Tag: Ira Smith Trustee

#VIDEO-STUDENT DEBT: HOW TUITION COSTS AND DEBT NEGATIVELY AFFECTS US#

Post author By Brandon Smith
Post date September 7, 2016

STUDENT DEBT: HOW TUITION COSTS AND DEBT NEGATIVELY AFFECTS US

Student debt: The times have changed already!

Times have changed so much for university graduates and unfortunately, student debt counselling has not kept pace with today’s reality. Students graduate with various student loans and varying amounts of debt. The theory is that graduates will get a well-paying job in their chosen field upon graduation, allowing them to work and to repay their student loan debt.

Our previous student debt counselling and student loans blogs and vlogs

Student loan debt is such a serious issue that we’ve written a series of blogs and vlogs on the subject:

Student debt: What can today’s graduates expect?

However, in today’s world, their job searching may result in them not getting immediately into their field at the salary they anticipated. It may be the case that graduates may have to do a couple of different part-time jobs, may start being underemployed and in some cases, starting out interning and being in their chosen field but not being paid at all. This will put immense pressure on the new graduate who needs to start repaying debt in addition to normal living expenses.

Student debt: How much of a problem is it really?

Post-secondary education is effectively a need to succeed in today’s labour market. Unfortunately, while the demand for education has increased, public funding has failed to keep up.

According to the Canadian Federation of Students, public funding shortfalls have resulted in a significant growth of costs that students must now bear, namely in the form of high tuition fees. From 1990 to 2014, national average tuition fees have seen an inflation-adjusted increase of over 155%. In Ontario, tuition fees have increased over 180%.

They also state that students who receive funding through the Canada Student Loans Program (CSLP) are graduating with an average student loan debt of $28,495. This is only student loan debt and doesn’t include any other borrowings for living expenses if the student is living away from home. The impact of Canada student loan debt is that today’s students are the most indebted generation in Canadian history. They can certainly use student debt counselling.

Student debt: We need more than just counselling

Although financial counselling should begin at home at a very young age, and be reinforced through teachings at the high school level, more than debt management lessons are required. We need our provincial and federal governments to take the lead. There needs to be an easing of the burden on graduates. Graduates with high student loan debt show signs of poor mental health in early adulthood. This certainly must impact their work performance and is not healthy for Canadian society.

Our governments need to look seriously at the public funding model for post-secondary school education. It is not helping Canadians to allow them to incur high student debt for fields of study where the job prospects, and the prospect of being able to repay the loans, are dim. It does not help Canadian graduates to have them under so much pressure to repay loans after graduation – perhaps there needs to be federal government intervention to ease the repayment program. In this way graduates can have the necessary time to get their employment, contribute to Canadian society, pay income taxes AND repay student loans.

These are just but a few simple ideas. I am sure that you can come up with many more and I would love to hear about them.

Are you in need of student debt counselling or credit or debt counselling in general?

No matter the cause of your serious debt issues, The Ira Smith Team is here to help. Debt is not insurmountable; there are always options. With proper counselling, immediate action and a solid plan, we can help get your life back on track Starting Over, Starting Now. Our trustees are also certified in credit counselling. Give us a call today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags average student loan debt, canada student loans program, canadian federation of students, CSLP, debt counselling, debt management lessons, financial counselling, Ira Smith Trustee, student debt, student debt counselling, student loan debt, student loans debt

Brandon Blog Post

8 TIPS TO BEAT HIGH BACK TO SCHOOL COSTS

Post author By Brandon Smith
Post date September 5, 2016

Back to school is a gold mine for retailers

Back to school is the second busiest retail time of the year, second only to Christmas. We’ve all seen the commercials with happy families skipping up and down stores aisles filling up shopping carts with knapsacks, lunch boxes, note books, pencils, pens, etc. Unfortunately this happy picture is not indicative of many Canadian families for who back to school is a terrible financial burden.

