Tag: Ira Smith Trustee

Categories
Brandon Blog Post

DEBT COUNSELING TORONTO SERVICES NEAR ME

A debt settlement company is not debt counseling Toronto

Many реорlе thіnk trying a debt settlement company is all about debt counseling. Many people certainly will choose this bеfоrе they іnvеѕtіgаtе bаnkruрtсу. I’m hеrе to tell you that many of thеѕе companies are not асtіng in уоur best interest.

Many are paid—and in ѕоmе cases mаnаgеd—bу сrеdіt саrd companies.

According to a аrtісlе by fіnаnсіаl guru Dаvе Ramsey:

“Some of the thеѕе ‘counseling’ соmраnіеѕ wіthhоld credit саrd рауmеntѕ untіl the account іѕ thrее to ѕіx mоnthѕ past duе. Then, thеу соntасt the lender and nеgоtіаtе to ѕеttlе the bad debt….That’s hоw thеу get nеgоtіаtеd dіѕсоuntѕ on сrеdіt саrd debt. Card companies don’t ѕеttlе on your debts when уоur рауmеntѕ are on time. These ѕеrvісеѕ are аlwауѕ a bad іdеа, and ѕоmеtіmеѕ thеу’rе a complete ѕсаm.”

Dаvе Rаmѕеу isn’t the only one lееrу of these settlement companies. Gail Vaz-Oxlade writes:

“One of the big drawbacks of ….. 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.”

The provincial governments have their own opinion. Most provinces have enacted legislation to try to thwart many of their shady practices. Stay away from debt settlement companies. Don’t be afraid to go to a LIT for a free consultation at the first sign of financial trouble.

Why credit counseling?

If done properly, credit advisory services take a holistic approach. It looks at your specific situation, your family, your personal financial objectives and you a person, not just another money spending machine. It takes all of your needs (as opposed to your desires) into account. It also looks into the future as to where you and your family want to be, in order to provide a clear road map to assist you to achieve your goals.

Does a Licensed Insolvency Trustee perform such services?

If you are experiencing financial problems, do not be afraid to consult with a Licensed Insolvency Trustee. By statute, the Licensed Insolvency Trustee is required to do an assessment of your entire asset and liability situation. If the assessment results in a finding that your best option is to work with a qualified counsellor with ongoing follow up, then you will be referred to an appropriate service and you will stay away from any bankruptcy proceeding.

On the other hand, if the Licensed Insolvency Trustee feels that you won’t be able to settle your debts on your own, but it is still early enough for settling with your creditors as an alternative to bankruptcy, then the Licensed Insolvency Trustee will recommend that you settle your debts (if less than $250,000) through a consumer proposal, or (if your debts are $250,000 or greater) through the other proposal provisions of the Bankruptcy and Insolvency Act (Canada). The earlier you recognize that you have debt problems, the more options there will be available to you to avoid bankruptcy.

The next step

As seen in the video, even people with a good profession and high income can experience a bump in the road. If you’re trapped in high household debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy is your only option.

We have provided debt counseling services to many people. This has led us to help them carry out a successful debt settlement program. It all began with debt counseling. 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.

If you’re like many Canadians on the brink of a financial crisis, you need the help of a professional trustee today while you have options. The Ira Smith Team can help before disaster strikes. There is a way to manage debt Starting Over, Starting Now. Contact us today.

debt counseling vaughan

Categories
Brandon Blog Post

HOW HOARDING CASH DOES NOT ALWAYS LEAD TO GOOD DEBT FREE LIVING AND RETIREMENT INCOME PLANNING

debt free living, retirement income planning, ira smith trustee, hoarding cash, stock market, resource industries, CIBC World Markets, cash holdings, low-yield bonds, GICs, debt, debt load, retirement, trustees, trusteeDoes hoarding cash = debt free living?

Debt free living is certainly elusive for many Canadians. We have grown fearful about the volatility of the stock market and the future of the resources industries. As a result, instead of investing they are hoarding cash. According to a recent report from CIBC World Markets:

  • Canadians are holding a record $75 billion in extra cash that would have normally been invested
  • $75 billion represents almost 10% of the total value of overall personal liquid assets in Canada
  • Personal cash positions were at a record high at the end of 2015
  • Cash holdings are up 11% over the past year
  • The rise in cash holdings is attributed to risk aversion
  • People 35 years old and younger hoarded the most money, as a proportion of their total wealth
  • Notwithstanding all this extra cash, Canadians have the higher debt per capita of all time and have not allocated any of the cash for debt free living

How can hoarding cash effect your retirement?

