Tag: Ira Smith Trustee

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CONSUMER DEBT PROPOSALS: UNLEASH THE MANY PROFOUND BENEFITS OF ELIMINATING DEBT

consumer debt proposals
consumer debt proposals

consumer debt proposals

Consumer debt proposals eliminate your debt stress

Are you stressed out and overwhelmed by debt and don’t know how to begin to eliminate it? We know your pain and can help you because this Brandon’s Blog “Consumer Debt Proposals: The Ultimate Solution for Managing Debt” has got you covered! I provide realistic advice on how to manage and even get rid of debt through a binding debt settlement agreement.

I describe what consumer debt proposals are all about and also look at other debt-relief options like debt consolidation and credit counselling. I will also talk about the recent Canadian government’s warning about taking on high-interest debt from certain companies.

Consumer debt proposals: How Does a Consumer Proposal Work?

If you’re in a tough spot financially, in Canada you can submit a consumer proposal if you owe $250,000 or less (not including any debt registered against your home is one of the types of secured debts that must be paid according to your secured loan repayment terms). It’s an official way to get some debt relief, and it’s all legit according to the Bankruptcy and Insolvency Act. Basically, you work with a Licensed Insolvency Trustee who helps you come up with a plan for paying off what you owe. Then you negotiate with your creditors and hopefully, they accept the proposal.

Making a consumer proposal that unsecured creditors will accept is one of the debt solution alternatives to bankruptcy that requires a few steps to get it done:

  • Reach out to a qualified Licensed Insolvency Trustee and book a no-cost debt assessment consultation.
  • During the appointment, answer any questions the Trustee may have truthfully and to the best of your ability.
  • The Trustee will work with you to come up with a payment plan that fits into your budget and allows you to pay off your debt.

Once you’ve submitted your consumer proposal, your creditors will look it over and then decide if they want to accept it as is or negotiate an adjustment (higher) to your periodic payments to eliminate the amount you owe. They have the option to do either one.

Your creditors can decide to:

  1. Agree to the terms you have proposed (cast their vote in favour).
  2. Decline the terms (vote no).
  3. Decline the terms and suggest a meeting with creditors.
  4. Take no action (which is the same as voting yes).

Your consumer proposal is automatically approved unless more than 25% of the dollar value of the claims of your creditors indicates that they would like to have a meeting of creditors. In that case, that is what will happen.

Once you’ve taken the step of filing for a consumer proposal, you’ll be able to rest easy knowing that you have immediate legal protection from creditors and debt collectors through this financial and legal process. This is called a stay of proceedings where your creditors cannot chase you for the money you owe.

Filing under the bankruptcy process in Canada isn’t your only option! You can work out a legally binding agreement with your creditors through the popular alternative and powerful alternative of consumer debt proposals. With a consumer proposal, you and your creditors can come to an agreement on what portion of the debt you can pay off- and the rest will be written off!

consumer debt proposals
consumer debt proposals

Consumer debt proposals: The voting process

When it comes to a consumer proposal, it’s important to understand the process of how creditors come to a decision to accept or reject the plan. This section will provide insight into how the voting process works.

Once a consumer proposal is submitted, creditors are allowed 45 days to express their decision. They can either accept the proposal or reject it in one of the following ways: replying to the Licensed Insolvency Trustee with their acceptance, not responding at all (which is seen as approval), communicating their rejection or requesting a meeting of creditors.

At the creditors’ meeting, creditors will have the opportunity to decide whether to accept the consumer proposal as is or to make adjustments to it.

Consumer debt proposals: What happens if your offer is approved?

If your proposal gets the green light, you’ll need to abide by what you promised – whether that’s a single payment or regular installments to the Licensed Insolvency Trustee. Plus, you must meet any other conditions that were laid out in the proposal.

In a successful proposal, you can keep your assets (as long as you keep paying what you owe to creditors who have a lien on your assets), and go to the two financial counselling sessions held by the Licensed Bankruptcy Trustee. Of course, you’ve got to pay the Licensed Bankruptcy Trustee on time over the entire period of time your proposal is for.

Failure to do so could result in the revocation of the proposal, the accrual of interest and fees, and even legal action. It’s important to remember that while a consumer proposal can provide much-needed relief, it’s ultimately up to you to stay current with the payments you promised to make.

consumer debt proposals
consumer debt proposals

Consumer debt proposals: What happens should your consumer proposal be declined?

If 50% or more of the creditors vote to reject the consumer proposal, then the Licensed Insolvency Trustee must issue a notice and the consumer proposal dies. In this situation, creditors are free again to pursue collection actions against the debtor.

If 25% or more of the creditors request a meeting, that meeting is referred to as the Meeting of Creditors. At this meeting, an agreement will try to be reached by a majority of the creditors. If the agreement can not be reached, the debtor may need to amend the proposal and resubmit it or look for other ways to solve their financial issues.

If a consumer proposal is declined, it means that the creditors do not agree with the terms of the proposal put forth by the debtor. The main reasons for rejection may be that the debtor is not offering enough money or has proposed an unsuitable repayment schedule.

It is important to note that if you fail to fulfill the requirements of your consumer proposal, it will be deemed null and void. However, it does not free you from your existing debt, and the failure to adequately repay your loans or pay off debts within the terms of the agreement could affect your credit score. Collectors for debts are within their right to renew collection calls and seek legal action for retrieving the debts that they owe. They can sue you and if they get a judgment, they can then get a wage garnishment against you. It is never recommended to default on a consumer proposal.

Consumer debt proposals: If you fulfill the requirements of your consumer proposal

If you fulfill the requirements of your consumer proposal, you will have successfully completed the agreement between yourself and your creditors. This means that you will have made the agreed-upon payments and met all other terms of the proposal. The balance of your unsecured debts that you did not pay off is also eliminated if you fulfill the requirements of your consumer proposal.

One of the benefits of fulfilling a consumer proposal is that you will have lower regular payments monthly, which are based on what you can afford, rather than high monthly payments regardless of your income. Additionally, you will have protection from creditors, as they will not be able to contact you or take money directly from your wages.

After fulfilling a consumer proposal, it will come off your credit report maintained by the Canadian credit bureaus three years after the completion. This report will show that the consumer proposal has been successfully completed and you can rebuild your credit rating and credit score simultaneously.

You will also receive from the Licensed Insolvency Trustee (LIT) acting as the Administrator in your consumer proposal a “Notice of Successful Completion of Consumer Proposal”. This is a very important document, as you will be able to provide it to current or future credit grantors to prove that you successfully completed your consumer proposal and avoided personal bankruptcy.

It is important to note that if you fail to fulfill the requirements of your consumer proposal, it will be deemed null and void. However, it does not free you from your existing debt, and the failure to adequately repay your personal loans, lines of credit or pay off debts within the terms of the agreement could negatively affect your credit score. Creditors are within their right to use collection activity and use legal action for retrieving the debts that you owe. It is never recommended to default on a consumer proposal.

consumer debt proposals
consumer debt proposals

Advice for Consumers: Considerations for Debt Relief and Credit Repair Services

Improving your credit score or credit rating will take time, and requires showing creditors that your habits have improved and that you are paying back your debt on time. Be cautious when seeking help to pay off debt or repair your credit, as some companies may offer misleading solutions. I have been warning about the dangers of such “for-profit” debt settlement companies for years now.

One option for getting help with debt is a debt management plan, which is an informal proposal made by a non-profit community credit counselling agency credit counsellor to your creditors on your behalf. This plan consolidates your debts into one affordable monthly payment and in some cases, you may not have to continue to pay interest on your debt.

However, consumers should be aware that the “for-profit” debt settlement companies may charge high fees, including upfront or advance fees, and may not be able to get creditors to reduce your debt. Additionally, it is important to note that even while using a debt management plan, you are still required to keep making payments on any other debts you owe, which may result in no change to your credit score.

Overall, it is important to be cautious when seeking help to pay off debt or repair your credit and to thoroughly research any company or solution before proceeding. It is also important to consider the potential consequences, fees and overall effectiveness of the solution. A LIT during an initial no-cost consultation will provide many of the services that a “for-profit” debt management company charges for.

Consumer debt proposals: Organizations or firms cannot guarantee the resolution of your financial obligations

Be aware of companies or agencies that claim they can quickly resolve your debt problems by negotiating a deal with the companies you owe money to and letting you only pay back a fraction of your debt. These promises may not be reliable, so it’s best to be wary.

It’s important to remember that if certain creditors don’t agree to your payment plan, you may need to work out a different agreement with them directly. Alternatively, you can consult a LIT about doing a consumer proposal.

It’s also worth keeping in mind that anyone can call themselves a debt consultant, but that doesn’t mean they have the proper training or they’ll be able to help you with your finances.

consumer debt proposals
consumer debt proposals

Consumer debt proposals: No company or agency can give you a fast and easy boost to your credit rating

No Canadian debt consultant, company, or agency can promise a fast solution to your credit score. Improving your credit rating takes time and commitment; you have to show a history of paying your debts punctually.

If you’re looking to boost your credit score, one option to consider is a non-profit credit counselling agency. A credit counsellor can offer a variety of services like one-on-one advice, group sessions, and tips on how to better manage your debt. Just keep in mind that simply talking to a credit counsellor won’t do the trick.

If you’re looking to give your credit score a boost, try paying off some of what you owe. Bringing down your debt-to-credit ratio to under 75% of your credit limit will help. You could also ask your credit card companies or financial institution lenders to raise your credit limit and perhaps even amend your terms of repayment (though the latter will be very difficult) – that’ll help increase your credit score. Ideally, try to use less than a third of your available credit and keep it low, ideally below 30%.

Remember, there’s no shortcut when it comes to improving your credit score. Anyone promising you the fast and easy way is not looking out for your best interests. It takes determination and effort to get your credit back on track. Do your research and make sure you understand any associated fees or consequences before you commit.

Consumer debt proposals: Paying off a consumer proposal early

Sure, you can settle your consumer proposal early, but that might not be the best choice for everyone.

If you’ve got the funds, paying off your consumer proposal earlier could help kickstart your credit repair – but don’t expect it to save you money or guarantee a good credit rating. So think carefully before you commit to paying it off early. In the following section, I describe a very troublesome issue which has now attracted the attention of the Office of the Superintendent of Bankruptcy Canada (OSB).

Paying off your consumer proposal early will do wonders for your mental health – and it’s perfectly acceptable! It’s no secret that financial hardship is incredibly stressful, and five years seems like a lifetime. So treating yourself to an early payoff will help you feel a huge weight being lifted off your shoulders.

If you want to shorten how long your consumer proposal lasts, you can change how often you make your proposal payments. Usually, they’re monthly, but if you switch to making extra payments by paying bi-weekly, you can pay off your proposal faster. Once you’re done paying off your consumer proposal, the unsecured debts you’ve been worrying about will be marked as taken care of on your credit report.

consumer debt proposals
consumer debt proposals

Consumer debt proposals: LITs cannot talk you into getting a loan with a high-interest rate to pay off your consumer proposal early

On January 11, 2023, the OSB issued its position paper titled “LITs Promoting and Facilitating Loans to Debtors“. The problem is that some lenders are offering high-interest loans to people who are about to or are going through a consumer proposal. It looks like they’re giving loans to help people pay off their consumer proposals early, but it’s really just taking advantage of people’s tough financial situations.

The OSB has noticed that some LITs are promoting and encouraging people to take out loans without mentioning the potential drawbacks. They do this by talking up the positives and downplaying the negatives, and they may even pressure people into taking out a loan.

The OSB has come to the conclusion that it’s not in line with the Code of Ethics for Trustees or a LIT’s duties under the Bankruptcy and Insolvency Act and General Rules for LITs to promote or facilitate such loans. Furthermore, such actions are not allowed.

There is also evidence that LITs who receive engagements directly from “for-profit” debt consultants, may be entering into inappropriate arrangements with them. No trustees should ever accept a commission, payment, or any other type of reward from a third party for recommending work concerning a professional engagement, nor should they give out any commission, compensation, or another type of benefit to a third party for obtaining a professional engagement.