What RetailMeNot.ca says about back to school

92% of Canadians agree that purchasing back to school items can be a financial burden on families
91% believe that back to school shopping is becoming more expensive year after year
This year, Canadian parents are expecting to spend an average of $472 on their child for back to school shopping, $143 more than what they expected to spend last year ($329)
University students are the most expensive to shop for with those parents expecting to spend $1,630, compared to $412 for high school students and $318 for elementary

8 Tips for beating the financial stress of back to school

Only buy what you need. Reuse items when possible. If the knapsacks and lunch boxes are still good from last year, reuse them. The same goes for pens, pencils and other school supplies.
Hand down clothing or do a clothing exchange with your friends. It’s a common sense way to save money.
Create a budget and stick to it. We can’t stress enough the importance of a budget to maintain control of your finances.
Search for the best prices: Don’t just walk into a store and pay full retail price. Search online, look for coupons and promo codes and wait for sales.
Shop any time of year you find a sale and put the items away for back to school. Shop the Boxing Day sales or Thanksgiving Day sales and put away the clothes, shoes, knapsacks, etc. for back to school. It’s a great way to save money.
Designer brands are not a necessity. Although many parents feel pressured into buying the latest designer brand for their kids, it’s not worth going into debt for.
Go shopping with a friend and split bulk purchases. Buying in bulk is not always cost-effective for a single family but if you can split a bulk buy with a friend you may be able to save a considerable amount of money.
Pay with cash. When you shop with a credit card it’s easy to lose track of your spending and then next month you’ll get a bill that you can’t pay.

What to do if you have too much debt and back to school costs will put you over the edge

If back to school is a financial burden, then you need help from a debt professional now before your situation becomes critical. The Ira Smith Team is here to help. Meet with us for a free consultation. We’ll evaluate your situation and come up with a solid financial plan so that Starting Over, Starting Now you can be well on your way to conquering debt.

Tags back to school, credit card, Debt, debt professional, financial burden budget, financial stress of back to school, Ira Smith Trustee

Brandon Blog Post

COMPANY WENT BANKRUPT AND DIDN’T PAY ME WAGES: IT DOESN’T HAVE TO BE HARD

Post author By Brandon Smith
Post date August 31, 2016

Previous blogs for the company went bankrupt

The issue of the company went bankrupt and didn’t pay me wages is not a new one. We previously wrote two blogs on this topic:

We have noticed a surge of renewed interest in this topic based on recent activity from readers of our Brandon’s Blog, so, we thought it would be a good idea to put together a short video on this topic.

People ask us what if the company didn’t pay me wages?

We answer if wages are owed by your employer because the employer went bankrupt with unpaid employees or is in receivership don’t despair; there is hope for you to recuperate monies owed to you. The Wage Earner Protection Program (“WEPP”) Act – WEPPA – in conjunction with an amendment to the Bankruptcy and Insolvency Act (Canada) – BIA – created a mechanism for employees to be compensated for claims of unpaid wages, commissions and vacation pay accrued in the six months preceding the employer files for bankruptcy or being placed in receivership and wages are owed to you along with claims for unpaid termination and/or severance pay.

Are there any exceptions? What are the rules?

There are a few exceptions to the company went bankrupt and didn’t pay me wages. You are generally not eligible if, during the period for which your wages are owed to you by your employer, you:

were an officer or a director of your former employer
had a controlling interest in the business of your former employer
were a manager whose responsibilities included making binding financial decisions impacting the business of your former employer, and/or making binding decisions on the payment or non-payment of wages by your former employer

Who is eligible for the WEPP? You may apply if wages are owed to you by your employer and:

your former employer has filed for bankruptcy or is subject to a receivership
wages are owed to you by your employer, vacation pay, termination or severance pay from your former employer
amounts earned during the eligibility period or, in the case of termination or severance pay, your employment was terminated during the eligibility period ending on the date of bankruptcy or receivership

One more very important exception – it only applies if wages are owed to you by your employer and your employer is in either receivership or bankruptcy and owes you wages. If your employer is attempting a corporate restructuring under a Notice of Intention to Make a Proposal, a Division I Proposal or the Companies’ Creditors Arrangement Act, then WEPPA and its provisions do not come into play.

Claim limits when the company went bankrupt and didn’t pay me wages

Regardless of the total amount owing to you, the maximum any employee can receive under WEPPA is the greater of $3,200 or four times the maximum weekly insurable earnings under the Employment Insurance Act (which is now around $3,900).

Once employees file claims with both the Trustee/Receiver and Service Canada, Service Canada pays their claims for owed wages by the employer and Service Canada becomes the creditor. The amendment to the BIA has recognized WEPPA and created a priority charge that supersedes all secured charges except CRA’s deemed trust claim (and the reclaiming rights of farmers and suppliers) to a max of $2,000 per employee, secured against current assets.