Low-yield bonds and heavy debt loads may leave you coming up short in retirement, which is becoming more expensive to fund. According to CIBC deputy chief economist Benjamin Tal, many older people, 60, 65 and 70 need to be in the stock market to get a reasonable return. Just GICs will not do because interest rates are so low. Yet it’s a vicious cycle; the TSX has fallen 6.7% since the beginning of the year and is at a two-year low.

We can help with your debt free living plan

We can’t stabilize the stock market, nor can we positively impact the future of the resource industries. But, we can help with debt. The Ira Smith Team is comprised of professional trustees with a cumulative 50+ years of experience dealing with diverse issues and complex files. Your heavy debt load is something we can manage with immediate action and the right financial plan. You can’t have a carefree retirement dragging around a mountain of debt but with one phone call you can be on your way to a debt free retirement Starting Over, Starting Now. Don’t delay. Contact us today.

 

Categories
Brandon Blog Post

CONSUMER PROPOSAL VS BANKRUPTCY – BANKRUPTCY OR CONSUMER PROPOSAL IN CANADA

Consumer proposal vs bankruptcy faqs

We’ve prepared this online video to answer the consumer proposal vs. bankruptcy FAQs that we are normally questioned. This information will hopefully help you understand better exactly what a Consumer Proposal is and how it will also help you clear the money you owe and AVOID individual bankruptcy.

The most asked consumer proposal vs bankruptcy FAQs

Consider some of the advantages of the consumer proposal vs bankruptcy, such as:

  • You keep all of your assets
  • Actions against you by creditors, such as wage garnishments are going to be stopped
  • Unlike informal unsecured debt settlement, the consumer proposal is a forum where all of your creditors must handle your restructuring
  • You don’t need to declare bankruptcy

Additional reasons are:

  1. The opposed bankruptcy discharge process is not quick. Courts are backed up so your bankruptcy discharge hearing may not happen for many months. So think of 4 months or more being added on to the 21 or 36 months you have already spent in bankruptcy.
  2. The discharge hearing is a Court process. Sometimes, for valid reasons, the Court has to adjourn a hearing. What if it takes another 6 months for your discharge hearing to come back up again? You have now been in bankruptcy perhaps for over 4 years at this stage.
  3. If you could restructure by filing and completing a (consumer) proposal, you are not going to get an absolute discharge from the Court. The Court will most likely give you a conditional discharge. This is a discharge where you have to fulfill a condition being the payment of money to your LIT. The repayment will be in the form of monthly payments over a certain period; perhaps 12 months. You are now in bankruptcy, in this example, for close to 5 years.
  4. In a (consumer) proposal, the maximum time period for making the monthly payments that either the statute or your creditors, be prepared to wait is 60 months. However, there is nothing stopping you from paying it off early if you can. Consider the (consumer) proposal as someone giving you an interest-free loan for up to 60 months, and this loan is just a fraction of the total of your debts, and once you pay off this fraction, all of your debts (other than certain ones such as student loans, child support, and alimony) are all eliminated.
  5. In a (consumer) proposal, the self-reporting you need to do with your LIT is significantly less than in a bankruptcy. In a restructuring, all your LIT really cares about is that you don’t miss a payment.
  6. During your bankruptcy, you will have to report your monthly income and expenses to your Licensed Insolvency Trustee (“LIT“). The LIT is required to perform the surplus income calculation again and if your new income means that your surplus income obligation has increased, then you have to make up the difference by paying more surplus income to your LIT to get your discharge from bankruptcy. In a restructuring, the amount you initially agreed to pay that your creditors accepted, is the same amount you pay. There is no monthly reporting of your income to your LIT and no recalibration to an increased amount if your income rises.

If you win a lottery or receive an inheritance while being an undischarged bankrupt, you have to pay that over to your LIT for the benefit of your creditors. If the amount is more than needed to pay your creditors off in full, with interest, then you receive the difference back. In a (consumer) proposal restructuring, if you receive such an amount, good for you. You get to keep it and if you like, you can use part of it to pay off your (consumer) proposal early.

Excessive debt? Get the help you need now!

