • Only 44% of parents believe their children are ready to manage money
  • Only 39% of high school students feel prepared to manage their finances after high school
  • 84% of parents and 70% of high school students want financial learning in the classroom

Financial skills: Students are looking for financial education

Tricia Barry, executive director of Money School Canada and a former banker, says that students know little more about money than they did five years ago. Ms Barry believes that:

  • By the time school students are in Grade 8 they should have an understanding of the concepts of income, expenses and interest; but they don’t
  • When they graduate from Grade 12, they should have a solid understanding of saving, smart spending, budgeting, borrowing and credit cards; but they don’t

According to Ms Barry, there is a direct correlation between the lack of money management training and the fact that more than 33% of those ranging in age from 18-29 are burdened with a debt of $10,000 or more.

Financial skills: Will all Ontario students be taught financial literacy?

At the moment financial skills courses will be rolled out as pilot projects at 28 high schools for 700 Grade 10 students. After the pilot projects are completed in June 2018, teachers and students will be asked to provide feedback. Based on the feedback provided, a financial skills mandatory careers course will be designed and implemented in the fall of 2018. In addition to financial skills the students will learn entrepreneurship and digital literacy in addition to career and life planning.

Schools need to lead the charge when it comes to financial literacy. As you can see by the alarming statistics of Canadian household debt, we can’t expect our young people to learn good money management skills at home. Knowledge is power and we need to do something to stem the tide of uncontrollable debt.

Financial skills: Do you need help with your debts?

Not only should financial skills be taught in high school but in elementary school as well; and the earlier the better. It’s time to break the cycle of debt while you still have options. Give the Ira Smith Team a call. We’ve got years of experience helping Canadians just like you, get back on track to debt free living. We can help.

3bestaward
financial skills
Categories
Brandon Blog Post

SEARS CANADA NEWS: HOW EDDIE LAMPERT WILL EVENTUALLY DRIVE SEARS HOLDINGS INTO BANKRUPTCY

Sears Canada news: Introduction

The news for Sears Holdings out of the United States is not better than the Sears Canada news. Customers at Sears can’t discover Whirlpool appliances or ladies’ Levi Strauss denim and currently the Wall Street Journal reports they are short on one of the holiday’s hottest toys– the L.O.L. Surprise– because its maker is questioning Sears’ financial wellness.

Sears Canada news: The sad, slow demise of Sears Holdings

Why it matters: Sales at Sears accounted for about 1% of U.S. GDP in the 1960s, however years of competition with big-box stores and online merchants, incorporated with current (mis)management by CEO Eddie Lampert, has whittled down Sears’ financial position extensively.

Sears Canada news: (Mis) management

I put “mis” in brackets because, I am not convinced that Mr. Lampert’s plan was to make Sears a successful retailer. He may have just seen assets with value that he could liquidate to reap financial rewards from until Sears can no longer function as a viable retailer. So what we see today with Sears, may very well have been his management plan all along. (See more on this hypothesis below).

Sears Canada news: The Wall Street Journal article

Currently distributors are minimizing deliveries, tightening funding terms, or declining to work with the merchant completely from concern of being stiffed if Sears is forced into bankruptcy. This is all according to a Wall Street Journal (WSJ) article on October 31, 2017 titled: “Inside the Decline of Sears, the Amazon of the 20th Century”.

Sears Canada news: What the analysts say about Sears Holdings

Bill Dreher covers Sears Holdings for Susquehanna Financial Group. WSJ states that “We see no viable path for Sears to succeed as a retailer,”. He worries that the suppliers are starting to lose confidence in Sears. He also suggests that this is what put Sears subsidiary Kmart into bankruptcy in 2002, when it was an independent company. Lampert took control of Kmart after its bankruptcy and then leveraged its stock to acquire Sears in 2005.

The fraying patience of vendors is clear as reported by the WSJ:

  • LG Electronics and Samsung are demanding money in advance to supply certain products.
  • Sears sued two long time manufacturers of its Craftsman tools brand before this year to keep them shipping product to stores. This is despite the Craftsman brand name was sold by Sears months earlier.
  • Clorox is imposing harder payment terms for its well-known products.