Documentation needed if the company went bankrupt and didn’t pay me wages

While no one wants – or expects – to be part of a receivership or bankruptcy, you should always keep detailed records of hours worked for any pay period. On any occasion when you discover there will be no paycheque, record the loss that you will suffer, such as not being able to pay bills or buy groceries. Ask for a formal explanation from your employer and keep detailed notes on your efforts. It’s important to prove that when owed wages by an employer; you still expect to be paid, even if it’s late.

If your employer is in receivership or bankruptcy proceedings, and you believe you have a claim for owed wages by the employer, find the trustee and get in touch with Service Canada. Have your records ready and make sure you get your Proof of Claim.

What should I do if I have too much debt and the company went bankrupt and didn’t pay me wages?

This is an important issue. If you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We’re here to find what your bankruptcy options are, put your financial house back in order and set you on a path to debt free-living. You’ll be amazed at the difference one phone call to Ira Smith Trustee & Receiver Inc. can make.

Contact us today. We are a licensed trustee and will listen to your issues and offer compassionate, professional assistance to aid you to avoid bankruptcy, so that you can regain control of your life, Starting Over, Starting Now.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags Bankruptcy, Bankruptcy and Insolvency Act, CCAA, company went bankrupt and didn’t pay me wages, Ira Smith Trustee, proposal, receivership, restructuring, salary, starting over starting now, Wage Earner Protection Program, Wage Earner Protection Program Act, wages, WEPP, WEPPA

Brandon Blog Post

GTA VAUGHAN BANKRUPTCY TRUSTEE: BANKRUPTCY AND DIVORCE FINANCIAL SOLUTIONS

Post author By Brandon Smith
Post date August 29, 2016

Introduction to bankruptcy and divorce from a Vaughan licensed insolvency trustee (“GTA Vaughan bankruptcy trustee”)

As a GTA Vaughan bankruptcy trustee, I’ve never met anyone who had something good to say about bankruptcy and divorce. At times both are a necessary evil, but it’s never fun. Although divorce has been the butt of jokes by comedians for decades, it’s no laughing matter, especially financially.

This quote may be more telling than funny:

Let’s be blunt: If you hire a divorce lawyer today, there is a good chance you will hire a bankruptcy lawyer within two or three years.

Gene Meyer

GTA Vaughan bankruptcy trustee discusses debt issues and divorce financial solutions

When couples decide to divorce, few have any idea of what the split is really going to cost and what each party will be left with after the divorce. The goal of divorce and the divorce process and results are two very different things. Here’s the reality of most Canadians’ financial situations:

The debt-to-disposable income ratio was 165.3% for the first three months of 2016 (Statistics Canada)
Households owe $1.65 in debt for every dollar of disposable income they have (Statistics Canada)
Total household debt, which includes consumer credit, and mortgage and non-mortgage loans, totalled $1.933 trillion at the end of the first quarter (Statistics Canada)
Balances on consumer loans including credit cards and lines of credit grew by 2.6% year-over-year, driven primarily by the continued popularity of lines of credit and auto loans (RBC)
Mortgage loan balances were up 6.2% from the same quarter of the prior year (RBC)
The average Canadian owed $21,580 in non-mortgage debt during the most recent quarter (TransUnion)

Many Canadians are already teetering on the edge of financial disaster without throwing divorce into the mix. Even if you have an amicable divorce, the cost of an uncontested divorce ranges from $1,000 to $3,500, according to a 2015 Canadian Lawyer’s legal fees survey. If your divorce gets messy the fees can be astronomical. Living two separate lives costs a lot more than living together as a couple. Do you have a clear understanding of what your monthly expenses are? Do you have a budget? These are just some of the divorce financial solutions that as a Vaughan bankruptcy trustee we recommend to people that they have to know about it beforehand.

What can I do if I have too much debt – divorce or no divorce?

Whether you live in the GTA or elsewhere, take the advice of a GTA Vaughan bankruptcy trustee and get your financial house in order before you begin divorce proceedings or you may be looking at bankruptcy and divorce or bankruptcy alternatives down the road. Contact the Ira Smith Team for advice and a solid plan to deal with serious debt issues. We will give you a free first consultation to discuss your options and we can help you get out of debt Starting Over, Starting Now.

