Tag: mortgage

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Brandon Blog Post

MORTGAGE ISSUES BREWING: CANADIANS ARE SERIOUSLY FALLING BEHIND ON DEBT

mortgage

Mortgage issues: Introduction

As per the latest findings from the Royal Bank of Canada (RBC or RBC Economics), a significant proportion of Canadians are currently grappling with debt payments, thereby heightening the risk of mortgage default in the future. The report reveals that the average Canadian owes $1.77 in debt for every dollar of disposable income, a trend that has been steadily increasing over recent years. This development is particularly concerning given the rising interest rates, which are exacerbating the difficulty of maintaining timely payments.

This Brandon’s Blog will explore the RBC report, the truth about household debt, including mortgage debt, in Canada, whether or not we are already in trouble and its implications for Canadian households.

The impact of rising interest rates on mortgage and other debt payments

The RBC report clarifies the negative impact of boosting the rate of interest on debt payments for Canadians. With the way we have seen the rate of interest growing, numerous Canadians are finding it significantly testing to handle their debt payments, specifically those with a variable-rate mortgage or loan product taken out at interest rates at pre-pandemic levels or credit card debt.

Interest rates have risen significantly, with the Bank of Canada’s Target Overnight Rate going from 0.5% in March 2022 to holding at 4.5% since January of this year. Anyone faced with renewing their mortgage is going to be in for a bit of sticker shock. The report also highlights a concerning pattern where a substantial number of Canadians are unprepared to handle the prospective fallout of rising interest rates on their ability to meet their financial obligations.

This RBC report highlights the expanding degree of debt among Canadians, which could potentially cause mortgage issues down the line. As more Canadians battle to keep up with their debt payments, RBC’s experience states that it is most likely that they might start missing mortgage payments. This could lead to serious consequences, such as the loss of their home or even bankruptcy. What’s even more, the report reveals that numerous Canadians are blissfully unaware of the possible dangers related to lugging around high levels of debt.mortgage

Understanding Household Debt in Canada

In order to attain a comprehensive comprehension of the ramifications of Canadian household debt, it is imperative to precisely define it. Household debt encompasses the aggregate sum of all financial obligations owed by Canadian households, including home mortgages, credit cards, lines of credit, and vehicle loans. Data released by the Bank of Canada indicate that the customary household debt-to-income ratio has been consistently escalating over the past few years, indicating a trend that is no longer just a blip.

This trend signifies that Canadians are taking on increasingly greater financial obligations in relation to their income. Coupled with the effects of inflation, it is apparent that, on average, Canadian household income is insufficient to meet the customary familial expenditures, resulting in families incurring more debt to maintain their standard of living.

Substantial household debt poses several possible risks to the Canadian economic climate. First of all, it can cause economic instability for Canadian households as they endeavour to satisfy their financial obligations. Second of all, increased degrees of financial obligation may result in a reduction in consumer spending, therefore negatively impacting the overall economy. Finally, households with elevated debt levels will likely be extra prone to default as the rate of interest hikes happens, potentially causing a cascade of defaults throughout the Canadian economy.

Canadians expect signs of trouble in the Canadian economy

Recent data indicates prospective problems surrounding Canadian household debt. In a survey of Canadians carried out by the Bank of Canada between January 27 and February 16, 2023, with follow-up interviews in March 2023, numerous key findings were uncovered.

The key findings were:

  • Assumptions for the rising cost of living in the coming 1 to 2 years have declined but continue to be dramatically greater than in the pre-COVID-19 period.
  • While consumers have reduced their price increase expectations for certain goods, such as commodities, inflationary assumptions for services such as rent stay raised.
  • A majority of consumers believe that the Bank of Canada faces obstacles in successfully lowering inflation because of high government spending and also ongoing supply chain disruptions. However, many remain hopeful that supply chain issues will be fixed within the next two years, resulting in reduced product prices influenced by the disruptions.
  • Alternatively, those that watch high federal government spending as a relentless inflationary force expect continued interest rate stress in the long term.
  • The present economic environment is characterized by elevated inflation and also a higher pattern of interest rates, which has actually resulted in installing strain on Canadians, especially those that are making monthly mortgage payments. Consumers are spending less on non-essential services, including leisure travel, eating in restaurants, as well as various other recreational activities.
  • A considerable majority of Canadians view an economic downturn to be one of the most potential end results for the Canadian economy within the following year. Nonetheless, many people continue to be uncertain regarding the direction of the economy, the labour market and unemployment rates. Such uncertainty has actually caused a tendency amongst consumers to reduce spending and increase savings as a preventative measure.
  • In spite of economic obscurity, workers show a favourable outlook on the job market, with several certain they could find new employment opportunities, especially those who are discontent with their present jobs. Private sector wage increase expectations are near an all-time high among employees.
  • Nonetheless, wage growth is expected to fall short of the rising cost of living, with most workers predicting their wages or salary will not equal current inflationary trends in the coming year.mortgage