For the record, my Firm does not have any arrangements with any party regarding the referral of files and we neither accept nor pay a referral fee

Paying off your consumer proposal early isn’t really an issue. In fact, it can be great if you can afford it thanks to a financial windfall or change in circumstances. Everybody benefits in that scenario. But if you don’t have the means to pay off your consumer proposal quickly, don’t worry. Don’t take out an interest-bearing loan to pay off a consumer proposal. The consumer proposal itself should be considered an interest-free loan.

Look, if a debtor is trying to rebuild their credit with a loan after insolvency, there’s nothing wrong with that. They’re making the choice themselves, so it’s all good. In this case, LITs should explain the pros and cons of these loan products to the debtor. And, it’s important that they don’t push any company or product in particular.

The OSB believes that LITs should not be promoting or facilitating loans since it contravenes the Bankruptcy and Insolvency Act and its Rules. This practice has a negative impact on the LIT profession and the insolvency system. The OSB will be keeping an eye on this issue and taking appropriate action.

You Have Outstanding Financial Obligations — Consumer Debt Proposals

I hope you enjoyed our consumer debt proposals Brandon’s Blog.

There are many financial blogs. Ours focuses mainly on issues of importance to those individuals and businesses with financial challenges or worse, financial hardship, caused by debt problems. Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses with debt problems. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

consumer debt proposals
consumer debt proposals

 

 

 

Categories
Brandon Blog Post

POLL SAYS CANADIANS WANT TO PAY OFF DEBT IN 2023: A STEP-BY-STEP PLAN

to pay off debt
to pay off debt

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Canadians want to pay off debt in 2023: CIBC survey overview

The latest Canadian Imperial Bank of Commerce (CIBC) analysis shows that Canadians aim to pay off debt in 2023. This is good news, as being in debt can lead to banking aches and pains for individuals and families and places everybody in a difficult financial situation.

The COVID-19 pandemic has resulted in big changes and has motivated Canadians to place more importance on debt repayment. To ensure debt reduction and lowered stress levels in 2023, individuals should actualize a plan to pay off debt through a smart planning process.

Canadians want to pay off debt in 2023: CIBC survey specifics

According to the CIBC Financial Priorities poll,

Canadians articulate debt reduction as their primary banking goal for the year followed carefully by staying current with bills and growing investments.

The study results, with its integrated margin of error, disclosed that the majority of participants (73%) expressed issues over the prospective threat of the present financial atmosphere of a possible economic recession. Nonetheless, a majority likewise felt safe in their financial situation, with 62% asserting to be prepared for the unanticipated and 59% thinking their financial stability would certainly remain intact despite an economic downturn.

25% of those questioned identified saving cash as another objective. This was followed by avoiding brand-new debt, saving for a getaway, and also cutting optional spending. The key source of newly added debt was cited as the higher cost of living, which was followed by unforeseen expenditures.

Recently, Canadian workers have had more anxiety about their job security, with six in ten, saying that this ambiguity makes it problematic to plan for the future. This is additionally complicated by the uncertainty of a recession.

With this overhanging job insecurity, 60% of respondents point to this ambiguity as adverse to their ability to plan. Canadians need to amend their financial goals, lower their expenses, and if able, contribute to an emergency fund for emergencies.

to pay off debt
to pay off debt

Canadians want to pay off debt in 2023: Are recessionary fears justified?

It is difficult to forecast the potential of an economic recession in Canada in 2023, owing to the fact that economic conditions can fluctuate quickly and are subject to a multitude of influences. An economic recession is usually defined by a sharp decrease in economic performance, such as a decline.

Economic recessions are typically characterized by a substantial drop in economic activity, such as a cutback in Gross Domestic Product (GDP) or an upswing in unemployment. While it is imperative that individuals and companies are prepared for potential economic downturns, it is not feasible to predict them with any certainty.

The performance of key industries within Canada is a key factor to consider, particularly with regard to the oil and gas sector. A decrease in these industries could have a marked effect on the nation’s economy. The elevated levels of domestic debt coupled with the deceleration in the housing market is another cause for alarm.

Another essential element to bear in mind is the current condition of the international market. A contraction in primary trading countries, such as the USA, could considerably influence Canada’s export-oriented economy. Furthermore, lingering doubts about trade conflicts and the COVID-19 outbreak remain.

It is paramount for individuals and businesses to remain apprised of economic conditions and to be ready for any eventuality. Strategies for doing this may include diversifying investments, preserving an emergency fund, and keeping abreast of economic news and developments.

Canadians want to pay off debt in 2023: A Step-by-Step Plan

The financial burden of debt is no mystery to Canadians, according to the CIBC survey. Not only do debt repayment concerns take the lead – with an average of $1.78 owed for every dollar of disposable income – but saving for the future is also a priority for many (29%). It is clear that Canadians are feeling the strain of debt, and are at least seriously talking about making a plan for the future.

The survey revealed that Canadians aged 18-34 are more likely to prioritize establishing financial security and accumulating wealth, whereas that aged 55+ focus more on debt reduction. This can be attributed to younger Canadians being at the start of their working lives while older Canadians can see retirement coming up.

Canadians of all ages are feeling the pressure of debt. If you are seeking to address your debt issues in the coming year, here are a few strategies to assist you in beginning your journey toward financial health:

Make a budget: To effectively manage your debt, you must have a complete understanding of your financial obligations. Prepare a comprehensive list of all debts, including credit cards, student loans, and mortgage payments. Subsequently, formulate a budget that incorporates your income and expenditure to identify areas of potential savings and available funds to pay off debt.

Consider consolidating your debts: If you owe multiple creditors with high-interest rates, consolidating these debts into a single loan with a lower rate of interest could help you save money on interest payments and make repaying your debts simpler. This may be possible through a balance transfer credit card, personal loan, or a home equity loan.

Pay more than the minimum: When considering credit card debt, it is advantageous to make payments greater than the minimum requirement on a monthly basis. This action will minimize the amount of interest payable and expedite your ability to pay off debt.

Look into balance transfer credit cards: If you are burdened with a credit card debt with a high APR, you can save money by transferring the balance to a credit card with an introductory zero or a lower interest rate. It is essential to ensure you pay off the balance before the introductory rate period expires.

Create a plan: Formulating a debt repayment plan can help maintain motivation levels and keep one on the path to success. This can involve establishing monetary objectives and assessing progress toward their fruition.

Be patient: Eliminating debt can be a protracted and arduous journey, yet remaining patient and devoted to one’s objective is of immense importance. Although it may take some time, the rewards of being debt-free will prove to be a satisfactory conclusion.

Seek professional help: If you are struggling to make payments on your existing debts and do not know where to turn, you may wish to consider obtaining the services of a licensed insolvency trustee financial professional. This professional is able to assist you in formulating a financial plan to restructure your debt, eventually leading to its elimination, and restoring financial stability to your life.

Ultimately, the CIBC survey revealed that most Canadians are aiming to pay off their debt in 2023. This is likely attributable to the economic effects of the COVID-19 pandemic and low-interest rates. To successfully achieve this goal, Canadians can devise a budget, pay more than the minimum, and contemplate debt consolidation. If you are not able to pay off debt on your own to a satisfactory low amount, seek a no-cost consultation with a licensed insolvency trustee.

to pay off debt
to pay off debt

Do you need help to pay off debt in 2023?

Debt repayment can be difficult, but it is achievable with strategic planning and commitment. If debt reduction is a priority for 2023, it is prudent to access the appropriate resources and assistance necessary to make it a reality.

I hope you enjoyed my Canadians want to pay off debt in 2023

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

to pay off debt
to pay off debt
Categories
Brandon Blog Post

OUR MOST READ BLOGS IN 2022: THE INTRIGUING LIST

our most read blogs in 2022
our most read blogs in 2022
our most read blogs in 2022
our most read blogs in 2022


Our most read blogs in 2022: Did people still consume blog content in 2022?

It is challenging to accurately ascertain the number of individuals who engaged in blog reading in 2022, as such information is not publicly accessible. However, if the performance of our blog, Brandon’s Blog, is any indication, blog reading should remain a widespread form of online content consumption in 2023 and beyond.

This is because blogs provide an easy way for individuals and businesses to share their opinions, stories, and advice with their audiences. Additionally, blogs can be customized to meet individual needs and preferences, making them accessible and enjoyable to a wide range of readers.

Furthermore, blogs are easy to share, allowing readers to share their favourite content with friends and family. As such, the prevalence of blog reading will likely continue for the foreseeable future. In this Brandon’s Blog, I explain what I think makes for an effective blog post and then discuss our most read blogs in 2022.

Our most read blogs in 2022: Which type of blog has the most readership?

The demand for personal blogs and business blogs can vary widely depending on the topic and audience. Some popular blog topics for personal blogs are the ones that impact people’s daily lives including personal finance, parenting, health and wellness, travel, food and cooking, technology, and fashion blogs. Some people may also be interested in specific hobbies or activities, such as gardening, crafting, sports, or fitness blogs.

In general, blogs that are well-written, informative, and engaging tend to be in demand, regardless of the topic. Blogs that can offer valuable insights, useful tips, or new perspectives on a subject can be particularly appealing to readers. Additionally, blogs that are updated regularly with fresh content following a specific content strategy, can be more attractive to readers, as they provide a reason to return to the site on a regular basis.

It is important to bear in mind that there can be fluctuating levels of demand for blogs due to the dynamic nature of individuals’ interests and priorities. A blog that covers a topical issue or a current event may experience a surge of readers, while a blog that looks at a less prominent topic may not be a popular blog.

Consequently, bloggers can benefit from being mindful of the int ests of their readership and having the capacity to adjust their blogging practices accordingly. That is what we try to do with Brandon’s Blog. I would love you to email me at info@irasmithinc.com to let me know how you think I am doing and if there are any topics, in particular, you wish me to cover.

our most read blogs in 2022
our most read blogs in 2022

Our most read blogs in 2022: What would be the most successful blogging strategy in 2023?

There are many strategies I believe that bloggers can use to make their blogs more effective in 2023 and beyond. What I try to do for making sure that this remains a successful blog is:

Create high-quality content with a specific content strategy:

One of the most important strategies for successful blogging is to create content that is informative, engaging, and well-written. This can help to attract and retain a loyal readership.

Use SEO techniques:

Search engine optimization (SEO) can help improve your blog’s visibility in search engine results pages. This can be achieved by using relevant keywords in your blog titles and content and creating meta descriptions and alt tags for images.

Promote the blog:

To ensure your blog reaches its intended audience, it is essential to use marketing tools to promote it through available channels such as social media and email.

Interact with your readers:

Developing a dedicated group of followers is a major part of blogging success. Connect with your audience and motivate them to spread the word about your content.

Frequency:

Keep your readers engaged and coming back for more by providing new content and getting the word out!

Don’t be afraid to mix things up in your blogs:

Trying out different formats and styles like video, audio, or interactive content can be a great way to keep your readers engaged.

To remain a leader in the industry, I’m constantly researching the newest trends, court decisions, and top strategies in the world of insolvency. This way I can ensure Brandon’s Blog topics are always up-to-date and appealing to new audiences. All this hard work gives me the confidence that my efforts won’t go to waste!

our most read blogs in 2022
our most read blogs in 2022

Our most read blogs in 2022: I’m excited to share with you our 10 most-loved blog posts from 2022!

From #10 to #1, here are our top 10 most read blogs in 2022:

10. CREDIT CARD DEBT AFTER DEATH IN CANADA: WHO IS RESPONSIBLE?

This August 2019 blog answers the 8 most asked questions about credit card debt after death in Canada.

9. CANADIAN DEBT RELIEF PROGRAM SCAM REVIEW: MASSIVE HARM CAUSED TO DEBTOR

In this January 2022 Brandon’s Blog, I wrote about the unfortunate privilege we had of consulting on a compelling case of a Toronto man who had opted to utilize a debt relief program offered by a Canadian debt relief firm to tackle his debt problems. Unfortunately, despite taking advantage of this program, the individual in question remains debt-ridden and lost his home, all a result of perfectly following the advice of the debt consultant.