Tags Bankruptcy, bankruptcy alternatives, bankruptcy and divorce, budget, consumer credit, divorce, divorce financial solutions, gta bankruptcy trustee, gta vaughan bankruptcy trustee, household debt, Ira Smith Trustee, Lines of Credit, starting over starting now, Toronto bankruptcy trustee, trustee, vaughan bankruptcy trustee

Brandon Blog Post

#VIDEO-HOW TO HANDLE EVERY CHAPTER 13 BANKRUPTCY CANADA CHALLENGE WITH EASE USING THESE TIPS#

Post author By Brandon Smith
Post date August 24, 2016

Is there such a thing as chapter 13 bankruptcy Canada?

In Canada, we don’t have something called chapter 13 bankruptcy Canada. A chapter 13 bankruptcy is part of the United States Bankruptcy Code. It is also called a wage earner’s plan. It allows people with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

We don’t have chapter 13 bankruptcy Canada. The equal in Canada is a consumer proposal. It is a bankruptcy alternative used to avoid bankruptcy by a debtor who is an individual who in total (excluding any mortgages registered against his or her home) owes $250,000 or less.

How does our chapter 13 bankruptcy Canada provisions work?

A consumer proposal is making a formal offer under the Bankruptcy and Insolvency Act (Canada) (“BIA”) to creditors to settle debts under conditions other than the original terms, for less than the face value of the debts. The maximum length of time that a debtor is given to make monthly payments under a consumer proposal is 60 months.

So rather than it being called chapter 13 bankruptcy Canada, we call it a consumer proposal. If you owe more than $250,000, then an individual can use the proposal provisions used by companies. Either way, it is a creative use for people with large debts to do what is commonly referred to a “restructuring” or “reorganization”, thereby avoiding bankruptcy.

There used to be no provision available to small individual debtors in the BIA. Parliament wished to find a way to offer for these smaller consumer debtors to have a restructuring alternative. So, after consultation with the stakeholders in the Canadian insolvency world, in the 1990’s, the consumer proposal legislation was enacted. It was a way for Canada to get a chapter 13 bankruptcy Canada like provision.

Our chapter 13 bankruptcy Canada like provisions allow you to avoid bankruptcy

Now, the consumer proposal provisions for consumer debtors are used more than the consumer bankruptcy provisions of the BIA. So Canadians are now AVOIDING bankruptcy more while still obtaining the help and counseling of a licensed insolvency trustee. So as you can see, our consumer proposal provisions are just like a chapter 13 bankruptcy Canada statute.

The main use of the (consumer) proposal provisions of the BIA is to allow you as a debtor to keep your assets, if you can afford to in your budget, AVOID bankruptcy, and give a better alternative to your creditors than a bankruptcy would. In this way, you are allowed to be relieved of your debts, for an amount less than the total face value of all of your debts.

When is it best to use the chapter 13 bankruptcy Canada like provisions?

It is best used when you have extra income and can afford to pay back some debts if the рауmеnt plan is structured properly, but not enough income to pay back all of your debts, especially with penalties and interest!

What can I do if I have too much debt but wish to find out more about chapter 13 bankruptcy Canada?

We hope that knowing these tips will better equip you to navigate the chapter 13 bankruptcy Canada challenge. If you have too much debt, but after viewing this video wish to avoid bankruptcy but you are unable to pay your debts in full, this may be just the ѕесrеt you need to know!

We’re here to find what your bankruptcy options are, put your financial house back in order and set you on a path to debt free-living Starting Over, Starting Now. You’ll be amazed at the difference one phone call to Ira Smith Trustee & Receiver Inc. can make. Contact us today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags avoid bankruptcy, avoiding bankruptcy, Bankruptcy, bankruptcy alternatives, chapter 13 bankruptcy canada, Consumer Proposal, Ira Smith Trustee

Brandon Blog Post

BANKRUPTCY OPTIONS: DO YOU REALLY NEED A $100K PERSONAL ASSISTANT?

Post author By Brandon Smith
Post date August 22, 2016

Sometimes even the rich need bankruptcy options

Many people are under the misconception that bankruptcy options don’t apply to the rich and famous or the rich and not famous because they don’t have money problems. In fact, rich people can and do have money problems.

This issue is more prevalent than you think and we’ve written a series of blogs about it in the hopes of removing the stigma of bankruptcy.

Being rich doesn’t make you smart about money. Often times the money begets a lifestyle that’s intoxicating but unsustainable – mansions, yachts, a fleet of luxury vehicles and exotic travel.

