Tag: Ira Smith Trustee

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Brandon Blog Post

#VIDEO – SURPLUS INCOME LIMITS FOR 2015, 2016 & BEYOND: YOU WILL REALLY FEEL IT IN YOUR BANKRUPTCY #

Our inspiration for this vlog

This vlog was inspired by our new eBook: PERSONAL BANKRUPTCY CANADA – Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track, which is sold on Amazon.com. The eBook explains the Canadian personal insolvency and bankruptcy system, specifically directed to the person stressed out with too much debt.

The most asked question is about surplus income limits

The question we are always asked is: What are the surplus income limits for 2015 and 2016 if I am in bankruptcy? I don’t have any cash left over from each paycheque, so, how can you say that I have surplus income?

What are the surplus income limits for 2015, 2016 and beyond?

Surplus income is the amount of a debtor’s total income that exceeds what is necessary to maintain a reasonable standard of living according to the standards set by the Office of the Superintendent of Bankruptcy (remember, the actual standard is right at the poverty line so don’t get happy when you see words like “reasonable standard of living”). The bankrupt must make payments out of this surplus income to the Licensed Insolvency Trustee for distribution among the creditors.

It is part of the goals of the Canadian insolvency system that tries to balance the elimination of debt with the rights of creditors to be paid. The surplus income limits for 2015, 2016 and beyond, are set to allow Canadians to maintain what the Superintendent of Bankruptcy calls a reasonable standard of living during the bankruptcy process; the government has set thresholds or limits on net earnings (gross earnings after taxes and deductions) during the bankruptcy process. The Office of the Superintendent of Bankruptcy sets the threshold limits each year and these limits are indexed to inflation.

The threshold is set the same across Canada, regardless of what province or city you live in. So, someone living in the Greater Toronto Area, whose costs for shelter and probably transportation are higher than other parts of the country, will find that the threshold for them is essentially at the poverty line.

An example of how to apply the surplus income limits for 2015 and 2016

Here is an example of how the surplus income amount is calculated. Let’s assume we have a family of 4: a husband, wife and two young children in school. The husband earns (net of income tax) the annual amount of $46,000 and the wife earns (net of income tax) the annual amount of $18,000. To keep it simple, let’s assume that their monthly take-home pay can is their annual amount divided by 12 or a monthly income of $3,833.33 for the husband and $1,500 for the wife. Let’s assume that only the husband has to go bankrupt and not the wife.

The surplus income calculation for 2015 was:

(($3,833.33 + $1,500.00) – $3,831.00) X ($3,833.33/($3,833.33+$1,500)) = $539.90

This means the bankrupt husband will have to pay $539.90 to the Licensed Insolvency Trustee for a period of 21 months if he has never been bankrupt before, or for 36 months, if he has been bankrupt before, according to the Bankruptcy and Insolvency Act (Canada).

The surplus income calculation for 2016 is:

(($3,833.33 + $1,500.00) – $3,882.00) X ($3,833.33/($3,833.33+$1,500)) = $521.57

This means the bankrupt husband will have to pay $521.57 to the Licensed Insolvency Trustee for a period of 21 months if he has never been bankrupt before, or for 36 months, if he has been bankrupt before, according to the Bankruptcy and Insolvency Act (Canada) (BIA).

You cannot deduct your normal monthly living expenses against the monthly income in order to calculate the surplus income limits for 2015 or any other year. However, if the bankrupt has any of the following types of expenses, they can be deducted from income in calculating the surplus income amount.

  1. Child Support
  2. Spousal Support
  3. Child Care Expense
  4. Expenses associated with medical condition
  5. Court imposed fines or penalties that are in process of being paid
  6. Expenses permitted by Income Tax Act that are a condition of employment
  7. Any other debt where the stay of proceeding has been lifted

The surplus income limits for 2015 and 2016, or put another way, the amount the Superintendent of Bankruptcy believes a family, where there is one bankrupt person in a family of four, should have a take-home monthly income of $3,882 or annual family take home pay of $46,584, before the bankrupt person has to start contributing 50% of his or her income for the benefit of the bankrupt’s creditors. That is why we say the Federal government’s idea of a “reasonable standard of living” is really at the poverty line.