    3bestaward
    sears canada news

Sears Canada news: Sears Holdings CEO

Mr. Lampert’s management style is partly responsible for Sears’ current battles, according to the article. The WSJ reports that Lampert took on a strategy of skimping on investment and upgrades and instead used that cash to buy back Sears shares from certain shareholders.

This approach maintained Sears stock price, until the financial crisis hit. It is no secret that Americans’ preference for online shopping grew significantly, which has negatively affected all brick and mortar retailers. Sears is no exception.

The WSJ articles states that Eddie Lampert doesn’t visit Sears headquarters greater than a pair of times annually. He likewise hardly ever visits stores and favours that top Sears executives do the same. He argues that it is more affordable and more efficient to connect with store managers over videoconference.

Sears Canada news: Sears Holdings continues to cannibalize itself

Sears Holdings has closed unprofitable stores and spun off lines of business. The merchant’s shop footprint has been more than cut in half. Since 2010, the number of Sears locations has dropped from 4,000 stores to 1,250 currently. Sears’ current strategy is to shut a lot more. From 2010 to 2016, its sales have dropped by almost half, from $43.3 billion to $22.1 billion last year.

Sears Canada news: The financials tell the story

Sears had just one quarter of favorable same-store sales growth between 2008 to the 1st quarter of 2017, according information from retail study company Retail Metrics. During that very same time, Sears’ operating income was negative in all but 8 of 37 quarters.

Sears is a laggard in a lagging field. The business has suffered EBIDTA losses, and requires cash for operating expenditures such as:

Sears Canada news: Sears Holdings has fended off bankruptcy; for now!

Sears has been able to fend off default for many years mostly with store closures, staff lay offs, asset sales and loans from Lampert’s hedge fund ESL Investments. In trying to revive sales, Sears has partnered with Amazon to market Kenmore items, tested new store styles and revived its holiday catalogue.

Few traditional stores have actually thrived in this period of online shopping. But Sears, which was at one time one of the most innovative retailers in America, has been left more than most retailers partly due to Lampert’s decisions.

For these reasons, one day I fear that there will be a big Sears clearance. Sears Holdings news out of the United States will be the same one day as what we already know about the Sears Canada news. It is only a matter of time, IMO anyway.

Sears Canada news: It doesn’t need to be your company’s news

If you’re attempting to discover a way to reorganize your firm’s debt, to ensure that you could avoid a Sears situation, call Ira Smith Trustee & Receiver Inc. If we consult with you early, we could develop a restructuring and turnaround strategy. By doing this your business will once again thrive.

Our approach for every person is to develop an outcome where Starting Over, Starting Now takes place. You’re just one telephone call away from taking the important actions to return to leading a healthy, balanced, and stress free life.

Categories
Brandon Blog Post

CANADIAN HOUSEHOLD DEBT CRISIS: CANADIANS ARE DEAF TO NOT HEED WARNINGS AS CANADIAN HOUSEHOLD DEBT LEVELS NOW LEADS THE WORLD

canadian household debt crisisCanadian household debt crisis: Introduction

Canada is known around the world for many things including our hospitality, pristine lakes, beautiful mountains and exciting cities. Unfortunately, because of the Canadian household debt crisis, we’re now becoming known as one of the most indebted countries in the world!

Canadian household debt crisis: The OECD report

A report from the Organization for Economic Co-operation and Development (OECD) shows that:

  • Canadian households top the list of countries surveyed as the most indebted
  • Our household debt has surpassed Canada’s annual Gross Domestic Product (GDP) – it’s now more than 100% of GDP in Canada

Canadian household debt crisis: We are record breakers

We’re breaking other records as well:

Canadian household debt crisis: We have become deaf to all the warnings

We and many other financially responsible organizations and professionals have warned Canadians about the dangers of taking on too much debt. But, Canadians have become deaf to the message. And, borrowing with historically low-interest rates has become downright intoxicating. Sadly, these borrowers aren’t paying any mind to the fact that interest rates may rise which could have serious financial ramifications for many Canadians.

Canadian household debt crisis: It is time to focus on debt repayment and savings

It’s time to rein in the borrowing and focus on saving. Interest rates won’t stay low forever and with nothing saved, how will you pay your bills? Is the thought of retirement nothing more than an elusive dream?

Canadian household debt crisis: What can you do to get back on track financially before disaster strikes?