We hope you enjoy this video about consumer proposal vs bankruptcy. Click on this link to find out more about Consumer Proposals. You can also have many of the questions about bankruptcy answered by exploring our Bankruptcy FAQs link.

Instead of going deeper into debt and just putting your head inside sand like an ostrich, heed the advice of a licensed insolvency trustee and contact us today. Seek the help from a professional trustee, even if you’re definitely not considering bankruptcy at this stage.

We will evaluate your situation and provide help to arrive at the ideal solution for the problems, whether that solution is a bankruptcy alternative similar to credit counselling, consolidating debts or a customer proposal or individual bankruptcy. With immediate action as well as the right plan the Ira Smith Team can solve the financial problems Starting Over, Starting Now. We’re just a phone call away.

consumer proposal vs bankruptcy

Categories
Brandon Blog Post

DO YOU NEED A HOUSEHOLD BUDGET? MOST CANADIANS DO!

household budget, household debt, canadian household debt, G7 nations, debt-to-income, debt service, debt service obligations, binge borrowing, hot housing market, low interest rates, trustee, debt, debt settlement program, ira smith trustee, starting over starting nowMany Canadians must not follow a household budget. Canada has a lot to be proud of, but not the dubious honour of being a world leader in household debt among G7 nations. The G7 nations are Canada, United States, United Kingdom, France, Germany, Italy and Japan and together the gross domestic product of these seven member nations makes up approximately 50% of the global economy. Unfortunately we are leading our member nations in household debt.

Canada’s household budget watchdog says household debt continues to reach new highs!

According to the Parliamentary Budget Office (PBO), Canada’s budget watchdog, Canadian households could soon be carrying the heaviest debt-to-income loads in history, reaching 174% later this year. Who is the household budget watchdog in your home? If you are the average Canadian, the answer is nobody!

Any sudden economic change can spell financial disaster for your household budget.

The danger is not so much the level of the debt relative to income, but whether we can meet our debt service obligations. Do we have enough disposable income to pay our debts? In increasing numbers Canadians do not have enough disposable income to pay their debts. And, even if they do now, many Canadians are in an extremely vulnerable state.

Any sudden economic changes like a job loss or higher interest rates can spell economic disaster. According to the PBO, our household debt servicing capacity will become stretched further as interest rates rise to normal levels over the next five years. Canadians have been binge borrowing as a result of historically low interest rates and these low interest rates are in large part responsible for the hot housing market.

If you are following a household budget, have you left any room in it for an increase in interest rates, and therefore debt service costs? Canadians are getting in over their heads and could face financial crises when the housing market cools down or interest rates rise.

What will you do if the housing market cools down and/or the interest rates rise? What will it do to your household budget?

The economic warning signs are out there. If you’re trapped in high household debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy is your only option. We have been able to help many individuals carry out a successful debt settlement program. 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.

If you’re like many Canadians on the brink of a financial crisis, you need the help of a professional trustee today while you have options. The Ira Smith Team can help before disaster strikes. There is a way to manage debt Starting Over, Starting Now. Contact us today.

Categories
Brandon Blog Post

BUSINESS RESTRUCTURING PROPOSAL: REASONS WHY GOODWILL TORONTO IS NOT ALWAYS ENOUGH

The issue of a business restructuring proposal of Goodwill Toronto has recently been in the news. This video is an interview aired on TV Ontario, The Next Ontario show, with Dr. Sarah Kaplan, Professor of Strategic Management at Rotman School of Management, University of Toronto. The purpose of the interview is to obtain Dr. Kaplan’s views on the Goodwill Toronto closure of 16 Goodwill stores.

Toronto Goodwill thrift stores were operated, not unlike a Salvation Army thrift store, to raise funds to support the aims of the non-profit; in this case job skills and job creation for those who might otherwise be unemployable.

It takes money to restructure

We have all heard the expression “It takes money to make money”. I would like to make a slight twist on that expression by stating that it takes money to have a successful business restructuring proposal. Not only does the company and business have to be able to have sufficient cash flow in order to operate during the restructuring period, but there are also extraordinary one time expenditures related to the restructuring. Examples of such one time expenditures are reasonable one time exit fees to get out of uneconomical contracts, bonus payments to key personnel to ensure that they perform throughout the entire restructuring rather than resign for a new position elsewhere and professional fees.