What to do if you have too much debt

If you’re in “survival mode” when it comes to your finances, we’ve got solutions for you. Although many people believe that bankruptcy is the only way out of serious debt, that’s not always the case. Ira Smith Trustee & Receiver Inc. can discuss other bankruptcy alternatives with you which include credit counselling, debt consolidation and consumer proposals.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems. Come in for a no obligation, no fee consultation and let us help you get back on track to living a debt free life Starting Over, Starting Now. Give us a call today.

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Brandon Blog Post

LOAN SCAMS CANADA VIDEO

Haven’t you already written on the loan scams Canada topic?

Yes, we have previously advised you of various loan scams Canada in our previous blogs and vlogs:

  1. CREDIT REPAIR TORONTO: HOW TO USE IT TO NOT RUIN YOUR LIFE
  2. ARE YOU UP ON THE LATEST PHISHING SCAMS? YOU SHOULD BE!
  3. #VIDEO: CRA PHONE SCAM: IF YOU WATCH ONLY 1 VIDEO WATCH THIS ONE! #
  4. CANADA REVENUE AGENCY SCAMS: IF YOU READ ONE ARTICLE, READ THIS ONE
  5. DISASTER RELIEF SCAMS BY THE NUMBERS
  6. VAUGHAN DEBT COUNSELLING ADVISES BEWARE OF TAX SEASON SCAMS
  7. SENIOR FINANCIAL ABUSE; SENIOR CITIZEN MONEY SCAMS
  8. BEWARE OF PHISHING AND SPEAR PHISHING SCAMS

“Will these loan scams Canada continue?

For sure loan scams will continue. One main reason is that Canadians on a per capita basis are in debt at the highest level in all of Canadian history, and one of the highest in the entire world! This is a very lucrative and enticing market for the scammers to perpetrate loan scams Canada!

How can I protect myself against loan scams Canada?

There are three general themes in common with all of the loan scams. If you don’t fall for them, that is the best protection. Here is our list of the three common loan scam Canada themes and how to protect yourself:

  1. Never give money or your credit card information over the telephone or in person to someone you don’t know – even if they sound like they’re from an established organization. Request additional information to be sent to you, review it with friends or family, or simply hang up if the whole thing sounds fishy!
  1. It’s important to know that no bank, store or Canada Revenue Agency will ever ask you for your password via email or telephone, so never respond to these requests. If you receive an email that has a sense of urgency requesting personal information, first contact the purported sender to see if the email is legitimate.
  1. Reputable lenders for personal loans will never ask you to pay an up-front insurance or application fee. Also, reputable lenders will never give you a guarantee that you will receive the loan approval before you provide your information. If the person you are dealing with asks for the up-front fee, or guarantees that no one is ever declined, stop dealing with them.

What to do if you have too much debt and not enough cash

Rather than resorting to high interest rate payday loans or to lenders who charge up-front fees in return for all sorts of promises, talk to a licensed insolvency trustee. Contact us now to obtain a solution, before bankruptcy is your only alternative.

We help individuals and companies throughout the Greater Toronto Area (GTA) facing financial crisis to avoid bankruptcy or bankruptcy, if the problems have been left too long without any corrections that need a plan for Starting Over, Starting Now. The Ira Smith Team brings a cumulative 50+ years of experience dealing with diverse issues and complex files, and we deliver the highest quality of professional service. Don’t worry about debt; instead take immediate action.

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Brandon Blog Post

BANKRUPTCY EXPERTS DISCUSS POSSIBLE DANGER OF USING DIGITAL WALLET APPS

bankruptcy experts

Last week we discussed apps that can help you budget. As we’re now moving away from the “cash age” to the “app age” we’d like to explore the use of digital wallets, what bankruptcy experts have to say about the topic and whether they’ll help you budget or blow the budget.

What is a digital wallet

A digital wallet is the equivalent of the physical wallet you have on your desk or in your pocket or your purse. A digital wallet refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet. There are two types of digital wallets:

  1. Smartphone app for making financial transactions in a retail store such as the Starbucks app
  2. Desktop app for making credit card purchases online such as PayPal

PayPal: One of the most popular and trusted digital wallets, boasting an impressive 173 million users across 203 countries and 26 currencies

Apple Pay: For iPhone, Apple Watch or iPad – simple to use and works with the cards you already have on the devices you use every day

Android Wallet: Google’s mobile wallet app for Android-powered phones – use it to tap and pay in stores and you can use it to make in-app payments

Samsung Pay: Enables you to tap and pay using your Samsung Galaxy phone (only available for use with newer Samsung Galaxy phones such as the Galaxy S6 Edge and/or the Galaxy Note5) at brick-and-mortar locations

Will a digital wallet help you budget of blow the budget?