If you are willing to admit to having financial problems at the first sign of trouble, then there are various insolvency choices available. But if you wait until you have lost it all, and then some, then bankruptcy, or perhaps one of the bankruptcy options, will be available for you.

Trent Richardson acted quickly on his options when he realized he was facing financial problems

Trent Richardson, an NFL player who most recently played for the Baltimore Ravens, discovered that from January 2015 – October 2015 his family and friends spent $1.6 million of his money. This is a perfect example of someone making a small fortune and placing too much trust in others to manage his money. In reality, he didn’t have a clue about his money.

Thankfully he looked at his bank statement before it was too late. He couldn’t believe the charges which included 11 Netflix and 8 Hulu accounts in addition to ordering bottle service while dropping his name at clubs. The irony is that Trent Richardson doesn’t drink. And now for the mother of all expenses – his brother Terrell was earning $100,000 a year as his personal assistant.

Although Mr. Richardson is luckier than most would be in his place because he signed a fully guaranteed deal worth $20.5 million over 4 years originally with the Cleveland Browns on July 2012, he could have, like others before him, lost it all. He did the smart thing and cut all extraneous expenses, including his $100k personal assistant. This is the best of the financial choices: reigning in your spending and getting on a proper budget.

Act quickly; we can help you make the right decision

Let this be a wakeup call to everyone. Regardless of how much money you have, you need to be smart about money, lest you find yourself in deep debt. And that’s where a professional trustee comes in.

Tags bankruptcies, Bankruptcy, bankruptcy alternatives, bankruptcy options, Ira Smith Trustee, living paycheque to paycheque, trent richardson, trustee

Brandon Blog Post

#VIDEO-WHY YOU NEED TO DISCUSS CORPORATE RESTRUCTURING AND TURNAROUND MANAGEMENT BEFORE IT IS TOO LATE#

Post author By Brandon Smith
Post date August 17, 2016

Our prior corporate restructuring and turnaround blogs

We previously wrote a three-part series on corporate restructuring and turnaround management:

Are the steps in growing a successful company similar to corporate restructuring and turnaround management techniques?

When I heard the story told by Mike Miltimore, CEO and Founder of Riversong Guitars, it struck me that the steps he took to grow his successful guitar making business in this video was almost identical to the steps we would take as corporate restructuring and turnaround management professionals.

Any business can, in its life-cycle, face issues of under performance, and financial distress. The reasons can be simple, or complex, and range from: change in market conditions, availability of financial resources, bad debts suffered or inefficient management structure. In Riversong Guitar’s case, Mike understood what was needed to grow his business successfully so that he could expect these potential issues and put plans in place before facing trouble. I am extremely impressed with Mike’s understanding of his role in management and leadership.

Our role as a corporate restructuring and turnaround management practitioner

The corporate restructuring and turnaround management practitioner’s role, is to aid the business owners, with relevant stakeholders, to formulate, and carry out, a strategy to avoid a troubled company’s situation deteriorating, over time and to place it back on the road to financial health and ultimately, more growth.

It is a collaborative process, led by the corporate restructuring and turnaround management professional.

The 3 phases of a corporation in need of corporate restructuring and turnaround management

There are three clear phases in the corporation in need of corporate restructuring and turnaround management, which in hindsight become clear:

Phase one – Invisibility Phase – The issues facing the business, are only visible from within the business.
Phase two – Translucent Phase – The issues begin to become visible to the outside.
Phase three – Total visibility – The issues are known, and are transparent to the outside business world.

Why reach out to a corporate restructuring and turnaround management professional?

Action and transformation methods need to be taken and implemented, before phase three occurs, because if a business is facing financial distress, more and more unwanted interventions from “creditors”, together with their professionals will take place. The ability to carry out corporate restructuring methods, and the scope to discuss problems without recourse to insolvency legislation, will reduce.

When business owners, or influential stakeholders introduce a corporate restructuring and turnaround management practitioner, this is their recognition for the need for change, and importantly that the business itself, does not have the skills or experience, to bring about required corrective change. Mike understood that he did not have the entire skill set to create the proper plans and infrastructure and carry out them, so he too reached out to professionals to help him. This is another way that Mike in growing his healthy company used the same techniques needed in a corporate restructuring and turnaround assignment.