Our Goodwill Toronto analysis

Our firm was consulted early in January to act as the licensed insolvency trustee in a business restructuring proposal of Goodwill Toronto. We spent half a day meeting with representatives of Goodwill Toronto in order to learn of their plight and to determine what sort of restructuring proposal might be possible.

In our meeting we learned that the main assets of Goodwill Toronto consisted of: (i) cash or liquid investments pledged to a Canadian chartered bank on account of business loans; (ii) accounts receivable with a certain percentage collectability; and (iii) inventory of items for sale, mainly used clothing, spread across 16 stores in leased locations.

We also learned that there were over 400 unionized employees, the majority of which had long term service with Goodwill Toronto. This is significant for three main reasons: (i) a viable restructuring proposal would be required to save the jobs of many, but probably not all of the employees; (ii) if the business restructuring proposal was unsuccessful, Goodwill Toronto would automatically be deemed to have filed an assignment in bankruptcy (a deemed assignment); and (iii) in a bankruptcy, the employees would have a claim under the Wage Earner Protection Program Act (WEPPA).

It takes money to implement a successful business restructuring proposal

So, why is this significant? The reasons it is significant for a restructuring vs. bankruptcy are:

  1. The secured portion of the employees’ WEPPA claim coming ahead of all creditors, including the chartered bank, totalled approximately $900,000.
  2. Next in priority was the claim of the chartered bank.
  3. There were no free assets after the above 2 claims that Goodwill Toronto could use to fund operations or the extraordinary expenses associated with a business restructuring proposal discussed above.

So as you can see, with no free cash flow, no excess realizable assets or a third party who could fund a business restructuring proposal (or in the worst case a bankruptcy proceeding), it would not be possible for a knowledgeable licensed insolvency trustee to agree to act as there was no source of funding available.

This is why the best of intentions and goodwill (toronto) is not always enough!

The Sarah Kaplan interview

Professor Kaplan raises many good points in this interview, including:

  1. We should first think about what the whole business model of the goodwill is.
  2. The goods that they get to sell are aimed at just generating revenues that allow them to perform their actual services like job.
  3. It may be that the retail environment is tougher in some ways if we think about the alternative for people who buy things at goodwill would be to go to discount stores or dollar stores.
  4. As the market is becoming more and more competitive we could imagine that people would not need to shop at Goodwill if they can get a t-shirt for $5 at WalMart.
  5. Goodwill’s in other areas though are doing fine so we may need to look a little bit more deeply into the problem.
  6. The entire board resigned so there could be some other management issues that led to Goodwill Toronto to be running a deficit.
  7. You have to be well managed and being a social enterprise is not an excuse to not be well managed; you need the same skills capabilities and maybe even more skills and more capabilities than in the for-profit world.
  8. The fact that they’ve taken this extraordinary really drastic measure leads me to believe that the difficult retail environment is not the whole story and therefore not the whole story for other social enterprises.

NOTE: After writing this blog, Goodwill Toronto filed an assignment in bankruptcy.

Is your company in need of a business restructuring proposal?

If your company is trapped with too much debt, you need a professional trustee to help you manage debt and create a viable business restructuring proposal (either under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act – BIA or 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 the Ira Smith Team today in order to look at the bankruptcy alternative of a business restructuring proposal. We can help and Starting Over, Starting Now you can be restored to financial health.

keiko nakamura goodwill.org, business restructuring proposal, Goodwill Toronto, toronto goodwill thrift store, goodwill thrift stores toronto, salvation army thrift store, toronto thrifting, good will hunting, mathematics, matt damon, the next ontario, business, retail, social enterprises, goodwill toronto, ira smith trustee, hoyes, spergel, david sklar, farber, deemed assignment, assignment in bankruptcy, restructuring vs. bankruptcy, sarah kaplan, rotman school of management, licensed insolvency trustee, bankruptcy and insolvency act, bia, companies creditors arrangement act, ccaa, closure of 16 Goodwill stores

 

Categories
Brandon Blog Post

SENIOR CITIZEN DEBT RELIEF: DO CANADIANS BELIEVE CPP/QPP WILL BE ENOUGH?

senior citizen debt relief

Introduction

Believe it or not, when it comes to senior citizen debt relief, many Canadians believe that they can comfortably retire on Canada Pension Plan (CPP) and Old Age Security (OAS) benefits alone. According to a 2014 Bank of Montreal study:

  • 89% of Canadians said they expected CPP or the Quebec Pension Plan to fund part of their retirement
  • 31% said they expected to rely heavily on their CPP/QPP

Is expecting the government to fund your retirement realistic?