The only true way to control your spending is to pay with cash or debit because if the money isn’t there, you can’t make a purchase. Digital wallets can enable credit card purchases more quickly and conveniently than having to take out your credit card.

As bankruptcy experts, what we worry about is does using a digital wallet, combined with the ease of online shopping, encourage overspending? The speed at which you can process a payment certainly gives you less time to think about it. If you’re prone to overspending, a digital wallet will help you overspend even quicker. If you’re diligent about staying within your budget, then a digital wallet will be a convenience.

What to do if you’re overspending and deep in debt? Go see one of your local bankruptcy experts – a licensed insolvency trustee

Apps are not going to help you; there is no replacement for the help of a professional trustee. We have the expertise to help you manage your debt and get you back on track to living a financially healthy life Starting Over, Starting Now. Give the Ira Smith Team a call today and book your free consultation.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.

People consider us bankruptcy experts because we wrote the eBook 12 THINGS A LICENSED INSOLVENCY TRUSTEE MAY NOT TELL YOU!. CLICK HERE to get a free copy of the eBook.

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Brandon Blog Post

#VIDEO – HOUSEHOLD DEBT IN CANADA CRISIS#

Household debt in Canada can lead us into crisis

On January 16, 2016, the Office of the Parliamentary Budget Officer (PBO) released its report titled: “Household Indebtedness and Financial Vulnerability“. A summary of the PBO’s findings are:

In the third quarter of 2015, total household debt in Canada reached 171 per cent of disposable income. In other words, for every $100 of disposable income, households had debt obligations of $171. This is the highest level recorded since 1990 and the highest level. The report also found that:

  • Among G7 countries, Canada has experienced the largest increase in household debt relative to income since 2000. Households in Canada have become more indebted than any other G7 country over recent history.
  • The Bank of Canada conducted its analysis. It suggests that low-interest rates, higher house prices and financial innovation have contributed to the increase in household indebtedness.
  • A financially vulnerable household is required to devote a real part of its income to service its debt. It faces greater exposure to negative income and interest rate shocks, and is more likely to be delinquent in its debt payments.
  • The PBO does not see the trend correcting itself until 2020.

We discussed the issue of rising household debt in Canada in the past

The PBO report produced a graph on household debt ratios

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Graph courtesy of the Report of the PBO “Household
Indebtedness and
Financial
Vulnerability” dated January 19, 2016

The PBO’s point in this graphical analysis is that the projected increase in the total household debt service ratio (DSR) to 15.9 per cent would be 3.1 percentage points above the long-term historical average of 12.8 per cent (from 1990Q1 to 2015Q3). It would also be almost one full percentage point above its highest level over the past 25 years, 14.9 per cent , which was reached in 2007Q4.

There is apparently no end in sight for Canadians’ appetite to take on more debt, and it takes more income to service the higher debt. Unfortunately, the only thing that will seem to break this cycle is some shock to the Canadian economic system, and this will not be good news for many who will find themselves strung out on debt and not able to service it when the shock comes.

What to do if you or your company can no longer service your debt?

Is your household debt in Canada out of control? Have those spending habits creeped into your company’s spending? If so, you need to contact us now to get a solution, before bankruptcy is your only alternative.

We help people and companies throughout the Greater Toronto Area (GTA) facing financial crisis in need of restructuring and turnaround, receivership or bankruptcy that need a plan for Starting Over, Starting Now. The Ira Smith Team brings a cumulative 50+ years of experience dealing with diverse issues and complex files, and we deliver the highest quality of professional service. Don’t worry about debt; instead take immediate action.

Call us today. If you or your company is trapped in high debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy or receivership is your only option. We have been able to help many people and companies carry out a successful debt settlement programs or corporate restructuring and turnarounds.

It all began with a first consultation. The first step is a realistic cash-flow budget. Successful completion of restructuring, will free you or your company from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

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Brandon Blog Post

HAVING TROUBLE BUDGETING? OUR TOP 6 LIST OF APPS TO HELP YOU

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Spring clean your budgeting

Spring is in the air and it’s time to spring clean your finances. Help can sometimes come in mysterious ways and from mysterious sources. In this case it’s your Smartphone that can help get you on track financially. If you have difficulty understanding your spending habits and managing your money, there are now apps for that. With the help of a budgeting app you’ll have assistance identifying where you’re wasting money, how to pay down debt and how to save money.