The factors needed to grow a successful company are the same ones used by the corporate restructuring and turnaround management professional

Mike identified various factors, just like we do in corporate restructuring and turnaround management. Some of the issues that Mike faced in growing his healthy company, which we also face in corporate restructuring and turnaround management engagements are:

organizational structure;
corporate culture;
leadership needs in an evolving corporation;
project management; and
ongoing coaching.

A classic turnaround involves:

Understanding the depth of the problems being experienced – severity or otherwise, stabilizing the place, providing a route map to recovery – be that business transformation or corporate renewal.

Implementation and monitoring, what is always underestimated in turnaround situations, is the need for business owners, to invest the required emotional capital involved, and a willingness to accept change.

You need to choose the correct corporate restructuring and turnaround management professional

For a successful turnaround to succeed, the correct turnaround professional needs to be chosen. “Best fit”, in terms of relevant experience, and a track record of success, is essential. In a nutshell, that is corporate restructuring and turnaround management. The exact restructuring methods used is determined by the nature of each situation. The turnaround methods used will also depend on whether the issues are only internal, or if there are external issues as well requiring more serious steps, such as corporate debt restructuring.

Follow Mike Miltimore’s lead. Recognize that you the skill set that has allowed your company to grow so far are not the same as those needed to fix it. Mike Miltimore knew that he needed outside help for the skills to grow his healthy company that he did not have in-house. The same is true in fixing financially sick companies.

So, if your company has too much debt and a history of losses, you need to fix it now so that your company can continue to prosper and allow the many families and stakeholders that relay on the company’s continued existence for their livelihoods. The most important thing is to get into place a proper corporate restructuring and turnaround management plan.

You should book a meeting with an experienced licensed insolvency trustee first. (The first consultation is free.) Ira Smith Trustee & Receiver Inc. brings a cumulative 50+ years of experience dealing with diverse issues, people and complex files and we deliver the highest quality of professional service.

Contact us today and Starting Over, Starting Now your company can be well on its way to overcoming its financial difficulties and continue to prosper.

Tags coaching, corporate debt restructuring, corporate restructuring, corporate restructuring method, corporation (organization), culture, debt restructuring, Ira Smith Trustee, leadership, mike miltimore, organizational, project management, restructuring method, riversong guitars, training, transformation method, turnaround management, turnaround management standard

Brandon Blog Post

BAD CREDIT PAYDAY LOANS: JOIN IN ON THE ONTARIO LAWSUIT

Post author By Brandon Smith
Post date August 15, 2016

Bad credit payday loans: our constant warnings

We’ve been warning you about the evil ways of the bad credit payday loans industry, and now a class action lawsuit in Ontario has begun. The payday loan industry should not be allowed to run. We’ve written about these unscrupulous payday loan companies at length and in-depth to serve as a warning.

How big is Canada’s bad credit payday loans industry?

Canada’s payday lending market is worth more than $2.5 billion.

How many Canadian use bad credit payday loans companies?

The latest estimate is that 7% – 10% of Canadians use payday loans. In fact payday loan companies made 1.3 million loans in 2013.

What’s the good news for victims of bad credit payday loans companies Cash Store or Instaloans?

I was astounded to learn that 100,000 Ontarians borrowed from Cash Store (no longer in existence) or Instaloans. Anyone in Ontario who took out payday loans or lines of credit (which were payday loans in disguise) from Cash Store or Instaloans after September 1, 2011 can take part in a $10 million class action law suit to recover some of the illegal fees and interest charged.

How can I get in on the class action law suit against Cash Store or Instaloans?

Jon Foreman, partner at Harrison Pensa LLP, is representing class action members. They have set up a website called takeyourcashback.com and there is a form which must be completed by the Claims Filing Deadline, October 31, 2016.

How much money will I get back?

It’s not certain. If your claim is approved you’ll be eligible to receive at least $50. However, if you took out multiple loans you could receive more. The final amounts will depend on how many claims are submitted.

Take advice from a GTA insolvency trustee and don’t ever go to a payday loan company! There are better options out there. Payday lenders will only trap you in a never-ending cycle of debt. Ira Smith Trustee & Receiver Inc. can help get you actually solve your problem by getting you out of debt and on the road to financial recovery, Starting Over, Starting Now. We’re just a phone call away.