No! Paul Shelestowsky, a senior wealth adviser with Meridian Credit Union in Niagara-on-the-Lake, Ontario believes that Canadians are playing a dangerous game with their future by expecting the benefits of making up for meagre savings. “CPP and OAS were never meant to form somebody’s retirement plan. They were meant to augment it and help as one of the pieces of the puzzle,” Mr. Shelestowsky says.

Do you know how much you’d earn if CPP and OAS were your only sources of income in 2015?

Your net income would be $17,883/year or $1,490/month. Could you possibly live out your golden years in the manner you had imagined with such a scant income? How would you ever obtain senior citizen debt relief?

If you’re like many Canadians you’re in a total state of shock right now. In 2013, a Leger Marketing survey for H&R Block found that 7 out of 10 non-retired Canadians were unaware of how much money CPP pays out monthly. The maximum in 2015 was $1,065 a month, but this is the maximum. The average CPP payment is only about $550.

What about senior citizen debt relief?

How many of you could maintain close to your current lifestyle on $1,490/month? It would be hard enough to pay your monthly bills, let along pay down your liabilities. Yet seniors are adding to their financial load even faster than the general population, with the average Canadian senior owing approximately $15,000. This is a serious issue and as a result, we’ve done a series of blogs/vlog about this issue:

Your solution

If you’re in need of senior citizen financial relief, you need a professional trustee to help you manage your financial problems before it reaches a critical stage where bankruptcy is your only option. We have been able to help many seniors carry out a successful debt settlement program. 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.

You should never take liabilities into retirement. NOW is the time to deal with financial problems; not once you’re on a seriously limited income and barely making ends meet. Sit down with a professional trustee and discuss your options. We’re experts on dealing with senior citizen debt relief and not so senior citizen financial issues. With immediate action and the right financial plan in place, you can be well on your way to a debt-free life Starting Over, Starting Now. Contact Ira Smith Trustee & Receiver Inc. today. Help is only a phone call away.

 

Categories
Brandon Blog Post

♦ VIDEO – CREDIT CARD DEBT HELP: START NOW FOR A DEBT FREE CHRISTMAS 2016 ♦

Credit card debt help

Credit card debt help: Now that the Holidays are over

Now that the Holidays are over, and the feeling of Christmas cheer is being replaced with the reality of your need for credit card debt help, I wanted to come and share a few tips for having a debt free Christmas 2016. Maybe you have already maxed out your credit cards with purchases for your family and friends.

It is not too early to start thinking about a debt free Christmas 2016. So while you are taking your time to pay off the credit card debt, or considering your options in obtaining the credit card debt help you need, this is actually the perfect time to begin thinking about having a debt-free Christmas for 2016.

Credit card debt help: 4 tips to becoming debt-free

We have 4 tips that will start you on the path for a debt-free Christmas 2016:

  1. Set a realistic budget– This is a critical part to not only budget for paying off the 2015 credit card debt, but also for planning a debt free Christmas 2016. Make a list of everyone that you will want to purchase a gift for, write down a gift idea and estimated cost. Now you can start incorporating those costs, and the costs of any incidentals like meals you like to cook for family and friends and any other miscellaneous expenses associated with next Christmas.
  2. Set up a savings account – Now that you know how much you have to pay off from 2015 Holiday credit card debt, and your estimated budget for Christmas 2016, you can work those into your monthly budget. Take the estimated 2016 cost and start saving from every paycheque now by putting the money in a special savings account solely for that purpose. It is easier to start saving now in February little bits every week, than to expect all the money to just be available come next December. In this way you won’t need Christmas 2016 credit card debt help.
  3. Look for sales all year round – There are all types of sales throughout the year. Traditionally, the month of December is not one of those months. Why not take advantage of sales all year round by purchasing your Christmas 2016 gifts throughout the year when on sale, rather than just shopping near the end of the year?
  4. Grocery budget – When you are budgeting, be realistic. Even if you are not hosting Christmas dinner in 2016, everyone loves your special Christmas baking and cooking. You will want to make those special dishes to take to family and friends. Make sure your grocery budget for December 2016 reflects the increased food costs for that month when you are starting to save now.