Our list of 6 best budgeting apps

Here are six of the best budgeting apps for iPhone and Android for 2016:

  1. Mint for iPhone and Android: Mint simplifies making a budget. It connects to your bank and the app can use your details to help create a personalized budget.
  2. PocketGuard for iPhone and Android: PocketGuard categorizes and organizes your expenses, monthly bills and subscriptions into clear tabs and graphs so you’ll always be on top of your finances.
  3. GoodBudget for iPhone and Android: GoodBudget is an expense and budget tracker that allows you to proactively plan finances ahead of time with the Envelope system of budgeting.
  4. Mvelopes for iPhone and Android: Mvelopes is a money management budget app that allows you to import your bank and credit card accounts and track your spending.
  5. Wally for iPhone and Android: Wally is an expense tracker. It lets you log your expenses with a manual entry or with a photo of your receipt.
  6. Level Money for iPhone and Android: Level Money can detect your income and expenses and then show you what you can spend. The app also helps you figure out how to save for bigger purchases or pay down debt.

What to do if you need more than just budgeting help for your debts

Using a budgeting app is a great preventative measure, but if you’re already deep in financial difficulties, I’m afraid that there isn’t an app for that. You need the help of a professional trustee. We can help restore you to financial health with immediate action and a sound financial plan. Contact Ira Smith Trustee & Receiver Inc. today and Starting Over, Starting Now your financial difficulties will be a thing of the past. Watch for our next blog when we’ll be discussing digital wallets and how they can affect your spending habits.

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Brandon Blog Post

#VIDEO – BANKRUPTCY EXPERTS IN ON: TOP REASONS WHY OTHERS CALL US THAT#

Who says you qualify as bankruptcy experts in ON?

Ira Smith Trustee & Receiver Inc. is a licensed insolvency trustee, licensed to practise in the Province of Ontario (ON). In our recent vlog, #VIDEO: CHCH TV BANKRUPT: using shell companies legal but controversial experts say, Sean O’Shea, Global News, December 17, 2015, interviewed various experts on the CHCH TV bankruptcy. Mr. O’Shea sought licensed insolvency trustees as his bankruptcy experts in ON, and the one he chose was our Ira Smith of Ira Smith Trustee & Receiver Inc. We are also contacted by the Toronto Star when they wish clarification on insolvency issues for an article to appear in the newspaper.

So why are we sought out as bankruptcy experts in ON?

Here is our list:

  1. We provide a free first consultation – Part of being an expert is professionalism. An expert licensed insolvency trustee will provide a free first consultation to prove expertise and to lay out all the possible options for the bankruptcy alternatives in addition to discussing the bankruptcy option.
  2. We have the necessary qualifications – Mr. O’Shea checked us out with 3rd parties before determining that he would call our Firm as an expert. The reviews he received from those 3rd parties confirmed to him that he should call us as his bankruptcy expert. How do we know? We asked him why he called us as opposed to the many other licensed insolvency administrators in the GTA and he told us.
  3. We regularly appear in the Bankruptcy Court and the Commercial List Court – We attend normally representing the Trustee ourselves in Bankruptcy Court, and with counsel in the Commercial List Court. We communicate well with and are trusted by the insolvency bar, the Bankruptcy Court Masters and the Commercial List judges. We are up on the Canadian bankruptcy laws and regulations. To me, that is the mark of an expert.
  4. We always first consider the restructuring option – To me the sign of an expert is someone who understands the totality of their industry. An expert can assess a situation and provide the debtor with a range of options. Not all can be done and most of the time each comes with its own set of peculiarities, but we always put all the options on the table for the individual or corporate Director to consider. The amateur uses a cookie cutter with the same answer for every different situation. The expert thinks “out of the box” too. We always think “out of the box”
  5. When you deal with us, our licensed insolvency trustees are always accessible – No matter how small or large the mandate, you will always be able to discuss issues of concern with either Ira Smith or Brandon Smith, our two licensed insolvency trustees. To us, the expert is a professional, and never too busy to be reachable and accessible, no matter what day or time it is. You will find that we provide a great deal of education and information on our website. We provide a great deal of bankruptcy information online. That is also the mark of an expert and professional.
  6. How did you feel after meeting with us – The expert and professional always tries to be reassuring and provide recommendations on how to overcome the personal or corporate financial challenges, while not sugar-coating and always being realistic. That is how you will feel after consulting with us. You may not like what you hear, but it will be the best expert advice we can provide.
  7. Do you regularly practice in the insolvency area – Our practice is limited to the insolvency area. We do not do any other type of work. That is why others call us bankruptcy experts in ON. As a result, we know and can explain in layman’s terms the Canadian bankruptcy laws.
  8. Our experience is in personal insolvency and corporate insolvency – Given the range of experience of our licensed insolvency trustees and other senior staff, Ira Smith Trustee & Receiver Inc. can handle all types of insolvency work from the smallest no asset consumer file to the large complex corporate restructuring under the Canadian Bankruptcy Act, either the Bankruptcy and Insolvency Act (Canada) (BIA) or the Companies’ Creditors Arrangement Act (Canada) (CCAA).
  9. Will you communicate in a prompt manner – Part of being a professional and expert is that we always communicate with stakeholders. It does not matter whether you are the party that referred us the work, you are the Debtor or you are a creditor, if you are a stakeholder, then you deserve timely and accurate communication. That is what being a professional and an expert is all about.
  10. How do you charge for your work – An expert and professional is upfront about the cost of performing the work. We always have that discussion with stakeholders. You will find that we never shy away from that discussion so that there are no surprises for anyone. You will find that although our expertise is as a large firm, our pricing is that of a small firm.