Canada, let’s stop leading the world in accumulating debt! Listen to the messages out there. The borrowing binge has to stop. Let’s reverse this Canadian household debt crisis.

Please look at your finances and see if you’re living paycheque to paycheque, or are already having trouble paying your bills. If this describes your current situation, you need professional help now!

A professional trustee can solve your financial problems with immediate action and the right plan. The Ira Smith Team has 50+ years of cumulative experience dealing with issues just like the ones that you’re facing. Give us a call today and let us give you back peace of mind Starting Over, Starting Now.3bestaward

Categories
Brandon Blog Post

ONLINE BANKRUPTCY SEARCH: THIS CANADIAN INSOLVENCY RECORDS SEARCH RENEWAL (IRS) WON’T CHASE YOU FOR MONEY!

2

Online bankruptcy search: Introduction

This blog is about the Canadian government’s plan to update its online bankruptcy search function. It is an update to our November 15, 2017 Brandon’s Blog titled: “BANKRUPTCY FILINGS FREE PUBLIC RECORDS: WILL FREE SEARCHES TURN YOU INTO A PERSONAL BANKRUPTCY RECORDS SLEUTH FOR THE TRUTH”.

As you can imagine, I have a schedule for creating Brandon’s Blog. I created the above-mentioned blog and related video on the Office of the Superintendent of Bankruptcy (OSB) insolvency records search renewal (IRS) program and posted it for publishing on November 15. After doing so, the OSB published an update on its IRS program. The purpose of this blog is to give you the updated information.

The OSB November 2017 update offers more information about the IRS post it published in August 2017.

Online bankruptcy search: Updating the technology

The OSB has stated that its updated IRS system will consist of modern-day safeguards. The new IRS will secure the private information of people or companies who have either filed or become bankrupt or who have filed a consumer proposal or Division I proposal.

Online bankruptcy search: The legislative need

Under the Bankruptcy and Insolvency Act (BIA), the Superintendent of Bankruptcy is required to keep and make available a public document of all personal and corporate bankruptcies and proposals. The public document, includes the names of the insolvent debtors given statutory stay of proceedings from the commitment to pay their financial debts.

This record consists of vital information needed to administer the bankruptcy system. It is also important for the running of an efficient and well-functioning Canadian marketplace.

Online bankruptcy search: The purpose of the current system

The current Bankruptcy and Insolvency Records Search data source offers Canadians with access to search the public database for specific people or companies that have submitted a (consumer) proposal or bankruptcy, as the case may be. It is also for creditors to see if any party applying for credit are in an insolvency proceeding.

Online bankruptcy search: Uses of the current system

The OSB’s database allows for searches for:

  • creditors to take necessary activity with respect to specific insolvency filings;
  • insolvent debtors, either an individual or Directors of a company, to acquire information about their bankruptcy or proposal;
  • Licensed Insolvency Trustees (LIT) to properly administer insolvency estates;
  • people and companies making informed credit choices on people or organizations applying for loans or trade credit.

Online bankruptcy search: How many times a year is the current system searched?

Each year the current database, (which has a cost of $8 each search for public users), is searched about 800,000 times by individual Canadians, including LITs (for whom there is no charge). Any member of the public who pays the charge could browse the government insolvency records. The present system does not limit access in any other way.

Online bankruptcy search: The proposed new IRS

The OSB will be changing the current system. It is outdated by today’s privacy standards. The OSB will create a new IRS. While still attending to the legislative needs to give access to a public document of bankruptcies, it will substantially make individual information of debtors more secure.

As compared to the old system, the IRS will consist of many steps developed to particularly restrict the disclosure and use of the individual’s details of the debtors who file for an insolvency proceeding.

3bestaward
online bankruptcy search

Online bankruptcy search: New IRS protections

Examples of the brand-new protections which are not available in the current system, to shield disclosure of individual information, are:

  • Individual information entered will just be confirmed, not offered in a search result.
  • Searchers will need to recognize the first, last name, as well as date of birth of a debtor. This is required to get verification of an individual in bankruptcy or who has filed a (consumer) proposal.
  • The new system will no longer supply access to bankrupts’ documents that do not match the search requirements. The new IRS will be search specific, and not providing a complete list of names matching search criteria.
  • For every right search, a decreased measure of individual information will certainly be returned in the public search results page. Home addresses and complete postal codes will no longer be included in search results.
  • The public document search retention will be lower. The duration for the storage of details will be 10 years post-discharge.
  • The new system will consist of innovations designed to decrease the possibility for unexpected uses of the information. For example, machine-based searches.