If you follow these 4 simple tips, you will find that your Christmas debt for 2016 will be zero and you will not need credit card debt help due to Christmas 2016. The realistic budget will also help you pay down your credit card debt from 2015 holiday time, as well as help you spend within your means throughout the whole year.

Credit card debt help: Get a no-cost consultation

If you’re trapped in a high interest credit card debt cycle, I could tell you that you need to get credit card debt help, but how would you do it? You need a professional trustee to help you manage debt before it reaches a critical stage where bankruptcy is your only option. We have been able to help many individuals carry out a successful credit card debt settlement program. 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.

Contact the Ira Smith Team today. Before considering declaring bankruptcy, there are other bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals. We can help and Starting Over, Starting Now you can be restored to financial health.

credit card debt help, credit card debt settlement, credit card, credit cards, living paycheque to paycheque, budget, low Canadian dollar, bankrupt, declaring bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals

 

Categories
Brandon Blog Post

Gambling and Consumer Proposals Ontario: 6 Differences With Bankruptcy

Gambling and Consumer Proposals Ontario: Introduction

Gambling and Consumer Proposals Ontario are treated very differently than in a Bankruptcy in Ontario. One of the most common questions that people in difficult financial situations ask is: what’s the difference between a consumer proposal and bankruptcy?

Personal bankruptcies and consumer proposals are two of the most common solutions available for personal financial issues. While both are designed to help people resolve debt issues and give users the necessary protection from creditors, learning what’s the difference between a consumer proposal and bankruptcy can help people make more informed decisions in the future.

  1. Gambling and Consumer Proposals Ontario: Consumer Proposal debt limitation

With a consumer proposal, it is only possible for you to claim it if your total debt does not exceed $250,000, excluding the debt owing on the mortgage(s) on your home. Additionally, you must be able to repay a part of those debts to apply.

  1. Gambling and Consumer Proposals Ontario: Creditor acceptance

However, your creditors must accept your proposal, as you do not automatically earn it upon signing up for the option. With bankruptcy, however, any person who owes their creditors more than $1,000 in debt is eligible to file without the need for creditor approval.

The ideal candidates for this situation are those who need some type of immediate financial relief and whose income and budget do not allow them to pay off the reduced amount agreed to in a consumer proposal, on a monthly basis, up to a maximum of 60 months.

  1. Gambling and Consumer Proposals Ontario: Fixed consumer proposal monthly payment vs. potential variable surplus income bankruptcy payment

In order to resolve the financial issues, you and your creditors need to agree to a proposed amount with a consumer proposal, hence the name of the program. This is a monthly amount that you need to pay consistently, but it stays the same for as long as the proposal is in effect. With bankruptcy, however, monthly payments may vary based on the amount of money that you make. The more that you regularly earn, the more you need to pay per month.

  1. Gambling and Consumer Proposals Ontario: Surrendering of your assets in a bankruptcy

With a consumer proposal, you do not need to surrender your assets. With bankruptcy, however, with only certain minor exceptions, you will have to surrender your assets to your licensed insolvency trustee. The Trustee sells them and will use the money to pay for the cost of administration. The Trustee might also pay a dividend to your unsecured creditors.

  1. Gambling and Consumer Proposals Ontario: Credit rating

With a consumer proposal, your credit rating will receive an R7. This indicates you have undergone such an agreement. It will remain for up to 3 years after paying off your loans. With bankruptcy, you earn an R9 rating. That is the worst that you can have. It can stay on your report for a period of 7 years.

  1. Gambling and Consumer Proposals Ontario: Debts from an addiction

The Bankruptcy and Insolvency Act and the Superintendent of Bankruptcy, are very concerned about debts that have arisen as a result of addiction. The Licensed Insolvency Trustee must ask questions to decide if any debts have arisen as a result of addiction.

Once so determined, in a bankruptcy, the licensed insolvency trustee must oppose the bankrupt’s discharge. In order to hope to get an absolute discharge from the Court, the bankrupt will have to go into a rehabilitation program. They will need to prove they have completed a recognized program and continue to seek help. The person will also need to show they are no longer spending money on such addiction.