What to do if you or your company has too much debt?

If you or your company are facing financial challenges and do not know what to do, contact Ira Smith Trustee & Receiver Inc., one of the bankruptcy experts in ON. Obtain a free consultation from a licensed insolvency trustee to understand the options available either as an alternative to bankruptcy or of bankruptcy itself. We are professionals, federally regulated, licensed and subject to a strict code of ethics. We can help; Starting Over, Starting Now you can live a debt-free life.

bankruptcy experts in on

 

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Brandon Blog Post

AWESOME eBOOK ABOUT THE DIFFERENCE BETWEEN CONSUMER PROPOSAL AND BANKRUPTCY

difference between consumer proposal and bankruptcy

I will give you a money back guarantee that I can teach you the difference between consumer proposal and bankruptcy

We’re so pleased to offer you Ira Smith’s new eBook,” PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track”. The world of finance can be very confusing and in particular the insolvency system. The information out there about the Canadian insolvency system, including the topic of the difference between consumer proposal and bankruptcy, seems to be written for industry insiders in industry jargon. Where is the average person experiencing serious financial difficulty going to find the information they need in a language they understand?

What will the book teach me?

Definitely. Ira recognized the need for up-to-date information on the topic written in real people speaks “PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track” was borne. It truly is a step by step guide about the Canadian insolvency system and tackles some of the pressing questions that we receive including:

So how soon can your eBook teach me?

Right now, if you want. If you’ve been looking for answers to these questions and others like it, click here for your free copy of the eBook. We encourage you to read the eBook before you sit down with a professional trustee and discuss your issues. That way, you will go to your initial consultation already understanding the insolvency system and the difference between consumer proposal and bankruptcy. That way, you can spend the time with the licensed insolvency trustee talking about solutions to your specific situation and not wasting the time with an introduction to the Canadian insolvency system. That is what our eBook is all about.

The Ira Smith Team can help you deal with serious debt. Starting Over, Starting Now we help you get back on track to living a debt free life. Contact us today.

So how can I get the eBook?

There are two ways to get your copy of the new eBook, but only one has a money back guarantee.

No money back guarantee – Purchase the eBook on Amazon.com, but it is against Amazon’s rules to provide you with the money back guarantee. If you wish to purchase it that way, click here:

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As a special gift and a reward for reading this blog to the very end, if you click on the picture of the book cover below, you will have the opportunity to obtain the eBook TOTALLY FREE! The book will teach you the difference between consumer proposal and bankruptcy. If you don’t learn anything from our eBook, PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track, we will give you back 100% of what you spent!

I don’t mean to be cheeky – but I know this eBook will teach you about the Canadian insolvency and bankruptcy system. Thank you for reading our blog and please obtain your free copy below.

difference between consumer proposal and bankruptcy

 

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Brandon Blog Post

CREDIT REPAIR TORONTO: HOW TO USE IT TO NOT RUIN YOUR LIFE

Credit Repair Toronto: Why Not?