8. 4 PILLARS CLASS ACTION LAWSUIT SETTLEMENT: OUR DEFINITIVE GUIDE TO THE PEARCE V 4 PILLARS LAWSUIT SETTLEMENT

On October 29, 2019, an agreement was reached in the Pearce v 4 Pillars Consulting Group Inc. class action lawsuit, certified by the court in British Columbia. This blog, published in March 2022, provided an overview of the settlement between the two parties. This debt consultant company in question obviously preferred this settlement to resolve the issue rather than going to trial. This is especially in light of the findings of the BC Court up to the point of the settlement as to the infractions by the debt consultant company.

7. HOW LONG DOES PROBATE TAKE IN ONTARIO? 7 QUESTIONS NEWBIE ONTARIO ESTATE TRUSTEES ARE EMBARRASSED TO ASK

In our role as Estate Trustees in our companion business, Smith Estate Trustee Ontario, our team of professionals often encounters queries regarding the duration of probate in Ontario, as well as 6 other commonly asked questions. This May 2021 Brandon’s Blog provides answers to these FAQs.

6. 4 PILLARS LAWSUIT GETS GIGANTIC APPROVAL TO PROCEED FROM COURT OF APPEAL FOR BRITISH COLUMBIA

In this May 2021 blog, I discuss the 4 Pillars lawsuit, explaining why the Court of Appeal for British Columbia has approved it as a class action proceeding, despite the objections of the debt consulting firm.

5. CEBA LOAN BUSINESS CLOSED: THE #1 DRASTIC ULTIMATE CEBA LOAN FORGIVENESS PLAN

Early this year, the Canadian Federation of Independent Business revealed that due to the indefinite prolongment of the pandemic, many Canadian businesses have become apprehensive about their financial stability. Even with emergency government assistance, the future of these businesses remained uncertain.

Despite the CEBA loan program for Canadian businesses in this April 2022 installment of Brandon’s Blog, I examined the implications for entrepreneurs who are unable to repay a CEBA loan and their business was forced to close.

4. CEBA LOAN UPDATE: 3 INTRIGUING CREATIVE WAYS FOR ENTREPRENEURS TO CONQUER CEBA LOAN DEFAULT

This October 2021, Brandon’s Blog provided a comprehensive update on the CEBA loan program and addressed the often-asked question of what constitutes a loan default. Additionally, the blog outlined three innovative strategies for entrepreneurs to deal with any potential loan default.

3. EXECUTOR DUTIES ONTARIO: OUR COMPLETE GUIDE TO MAKE A 1ST TIME EXECUTOR LOOK LIKE A PRO

My Firm through our other business, Smith Estate Trustee Ontario, frequently undertakes the role of Court-appointed Executor/Estate Trustee. Unfortunately, many individuals are inadequately equipped to handle the delicate process of settling the estate of a deceased family member or friend, leading to stress and distress.

This October 2021 Brandon’s Blog provides support to you in your duties as an Estate Trustee in Ontario through a helpful Ontario Executor duties checklist to help you navigate the estate settlement process with confidence and expertise.

2. HOW TO BEAT 407 PLATE DENIAL RULES EACH AND EVERY MONTH FOREVER

The 407 ETR reports that only a small proportion of toll evaders choose to pay up voluntarily. However, they have one surefire way to make sure they recoup what they’re owed; Ontario can deny license plates to those who don’t settle their 407 toll debt. People ought to be aware that this is a serious consequence and should be sure to pay their tolls.

If you’re having difficulty with a 407 plate denial, this March 2021 Brandon’s Blog provides a comprehensive overview of the Canadian insolvency process and how it can help you handle this issue if the 407 is one of your creditors.

1. WHAT HAPPENS TO MORTGAGE WHEN YOU DIE CANADA: AMAZING DEBT PHILOSOPHY EXPLAINED

This Brandon’s Blog published in October 2019 dives into the implications of what happens to a Canadian’s mortgage when they pass away.

our most read blogs in 2022
our most read blogs in 2022

Our most read blogs in 2022: Are there any indicators that my financial situation is in good shape?

Several signs may indicate financial health:

  1. You have a budget and stick to it: Having a budget can help you keep track of your income and expenses and make sure you are saving and spending wisely.
  2. Your emergency fund exists: It’s critical to maintain an emergency fund for any unanticipated costs or situations. A reliable guideline is to have enough cash stored away to cover your living expenses for at least three to six months.
  3. You have manageable debt: Having some debt is normal, but it’s important to make sure your debt is manageable and that you are making progress in paying it off.
  4. You save and invest: Building wealth involves saving and investing for the long term. If you can set aside money for the future and invest it wisely, it can be a sign of financial health.
  5. You can meet your financial obligations: Being able to pay your bills on time and meet your financial obligations, such as rent or mortgage payments, is a sign of financial stability.
  6. You have a financial plan: Having a plan for your financial future can help you achieve your financial goals and can be a sign of financial health. This might include setting savings goals, investing for retirement, or planning for a major purchase.

Our most read blogs in 2022: What will your 2023 finances look like?

I hope you enjoyed our most read blogs in 2022 Brandon’s Blog.

There are many financial blogs. Ours focuses mainly on issues of importance to those experiencing debt problems. Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

our most read blogs in 2022
our most read blogs in 2022

 

Categories
Brandon Blog Post

GAMBLING HELP ONTARIO: BEATING THE ODDS AND CONQUERING GAMBLING ADDICTION AND DEBT

gambling help ontario
gambling help ontario

gambling help ontario

Gambling help Ontario: What is gambling?

Gambling is the act of betting or wagering on the outcome of an event or a game with the intention of winning money or other material goods. It can take many forms, including playing games of chance like slot machines or cards, betting on sports events or horse races, or participating in games of skill like poker or blackjack.

Gambling can be done in person, such as in a casino or at a horse racing racetrack, or online. It is important to note that gambling can be addictive and can have negative consequences if it is not done responsibly. With the proliferation of online gambling opportunities in Canada, in this Brandon’s Blog, I discuss the issue of gambling, gambling addiction, gambling debt, and gambling help Ontario. I am talking about impulsive behaviour leading to addiction, not about the social gambler.

Gambling help Ontario: What is gambling addiction?

Gambling disorder is a type of impulse control disorder, commonly referred to as pathological or compulsive gambling behaviour, which is characterized by a persistent and recurrent inability to resist the urge to gamble, despite the potential for serious negative consequences. Individuals suffering from gambling addiction may continue to gamble despite the consequences.

Gambling can be a real problem, resulting in financial issues, relationship stress, and lower work performance. It can also lead to mental health concerns like anxiety and depression. If you think you, or someone you know, might be dealing with a gambling addiction, it’s important to get gambling help Ontario.

gambling help ontario
gambling help ontario

Gambling help Ontario: What are some of the usual factors behind a gambling problem?

Pathological gambling, commonly referred to as gambling addiction, is a form of impulse control disorder. Those affected by this disorder experience gambling habits which are an intense compulsion to gamble, even when they are aware of the potential adverse effects it can have on their lives.

Potential contributors to the emergence of a gambling dependency may include, but are not limited to:

  1. Biological factors: Some research suggests that gambling addiction may have a genetic component and that certain brain chemicals may be involved in the development of the disorder.
  2. Psychological factors: People with certain personality traits, such as impulsivity and a need for novelty and excitement, may be more prone to developing a gambling addiction.
  3. Environmental factors: People who are exposed to gambling at an early age or who have access to gambling opportunities may be more likely to develop a gambling addiction.
  4. Social factors: Gambling addiction may be more common in people who have a social network that supports or encourages gambling, or in people who are isolated and may use gambling as a way to cope with stress or negative emotions.
  5. Cultural factors: Gambling is more accepted in some cultures than in others, and people who live in cultures where gambling is more prevalent may be more likely to develop a gambling addiction.

It’s important to note that gambling addiction can affect anyone, regardless of age, gender, or background. If you or someone you know is struggling with gambling addiction, it’s important to seek help as soon as possible.

Gambling help Ontario: What is the prevalence of gambling addiction among individuals?

Accurately estimating the prevalence of gambling addiction in Canada is challenging due to underreporting of the disorder. Nevertheless, studies suggest that gambling addiction is a major public health issue in this country.

The Canadian Centre on Substance Use and Addiction (CCSA) estimates that approximately 2% of Canadian adults are affected by problem gambling, characterized by adverse financial, relational, and mental health outcomes.

With respect to alcohol addiction, the CCSA estimates that approximately 5% of the adult population in Canada meets the criteria for alcohol addiction. This includes approximately 10% of men and 3% of women.

The CCSA also estimates that approximately 5% of the adult population in Canada meets the criteria for drug addiction. This includes approximately 10% of men and 3% of women.

It’s important to note that all addictions, including gambling addiction, can have serious consequences for individuals and their families. If you or someone you know is struggling with addiction, it’s important to seek help as soon as possible. There are many resources available in Canada to help people who are struggling with addiction, including support groups, credit counselling, and rehabilitation programs.

gambling help ontario
gambling help ontario

Gambling help Ontario: How do I stop gambling?

Gambling addiction can be a difficult disorder to overcome, but it is possible for gambling addicts to overcome their gambling concerns and addictive behaviour, stop gambling and regain control of their life. Here are some steps you can take to stop gambling:

  1. Seek help: One of the most important things you can do to stop gambling is to seek help from a healthcare professional or a support group, particularly a gambling help services group. A therapist or counselor who specializes in treating gambling addiction can help you identify the underlying causes of your gambling and develop strategies to overcome it.
  2. Set goals: Identify specific goals that you want to achieve, such as paying off debt or rebuilding relationships with loved ones. Setting goals can help you stay focused and motivated as you work to overcome your gambling addiction.
  3. Avoid triggers: Identify the situations and circumstances that trigger your desire to gamble, and try to avoid these triggers as much as possible. This may include avoiding places where gambling is available, such as casinos, or avoiding activities that you associate with gambling, such as watching sports or playing card games.
  4. Find healthy coping mechanisms: Gambling may have been a way for you to cope with stress or negative emotions, so it’s important to find healthier ways to manage these feelings. This may include exercising, spending time with friends and family, or practicing relaxation techniques such as deep breathing or meditation.
  5. Get support: Surround yourself with a support network of friends, family, and loved ones who can offer encouragement and support as you work to overcome your gambling addiction. Joining a support group, such as Gamblers Anonymous, can also be a helpful way to connect with others who are facing similar challenges.

Remember, overcoming gambling addiction takes time and effort, and it’s important to be patient with yourself. It may take several attempts before you are able to successfully stop gambling. Don’t get discouraged, and keep seeking help if you need it.