These are all good things for the total rehabilitation of the individual. It differs from the treatment under a consumer proposal. The licensed insolvency trustee will still want to make sure that the individual is seeking help for their addiction. If you complete your consumer proposal payments there will never be a bankruptcy. Your consumer proposal is successfully completed. You also avoid the onerous issues of discharge from bankruptcy. The treatment of gambling and consumer proposals Ontario as compared to bankruptcy is huge for the individual.

Gambling and Consumer Proposals Ontario
Gambling and Consumer Proposals Ontario

Gambling and Consumer Proposals Ontario: Are you suffering from too much debt?

If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless because of an addiction, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

If you’re experiencing serious debt issues for any reason, contact a professional trustee for a free, no-obligation consultation. The Ira Smith Team does not try to write new insolvency laws or tax laws. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. Starting Over, Starting Now you can be debt-free with the help of a professional, licensed insolvency trustee. Contact us today.

gambling and consumer proposals Ontario, what’s the difference between a consumer proposal and bankruptcy, consumer proposal, debt, debts, creditors, financial relief, surplus income, credit rating. Bankruptcy and Insolvency Act, Superintendent of Bankruptcy, gambling, alcoholism, drugs, addiction, bankruptcy, licensed insolvency trustee, debt issues, ira smith trustee, debt talk, financial advice, credit counselling, bankruptcy, credit (industry), personal bankruptcy, insolvency, mnp ltd.,
gambling and consumer proposals Ontario
Categories
Brandon Blog Post

CONSUMER PROPOSAL PROCESS FOR LOTTERY WINNERS? BUT WHY?

image 1
image 1

X bankruptX BankruptcyX bankruptcy alternativeX financial planX Ira Smith TrusteeX living paycheque to paychequeX lotteryX powerballX trusteeX consumer proposal processConsumer proposal process for a lottery winner? Why?

Here’s a headline I’m sure you all remember – Three winners of the $1.586 billion Powerball jackpot. Here’s a headline you may have missed – The odds are that the US$1.5 billion Powerball winner will end up bankrupt (and if a Canadian, possibly a consumer proposal process).

Continue reading “CONSUMER PROPOSAL PROCESS FOR LOTTERY WINNERS? BUT WHY?”
Categories
Brandon Blog Post

HOW BINGE BORROWING RAISES CANADA’S HOUSEHOLD DEBT BURDEN

orrowing binges, household debt, binge borrowing, household debt burden, debt, disposable income, consumer debt, credit-market debt, consumer credit, mortgage debt, personal lines of credit, car loans, Canada's household debt burden, household debt burden, Canadian household debt , ira smith trusteeBinge borrowing raises Canada’s household debt burden

We worry about binge eating and binge drinking, but it appears that we are not paying enough attention to Canada’s latest problem – binge borrowing. Incredibly low interest rates and sky high house prices have contributed to this trend. The Bank of Canada, the federal government and many economists have long been concerned that consumers who have been binge borrowing are now exposed to risk in the event of an economic shock or significant downturn.

Just when we thought Canada’s household debt burden couldn’t go higher!

Just when we thought that Canada’s household debt burden was at its peak, in the third quarter of 2015 Canada’s household debt burden hit another record high. This means that Canadian’s debts grew faster than their incomes. According to Statistics Canada:
• The ratio of household credit-market debt to disposable income rose to 163.7% in the three months ended September 30, up from 162.7% in the second quarter (this means the average household had nearly $1.64 in debt for every dollar of disposable income)
• This was the highest ever reading in this key ratio for gauging consumer debt loads
• Debt rose 1.4% in the quarter, while disposable income increased by 0.8%
• Total credit-market debt reached $1.89-trillion in the third quarter, also a record
• Mortgage debt was $1.23-trillion
• Consumer credit – credit cards, car loans, personal lines of credit and other personal loans – totalled $572-billion

What will your debt do in 2016?

Unfortunately Canadians ended 2015 with more debt than they started off with and this is a trend that expected to continue into 2016. Are you ready to stop binge borrowing and get control of your finances before you are facing a financial crisis? Professional help is just a phone call away. Contact Ira Smith Trustee & Receiver Inc. As a firm of professional trustees we’re experts on dealing with debt. Our approach for every file is to create an outcome where Starting Over, Starting Now becomes a reality, beginning the moment you walk in the door. Call us today and take the first step towards living a debt free life.

 

Call a Trustee Now!