Many people think it’s best to try a credit repair Toronto company before they investigate the Canadian insolvency process. I’m here to tell you that many of these companies are not acting in your best interest.

What do Dave Ramsey and Gail Vaz-Oxlade have to say?

Many are paid – and in some cases managed – by credit card companies. According to an article by financial guru Dave Ramsey:

“Some of these ‘counselling’ companies withhold credit card payments until the account is three to six months past due. Then, they contact the lender and negotiate to settle the bad debt…That’s how they get negotiated discounts on credit card debt. Card companies don’t settle on your debts when your payments are on time. These services are always a bad idea, and sometimes they’re a complete scam.”

Dave Ramsey isn’t the only one leery of credit repair Toronto companies. Gail Vaz-Oxlade writes:

“One of the big drawbacks of using a debt counselling or debt management company is that they don’t come with any serious advice, so people often fulfill their commitment and then go right back out and rack up their debt again.”

Does the Ontario government like credit repair Toronto companies?

The provincial governments have their own opinion. Most provinces have enacted legislation to try to thwart many of their shady practices. Stay away from credit repair Toronto companies. Do not be afraid to go to a Licensed Insolvency Trustee for a free consultation at the first sign of financial trouble. (See the picture at the bottom of this page for a special offer).

We have previously written blogs on the credit repair Toronto industry who have been preying on consumers for far too long. We’ve warned you about them in previous blogs:

In 2010, after a decade of massive growth in the U.S. debt settlement industry, the FTC brought in new regulations that effectively banned debt settlement companies and forced many of them to migrate north of the border. This resulted in 18 companies and 34 credit counselling providers offering debt settlement services in Ontario.

With ever-mounting numbers of complaints about unsuspecting consumers being taken advantage of by unscrupulous credit repair companies, the Ontario government has finally taken action and passed Bill 55.

What will Bill 55 do? It creates new standards of conduct for credit repair Toronto companies by:

  • Banning them from charging upfront fees
  • Limiting the number of fees consumers are charged and prohibiting the payment of fees before services are provided
  • Requiring clear, transparent, and detailed contracts that include information about the effect of the contract on the consumer’s credit rating
  • Requiring credit counsellors to disclose information to the consumer about how the organization is funded
  • Establishing a 0-day cooling-off period, providing consumers more time to consider their agreements with companies
  • Allowing the licenses of non-compliant companies to be revoked

If not credit repair Toronto companies, then what should YOU do?

Please stay away from credit repair Toronto companies! Rather, obtain a free consultation from a licensed insolvency trustee to understand the options available to you either as an alternative to bankruptcy or of bankruptcy itself. We are professionals, federally regulated, licensed and subject to a strict code of ethics. Our fees are regulated by the Federal Government and are usually much less than credit repair companies who make unsubstantiated claims. We can help; Starting Over, Starting Now you can live a debt-free life.

We have been able to help many individuals carry out a successful debt settlement program. It all began with debt counselling. The first step is a realistic household budget.
Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

Call us today so you can get on the road to financial recovery immediately.

The first part of this vlog is from our newly released book:

Toronto,Vaughan,credit repair toronto,credit fix toronto,credit counseling toronto,tips on how to repair bad credit,canada credit fix reviews,how to improve your credit score canada,credit repair loans canada,canada credit fix inc toronto on,credit repair,credit repair how to,how to improve credit score,how to repair your credit,fix credit score,credit repair lawyers,credit repair letters,sample credit repair letters,fast credit repair,debt,ira smith trustee, personal bankruptcy toronto, bankruptcy, consumer proposal, toronto, vaughanI said above that there would be a special offer and here it is. If you would like to receive a complimentary, totally free copy of our eBook, please sign up as a subscriber to our blog. You can do so by filling in the subscription pop-up box on this page. If you are already a subscriber, thank you, and just shoot me an email asking for your complimentary copy.

If the subscription box on this page has gone away, you can click on the picture of our eBook in this article which will take you to our main blog page, and you should soon see the pop-up subscription box again. As a side bonus, you will also receive notice of all of our new blogs and vlogs, with a link directly to them.

Early next week,you will receive an email with an invitation to download a complimentary copy of our new eBook – PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track.