Gambling help Ontario: Strategies for managing debt from gambling

People with gambling problems ultimately will have significant debt, which can be overwhelming and stressful. If you are struggling with gambling addiction and debt, it’s important to take steps to address both issues as soon as possible. Here are some steps you can take to deal with gambling addiction debt:

  1. Acknowledge the problem: The first step in recovering from gambling debt is to admit that you have a problem and take responsibility for it. This can be difficult, but it is an essential step in the recovery process.
  2. Create a budget: To manage your debt payments, you need to have a clear understanding of your financial situation. Create a budget that takes into account your income, expenses, and debts.
  3. Make a plan to pay off your debts: Once you have started to address your gambling addiction, it’s important to make a plan to pay off your debts. This may include negotiating with creditors, consolidating your debts, or seeking assistance from a debt management organization.
  4. Cut expenses: Look for ways to cut your expenses so that you can free up more money to put towards your gambling debt. This might involve cutting back on non-essential expenses, such as dining out or entertainment.
  5. Look for additional income: If you are unable to cover your debts with your current income, consider looking for additional sources of income, such as taking on a part-time job or selling assets.
  6. Negotiate with creditors: If you are unable to make your minimum payments, consider negotiating with your creditors to see if they will accept a lower payment or extend the repayment period.Retain a lawyer: If negotiations with creditors fail or if you are facing legal action, it may be beneficial to consult a legal professional for assistance.
  7. Speak to a licensed insolvency trustee (formerly called a licensed bankruptcy trustee): If you feel that you are in over your head in debt and there is no way out of it, get a no-cost consultation with a licensed insolvency trustee who can review your situation and make recommendations.
  8. Avoid temptation: To avoid falling into gambling debt again, it is important to avoid situations that may trigger your gambling addiction. This might mean avoiding casinos or online gambling sites or finding alternative ways to cope with stress or boredom.
  9. Seek support: Recovery from gambling debt is a long and difficult process. It is important to seek support from friends, family, and professional resources to help you stay on track and achieve your financial goals.
  10. Using a financial professional such as a non-profit credit counselor or a debt coach: They can determine if they can make a plan for you that will see you pay off your debts in a reasonable period of time. If not, they will recommend you seek advice from a licensed insolvency trustee.
  11. Deny access to financial resources and credit: In order to impede any additional gambling activities and debt accumulation, it may be wise to restrict your access to money and credit. This could involve canceling credit cards and lines of credit, closing bank accounts, or entrusting a reliable relative or friend to manage your funds.

    gambling help ontario
    gambling help ontario

Gambling help Ontario: Is it possible to have gambling debts eliminated in bankruptcy proceedings?

In Canada, it is possible to have gambling debts eliminated in bankruptcy proceedings under certain circumstances.

Under the Bankruptcy and Insolvency Act (Canada), gambling debts may be discharged (eliminated) in bankruptcy if they meet certain criteria. For example, you must not have obtained the money to gamble with through fraud, embezzlement, or larceny.

It is advisable to seek the counsel of a licensed insolvency trustee if you are thinking of filing for bankruptcy with regard to financial obligations resulting from gambling. Doing so will allow you to gain an understanding of the available options and specific regulations applicable to your circumstance so that you can make an informed decision on whether bankruptcy is the best course to take.

Bankruptcy should not be the first option for dealing with a gambling addiction; it should be the last resort. Therefore, it is necessary to explore other options first. However, if any insolvency process is pursued, one must also be committed to tackling the addiction head-on in order to achieve a full recovery. Ignoring the root of the problem and simply filing for bankruptcy will not benefit anyone in the long run.

Gambling help Ontario: If bankruptcy is the last resort, what is first?

The answer is a consumer proposal. A licensed insolvency trustee can offer both a consumer proposal and bankruptcy as two options that are available to individuals who are struggling with debt and are unable to pay their bills. Both options can help you manage your debts and get a fresh start financially, but they work in different ways and have different consequences.

A consumer proposal is a formally proposed payment plan to creditors. Administered by an insolvency trustee, the proposal is intended to have the person make an affordable monthly payment for no more than 60 months to settle all of the debt. It must be approved by creditors.

There are some key differences between a consumer proposal and bankruptcy in Canada. To be eligible for a consumer proposal or bankruptcy, an individual must be insolvent. To qualify for a consumer proposal, you cannot owe more than $250,000 (excluding mortgage debt) and need to have a reliable regular income source.

Feel free to reach out to me to find out more about a consumer proposal for debt relief.

gambling help ontario
gambling help ontario

I hope that you found this gambling help Ontario Brandon Blog helpful. Other types of addiction can also result in debts.

If you or your business are facing serious debt issues, and you are unsure if bankruptcy is the best solution, call me for advice on ways to tackle your debt, whether it stems from gambling or other sources.

It is not your fault that you remain in this way. It has been demonstrated that traditional methods of addressing financial difficulties are inadequate. These old ways do not work anymore.

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

The tension put upon you is big. We know your discomfort factors. We will thoroughly evaluate your circumstances and devise a tailor-made solution to address both your financial and emotional concerns. Let us lighten your load and dispel any lingering concerns. We will design a debt settlement strategy for you. We know that we can help you now.

We recognize that individuals and companies facing monetary difficulties require an optimistic opportunity for hope. The Ira Smith Team offers a wide array of solutions to fit any situation – never settle for a one-size-fits-all approach!. Not everyone has to file for bankruptcy in Canada. Most of our clients never give up and explore the alternatives to bankruptcy, thus taking control of their financial future! Our mission is to empower people and businesses to steer clear of bankruptcy and achieve financial success.

You can create a unique payment plan to conquer debt and achieve financial success! It will be as unique and extraordinary as the challenges and struggles you are facing. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost bankruptcy consultation.

gambling help ontario
gambling help ontario
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TORONTO PAYDAY LOANS: UNLOCKING FINANCIAL FREEDOM OR PAINFUL FINANCIAL SLAVERY?

Toronto payday loans
Toronto payday loans

Toronto payday loans popularity

The city of Toronto is Ontario’s largest city and is home to a growing number of individuals and families who are financially strapped and in need of quick financial assistance. Payday loans, which are short-term personal loans typically used to cover unexpected expenses, are becoming increasingly popular amongst Toronto residents due to the ease and convenience of applying for this quick loan product.

Payday loans offer borrowers immediate access to capital (either the same or within 1 business day) and these cash loans can be used to cover emergency costs, such as medical bills or car repair costs, when you don’t have the money to do so otherwise. There are many payday loan lenders in Toronto, each offering different terms and conditions regarding loan amounts, repayment terms, and fees. The one thing all of these providers with their alternative payday loans have in common is that the financial solutions they offer are very pricey.

This Brandon’s Blog provides a beginner’s primer to the Toronto payday loans industry. We will analyze the associated regulations, and different loan options, and provide some practical advice.

Toronto payday loans regulations

Payday lenders are usually the first and also the last stop for those who would be unable to secure a loan through more traditional banking institutions. They are the most vulnerable so the province implemented additional regulations to further regulate this industry. The Government of Ontario has enacted regulations for payday loan services in Toronto and the rest of Ontario. It is an essential part of trying to protect consumers residing in one of Canada’s most populous provinces. These regulations are aimed at ensuring that individuals accessing this kind of short-term loan services are provided with effective consumer protection.

The city of Toronto defines Toronto payday loans lenders as any establishment providing payday loans from physical locations, or any portion thereof, operating as a payday lender as outlined in the Ontario Payday Loans Act. In 2018, the City of Toronto limited the number of permits issued to businesses that offer payday loan services, setting the cap at the number of licenses already issued by that time.

Toronto payday loans
Toronto payday loans

Ontario Payday Loans Act

The Ontario Payday Loans Act, 2008, S.O. 2008, c. 9 has been established to enforce regulations on the payday loan industry in Ontario. Since its implementation, numerous amendments have been made in an effort to safeguard consumers in Ontario who utilizes payday loan services. This piece of legislation lays out the requirements for eligibility, the maximum allowable rate of interest, and various repayment plan choices.

Four key provisions of this Act are:

  1. The borrower retains the right to settle any or all of the payday loan prior to the expiration of the loan agreement. The lender is not authorized to receive or request any part of the borrowing cost from the borrower prior to the end of the payday loan contract.
  2. The cost of borrowing related to a payday loan agreement may be limited if the amount of the advance is $1,500 or less (or, if a different amount is prescribed, that amount or less) and, if the agreement has a duration of 62 days or less (or, if a different number of days is prescribed, that number).
  3. A lender is permitted to levy a charge of up to 2.5 percent per month on the unsettled principal balance in the event of delinquency, not compounded unless an alternative rate has been explicitly prescribed.
  4. A payday loan agreement should not impose any default charges upon the borrower beyond reasonable legal costs incurred by the lender in attempting to collect the required payment. A dishonoured cheque, pre-authorized debit, or other instruments of payment may incur a fee of up to $25.

The Canadian Criminal Code sets the maximum interest rate that can be charged in Canada at 60% per annum. However, payday lenders are exempt. So in spite of the federal and provincial guidelines, payday lenders in Ontario are typically authorized to collect interest of $15-$20 for every $100 borrowed. When expressed as an annual percentage rate (APR) – the same metric applied to credit cards, mortgages, auto loans, etc. – this translates to the cost of borrowing permitted being an APR ranging from 391% to more than 521%!

What other paperwork is required for making an application for Toronto payday loans?

When applying for Toronto payday loans, it is important to ensure you have all the necessary documents to submit alongside your application. These documents include:

  • government-issued photo identification, such as a driver’s license or passport;
  • a void cheque or a debit payment authorization form;
  • an active bank account statement with 30-60 days of account activity;
  • proof of where you live, such as a utility bill; and
  • a recent pay stub to prove your source of income and your regular income or monthly salary.

It is important to note that these documents are used to verify your identity and demonstrate your financial status.

Toronto payday loans
Toronto payday loans

Toronto payday loans interest rates and fees

Payday loan interest rates and fees in Toronto can vary greatly depending on the lending institution. Credit scores play an important factor in determining the applicable rate, as each lender has their own set of policies and regulations. Alongside the interest rate, fees also are charged.

When considering Toronto payday loans, it is essential to investigate and compare the various lenders available to ensure you secure the most competitive interest rate and fees. Prior to signing any loan agreement, be sure to read it thoroughly and check that all applicable fees and interest rates are correctly stated.

The Toronto payday loans application process

If you can’t make it to one of the brick-and-mortar payday loan locations for a time of day during regular business hours, don’t fret about it. Toronto payday loans have an application process that can be easily completed through one of the many online payday lenders with payday loan online applications which can be completed with minimal effort. Simply provide one of these online lenders with your personal and financial information and they will assess your eligibility. Upon passing the approval process, access to funds can be accessed by way of transferring to your account in a timely manner.

Before beginning the application process for Toronto payday loans, it is essential to thoroughly familiarize yourself with all the applicable terms and conditions. Furthermore, it is highly recommended to plan and budget for the loan repayment in order to avoid any extra fees and charges.

Toronto payday loans
Toronto payday loans

Toronto payday loans: What if I am on ODSP?

A certain group of Canadians use the convenience of quick access to short-term funds. But for those receiving Ontario Disability Support Program (ODSP) payments in Toronto, the question becomes: is it possible to apply for and receive an online payday loan?

The answer is not so simple, as many lenders have restrictions against lending to individuals receiving ODSP.

Toronto payday loans: The Canadian government survey

The Financial Consumer Agency of Canada (FCAC) performed a study on payday advance loans, producing insightful and sometimes surprising results. The survey exposed that, while cash advances are a practical method for customers to gain access to credit, they are a pricey form of loan, with a common interest rate of 546%. Moreover, fewer than 43% of respondents recognized the loan terms for this kind of financing.

The findings also indicate that a large proportion of individuals lack the financial literacy needed to make sound borrowing decisions that are beneficial to their financial situation. It has been observed that the percentage of Canadian households using these forms of debt has risen significantly in recent years, reaching 4%. Furthermore, 45% of the respondents indicated that they commonly resort to such loans to cover unexpected expenses.

Survey results showed that 41% of respondents utilized temporary payday advance loans for necessary and also predicted costs. Consider that statement. Another way of phrasing it is that 41% of the people who participated in the study said that they use payday advances to get cash for budgeted costs (although I am certain none of those individuals actually put together a budget plan). That indicates that their anticipated regular monthly expenditures are greater than the money they earn each month.

According to the survey, the majority of users of these types of loans tend to have lower to moderate incomes, with over half reporting annual incomes of under $55,000. However, it should be noted that approximately 20% of users who answered the survey stated that their household incomes were above $80,000 and 7% of respondents said they had a household income in excess of $120K.

The survey results, not surprisingly, showed that most of the users rarely looked for financial advice even when it was needed.

Toronto payday loans
Toronto payday loans

Toronto payday loans: Are there alternatives?

For those with a bad credit history, a bad credit score or for whatever reason no access to traditional banking and financial institutions, payday loans are an expensive option but are normally the only option. Toronto residents have access to several alternatives which may provide a more cost-effective solution. Some of these alternatives include credit unions, installment loans and peer-to-peer lending.