Online bankruptcy search: Meeting the needs of LITs

The OSB has talked to the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) as part of developing the IRS. The OSB has dealt with comments received thus far. The IRS layout will certainly make best use of technology to protect personal information. The new system will fulfill the specific needs of LITs, in meeting their insolvency estate management and legal requirements.

It must be kept in mind that the OSB has no plan to remove the $8 charge from the current system before its being retired. The first introduction of the fee was designed exclusively to sustain the OSB’s operating expenses in developing and keeping the existing system.

The new IRS will consist of many measures to appropriately reduce disclosure and increase the defense of personal information of debtors. The OSB says that it has no proof that a service charge with the brand-new IRS would better safeguard debtor information against improper use.

Online bankruptcy search: This IRS won’t chase you for money!

As a result, the OSB says it will look at and suggest getting rid of the historic governing arrangement which permitted the charging of a cost to get access to the public record. The OSB states that this will align with Treasury Board Policy. That is why this IRS, is not planning to ever chase you for money!

Online bankruptcy search: What to do if you think you might need an insolvency process

Are you or your company insolvent and in need of restructuring? Are you scared to become another entry in an online bankruptcy search? If so, the worst thing you can do is procrastinate and not take positive steps to remedy your situation. Contact the Ira Smith Trustee & Receiver Team. If we meet with you early on, we can create a restructuring and turnaround strategy designed specifically for you.

online bankruptcy search 1
online bankruptcy search
Categories
Brandon Blog Post

ENOUGH MONEY IN RETIREMENT: HOW CAN YOU BE WORTH OVER A MILLION DOLLARS &WORRY ABOUT BEING BROKE

retirement security starts at home
enough money in retirement

Enough money in retirement: Introduction

For most Canadians the thought of being worth over a million dollars is a totally unattainable dream. Yet, there are now almost 357,000 Canadians with at least $1 million in wealth, not including their primary home (Capgemini). And, as difficult as it is to believe, some of these millionaires worry about being broke. They worry about having enough money in retirement. The reality is that they may have reason for concern.

Enough money in retirement: What do the ultra rich worry about?

  • 20% of ultra-high-net-worth investors (defined as those with a net worth between $5 million and $25 million), are concerned about having enough cash to last throughout retirement. (a 2017 survey by the Illinois-based Spectrem Group, a financial research firm).
  • People feel angst about running out of money in retirement whether they have $1 million, $10 million or $50 million”, says Gordon Stockman, a fee-only financial planner and principal of Efficient Wealth Management Inc. in Mississauga.

Enough money in retirement: Why do the rich worry about running out of money?

The rich have very expensive lifestyles to maintain. They’re used to the finest things in life – mansions, vacation homes, household staff, exotic cars, first class travel, designer clothes – and they don’t want to give anything up. But, how will they be able to maintain these fabulous lifestyles for what could be a 25 – 30 year retirement? Something’s got to give.

Enough money in retirement: Is it possible to be worth over a million dollars and go broke?

Unfortunately, although difficult to believe, yes it is. There are examples in the news every day about actors, actresses and professional athletes who earn unimaginable amounts of money, and declare bankruptcy. It also happens to doctors, lawyers and other “regular rich folk” who lost track of their spending and blew through their money. It can happen to anyone. Very few people are rich enough to be immune from money problems.

Enough money in retirement: What about you?

No matter how much money you have, take a good hard look and your finances. And if you find yourself in a financial danger zone, contact Ira Smith Trustee & Receiver Inc. We’re a full service insolvency and financial restructuring practice serving companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Your financial problems can be solved with immediate action and the right plan. Give us a call today.