Tags bad credit, bad credit payday loans, Cash Store, class action law suit, class action suit, Instaloans, Ira Smith Trustee, payday lender, payday lenders, payday lending market, payday loan companies, payday loan company, payday loan industry, payday loans for bad credit, take back your cash

Brandon Blog Post

CANADIAN CREDIT SCORE CALCULATOR: FREE SECRETS PROFESSIONALS USE REVEALED#

Post author By Brandon Smith
Post date August 10, 2016

Canadian credit score calculator – Introduction

The question we are most asked is, “How do I improve my credit score?”. The next question is, “Is there a Canadian credit score calculator and how does it work?”. Our answer is always in explaining how the rating is calculated and what each part of the calculation is. Once you understand the calculation, it is much easier to improve.

While it seems obvious that the loan decision-making process uses your credit report in making the decisions about loans, there are other less obvious uses for your credit history. Others might use your information to make decisions about other financial services and products. Poor ranking could lead to you paying hundreds, or even thousands, of dollars more over your lifetime.

In previous blogs, we have written about:

What is the calculation?

The two reporting agencies, Equifax Canada Co. (“Equifax”) and Trans Union of Canada, Inc. (“Trans Union”) use complicated computer algorithms to calculate your result. The most common methods use either the FICO method, from Fair Isaac Corporation, or your Beacon score, which is a calculation that Equifax uses. Results can range anywhere from 300 to 850. The 5 elements that go into the calculation are:

Payment history
Amounts owed
Length of loan history
New credit
Types of credit

This table shows the weighting of the five categories, as well as the total possible points available in each category:

Category	Possible points	%

Length of loan history	297.5	15
New credit	85.0	10
Types of credit	85.0	10
Payment history	297.5	35
Amounts owed	255.0	30

	850.0	100

Payment history
The most important of the five categories is your payment history, meaning how well you pay your debts. There is a heavier emphasis on recent payments as opposed to older ones. Things like bankruptcy, foreclosure, accounts sent to collection agencies, and repetitive late payments are all considered negative events and will lower this part of the calculation.

Amounts owed
Amounts owed is how much you owe on your bank cards and loans, in other words, your outstanding debt balance. Also considered is your total authorized borrowing limit, along with the part of your limit that you have used.

Length of loan history
The length of your loan history plays a role in the calculation as well. The longer you have had a history, the better your result in this category will be.

New credit
New credit, or more specifically new credit applications, play a role in the calculation. As the number of recently opened credit accounts goes up, your result in this category will go down.

Types of credit
The last factor used in the Canadian credit score calculator is the different types of credit you have. Usually the more the better, except for consumer finance accounts. Consumer finance companies typically grant loans to people with poor borrowing histories so having these types of accounts defines you as “risky”, thus lowering scores in this category.

What does my calculation mean?

Here are the possible Canadian credit score calculator ranges, and what they mean:

700-850 A “very good” or “excellent” result. You should not have a problem getting a loan from a lender.

680-699 A “good” one. Though not considered very good or excellent, most lenders will not have a problem giving you a loan.

620-679 An “acceptable” score. Lenders will most likely need you to give supporting information about your income, time in your current home, bank statements, time with current employer, etc.

580-619 An “okay” score. 620 is the prime rate cut-off point, so you can expect to pay a higher interest rate with any lender who is willing to give you a loan.

500-579 A “bad” score. You may still be able to get a loan with a score like this, but you will most definitely be paying a higher interest rate.

350-499 A “very bad” score. You can still get a loan with this low of a score, but you may be better off turning it down and cleaning up your core over the next several years. Otherwise, the interest on the loan may be too difficult to handle.

As your score decreases, the ability for you to get a loan, on the most ideal terms, decreases greatly. Therefore, people with lower scores have to pay more in fees and interest rate for loan products. The higher your score, the more money you will save by being given the best rates and credit deals.

How does my score stack up?

“The general score that you’re aiming for is 700,” says Michael Lofquist, marketing and communications manager at Equifax. However, the average Canadian score is about 650 according to First Foundation Residential Mortgages.

So if you have a score higher than 650, then you know that you are better than average Canada.

What can I do if I have too much debt and too low a score?

Please, please, please, do not fall prey to the “guaranteed bad history loan” industry. So, if you have too much debt that is causing you too much stress because you cannot repay it, don’t worry about your score. The most important thing is to get into a place where you can manage your debt and regain y our health and control of your life.