Many times when people have to resort to Toronto payday loans it really means that they are experiencing serious financial difficulties. The best option, rather than taking on payday loan debt is to seek help from either a non-profit credit counselling agency or even seek a no-cost consultation from a licensed insolvency trustee.

The unfortunate truth is that Toronto is an incredibly costly city to live in. If a single person or a family is making only $55,000 a year, they are barely scraping by. No matter how much financial knowledge and understanding one has, the reality remains the same. Therefore, it is essential that we start educating children in school so they will gain an understanding of what I believe are the 3 main foundations of financial literacy:

  • the cost of credit;
  • the need for emergency savings; and
  • seeking professional advice for both financial opportunities or financial problems.

Tips for repaying Toronto payday loans

Payday loans can be a great way to manage your finances in a pinch, but it’s important to remember to pay them back on time. Here are five tips to help you successfully repay payday loans in Toronto:

  1. Set a repayment date and mark it in your calendar. Knowing when your payday loan payment is due will help you plan and budget accordingly.
  2. Make more than the minimum payment. Paying more than the minimum will help reduce the total amount of interest you pay over the life of the loan.
  3. Pay by direct deposit whenever possible. Setting up direct deposit for your loan payments can help ensure that you never miss a payment.
  4. Call your lender if you can’t make your payment. Most lenders will be willing to work with you to reschedule your loan payment if necessary.
  5. Create a budget and stick to it. Developing a budget and sticking to it will help you avoid taking out more payday loans in the future.

Toronto payday loans: Instant approval of instant problems?

I hope you enjoyed this Toronto payday loans Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

Toronto payday loans
Toronto payday loans
Categories
Brandon Blog Post

DAMAGES FOR MENTAL DISTRESS CANADA: DAYLAN HEIDEL ORDERED TO PAY $160K TO REVENGE PORN VICTIM

damages for mental distress
damages for mental distress canada

Damages for mental distress in Canada: What are psychological injuries?

In Canada, there are a number of different options available to those who have suffered from psychological injuries. These include a civil lawsuit for damages for mental distress, which can help to cover the costs of treatment and other related expenses.

There are a variety of factors that will be considered when determining the available damages. These include the severity of the injuries, the impact on the victim’s life, and if this type of bodily harm was inflicted on purpose.

Earlier this year, a Saskatchewan court ordered a man to pay $160,000 in damages to a victim of revenge pornography abusive conduct. This is a significant decision that could have far-reaching implications for other victims of this heinous crime. The man’s lawyer said that his client will never be able to afford to pay off this claim and may have to file for personal bankruptcy in order to get released from this debt. This really piqued my interest.

In this Brandon’s Blog, I describe the decision of damages for mental distress in Canada awarded against the man, Daylan Heidel.

Damages for mental distress in Canada: Can you sue for emotional damage or mental suffering in Canada?

Mental impairments or mental distress describes the suffering caused by an accident, injury, or any kind of distressing experience. People who have experienced a traumatic event, including those who may have witnessed the event and also family members of the sufferers, can file a civil legal action claiming mental distress or psychological suffering. It affects all of these people’s quality of life and produces catastrophic injuries to a person’s psyche.

Usually, in our society, psychological distress, mental health issues or mental suffering are typically minimized or even considered inconsequential health conditions contrasted to physical harm. The truth is that medical evidence has shown that psychological injuries like emotional distress are just as real an injury as physical ones. Unlike a physical injury, it can last for a long period of time and could lead to long-term emotional damage. This is often ignored. The victim could have various symptoms from the traumatic experience. These include post-traumatic stress disorder or other symptoms, including sleep disorders, huge mood swings and loss of dignity long after the stressful event.

Nevertheless, you may be able to start a lawsuit against the party that is the source of your emotional distress. You might also be qualified for payment according to your legal rights. If you have the ability to collect on the award, that cash can go for spending on the treatment that you need.

Canadian courts are showing that they are willing to give awards for damages for mental distress in Canada.

damages for mental distress
damages for mental distress canada

Damages for mental distress in Canada: Mental distress damages awarded in the Saskatchewan court case

Daylan Heidel was scorned by his ex-lover. He thought that he would get even by uploading nude pics and videos of her to various internet sites. He didn’t just post her intimate images without her consent, but also published her name and personal details. The Judge awarded her $160,000 in general and aggravated damages for mental distress in Canada.

Heidel had already served some jail time a while back. He was convicted of distributing images of six women without their consent. One of them got a lawyer and sued Heidel for violating her privacy. A video of her has 1.5 million views. So every time somebody accesses that material, it’s another violation of her. She was able to sue for those continuing violations.

Since the federal government criminalized the non-consensual distribution of nude pics and videos in 2015, several provinces, including Saskatchewan, have amended privacy laws to make it easier for victims to take civil action and sue perpetrators for compensation. This is a form of sexual abuse. Although there have been only a few cases so far, this shows that the law is working and that victims now have a way to stand up for their rights, which can have a huge psychological benefit for the aggrieved party.

A Court of King’s Bench for Saskatchewan Judge has found that Heidel’s actions were malicious, flagrant, and intentionally inflicted mental distress. This is a significant ruling, as civil suits for an award for damages for mental distress in Canada are still not common.

This is the largest sum awarded thus far for damages for mental distress in Canada arising from the distribution of intimate photos without the person’s consent. This decision is good news for supporters of victims of sexual violence. In our culture, we tend to put a price on things, and so this decision values the lives of sexual assault victims.

The defence lawyer for Heidel stated that his client may appeal the decision or file for bankruptcy, even though he accepts responsibility for his actions and regrets them deeply. The lawyers went on to say that this case should serve as a warning that sharing intimate images without consent can have severe consequences.

Heidel’s defence lawyer’s lack of appreciation for the nuances of Canadian bankruptcy law is evident. It is obvious that he is not an experienced lawyer for bankruptcy and insolvency matters.

Damages for mental distress in Canada and bankruptcy

The defence lawyer for Heidel believes that his client can file for bankruptcy and avoid liability for the court award. However, given the wording the Judge used, this is incorrect. As stated in numerous previous blogs on personal bankruptcy, it is the discharge from bankruptcy that eliminates the person’s debts.

However, according to section 178(1) of the Bankruptcy and Insolvency Act (Canada) (BIA), there is a class of debts that are not discharged when the bankrupt receives their absolute discharge from bankruptcy.

Specifically, part of section 178 (1) states:

“178 (1) An order of discharge does not release the bankrupt from

(a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;

(a.1) any award of damages by a court in civil proceedings in respect of

(i) bodily harm intentionally inflicted, or sexual assault, …”

The court found that the defendant’s actions constituted intentional infliction of mental distress. The plaintiff was able to demonstrate that the defendant’s conduct was extreme and outrageous, intentionally or recklessly causing the plaintiff emotional distress. The plaintiff also established that she incurred a visible and demonstrable injury as a result of the defendant’s actions. Courts in Canada have held that mental distress intentionally inflicted is bodily harm, a personal injury claim.

Further, the Judge having chosen the words “malicious, flagrant, and intentionally inflicted mental distress” in awarding the damages for mental distress in Canada in this sexual assault case, has recognized the defendant’s outrageous conduct and puts the award squarely within the scope of BIA section 178(1)(a.1)(i).

That means that Heidel will never be able to eliminate this debt with a discharge from bankruptcy if he ever chooses to file. This debt will follow him forever.

damages for mental distress
damages for mental distress canada

Damages for mental distress in Canada: Is there a need to review your situation?

I hope you enjoyed the damages for mental distress in Canada Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

damages for mental distress
damages for mental distress canada
Categories
Brandon Blog Post

BILL C-228: WILL HUGE PENSION PRIORITY IN CANADIAN INSOLVENCY BE REAL FINALLY?

Bill C-228
Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Bill C-228: Are pensions protected in Canadian insolvency proceedings?

The long-awaited Bill C-228, an Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985 proposes to give priority and therefore some financial security to pensions of workers in the event of a Canadian insolvency of their employer, may finally soon become law. This is a significant victory for pensioners and unions across the country who have been advocating for this change for many years.

This new law will provide much-needed protection for pensioners in case of the insolvency of pension plan sponsors. It is a major step forward in ensuring that pensioners are able to retire with dignity, security and frankly, what they bargained for.

Bill C-228: Right now pensions in bankruptcy can be taken away

The Canadian insolvency system has come under heavy analysis and criticism for years for its treatment of pensioners when the employer goes bankrupt or files for bankruptcy creditor protection. Bill C-228 comes from a long line of private members’ bills presented in the House of Commons of Canada that never went anywhere – until now. It makes every effort to make previous employees getting a pension, and those who someday expect to get payments from their pension plan, a priority in the insolvency process.

In this Brandon’s Blog, I discuss the current status of Bill C-228 and its implications in making pensioners a priority in bankruptcy if it becomes law as presently composed.

Bill C-228
Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Bill C-228: What can cause you to lose your pension?

Underfunding is a major concern for traditional, defined-benefit pension plans (DB Pension Plans). In other words, do they have enough pension assets and therefore enough money to meet their projected future pension obligations of insolvent pension funds? Inadequate actuarial assumptions, poor investment returns, and mismanagement can lead to pension plan underfunding. In the case of corporate insolvency of a large employer with a DB Pension Plan, this issue always arises. Underfunded pensions in bankruptcy wind up hurting retirees.

The Sears Canada court-supervised liquidation forced us to again focus on the treatment of pensioners in corporate bankruptcies under the Bankruptcy and Insolvency Act (Canada) (BIA) or restructurings and liquidations under the Companies’ Creditors Arrangement Act (CCAA). It was widely reported that representative for 17,000 Sears Canada retirees says insolvency laws are unjust when it comes to underfunded pensions.

When a company is insolvent and its DB Pension Plan is underfunded, pensioners suffer pension losses and ultimately income losses. In practice, pensioners’ rights are weak and highly inadequate, especially when pension plans are underfunded.

Although pension legislation at the provincial and federal level purports to offer some protection for amounts owing to an underfunded pension plan, insolvency legislation does not preserve that protection for the majority of those amounts. The insolvency protection of pensioners and pensions in bankruptcy proceedings is therefore limited.

Dr. Janis Sarra is the founder and director of the National Centre for Business Law and a professor at the Peter A. Allard School of Law. In her opinion, Canadian pensioners and employees are among the worst-protected pensions in bankruptcy and/or insolvency among 60 countries.

The history leading to Bill C-228

Let’s look at some history of attempts to protect pensions in bankruptcy. The Canadian Association for Retired Persons (CARP), a nationwide advocacy organization for Canadian seniors and retirees, lobbied politicians on Parliament Hill about legislation changes. According to CARP, the unfunded pension liability should be given priority so that it is handled first.

There is no priority for retirees when it comes to dividing up assets in bankruptcy, and CARP wanted to protect underfunded DB Pension Plans when the employer company goes through restructuring or bankruptcy.

CARP estimated that roughly 1.3 million Canadians, aside from the retired Sears employees, may be at risk due to underfunded DB Pension Plans. The closure of Sears Canada stores made the plight of retirees a top priority for CARP.

Marilène Gill, Bloc Québécois MP, introduced a member’s BILL C-372, on Oct. 17, 2017. It was intended to change the BIA and the CCAA. The change sought to correct the injustice faced by retired workers whose pension and health insurance policy benefits are not secured when their company declares bankruptcy or undergoes restructuring.

On October 17, 2017, Bill C-372 passed its first reading. The House rarely passes private member’s bills like this one. The Liberal Party did not support taking it further and allowed it to die.

Hamilton Mountain NDP MP Scott Duvall asked for leave to introduce Bill C-384 in the House of Commons on November 6, 2017. He proposed amending Canada’s insolvency laws so that companies must bring any pension fund to 100% before paying any other secured creditors. Additionally, it required companies to pay termination or severance pay owing before paying secured creditors. Similarly, this bill passed the first reading and then died.