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Brandon Blog Post

IS GOODWILL A NON PROFIT ORGANIZATION? ARE YOU SCARED BECAUSE YOUR COMPANY HAS TURNED INTO ONE?

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Since our last post, BUSINESS RESTRUCTURING PROPOSAL: REASONS WHY GOODWILL TORONTO IS NOT ALWAYS ENOUGH, people have asked me: is Goodwill a non profit organization? The answer is yes.

The Goodwill Toronto bankruptcy has confused and astonished many people. After all, how can Goodwill, a non profit organization, go bankrupt? Isn’t the very nature of a non-profit or not-for-profit that it doesn’t have to make a profit? Yes, but by the same token, it also should not sustain losses either. At our Firm, we each volunteer at a different non-profit whose cause we believe in. The non-profit’s annual budget is not supposed to sustain a loss, but in carrying out the aims of the organization, it also does not have to make an operating profit unless of course the non-profit is trying to amass funds to designate for a specific purpose.

Unfortunately to the amazement and dismay of many, Goodwill Industries of Toronto, Eastern, Central and Northern Ontario has filed for bankruptcy, three weeks after abruptly closing its doors. It has over $6 million in debt with approximately $4.2 million owed to former employees in vacation entitlement and severance. This resulted in the closure of 16 Goodwill stores, 10 donation centres and two offices, affecting more than 430 workers. Is Goodwill a non profit organization? Apparently so!

Leaving the employee vacation pay and severance liability issue aside, I would suggest that the balance of the debt, as noted below almost $2 million, represents losses suffered from prior periods. Somewhat tongue in cheek, the other answer to the question, is Goodwill a non profit, is, YOU BET!

Is Goodwill a non profit organization? YES!

Now, more information is known, so, we want to provide you with an update on the Goodwill situation, mainly from the Goodwill Toronto bankruptcy filing documents.

Goodwill’s Creditors:

  • Number of unsecured creditors: 711
  • Amount owing: $6 million
  • Number of creditors not former staffers: 158 or 22%
  • Total owing unsecured creditors not former staffers: $1.7 million or 28%

Main Unsecured Creditors:

  • Anita’s Driving Academy: $2,080
  • Blueprint Hair Studio: $840
  • Brown’s Fine Foods (owns Goodway in Kingston): $7,586.09
  • City of Mississauga parking control: $41.00
  • Dr. Eric Domingo (provides general and cosmetic dentistry): $3,571.08
  • Dr. Nosenet Bollo-Kamara (provides family and cosmetic dentistry) $2,999.05
  • Dr. Robert Lubin (family and cosmetic dental care): $7,143.72
  • Ducati Shoes: $1,372.00
  • Goodwill Industries Intl: $16,827.29
  • Adore (dress shop): $1,397
  • Larj Consulting Inc. (Former TCHC CFO Len Koreonos): $19,930.38
  • Ministry of Community and Social Services: $150,000
  • Region of Peel: $34,547.30
  • Royal Bank Visa: $12,371.95; $1,423.83; $2,746.13; $39,413.32; $998.06; $224.87; $2,035.84
  • Samarqand Food & Bakery: $23,894.45
  • Tru It Solutions (IT firm formed by former TCHC employees): $29,680

Restructuring is a bankruptcy alternative, you just have to be able to continue carrying on business!

After its closure, Goodwill Toronto wished to enter into a restructuring, but the proposed restructuring plan would have required millions of dollars of investment for an opening balance to assist in the payment of arrears and any reopening costs. And it would also have needed concessions from the unionized staff, including a reduction in hours, layoffs, labour efficiency improvements, and benefit costs. In the end all attempts at restructuring failed and the CEO, Ms. Keiko Nakamura, resigned. As we said in our earlier vlog: “it takes money to have a successful business restructuring proposal”.

How could a not-for-profit go bankrupt?

The reality is that not-for-profits are not immune from financial problems and insolvency. Not-for-profits can suffer from the same financial problems that plague their for-profit cousins and they too can seek protection under the Bankruptcy and Insolvency Act (Canada), also known as the BIA. No individual or company is immune from financial problems. And sometimes bankruptcy is the solution.

What should I do if my company or organization is in financial trouble?

However, there are usually options and alternatives to explore before declaring bankruptcy. If you’re suffering from serious financial problems and/or are insolvent, contact Ira Smith Trustee & Receiver Inc. for a consultation. You may have what seems like insurmountable problems, but we do have the answers.