You should book a meeting with an experienced licensed insolvency trustee first. (The first consultation is free.) Ira Smith Trustee & Receiver Inc. brings a cumulative 50+ years of experience dealing with diverse issues and complex files and we deliver the highest quality of professional service.

Contact us today and Starting Over, Starting Now you’ll be well on your way to overcoming your financial difficulties. Ultimately your credit score will thank you for having fixed the problem once and for all.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Tags Beacon credit score, Beacon score, Canadian credit score calculator, Credit, credit report, credit score, FICO, FICO score, Ira Smith Trustee, starting over starting now

Brandon Blog Post

STUDENT DEBT COUNSELLING: ARE WE DOING ENOUGH TO REDUCE THE COST OF STUDENT LOANS?

Post author By Brandon Smith
Post date August 8, 2016

Amazon Prime getting into the US student loan business but not student debt counselling

As you will see from this blog, there is a huge need for student debt counselling, as new entrants into the student loan business are enticing students with new offers. The financial services industry in the United States is changing rapidly with many non-traditional companies getting into the game. The latest is Amazon Prime. They’re now offering discounted student loans to Amazon Prime Student customers through a partnership with Wells Fargo.

Although this type of program is now only available in the U.S., and while we typically discuss things that affect Canadians, we felt that anything that could cut the cost of a student loan was worth reporting. However, keep in mind that this does nothing for student debt counselling so that students are better able to handle debt. It is merely a financial opportunity with little risk as further described below.

Our previous student debt counselling and student loans blogs and vlogs

Student loan debt is such a serious issue that we’ve written a series of blogs and vlogs on the subject.

Canadian Federation of Students study

According to the Canadian Federation of Students (CFS), the impact of Canada student loan debt is that today’s students are the most indebted generation in Canadian history. They can certainly use student debt counselling.

The average student graduates with over $28,000 of debt. Tuition fees and living costs continue to rise, and there’s no solution in sight. The CFS has been lobbying the federal government for students, to no avail. And it’s not better south of the border where tuitions and the student loan debt is proportionally greater.

Perhaps CFS should also lobby the provincial governments to include student debt counselling as a mandatory grade 12 subject in high school!

Is Student Debt Counselling Being Offered to Amazon Prime Student customers?

Through the partnership, Wells Fargo is not offering any student debt counselling, but is offering student loans Amazon Prime Student Customers (not students whose parents have a Prime membership of their own):

A 0.50% interest rate discount
This can be added on top of a 0.25% interest rate reduction for enrolling in an automatic monthly loan repayment plan
In addition, any interest rate discount tied to another Wells Fargo global promotion

Students can apply for a new student loan or refinance existing student loans.

Why would Amazon Prime want to get into the student loan business

Of course this partnership benefits Amazon and Wells Fargo financially. However, it does not give any education to college students through student debt counselling. Amazon Prime will no doubt have many more sign ups and Wells Fargo will have access to many more potential borrowers. But the bottom line is that the student will benefit by having access to discounted student loans. Hopefully someone in Canada will also find a way to help lighten the student loan debt load.

However, there is even a greater reason. In Canada, a bankruptcy discharge will only end student loans if you’ve ceased to be a full or part-time student for more than seven years and either declare personal bankruptcy or make a debt proposal to your creditors, most likely through a consumer proposal. The only other option is to attempt to seek from the Court relief because of undue hardship, but this is very difficult, if not impossible.

If you think it is difficult under Canadian law to end student loans, it really is impossible under the US Bankruptcy Code. The leading case in the US, which subsequent decisions have followed, is, Marie Brunner v. New York State Higher Education Services Corp. (October 14, 1987, #41, Docket 87-5013). This case set a precedent for defining the concept “undue hardship” in bankruptcy discharges of student loans.

Suffice to say that if a bankrupt in the US is seeking a discharge of all of his or her debts, including student loan debt, the mere fact that they can afford to hire and pay an attorney can be used as evidence that if they have funds to pay legal counsel, then there is no undue hardship for them to agree to a repayment plan on account of the student loan debt after they get their discharge from bankruptcy and their non-student loan debts.

Since the debt will in almost every case always be owing and payable, it is a safe bet for Amazon Prime.

Are you in need of student debt counselling or credit counselling?

Tags Amazon Prime, Amazon Prime Student, canada student loan, discounted student loans, Ira Smith Trustee, marie brunner, starting over starting now, student debt, student debt counselling, student loan debt, student loan repayment, student loans, the impact of student debt