Then, Senator Art Eggleton, P.C., proposed BILL S-253 shortly before his retirement to amend the insolvency legislation to deal with a pension deficit in Canada. After the first reading passed on September 18, 2018, the second reading followed on September 25. By introducing this bill, the BIA and CCAA would be amended. The plan proposed to give priority to claims for unfunded obligations or solvency deficiencies of pensions. This was applicable to both solvent companies as well as companies that might become insolvent if certain shareholder payments were made. That bill never went any further.

Bill C-228
Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

The current Bill C-228: Pension Protection Act

Then, Conservative MP Marilyn Gladu put forward her pension reform private member Bill C-228: An Act to amend the BIA, the CCAA and the Pension Benefits Standards Act, 1985. It passed 2nd reading on June 22, 2022.

According to the Hansard transcripts, she noted that the proposed legislation would ensure that pension funds would be paid before secured and unsecured claims. Unremitted source deductions for the Canada Pension Plan, Quebec Pension Plan, Employment insurance, and taxes would be taken first. Suppliers who take back goods delivered within a month of bankruptcy or receivership and unpaid wages or salaries would be paid next. Then payment for insolvent pensions would come next before the claims of secured and unsecured creditors.

It then got a referral to committee, the Standing Committee on Finance. Once the referral to the Finance Committee happened, it did not take long to get through the committee. The committee held three meetings between October 17 and 31. It passed through the committee and on November 23, 2022, it passed 3rd reading and Bill C-228 was adopted.

A cross-party collaboration of New Democrat, Bloc and Conservative MPs was now finally achieved in order to move forward with key legislation to protect workers’ pensions in commercial bankruptcy or insolvency proceedings. The Liberal government which previously did not have this on its radar also voted in favour. In fact, PM Trudeau has tried to take some credit for this private member’s bill in the House of Commons.

The bill has now moved on to the Senate of Canada for review and amendment before returning to the House for final approval. It passed its first reading in the Senate on November 24. It now seems to have sufficient support and momentum to ultimately become law.

The current Bill C-228: What will the Pension Protection Act do?

The purpose of the private member’s Bill C-228, which will be known as the Pension Protection Act. is to deal with the insolvency of an employer where there is an unfunded liability or solvency deficiency in an employee pension plan or the employer ceases to fund a group insurance plan. It will prioritize the pension payments for such pensioners and employee claims for pension entitlements.

The proposed legislation would also amend the Pension Benefits Standards Act, 1985 to require the annual tabling of a report on the solvency of pension plans.

The current wording of the proposed legislation proposes to accomplish pension security for retirees by amending existing legislation to deal with deficiencies of pension plans as follows:

  • BIA section 60(1.‍5)‍(a)‍, is the section that deals with employers trying to restructure through a BIA restructuring proposal. It already states that any pension amounts deducted from employees that were not paid into the pension fund must be in order for the court to consider approving the proposal.
  • It will be amended such that the court cannot approve any employer restructuring proposal unless it stipulates that any amount required to make all special payments, as determined by section 9 of the Pension Benefits Standards Regulations, 1985, that should have been paid to correct any unfunded liability or solvency deficiency will be funded by the employer.
  • It will also be amended so that any amount required to liquidate any other unfunded liability or solvency deficiency of the fund as determined at the time of the filing of the notice of intention or of the proposal if no notice of intention was filed, will be included.
  • BIA sections 81.5 and 81.6, are the sections that deal with the event of bankruptcy proceedings and receivership proceedings. They will similarly be amended.
  • CCAA section 5, which deals with the employer company with a pension plan, will be amended the same as the proposed amendments to the BIA. This will state that if the company participates in a prescribed pension plan for the benefit of its employees, the court may not sanction a compromise or arrangement unless there are the same provisions stated above to protect the interests of the employees.
  • The Pension Benefits Standards Act, 1985 will be amended to require greater annual report requirements on the solvency of pension funds and their success in meeting funding requirements, and the corrective measures taken or directed to be taken by the Superintendent of Financial Institutions to deal with any pension plan not meeting the funding requirements.

As indicated above, there appears to be enough momentum for Bill C-228 to get through the Senate and ultimately receive Royal Assent to become an Act of Parliament. This will no doubt be a major change to bankruptcy protection insolvency proceedings in Canada relating to benefit plans if it becomes the new law dealing with pension plan deficits.

We will have to see if this Bill becomes law, once implemented and if there will be any unintended consequences. Time will tell if these changes will not have negative consequences on corporate restructuring and advisory, preventing what previously would have been successful restructurings of Canadian businesses, albeit on the backs of hard-working Canadians being the employees and retirees.

No doubt the insolvency community and the lending community will have to adjust to the new business environment. I will provide you with updates as they occur.

Bill C-228
Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Bill C-228 transition period

The Bill, if passed, would introduce a four-year transition period between its implementation and the implementation of the proposed amendments. My guess is that such a long transition period has been established for two main reasons:

  1. to allow companies who currently are behind in their defined pension benefit payments to catch up; and
  2. to allow the lending community to try to figure out how they are going to adjust their commercial lending practices in this new reality.

Bill C-228: Pension reform to insolvency

I hope you enjoyed this Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985, Brandon’s Blog.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns of businesses and people facing a mountain of unsecured claims and financial liabilities. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

Bill C-228
Bill C-228 An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

 

Categories
Brandon Blog Post

CONSUMER PROPOSAL CALCULATOR: CONSUMER PROPOSAL GREAT SECRETS REVEALED!

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: When should you think about a consumer proposal?

Debt can be a heavy burden, and it seems like there’s no end in sight. If you’re having a hard time making ends meet and debt is taking over your life, you may be asking yourself if a consumer proposal is right for you.

If you’re finding it impossible to pay off your financial debt, a consumer proposal could be a perfect choice for you. As soon as approved by your creditors and also authorized by the court, a consumer proposal is an enforceable deal between you and your creditors. You only need to pay off a part of your financial debt and in return, they write off the balance. This is an excellent method to pay off your debt as well as get your life back on course.

There are 2 main points to keep in mind when thinking of a consumer proposal. First, just an insolvency trustee (Trustee) can carry out a consumer proposal. They will first evaluate your situation and determine if this is the very best choice for you.

Secondly, you need to be able to make the promised payments to the Trustee. If you cannot, then a consumer proposal may not be right for you. There are also several non-insolvency debt relief options for people when looking at their unsecured debt and I describe them below.

Knowing how much you may need to pay in a consumer proposal in order to extinguish all of your unsecured debt is an important part of the decision-making. That is why I created this consumer proposal calculator located down below in this Brandon’s Blog.

Consumer proposal calculator: Option 1 – Pay off your debt on your own

If you have adequate savings and are in a financial situation to pay your financial obligations in a timely manner, excellent. Yet that is not every person’s circumstance. It’s not unusual for individuals to find themselves in a state where they have financial obligations coming due for payment, but, they do not have the cash. If you’re in this situation, you might be unsure about exactly how you can repay the money you owe but do not have.

There are a couple of things you ought to remember if you’re seeking to pay off the financial debt by yourself. First, you need to ensure you have a clear plan for exactly how you’re likely to pay off the money. This means establishing a budget plan and staying with it.

Second, you ought to keep communication open with the individual or company you owe the money. By doing this, they’ll understand what you’re doing to pay back the debt and can provide support if needed.

Finally, it is very important to be patient. Settling a financial debt can take time, however as long as you’re sticking to your strategy and seeing progress, you’ll ultimately get there to financial freedom.

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: Option 2 – Debt consolidation

Combining your financial obligations, such as the total debt on all your credit cards, into one new debt consolidation loan can aid you to become debt-free faster and get your funds back on the right track. It can help you to repay your financial debts a lot faster and also right-size your finances. Before consolidating your financial debts and making debt consolidation payments, there are a couple of things you need to understand:

  1. Prior to you trying to settle your financial debts through debt consolidation, it’s important to recognize just how debt consolidation loan payments work as well as what type of impact it can have on your credit rating.
  2. See to it that you recognize what you’re getting into. Consolidating your financial debts through new loan funding to settle your existing financial obligations, ensure you recognize the terms of the new financing, including the rate of interest and how much the regular monthly payment will be.
  3. Search for the very best deal available. There are a variety of companies that provide financial debt consolidation funding. Shop around to find the best rates of interest as well as terms.
  4. Combining your debts will lead to a lower single monthly payment. Make sure it fits into your budget.
  5. Making your new loan monthly payments on time will work to improve your credit rating.

Consumer proposal calculator: Option 3 – Credit counselling

If you’re struggling with credit card debt, you’re not alone. It’s one of the most common types of debt in Canada. But there’s help available. Credit counselling can help you get your debts under control and develop a plan for you.

Credit counselling can be a very therapeutic process that assists people to address their debt obstacles as well as enhance their total financial health and wellness. Your best choice is to go for credit counselling offered by a nonprofit credit counselling agency.

Credit counselling commonly involves working with a credit counsellor to develop a spending plan, understand your economic alternatives, and produce a plan to settle your financial debts. More often than not the credit counsellor can get your creditors to agree to allow you to pay off the principal amount of your debt without adding any more interest charges.

Credit counselling can aid you to get out of debt, improve your credit score, and also teach you how to make better financial decisions in the future. If you’re seriously thinking about credit counselling as an option for you, it is very important to pick a reputable firm to deal with in order to produce a personalized plan to address your unique financial situation.

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: Option 4 – Debt Settlement

If you’re struggling to make your financial debt settlements and are dealing with economic difficulty, financial debt settlement may be a great choice for you. This is where you work out with your creditors to resolve your debt for less than the amount of the individual debt amounts you owe.

  1. There are a couple of points to remember if you’re thinking about financial debt settlement:
    Your credit score will take a hit.
  2. Your creditors might send your debt to their lawyer to take legal action against you or they might send your debt to a collection agency to plague you with collection calls as soon as you divulge that you cannot settle them in full.

If you’re looking at this kind of financial debt negotiation, it is very important to evaluate the pros and cons and speak with a professional advisor to see if it’s the right option for you.

WARNING:

A for-profit debt settlement company charges fees, just like any other business. Before any of your money is used to settle your personal debts, you must pay their fees upfront. No fees are charged by the non-profit credit counsellor.

When you cannot pay anymore, the for-profit debt settlement company walks you over to their friendly Trustee for you to file either a consumer proposal or an assignment in bankruptcy.

Please stay away from for-profit debt settlement companies. I do not recommend for-profit debt settlement arrangements or debt settlement programs. These types of debt counsellors are not the debt-help professionals you should go to see.

Consumer proposal calculator: Option 5 – About consumer proposals

If you’re battling with a mountain of debt, do not worry, there is help and it avoids bankruptcy. A consumer proposal is a legal process that is the only federally-approved debt settlement process. A consumer proposal can only be carried out by a Trustee.

If you’re thinking about a consumer proposal, it is very important to understand just how the process works and also what it will indicate for your financial future. I have actually written several of Brandon’s Blogs giving a comprehensive on what consumer proposals are and how they work.

If you’re insolvent and owe $250,000 or less to your creditors (excluding any secured creditor debt like mortgages or lines of credit that are secured by registration against your personal residence), you can qualify for this government-sanctioned debt settlement plan.

This could be a good option for people who are employed and can budget their money to make the required monthly payments under this plan to the Trustee. It helps to avoid personal bankruptcy, and not have to deal with collection calls from agencies anymore. This is the best alternative to bankruptcy.

For more information, check out either one of the following Brandon’s Blogs:

consumer proposal calculator
consumer proposal calculator

Consumer Proposal Calculator: What will my monthly payments be in a consumer proposal?

Here is how a debt calculator calculates your total debt and estimates what your monthly payments will be in a consumer proposal debt management plan. Below you will be asked for all your unsecured debts, including any government debt or income tax debts.

Consumer proposal calculator$
What is the total of your credit card debt?
What is your income tax debt?
What is the total of any online loan?
How much is your other government debt?
Total of other unsecured debt?
What is your payday loan debt?
Total unsecured personal loan debt?
Your total unsecured debt
# of months you wish to take to pay (max 60 months)60
Monthly payment = (Your total unsecured debt
divided by # of months) X20%

Use this consumer proposal calculator method to compare what a monthly payment would be for you under a consumer proposal as compared to what your monthly debt payments are now. Keep in mind that in a consumer proposal, you are getting rid of all your debt if successfully completed. Right now, you may only be paying the interest charges and not making any dent in the principal reduction.