Principal reasons for mortgage issues in Canada

Amidst the prevailing economic conditions, numerous homeowners are facing considerable difficulty in maintaining the escalating expenses associated with owning a home. Consequently, there is an anticipated surge in the number of defaulted mortgage payments in the forthcoming months. This trend is a source of apprehension for both homeowners and lenders.

As per the RBC Economics report, the principal reasons for mortgage-related issues in Canada are:

  1. The rising cost of homeownership includes rising property taxes, insurance costs, and maintenance expenses.
  2. Job loss or reduced income.
  3. Reduced economic growth.
  4. High household debt.
  5. Increasing interest rates. This is especially true for homeowners with variable-rate mortgages, as their payments can fluctuate over time.
  6. Unanticipated expenditures and low or no savings or emergency funds. Some homeowners may have taken on too much debt or purchased a home that was too expensive for their budget. In these cases, failed mortgage payments are almost inevitable.

The RBC report sustains the findings of the Bank of Canada study. It mentions that this might be due to a mix of elements, including climbing living expenses, stationary wage growth, and the high cost of housing. The repercussions of this could be extreme, affecting not only specific homeowners and their personal finances but the entire Canadian economic situation.

RBC states that it is critical that lenders, regulators, as well as policymakers, interact to address this problem effectively. Financial education, government programs and support for those dealing with financial debt can help protect against mortgage issues and defaults.

Consequences of mortgage issues in Canada

Failed mortgage payments can have significant consequences for both homeowners and also for mortgagees. For homeowners, missed payments can result in the power of sale or foreclosure process. This results in the loss of their house.

Potential lending institutions scrutinize credit history and also credit score prior to approving loan or mortgage applications. Uniformity in making payments is essential as it contributes to keeping a healthy credit rating. So being delinquent on debt and home mortgage payments and especially the loss of your house has a considerable unfavourable effect on your credit score and your capacity to get loans in the future.

The financial and mental stress of these mortgage issues cannot be overemphasized. It is vital that Canadians take positive steps to deal with their debt properly. The RBC report stresses the significance of looking for guidance and assistance from trustworthy financial specialists to help you be able to deal proactively with your debt problems before it is too late. By following this guidance, Canadians can protect their financial well-being and also avoid possible home mortgage problems in the future.

Delinquent mortgage and loan repayments can result in economic losses for lenders. Due to their reliance on periodic payments to sustain their operations, any missed payments can cause significant disruptions to their cash flow. This is particularly true for smaller lenders with limited resources as compared to larger organizations. When a substantial portion of a lender’s portfolio consists of delinquent and non-performing loans and mortgages, it can lead to a cessation of operations.mortgage

Coping with household debt and mortgage Issues: What Can Homeowners Do?

The RBC Economics report underscores the significance of proactive debt management by Canadians. While elevated levels of household debt may trigger apprehension, there are measures that individuals can undertake to mitigate the risk of financial ruin. One crucial approach is to look carefully at your personal finances and devise a budgetary plan and adhere to it. This can assist households in identifying superfluous expenditures and making necessary adjustments.

Furthermore, households ought to prioritize the repayment of high-interest non-mortgage debts such as credit cards. CTV News reported that non-mortgage debt is up by 5.4% when comparing the fourth quarter of 2022 to the same time in 2021. Seeking the guidance of a financial expert in developing a debt management strategy can also prove advantageous.

In the event of mortgage payment difficulties, there are several prudent measures that homeowners may take to forestall losing their homes. Firstly, contacting the lender and providing details of the financial predicament may yield positive outcomes. Numerous lenders extend hardship programs that facilitate a reduction in monthly payments or an interim suspension of payments.

In the event that you have an insurmountable challenge of making home mortgage payments and the looming threat of losing your home, it may be a good idea to very carefully consider the option of selling your residential property. By doing so, you can properly avoid the damaging end results of defaulting and losing your home and ultimately embark on a clean slate of living in a more affordable home.