If your company or organization is trapped with too much debt, you need a professional trustee to help you manage the situation and create a viable business restructuring proposal (either under the BIA or the Companies’ Creditors Arrangement Act –CCAA) before it reaches a critical stage where bankruptcy is your only option. We have been able to help many companies carry out a successful business restructuring proposal.

Successful completion of such a program, will free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.
Contact us today so that you can put your financial problems behind you Starting Over, Starting Now.

So, is Goodwill a non profit organization? Not any more in Toronto!

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Brandon Blog Post

LICENSED INSOLVENCY TRUSTEE: 12 THINGS THEY MAY NOT TELL YOU!

If you would like a free copy of our eBook:

12 THINGS A LICENSED INSOLVENCY TRUSTEE MAY NOT TELL YOU!

PLEASE CLICK HERE

Why won’t they tell me?

It is not the case that any licensed insolvency trustee purposely won’t tell you everything you need to know. It is just that in all walks of life, some people explain things better than others. Some take more time and care, some are better equipped to explain technical matters in plain English to the layperson and sometimes, like Ira Smith, you might have a senior moment!

So the purpose of this video is to educate the stressed-out person who is facing financial challenges, and who has an appointment to see a licensed insolvency trustee, to give you a checklist of important questions you should ask, so that you walk out of the first meeting with all the information you need to make an educated, informed decision. So, here is our checklist.

12 questions you must ask the Licensed Insolvency Trustee, to get the information you need

  1. Is my first consultation free and how long do I get to meet with the Licensed Insolvency Trustee?
  2. Do you have the necessary qualifications, how many cases like mine have you done before and do you go to Court also or do I have to hire a lawyer to do so?
  3. Is bankruptcy right for me and is it my only option?
  4. Are there other options to avoid bankruptcy?
  5. How much will it cost me?
  6. Will I be dealing with the actual licensee ultimately responsible to the Office of the Superintendent of Bankruptcy for my file or only one of his or her clerks once I enter my insolvency process with you?
  7. How did I feel after meeting the people at their office after my first consultation?
  8. Do you practice exclusively in the bankruptcy/insolvency area?
  9. Do you have experience in only personal insolvency matters, only corporate insolvency matters, or both?
  10. Do you have enough experience and the time to handle my matter?
  11. Will you communicate in a timely manner with me throughout?
  12. So how does this process really work and who do you really work for and what difference does it make?

We hope that you found this checklist useful.

Is this checklist everything the layperson needs to know?

When developing this vlog a while back, we started thinking about all the other things that the honest but unfortunate stressed out person in financial trouble needs to know. We looked around for an appropriate book on Canadian personal insolvency but, we couldn’t find one! We found many resources for lawyers, professional trustees and academics, but nothing for the person in financial trouble. So, we just kept writing and writing, and this ended up in an eBook titled:

 

FREE OFFER FROM IRA SMITH TRUSTEE & RECEIVER INC., A LICENSED INSOLVENCY TRUSTEE

So here is our offer to you. If you would like to receive a complimentary copy of our new eBook which has just been listed on Amazon.com, please subscribe to our blog email list in the form provided on this vlog. We have already sent to all of our subscribers an email with information as to how to get access to their free copy. By clicking on the above link and subscribing to our Brandon’s Blog, you can get one too. No one will ask you for a credit card, PayPal, or any other form of payment. This offer is limited and available only to our blog subscribers as our way of saying thank you.

What should you do if you have too much debt?

Call us today. If you or your company is trapped in high debt, you need the Ira Smith Team to help you manage the situation before it reaches a critical stage where bankruptcy or receivership is your only option. We have been able to help many people and companies carry out successful debt settlement programs or corporate restructuring and turnarounds. It all began with a first consultation. The first step is a realistic cash-flow budget.

We know full well the discomfort and tension excessive debt can create. We can help you to eliminate that pain and address your financial issues supplying timely, realistic and easy to implement action steps in finding the optimal strategy created just for you.

Call Ira Smith Trustee & Receiver Inc. today. Make a free appointment to visit with one of the Ira Smith Team for a totally free, no-obligation assessment. You can be on your path to a carefree life Starting Over, Starting Now. Give us a call today so that we can help you return to an anxiety-free and pain-free life, Starting Over, Starting Now.

Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life, Starting Over, Starting Now.

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