To figure out your exact monthly payment, give us a call.

Consumer Proposal Calculator: We can help you with a consumer proposal

I hope you enjoyed this consumer proposal calculator on Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

consumer proposal calculator
consumer proposal calculator
Categories
Brandon Blog Post

CONSOLIDATION LOANS IN CANADA: IS IT POSSIBLE TO CONSOLIDATE DEBT BY USING THIS 1 SIMPLE GOING POSTAL HACK?

debt consolidation loans in canada

Debt consolidation loans in Canada

Debt consolidation loans in Canada can be an excellent means to conserve money and get your funds in order. By combining several financial obligations into an affordable single loan, you can frequently get a lower rate of interest and also reduced month-to-month payments. This can assist you to get out of debt quicker as well as save cash over time.

Prior to getting debt consolidation loans in Canada, it is very important to understand the terms of the financing and also to make sure you can afford the monthly payments. It’s also a good idea to look around and compare rates of interest and also loan terms from various financial institutions.

In this Brandon’s Blog, I discuss the concept of debt consolidation loans in Canada and a sort of new potential lender offering personal loans in Canada. I will also share another debt settlement and debt consolidation option that may be beneficial for people and companies who want to repair their financial situation.

Advantages as well as downsides of consolidation loans in Canada

Upsides

Debt consolidation loans in Canada can offer many benefits over making regular monthly payments on many different loans and debts with different interest rates. Interest rates on some debts, like credit card debt, can be categorized as high-interest debts, making it difficult to make a dent in the balance owing. if all you ever do is make the monthly minimum payment.

Consolidation loans supply a number of advantages, such as:

Reduced interest rates – Lenders normally give consumers reduced rates of interest on individual personal loans allowing them to repay their high-interest-rate credit card debt. Consolidation loans in Canada can be an excellent method to obtain a lower rate of interest and come to be debt-free quicker.

Reduce your monthly payments – Banks and credit unions usually offer debt consolidation loans in Canada with terms of up to 5 years. This, along with the lower interest rate, can help you save a lot of money in the long run and give you a lower monthly payment than the sum of the monthly payments required under your many debts.

A single payment instead of multiple payments – One of the best things about debt consolidation loans in Canada is that you only have to make one monthly payment. This makes it much easier to budget and stick to your plan. Instead of having to remember to pay six different bills each month, you only have to worry about one.

Potentially improved credit scores – Your credit report is a number that banks make use of to determine your creditworthiness. A high credit rating suggests you are a low-risk borrower, which is excellent. A bad credit rating indicates you are high-risk, which is bad.

By obtaining a debt consolidation loan, making on-time payments and paying it off on time without a payment schedule default or late payments, you are restoring your bad credit score in 2 ways. First, you have revealed that you had the ability to fully settle all of your other financial debts. Second, you are repairing your credit score by making the consolidation loan payments on time. It is not instant, yet in time, paying off debt consolidation loans in Canada will certainly improve your credit rating. Over time, you will see your credit score and credit report improve.

Downsides

There are a few downsides to debt consolidation loans in Canada, including:

Debt consolidation loans in Canada are often referred to as “easy money.” But they aren’t always easy. Even though many consumers think they qualify for a loan based solely on their disposable income, there are certain circumstances where Canadian banks will not see your monthly income in as good a light as you do. You will need collateral such as real estate, cars, boats, etc.

If you do not have these things, you may be at a disadvantage. Most banks will not lend money to someone with a low credit score unless they have some form of security, such as a car or house with enough equity. This makes sense because the lender knows that it is a debt consolidation loan you are applying for and by definition, you cannot pay off your credit card balances without their loan. They will want to protect themselves against the chance you may default on the loan.

When choosing a bank, you’ll want to compare fees, interest rates and prepayment penalties to ensure you’re getting the best deal. Keep in mind that the lowest fees don’t always mean the best overall value, so be sure to compare all aspects of the loan before making a decision. You might even consider getting one of the types of secured loans by raising money against your home through a home equity line of credit or a second mortgage. So compare your offers of secured loans and unsecured debt consolidation loans in Canada very carefully to consider all factors in deciding which is best for you.

WARNING: Stay away from private lenders, payday lenders and most alternative lenders who may provide loans just as expensive as payday loans. Their fees and high-interest loans will never be in your favour.debt consolidation loans in canada

Consolidation loans in Canada: Can you consolidate student loan debt?

Students and recent graduates who find themselves buried under student loan debt often look for help. They want to consolidate their debts into one manageable monthly payment, but this can be difficult to obtain because there are few debt consolidation loans specifically designed for them.

Many recent graduates lack the credit history or income to qualify for a consolidation loan. They also generally do not have any free assets to qualify for a single secured debt consolidation loan to pay out over a longer period of time at a lower interest rate.

Unsecured loans to young people with a little credit history will be more expensive than one to an individual with a long-established credit history. That assumes that they can even qualify for this type of loan.

For these reasons, other than perhaps for a recent graduate from either medicine or dentistry who perhaps can roll their student debt into a professional loan, it will be very difficult to get consolidation loans in Canada to consolidate student debt.

Consolidation loans in Canada: Can going postal help you reach your financial goals?

Here is a potential new source for debt consolidation loans in Canada. Although it was not set up specifically for consolidation loans, there is no reason why you cannot use the money for that purpose if you are approved.

There is a new loan program offered by Canada Post which is designed to help people who are struggling financially, especially in rural areas where access to banking institutions is limited. It is called the Canada Post MyMoney™ Loan product. The idea is that you get a loan that’s based on how much you can afford to pay back, what you need the money for, and how likely you are to repay it.

The initiative is part of Canada Post’s commitment to helping Canadians manage their finances better. Their goal is to provide easy access to financial services and products that can help people save time and money.

To have your loan application considered, you have to be either a Canadian citizen or a Permanent Resident. You must be no younger than 18 years of age and you need to have annual earnings of a minimum of $1,000. Additionally, you need to not have been bankrupt within the 2 years before applying for the loan or had any of your financial debts handed off to a collection agency within the year before applying. They will of course also do a credit check on you.

debt consolidation loans in canada

In order to receive your loan proceeds, you must have a chequing or interest-bearing account with a Canadian financial institution in your own name. Borrowers of MyMoney™ loans are not required to offer any security against assets, in contrast to secured loans from banks and credit unions. Instead, applicants need only provide proof of identity, employment history and income. Both variable and fixed-rate installment loans are offered. The actual lender is TD Bank.

Consolidation loans in Canada: Other financial debt loan consolidation choices

You may not want to take on more debt to pay off your current debt. I don’t blame you and I get it. Or you may have been denied a debt consolidation loan. Here are some other options for consolidating your debt:

Balance Transfer Credit Cards

A balance transfer is simply when you move the balance of one credit card over to another credit card. For example, if you have a balance of $5,000 on your Mastercard, you can transfer that balance to a new Visa account that offers you 0% interest for 1 year on all balance transfers.

When you switch, you won’t have to pay interest charges for 12 months. After that, you’ll need to pay off the balance in full or start making payments on the balance transferred. Of course, you’ll still accrue interest after the interest-free period on the remaining balance.

Consolidation loans in Canada: Credit counselling

Credit counselling is a service that helps individuals to manage their finances and improve their financial situation. It can be done with a range of techniques, including budgeting, negotiating with creditors, setting up a plan to repay debt and monitoring actual behaviour vs. the plan.

Credit counselling can be an excellent way for individuals to take control of their financial obligations. It can help them create a plan to settle their debt, and provide them with the tools and knowledge they need to maintain financial literacy in the future.

There are many different credit counselling services available to choose from. You should select a community-based service to avoid being charged any fees. Be sure to stay away from any counselling service that charges fees, as this will only add to your expenses when trying to reduce debt.

Consolidation loans in Canada: Debt help is available with a financial restructuring program

Financial restructuring is a complicated and difficult procedure, however, it likewise provides individuals as well as businesses with a new beginning and a brand-new lease on life. Selecting to reorganize your finances with the help of a licensed insolvency trustee will certainly have temporary challenges, but can ultimately provide you with financial relief and a fresh start.

If you are considering financial restructuring, we urge you to consult with a licensed insolvency trustee to discuss your options. We can help you understand all of your options and work with you to develop a plan that is in your best interests.

Trustees are experienced in all aspects of financial restructuring and can supply you with the information and assistance you require to make the very best decision for your situation.

The most well-known financial restructuring tool for individuals is the consumer proposal. For mid-size companies and individuals with larger debt, it is a Division I proposal. For companies with debts greater than $5 million, restructuring is accomplished through the use of the Companies’ Creditors Arrangement Act.

Here is the best part. You should consider financial restructuring as getting an interest-free loan to pay off all your debts for a fraction of what you owe. I am qualified and experienced in all forms of financial restructuring, can explain this concept to you and am always available to answer any of your questions.

Consolidation loans in Canada: Before making a decision on your financial life needs – Call me

I hope that you found this consolidation loans in Canada Brandon’s Blog informative. If you’re sick and tired of carrying the burden of debt and ready to live a much better life, we can assist. We know exactly how it really feels to be in debt as well as feel like you’re never going to get ahead. We have actually helped lots of people and businesses that were in your position reach financial stability, so we understand it’s feasible for you to prosper in your objective of ending up being debt-free. Nevertheless, it will certainly require some work on your part. We’ll be right here to assist you with every action necessary.

The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too many personal unsecured debts, Credit card debt, income tax debt liability, unsecured loans or personal obligations from the running of your company or from being a business owner. These are all types of debt we can help you eliminate. We are aware of your financial difficulties and understand your concerns. Filing bankruptcy is the last option we explore only after we have exhausted all other options to avoid bankruptcy, such as financial restructuring through a debt repayment plan.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to give you the best management advice to get you out of your outstanding debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We are sympathetic to the financial difficulties you are experiencing and would like to help alleviate your concerns. We want to lighten your load by coming up with a debt settlement plan crafted just for you.

We realize that people and businesses in financial difficulty need practical advice and a workable solution in an easy-to-understand financial plan. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We would be happy to give you a no-cost initial consultation. We can find you the perfect solution to tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. We provide a full range of services to people and companies. If any of this sounds familiar to you and you’re serious about finding a solution, let us know. We will get you back to living a happy life, whether or not there is an economic recession in Canada.

Call us now for a no-cost initial consultation. We are licensed professionals.debt consolidation loans in canada

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DISCHARGE FROM BANKRUPTCY CANADA: OUR DETAILED STEP-BY-STEP GUIDE

discharge from bankruptcy canada
discharge from bankruptcy canada

What are the implications of discharge from bankruptcy Canada?

If you are experiencing financial troubles and can’t pay your debts, you can file for bankruptcy in Canada. This legal process lets you off the hook for your debts and start fresh. Once you’re discharged from bankruptcy, you’re no longer responsible for those debts (other than for a few exceptions noted below). Filing for bankruptcy is stressful. We understand how difficult and stressful the bankruptcy process can be, so we hope that this will be a helpful resource for you.

Once the Trustee has completed their duties under the Bankruptcy and Insolvency Act (Canada) with respect to the administration of your property and the bankruptcy estate, the next step in the bankruptcy process is they must apply for a discharge. This will occur after the Trustee has applied for your discharge from bankruptcy Canada, even if you did not get an absolute discharge.

This Brandon’s Blog is for people who have made a bankruptcy filing but have not yet been discharged. If your Licensed Insolvency Trustee has been discharged or is otherwise unable to help you with a second discharge application, this blog will provide you with the information you need to get through the process on your own.

Discharge from bankruptcy Canada: What are the implications if you are not discharged from bankruptcy?