All of these recommendations can be found in my May 1, 2023, Brandon’s Blog “MAXED OUT CREDIT? YOU NEED TO KNOW HOW TO INCREASE CREDIT SCORE: OUR 13 INTRIGUING TIPS TO IMPROVE YOUR CREDIT SCORE”.

However, if things have gotten out of control and your creditors are already pounding at the door, making harassing collection calls and possibly even suing you, you need to take immediate action. Contact me anytime by phone or email.

Mortgage issues: Conclusion

The RBC report has brought to the fore the intensifying concern of Canadians back-pedalling on their debt payments. The scenario is rather disconcerting, specifically given the surge in the rate of interest that pose a formidable challenge for Canadians to stay current with their financial obligations.

In addition, higher interest rates and the price of necessities of life have increased concerns about the surging debt levels amongst Canadians and the possible difficulties that could arise in the home mortgage market in the future. It is imperative that Canadians take aggressive measures to address their financial debt management strategies and appropriately plan for the ramifications of this new higher interest rate environment.

I hope you enjoyed this mortgage issues Brandon’s Blog.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the 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 proceedings. 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.

The Ira Smith Trustee & Receiver Inc. team understands 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.mortgage

 

 

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Brandon Blog Post

MORTGAGE DEFERRAL CANADA IS ENDING: 3 KILLER WAYS TO DEAL WITH COVID-19 RELATED MONEY PROBLEMS

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

Mortgage deferral Canada introduction

The bulk of the home mortgage deferral Canada that banks have given to Canadians was approved in March and April. This was the time when the COVID-19 pandemic began taking a financial toll on the country with non-essential businesses shuttered and millions unemployed or seeing their earnings take a deep cut.

The Office of the Superintendent of Financial Institutions (OSFI) proposed actions planned to support federally regulated lenders to make sure that they would not experience problems due to the mortgage deferrals provided to help Canadians. The OSFI mortgage deferral help it provided to the lending institutions enhanced the security of the Canadian economic situation and monetary system when faced with obstacles postured by the coronavirus.

The mortgage deferrals are slowly coming to an end. This Brandon’s Blog discusses what you can do if you fear what your personal fallout will be when the mortgage deferrals end.

How did mortgage deferral Canada work for the borrower?

As of July 30, there were approximately $170 billion in mortgage deferments for the biggest 6 banks. The majority were established to unwind by September 30. Mortgage deferral Canada arrangements between Canadians and their financial institutions were truly an individual conversation. The federal government provided a wide overview, yet the specific arrangements between each borrower and lender were established individually as each case required. The significant style was that if a customer was struggling with financial difficulty because of the COVID-19 lockdown, mortgage payments would be deferred for an agreed-on, short-term amount of time.

Currently, these mortgage deferral Canada setups are slowly ending. The chartered banks are reporting that currently, for those whose deferments have ended, 80% to 90% are current in their payments. That means 10% to 20% of people who had a mortgage deferral Canada deal currently cannot maintain their mortgage payments.

How did mortgage deferral Canada work for the lenders?

OSFI told the federally regulated lending institutions and mortgage insurers they can deal with home mortgage financings for which a payment deferment is approved as being current. Payment deferments of as much as 6 months approved prior to August 31 and repayment deferments of up to 3 months approved after August 30 and on or before September 30 that it need not categorize such mortgages as impaired or revamped.

In April OSFI advised lenders that in circumstances where banks provide home mortgage repayment deferrals, those mortgages can continue to be dealt with as performing loans under the . Consequently, OSFI told the banks they did not need to increase their capital resource requirements based upon the home mortgage deferral Canada arrangements they provided. OSFI additionally told the loan providers that it would not assess such mortgage portfolios as having a larger credit risk.

For all federally regulated banks, OSFI specified that it is prepared to use flexibility for any that might need additional time to satisfy upcoming due dates for filing regulatory returns, on a case-by-case basis.

Where mortgages need to be insured due to being high ratio, there are insurance coverage costs that the lending institutions need to make to the insurer each month. OSFI likewise aided the banks and insurers, such as CMHC, by stating that it will not place the lenders or insurers offside when the monthly insurance premiums were not being paid as a result of the mortgage deferral Canada arrangements. OSFI also stated that deferments will not boost capital charges on unpaid premiums. OSFI told insurance providers that they can deal with a mortgage for which a deferment is granted as performing.