3bestaward
enough money in retirement

 

 

 

Categories
Brandon Blog Post

BANKRUPTCY FILINGS FREE PUBLIC RECORDS: WILL FREE SEARCHES TURN YOU INTO A PERSONAL BANKRUPTCY RECORDS SLEUTH FOR THE TRUTH

2

After writing and recording this blog, the Office of the Superintendent of Bankruptcy issued a position paper on measures to limit public disclosure of personal information while meeting legislative requirements to establish a public record. So watch next week for our video and blog titled “ONLINE BANKRUPTCY SEARCH: THIS CANADIAN INSOLVENCY RECORDS SEARCH RENEWAL (IRS) WON’T CHASE YOU FOR MONEY!” where we will describe what they have advised to date.

Bankruptcy filings free public records: Introduction

Ottawa’s planning to drop the $8 online search cost for personal bankruptcy records. The change to bankruptcy filings free public records may make it harder for some people. Especially those with earlier economic problems to get a job or a home.

Bankruptcy filings free public records: No cost personal bankruptcy records search

The Office of the Superintendent of Bankruptcy Canada is updating its online bankruptcy document search that allows users to get access to public documents on bankruptcy estates. Their database allows users to search online for bankruptcies as well as receiverships. The have not explained yet why they are considering dropping the search cost so that the information becomes bankruptcy filings free public records.

Bankruptcy filings free public records: Why does a licensed insolvency trustee need to search for bankruptcy filings

A licensed insolvency trustee (LIT) maintains an account with the Superintendent of Bankruptcy. A LIT is allowed to do a bankruptcy search through its account for free. The bankruptcy system requires a LIT, prior to accepting either a personal bankruptcy or consumer proposal file, to do such a search.

The reason is that a LIT is required to find if the person considering filing has ever used the Canadian insolvency system before. If they have, what were the circumstances and what was the outcome?

This is important because one aim of the Canadian insolvency system is rehabilitating the honest but unfortunate debtor. For the person who is currently in financial trouble, the LIT must understand past problems, if any. The LIT must also find if the current problems are a result of the same behaviour and reasons as in the past or something different.

The LIT then has a duty to take all these factors into consideration when advising the person what their options are and the recommendations the LIT will make.


Bankruptcy filings free public records: Who else normally searches bankruptcy filings public records?

Right now, for $8 per search, employers, property owners, marketers or just meddlesome neighbors can conveniently access minimal information about an applicant’s, occupant’s or neighbour’s bankruptcy data. This will allow them to make assumptions about that person’s financial problems, credit worthiness or even trustworthiness.

The problem in doing so is that it is without proper context. If the federal government eliminates the $8 search fee, personal bankruptcy records can be searched for free.

Bankruptcy filings free public records: Reasons for personal bankruptcy

There can be many reasons why a person filed either a consumer proposal or for bankruptcy; divorce, illness, accident or plain overspending are just a few of the possibilities.

Bankruptcy filings free public records: What will personal bankruptcy case records search show us?

A search only tells the:

  • date when the specific person filed for bankruptcy or the consumer proposal;
  • overall worth of their assets and obligations;
  • name of the LIT;
  • whether they successfully completed their consumer proposal or obtained their absolute discharge from bankruptcy; and
  • discharge date of the LIT.
    3bestaward
    bankruptcy filings free public records


Bankruptcy filings free public records: Will this change to find personal bankruptcy records mean anything really?

The $8 cost likely limits random searches. A potential employer or landlord will not be deterred by this cost, but a nosy neighbour will be. This charge therefore provides some small security to personal information.

I believe the federal government earns about $4 million a year in bankruptcy search fees. That $4 million annually is a rounding error in terms of the size of the federal government’s budget.

However, in times where our Prime Minister Trudeau and our Finance Minister Morneau are looking to increase revenue, why give away $4 million? The government could use some of that money to give financial education to Canadians.

For the reasons I stated above, I doubt dropping the $8 search fee will increase the number of searches. You still have to know how to do the search. Nosy neighbours probably won’t spend the time to learn.

Equifax and TransUnion pay the Superintendent of Bankruptcy to get access to the bankruptcy search records. Therefore, the bankruptcy or consumer proposal information is available, if granted authorization, by obtaining a person’s credit report.

The Superintendent of Bankruptcy stated it will certainly protect the documents from trolling marketers. Exactly how they will do this has not been described. They also have not yet made public the date the searches will start to be free.

If you have actually been declined for a loan through a normal lender, then that is a signal that you have debt concerns that have to be handled.
Contact Ira Smith Trustee & Receiver Inc. today. We are professional trustees. As such, the Canadian government licenses and supervises us. First, we will assess your situation and help you to come to the very best possible solution for your troubles.