If your previous application for discharge was unsuccessful, you remain an undischarged bankrupt and your Trustee is not obliged to make another application on your behalf. However, you should check with your Trustee first as they may or may not be prepared to do so.

We often receive calls from individuals who claim that their Trustee has been discharged, but they have not been. They express confusion as to why their Licensed Insolvency Trustee will not make an application for their discharge from bankruptcy. A quick search reveals that in these cases, the individual received a conditional discharge, but has not yet fulfilled all of their conditions to get a bankruptcy discharge. That is why their conditional discharge has not yet been converted into an absolute discharge.

If you filed an assignment in bankruptcy and are still an undischarged bankrupt, you may be able to apply for discharge from bankruptcy. An insolvency Trustee only needs to make one application on your behalf. Once the Trustee obtains their discharge, they do not need to make your application for discharge on your behalf again.

The Licensed Trustee cannot be discharged until all bankruptcy administration requirements have been met, including making the first discharge application on behalf of the bankrupt person.

discharge from bankruptcy canada
discharge from bankruptcy canada

Discharge from bankruptcy Canada: How do you obtain a bankruptcy discharge in Canada?

Automatic discharge from bankruptcy is typically granted unless there are exceptional circumstances. If there is opposition to the automatic discharge, the discharge application must be brought before the court for a hearing.

If you did not complete all of your bankruptcy duties as the bankrupt person, such as providing income and expense statements, attending required financial counselling sessions, and/or paying surplus income, your Trustee had reasons to oppose your automatic discharge and scheduled a hearing with the court.

The Report of Trustee on Bankrupt’s Application for Discharge sets out the reasons for the insolvency Trustee’s opposition to a bankrupt’s application for discharge. This document is on file with the court.

If a bankrupt does not receive a discharge at the time of the court application, it is usually because they have not yet done what is required. The associate justice/registrar who heard the application at court may have therefore adjourned the application (i.e. stated it was to be heard at a later date, which may or may not have been set).

The court may have adjourned your discharge application or imposed conditions that must be met before you are entitled to a discharge. The disposition sheet from the hearing will state what the court decided in this regard.

Discharge from bankruptcy Canada: What are the steps to clear my bankruptcy?

It’s not unusual for people who didn’t do what they were supposed to at first to try and get back on track and do what’s required to get their discharge. You must comply with your duties during bankruptcy to the best of your ability and be prepared to explain to the court any deficiency in doing so.

For example, to get your discharge, you must be able to provide details and evidence of your income and expenses during bankruptcy. You probably recall that you were required to provide the Trustee with your monthly income and expense reports. If you’re unable to provide the court with those details, the court may want to review your income tax returns for that period. If you want the court to rescind or vary the conditions imposed, you must show that you complied with the conditions to the best of your ability.

There are many examples of trying your best to meet the conditions but maybe not perfectly. If the court orders you to pay a certain sum of money to the Trustee by a certain date, you can make the court-ordered additional payment but not by the specified date. If you were required to make surplus income monthly payments but didn’t make them all, that’s one reason there were conditions attached to your discharge. You can apply to the court to change the date and get your discharge.

Another one is that you didn’t finish all your required credit counselling sessions. You could finish them and then provide proof of completion to the court.

discharge from bankruptcy canada
discharge from bankruptcy canada

Completing your own application for discharge from bankruptcy Canada

Making your own application to be discharged from bankruptcy can be a bit daunting, but don’t worry—just follow a few simple steps and you’ll be all set. Here are some tips to help you get your application ready and submitted without the help of a bankruptcy trustee or a bankruptcy lawyer.

To begin, you’ll want to locate your bankruptcy file at the court office. Once you have your file, be sure to look through it thoroughly to find:

  • your bankruptcy court file number;
  • the Report of Trustee on the Bankrupt’s Application for Discharge under section 170 of the BIA;
  • any order issued by the bankruptcy court at the original discharge hearing; and
  • the court’s disposition sheet from any previous discharge hearing identifies what the court previously ordered or decided.

You will need copies of these documents. You can ask the court office to make copies for you. They will charge you a fee for photocopying. You should check the Report of the Trustee, the court’s disposition sheet, and any court order to see what you failed to do and what conditions the court has imposed. Also, it is not a bad idea to find out who attended your last application for discharge.

You should check the Report of the Trustee, the court’s disposition sheet, and any court order(s) in the file to see what you didn’t do and what conditions (if any) the court has imposed. Lastly, you need to schedule a date for your discharge hearing with the bankruptcy court.

You will be required to prepare the following documents and file them with the court:

  • a notice of hearing for a bankrupt person’s application for discharge;
  • your affidavit explaining why you believe you are entitled to the discharge order sought;
  • an affidavit of service; and
  • a draft of the order sought.

The Associate Justice/Registrar in Bankruptcy hearing your application for discharge may make any order he or she sees fit. If the order you are seeking is made, he or she may accept and sign it in court on the day you appear, which may save you a period of time later on.

Requisition – Notice of hearing for bankrupt’s discharge from bankruptcy Canada hearing for discharge

The first step in obtaining a discharge in bankruptcy is to file a Notice of Hearing for Bankrupt’s Application for Discharge with the court. That document would have first been filed by the Trustee when the Application for discharge is first scheduled. If you have a copy of it, it will be a good precedent for you to follow.

A requisition must be filed again by you in order to have the matter brought back before the court.

discharge from bankruptcy canada
discharge from bankruptcy canada

Discharge from bankruptcy Canada:The Affidavit

An affidavit is a formal, written statement that provides key information in your legal case. Any evidence you want the court to consider in your application must be submitted in an affidavit. Your affidavit should describe the events leading up to your bankruptcy, and your current financial situation.

You must swear or affirm your affidavit before a notary public or commissioner of oaths. Make sure that your affidavit only includes evidence that is relevant to your application for discharge.

The court is familiar with a standard form of affidavit for discharge applications. You should familiarize yourself with that normal format. You should also include:

  • additional information about why you did not seek a bankruptcy discharge earlier;
  • is this a 1st-time bankruptcy, 2nd-time bankruptcy or more;
  • why you have not been able to comply with the bankrupt’s duties or the requirements of an earlier court order; and
  • state the reasons you are wanting to be discharged now.

You will need to attach any relevant documents to your affidavit in support of your application, including a statement of your current income, expenses, assets, liabilities and any previous bankruptcy information.

Discharge from bankruptcy Canada:Affidavit of Service

To serve documents, you must provide a written copy to the party to be served. You need to obtain a signature or other confirmation, such as an email, to confirm that the document was properly served. You will need to serve the filed Requisition and all filed Affidavits and documents on:

These parties may attend your hearing and make submissions.

In order to provide proper service within the required time period before your discharge hearing, you must familiarize yourself with the rules. You must also provide proof of service at the hearing, especially if no one else attends. This proof of service can be the signature of everyone served to show the date they were served.

An Affidavit of Service can also be filed with the court. This Affidavit of Service is separate from the Affidavit filed with the court regarding your reasons for entitlement to anabsolute bankruptcy discharge certificate.

discharge from bankruptcy canada
discharge from bankruptcy canada

At the discharge from bankruptcy Canada hearing

When you appear in court for your discharge hearing, you will be able to present your case to either an Associate Justice or Registrar in Bankruptcy. If your application is being opposed, the creditors opposing your discharge need to file a notice of opposition. In this case, the hearing will be in front of a bankruptcy Judge. This is the normal process followed:

  1. You explain why you believe you are entitled to the order you are seeking, for example, an absolute discharge from bankruptcy.
  2. Anyone opposing your application explains his or her position.
  3. The Judge or Registrar may ask questions relating to the affidavits and documents you have filed and make suggestions or give directions.

When presenting your position at the hearing, remember to:

  1. Clearly state what order you are seeking from the Registrar in Bankruptcy or Judge.
  2. Outline the facts supporting your application in a concise manner.
  3. Explain the law on the subject and how it applies to the facts of your case.

Your conduct before and during bankruptcy will be taken into consideration when making a decision on your application for discharge. The Trustee’s report will provide information on your conduct before and during bankruptcy, which will be taken into account. if you did not attend the required financial counselling
sessions, did not file required statements of income and expense, and/or did not make the required surplus income payments to the Trustee for the benefit of your creditors.

The court will consider the relevant factors and make the appropriate order, or it may adjourn the hearing for further information or conditions to be met. Some of the types of orders the court may make are:

  • An order of discharge that is absolute and therefore you are immediately discharged from bankruptcy.
  • A conditional discharge may be granted. Examples of conditions are:
    • if the debtor pays any unpaid surplus income,
    • the debtor pays the outstanding balance for any asset that was agreed to be paid for; or
    • if the debtor pays a sum of money to the Trustee toward their debt obligations, as decided by the court.
  • A discharge that has been suspended.
  • The court may refuse to issue a discharge order if it is not satisfied that you have made full and adequate disclosure, or if there are issues with your conduct.

Discharge from bankruptcy Canada: Order for discharge

The Judge or Registrar in Bankruptcy will grant a discharge order at the end of the hearing. The type of discharge will be one of the kinds indicated above. If you prepared a draft order and the Registrar in Bankruptcy or Judge finds it acceptable, they will sign it and you can then have it filed with the court. However, if your application was opposed, keep in mind that one of the opposing parties may choose to appeal the discharge order.

If you have not prepared your order before the hearing, you should do so after the hearing and submit the order in duplicate to the court. The court office will then send the order to the Registrar in Bankruptcy or Judge who heard your application for signing. Once you receive your copy of the signed order, your discharge will be official.

When you receive a copy of the signed order, you must provide a copy to the Office of the Superintendent of Bankruptcy. They will in turn notify the credit bureaus and Canada Revenue Agency of your discharge.

When you have received your absolute discharge, you are no longer legally responsible for repaying debts that you incurred before your assignment in bankruptcy. You will get rid of debt with some exceptions set out in Section 178 of the Bankruptcy and Insolvency Act. They are:

  • payment of child support or alimony;
  • student loans, if you have not been a full-time or part-time student for less than 7 years;
  • a fine or penalty imposed by the court; or
  • debt resulting from fraud.

    discharge from bankruptcy canada
    discharge from bankruptcy canada

Discharge from bankruptcy Canada: Are you tired of being in debt?

Bankruptcy law and the bankruptcy process can be complex, so it may be worth retaining a bankruptcy lawyer to help you apply for your discharge. Ultimately, it is up to you, but hopefully, this guide to discharge from bankruptcy Canada will lay out the steps you need to take if you wish to apply for a discharge yourself.

I hope that you found this discharge from bankruptcy Canada Brandon’s Blog informative. If you’re sick and tired of carrying the burden of debt and ready to live a much better life, we can assist. We know exactly how it really feels to be in debt as well as feel like you’re never going to get ahead. We have actually helped lots of people and businesses that were in your position reach financial stability, so we understand it’s feasible for you to prosper in your objective of ending up being debt-free. Nevertheless, it will certainly require some work on your part. We’ll be right here to assist you with every action necessary.

The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too many personal unsecured debts, Credit card debt, income tax debt liability, unsecured loans or personal obligations from the running of your company or from being a business owner. These are all types of debt we can help you eliminate. We are aware of your financial difficulties and understand your concerns. Filing bankruptcy is the last option we explore only after we have exhausted all other options to avoid bankruptcy, such as financial restructuring through a debt repayment plan.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to give you the best management advice to get you out of your outstanding debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We are sympathetic to the financial difficulties you are experiencing and would like to help alleviate your concerns. We want to lighten your load by coming up with a debt settlement plan crafted just for you.

We realize that people and businesses in financial difficulty need practical advice and a workable solution in an easy-to-understand financial plan. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We would be happy to give you a no-cost initial consultation. We can find you the perfect solution to tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. We provide a full range of services to people and companies. If any of this sounds familiar to you and you’re serious about finding a solution, let us know. We will get you back to living a happy life, whether or not there is an economic recession in Canada.

Call us now for a no-cost initial consultation. We are licensed professionals.

discharge from bankruptcy canada
discharge from bankruptcy canada
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