So with these OSFI initiatives, lenders can make mortgage deferral Canada happen and both lenders and mortgage insurance providers can treat the mortgages under these deferred home mortgage settlements and mortgage insurance payments, as not being in default.

Mortgage deferral Canada is ending – what can you do if you believe it will cause financial problems for you

OSFI has just stated that any type of mortgage deferral Canada plans past September 30, 2020, will now be subject to OSFI’s typical policies. People who need to start making their mortgage payments once again, but whose economic situation has not improved since the pandemic hit, are scared. I have read some “what to do” articles if you think you will have trouble making your normal mortgage payments. In my view, several have actually missed the mark. Some I have checked out start explaining how a consumer proposal or bankruptcy can help you.

Just so you know, a consumer proposal or bankruptcy cannot help you with the end of your mortgage deferral Canada. The reason it cannot help you is that your mortgage is a secured debt. Your mortgagee is a secured creditor, assuming its mortgage security is valid. A consumer proposal or bankruptcy is a method of dealing with your unsecured creditors. The mortgagee has rights if you default on your mortgage whether or not you are involved in a formal insolvency process. If you have too much debt and too little income to service all that debt, you may very well need to consider an insolvency filing. But it is not a direct answer to your mortgage deferral Canada ending.

mortgage deferral canada
mortgage deferral canada

So in order, here are my 3 top recommendations of what you could do when your mortgage deferral Canada deal with your lender ends and you believe you will be in financial trouble.

  1. Take a critical look at your family household budget

I cannot emphasize enough just how essential the household budget is to your financial security. A spending plan is a listing of all income and your families’ costs. Do it on a monthly basis. It enables you to prepare how you need to spend your money and if there is anything left over each month for savings for an emergency fund or for investment. Rather than cash just flying out of your pocketbook, you make intentional choices on where you want your cash to go. You’ll never need to doubt at the end of the month where your money went or search for a hole in your wallet.

Numerous Canadians panic every month regarding where the cash will come from to pay their bills. A household budget will give you the direction you need. That direction should give you comfort. It reveals to you just how much you make and also what your costs are. If need be you can decrease unneeded costs or possibly tackle extra work to live within a well-balanced budget plan. No extra panicking at the end of the month.

So if you have a household budget that you follow, look at it carefully. If you don’t’ have one, prepare it immediately. Look at the last 6 months and see what your average monthly income has been and what your average monthly expenses were. List them all out line by line for both income and expenses. Then adjust any line that you believe will change in the coming months. Adding your normal monthly mortgage payment is one of those things that will need to be added.

Then take a look at it and see if you are spending less or more than you earn. If you are spending more, then you need to cut back on certain expenses, increase your income, or a combination of both. Take a critical look and slash any expenses that you can. Then see what that looks like.

If you feel that making your normal monthly mortgage payment will not be a problem, then terrific. Just follow your family budget and each month compare your actual to budget. Make any adjustments you need to along the way. However, keep spending less than you earn.

If your budget shows that you are going to have trouble making your normal monthly mortgage payment, then go on to my next step 2.

  1. Speak to your banker

Get ahead of it. Contact your lender. Let them know that you have a current family budget and it shows that you may need added help when your mortgage deferral Canada deal ends. Your banker will be impressed that you:

  • have a current budget that you are tracking; and
  • you are being proactive and not causing the banker to chase you because you came up on the computer screen as a delinquent mortgagor.

That already makes you the most liked person in the 10% to 20% of people who are experiencing problems paying their mortgage. Hopefully, your lender can work something out for you that will help you.

  1. Call me

If your budget shows that you do not have enough family income to pay all the families’ debts on a monthly basis and your lender cannot do anything to help you, then call me. I will take a critical look at your family budget and get more personal financial details from you. After reviewing all of it, I will give you my best recommendations to meet your unique financial challenges. Keep in mind that this is not your fault. The COVID-19 pandemic and the resulting shutdown of the Canadian economy continues to cause problems for the majority of Canadians.

Mention this blog, and I will not charge you a penny for this help. I truly want you to succeed.

Mortgage deferral Canada summary

I hope you have found this mortgage deferral Canada Brandon’s Blog interesting and helpful. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

If anyone needs our assistance for debt relief Canada COVID-19, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

mortgage deferral canada
mortgage deferral canada
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Brandon Blog Post

CANADA REVENUE AGENCY FOR INDIVIDUALS: 4 KILLER WAYS TO FULL LOAN RECOVERY

The Ira Smith Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Stay healthy, well balanced and safe and secure everyone.