When you come to us for your free consultation, we first check and figure out with you if one of the bankruptcy alternative choices is best for you. These include credit counselling, debt consolidation or a consumer proposal. If none of those options are available to you, only then will we discuss the bankruptcy route. Starting Over, Starting Now we can help recover you to financial health.

After writing and recording this blog, the Office of the Superintendent of Bankruptcy issued a position paper on measures to limit public disclosure of personal information while meeting legislative requirements to establish a public record. So watch next week for our video and blog titled “ONLINE BANKRUPTCY SEARCH: THIS CANADIAN INSOLVENCY RECORDS SEARCH RENEWAL (IRS) WON’T CHASE YOU FOR MONEY!” where we will describe what they have advised to date.

BANKRUPTCY FILINGS FREE PUBLIC RECORDS 0
bankruptcy filings free personal records
Categories
Brandon Blog Post

INTEREST RATES IN CANADA: ARE YOU WORRIED THAT HIGHER INTEREST RATES WILL CAUSE YOU UNDUE FINANCIAL HARDSHIP POSSIBLY CAUSING BANKRUPTCY

bank interest rates canada

Interest rates: Introduction

Canadians have been on a borrowing binge due in large part to very low rates. But, the tide is beginning to change and interest rates, although still low, are beginning to creep up. This rise in rates is making many Canadians very nervous. For some, it could cause serious financial hardship.

Interest rates: The threat of rising interest rates

Forum Research Inc. conducted a survey after the Bank of Canada raised rates in September and the results are quite interesting:

  • 60% of young people are at least somewhat concerned by the prospect of rising rates
  • Over 50% of Canadians think that rising rates will negatively impact their personal finances
  • 35% of Millennials aged 18 to 34 have no savings at all
  • Only 26% have an emergency fund
  • 12% expressed concern that more rate hikes were on the way and that the impact would be extremely negative

Interest rates: “It was almost like money was free”

In theory, higher interest rates should provide an incentive for Canadians to save more, but the long period with low rates have taken their toll on many. “Rates were so low for so long, it was almost like money was free,” said Forum Research president Lorne Bozinoff in an interview. “Some may have overextended themselves during that time, thinking rates will never go up.”

Interest rates: How will you cope with higher interest rates?

The question now is how will Canadians cope with higher rates? “Some households might not be able to afford an increase,” says Frances Donald, senior economist with Manulife Asset Management. “And this is where we can see defaults, first on auto loans and then on housing.”

Interest rates: Are you worried about defaulting?

Are you worried about defaulting on your loans or mortgage? Are higher rates causing you financial hardship? There’s no time to waste. Contact Ira Smith Trustee & Receiver Inc. today.

We approach every file with the attitude that your financial problems can be solved given immediate action and the right plan. Together we will explore with you all the bankruptcy alternatives available to you. I know that we can help you get back on solid financial footing, the same way we have helped many others just like you, Starting Over, Starting Now.3bestaward

Categories
Brandon Blog Post

FILING FOR BANKRUPTCY PROTECTION: THE WEINSTEIN COMPANY RETAINS ATTORNEYS

Filing for bankruptcy protection: Introduction

As claims against Harvey Weinstein transform from a few into an avalanche, several of the loan providers backing his named firm have actually started speaking to bankruptcy advisors about filing for bankruptcy protection, say sources knowledgeable about the issue. They are concerned that The Weinstein Company (TWC) may be filing for bankruptcy protection. Why do you ask? I will explain below.

Everyone is lawyering up

A team of The Weinstein Company’s financial institution loan providers have involved restructuring lawyers from Sidley Austin to work as advisors in case of a filing for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. They have actually likewise held pitches to work with an economic consultant to give calculated restructuring guidance.

TWC has retained the law office of O’Melveny & Myers, while Moelis & Company is acting as an economic consultant to the board. The firm has involved FTI Consulting, a financial advisory and restructuring firm.

3bestaward
filing for bankruptcy protection

Can The Weinstein Company borrow any more?

TWC has actually been attempting to raise money. It has also tried to offer itself totally to a brand-new financier. Talks have not yet produced a deal. Also if it locates a purchaser, a sale might have to be applied in the context of a bankruptcy, to “clean” the assets from the mounting claims against TWC.

What are its chances of a successful restructuring?

The Weinstein Company has long shot of restructuring, however, filing for bankruptcy protection would certainly provide possible purchasers with the chance to buy its movie collection and other assets free from the claims against both Harvey Weinstein and TWC.

TWC might use bankruptcy court-approved public auctions to discover purchasers and after that make use of those sale proceeds to establish a fund against which claims can be made and sorted out by the bankruptcy trustee. TWC is certainly going to meet claims over its failure to stop Harvey’s transgressions.

Is The Weinstein Company brand too toxic for it to survive?

TWC has borrowed millions of dollars in the last few years. It now faces the real possibility that its now-toxic brand name will materially influence future company chances of survival in the longer term. The cases associated with Weinstein’s alleged sex-related criminal offences will probably result in adverse annual report reporting obligations. This will further worry TWC’s lenders.

Filing for bankruptcy protection: Watch for all the lawsuits – even the ones not involving sex!

Harvey Weinstein has actually currently filed a claim against the business, looking for accessibility to his earlier company e-mail account to strengthen his defence against the sexual harassment claims against him. A bankruptcy would likely leave behind just a shadow of the firm that might really well have no choice but to file a claim against Harvey Weinstein for sinking the company. In other words, what we have here is The Weinstein Company horror movie.

Filing for bankruptcy protection: Does your company have too much debt?

Is your company insolvent and needs to restructure? Is your business viable but can only employ people and carry on business if it can restructure its debt? Contact the Ira Smith Trustee & Receiver Team. If we meet with you early on, we can create a restructuring and turnaround strategy. That way your company won’t have to be like The Weinstein Company.

filing for bankruptcy protection

Categories
Brandon Blog Post

EMERGENCY FUND SAVINGS STRATEGY: ARE YOU SPLURGING INSTEAD OF SAVING?

emergency fund savings strategy
emergency fund savings strategy

Emergency fund savings strategy: Introduction

All of the financial experts stress the importance of saving, and they’re right. We’ve frequently blogged about it. We have also talked about the need to maintain an emergency fund savings strategy. Saving creates a solid foundation for living and for securing a comfortable retirement. In fact saving can even be taught to pre-school aged children.

Emergency fund savings strategy: Angus Reid Forum and Capital One survey

Sadly all this talk seems to be falling on deaf ears. According to a survey conducted by the Angus Reid Forum and Capital One, 33% of Canadians admit they don’t put anything into their savings on a monthly basis. And, instead of saving, they’re splurging on non-essentials.

Emergency fund savings strategy: What are Canadians splurging on?

The Angus Reid Forum and Capital One survey found that Canadians seem to really enjoy indulging themselves. And the amount of money they spend on these non-essentials really adds up.

  • 72% dine out several times/month
  • 71% regularly order takeout
  • 50% buy daily coffees
  • 44% are online shoppers
  • 33% indulge in clothing purchases
  • 23% spend on beauty services

Emergency fund savings strategy: Why is it so easy to splurge?

We now live in an almost cashless society. “It’s easier than ever to order in, hail a ride and shop online without ever opening your wallet, but you can lose sight of where your money is going if you’re not careful,” Capital One Canada CEO Brent Reynolds said in a news release. Years ago it was easy to keep track of what you spent because every time you made a purchase you had to pay with cash; if you didn’t have the cash, you didn’t make the purchase.

Emergency fund savings strategy: How can you get back on track if you’ve been overindulging?

There’s nothing wrong with splurging once in a while, as long as you’re saving. Make a budget and stick to it. Save before you splurge. Create an emergency fund for unexpected expenses or changes in your employment situation. Have a plan for your retirement.

Emergency fund savings strategy: Do you have too much debt?

If you’ve really overindulged and you’re at the stage where you can’t make your monthly payments, you need professional help; and you need it now. Contact a professional trustee.

The Ira Smith Team has a cumulative 50+ years of experience helping people who are facing a financial crisis and we deliver the highest quality of professional service. Make an appointment for a free, no obligation appointment today and Starting Over, Starting Now you’ll take your first steps towards financial freedom.

3bestaward
emergency fund savings strategy
Call a Trustee Now!