Introduction

On July 4, 2018, my Brandon’s Blog MORTGAGE LENDING CRITERIA SELF EMPLOYED: BIGGEST MYTH MAY BE RIGHT, I described the case of Canada v. Toronto-Dominion Bank, 2018 FC 538 (CanLII) which was heard in Federal Court. I described where the Federal Court ruled in favour of the claim of Canada Revenue Agency for individuals running an unincorporated business either as a proprietorship or in partnerships.

The Bank appealed the decision to the Federal Court of Appeal. The case was heard on October 8, 2019, in Toronto. The judgment was released at Ottawa, Ontario, on April 29, 2020. I want to remind you about the facts of the case, what was decided and provide my 4 killer ways that mortgage lenders to people who also run an unincorporated business, but you don’t lend to the business, can protect themselves.

The original Canada v. Toronto-Dominion Bank case

The original case was very simple. A man had a landscape design business he ran as a sole proprietor. In 2007 and 2008, prior to becoming a customer of the Bank, he collected GST that he did not pay over totalling $67,854.

In 2010, the Bank advanced both a mortgage loan and a home equity line of credit (HELOC) loan to the man. Security for both loans was registered against the man’s home. It was the Bank’s standard from mortgage and HELOC security documents. At the time, the Bank had no knowledge of the man’s Canada Revenue Agency for individuals’ liability for unremitted GST. There was no registration by the government against the man’s home for this outstanding tax amount either.

In late 2011, the man sold the home. His real estate lawyer issued two trust cheques to the Bank from the house sale. One paid off the mortgage and the other cheque paid off the HELOC. In return, the Bank discharged its mortgage and HELOC security charges and the house sale was completed.

In 2013 and 2015, the Canada Revenue Agency made deemed trust claims against the Bank under Section 222 of the Excise Tax Act (ETA) for the amount of the man’s collected and unremitted GST. GST or HST under the ETA and employee source deductions (amounts withheld by employers from salaries and wages paid to employees on account of income tax, the Canada Pension Plan and Employment Insurance) under the Income Tax Act, that is collected but not remitted, forms a deemed trust claim against the assets of the business.

If the business is not a company, that is unincorporated, then there is no difference between the proprietor’s or partner’s personal assets and business assets. They are just assets of the person.

Canada Revenue Agency argued that the Bank was in possession of funds from the sale of the man’s property. The Crown also submitted that when the man sold his home, he was obliged to pay his GST obligation out of the sale proceeds. He did not do that. Rather, he used part of the money from the sale to pay the Bank off. Keep in mind the Bank was a secured creditor. The Crown further argued that under this scenario, the Bank had a statutory responsibility to pay the GST tax debt out of the money it received.

The Bank argued on its behalf that the repayment of the money only applied if there was an event that triggered other events leading to the repayment, such as a secured creditor enforcing its security.

The Federal Court disagreed and ruled in favour of the taxman.

The Canada Revenue Agency for individuals claim to appeal to the Federal Court of Appeal

The Bank appealed the lower Court’s decision. The Bank’s appeal rested on three issues where they claimed that the Federal Court judge erred:

  • By finding that the deemed trust does not need an event that creates the crystallization around the assets.
  • In finding that secured creditors cannot avail themselves of the bona fide purchaser for value defence.
  • Ignored the fact that the Bank’s loans to the man had nothing to do with his business.

The Federal Court of Appeal judges went through a detailed analysis of cases and legislation. In the end, the Federal Court of Appeal did not find that the lower court judge erred in any way and dismissed the Bank’s appeal on all three grounds.

Triggering event – The Bank argued that the concept of priority can only be determined when there is an event that triggers competing claims to the priority over the assets. Since the right to a priority is essentially remedial in nature, it develops upon the enforcement action initiated by one or more creditors. When there is a competition between claimants, and it is obvious there will be a shortfall, that is when the Crown is able to assert its priority. Here, the Bank was not a secured lender at the time the Crown asserted its priority.

The appeal court decided that the lower court was correct. The relevant section of the Excise Tax Act creates a trust when there is unremitted GST or HST where the property is beneficially owned by Her Majesty in spite of any security interest in the property or in the sales proceeds thereof.

So the Bank was unsuccessful in this part of its argument.

Bona fide purchaser for value defence – This argument by the Bank is that it is a bona fide buyer for value of the cash paid to it by the debtor. Because the considered trust fund provisions of the Act do not extend to such buyers for the value the Bank submits that it is entitled to keep the funds provided in payment of the borrower’s HELOC and mortgage.

The appeal court ruled against this argument on the basis that if the bona fide purchaser for value defence was available to secured creditors who got paid off, it would render the deemed trust provision useless in probably every situation. The Court stated this was not Parliament’s intention.

The loans to the man had nothing to do with his business – This argument is that the court should distinguish between the taxpayer acting in his capacity as a business distinct from the tax debtor acting in a personal capacity. Further, it was argued that the Bank had no knowledge of the man’s business affairs.

The Court rejected this argument for two reasons. First, the statute that establishes the deemed trust states “…every person…”. It does not differentiate between different types of persons. Second, there was nothing in the evidence before the lower court that indicated what knowledge the Bank had about the man’s business.

4 killer ways to full loan recovery

So how can someone who lends money by way of a property mortgage on a personal residence of a self-employed person who runs an unincorporated business protect themselves? Here are our 4 killer ways:

  1. The mortgagee needs to ask the question on the mortgage application to determine if the person is self-employed.
  2. The proposed mortgagee must get a true copy of a statement from CRA showing that there are no amounts owing by the person on account of either unremitted HST/GST or source deductions as the employer of others. This condition should be in the term sheet for the loan being offered. The statement should be given before the lender advances the funds.
  3. Lenders should add language to their term sheet, loan and security documents and discharge or other documents issued when the loan is repaid. The new language would be an attestation by the borrower that there are no amounts owing to any government authority that would be regarded to be a deemed trust claim.
  4. Even more, the language would have to make it clear that in the event there were any kind of such claims, even if the mortgage loan was totally repaid, the borrower is still responsible to pay that additional amount to the lender. The lender would then pass on the deemed trust amount to Canada Revenue Agency for individuals.

Summary

I hope you found this CRA deemed trust claim case review helpful. It should be of particular interest to contractors, developers and builders in Ontario.

The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses. This is especially true these days.

If anyone needs our assistance, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Team is fully functional and Ira, together with Brandon Smith, is readily available for a telephone or video meeting no-cost strategy session.

Continue to be healthy, well balanced and protected everybody.canada revenue agency for individuals

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Brandon Blog Post

CANADIAN REVERSE MORTGAGE: SENIORS MOVING FORWARD WITH INCREASED DEBT

Introduction

I recently read an article that said seniors are taking on Canadian reverse mortgage debt in record numbers. In fact, this year, it is one of the fastest-growing debt products.

On April 30, 2018, I published Brandon’s Blog titled “CANADIAN REVERSE MORTGAGE INFORMATION: EASY TO LOSE THE HOUSE IF YOU DON’T UNDERSTAND THE TERMS”. That blog was about an Ontario court case. It showed how easy it is to lose your home to a reverse mortgage lender. Even easier than if you go into default on a traditional mortgage.

I doubt that many of the seniors using this type of debt to raise money fully understand all of the issues, including reverse mortgage problems. The purpose of this blog is to answer the most asked questions about this kind of debt.

How does a reverse mortgage work in Canada?

A http://www.irasmithinc.com/blog/what-happens-to-mortgage-when-you-die-canada/Canadian reverse mortgage is financing that permits anyone of the age of 55+ to obtain a loan from your home equity without having to sell your home. The loan is secured by way of a mortgage against your house. This is often called an “equity release”. You have the ability to get up to 55% of the present worth of your home. The actual percentage and dollar value you will have the ability to borrow depends on your age, your residence’s assessed value as well as the lending policies of your lender.

You do not need to make payments on a reverse home loan up until it is due for repayment. This is normally when you vacate your house, it is sold or the last borrower passes away. No payments do not mean the same as no interest. Interest accrues on a reverse home mortgage.

The longer the loan is outstanding, the more time you go without making payments. Therefore, the longer the interest accrues. This obviously reduces the equity in your house.

This is how this type of loan works.

What is the interest rate on a reverse mortgage in Canada?

The interest rate is but one cost of getting a reverse mortgage loan. At the time of writing this blog, the current annual interest rate on this type of loan is in the 5.5% to 5.7% range. This is obviously more than a traditional home mortgage today. This is obviously more than the interest rate on a traditional home mortgage today.

In order to set up such a loan, you will also need to pay for an appraisal fee and an administration fee. Right now that seems to be in the $1,500 to $1,800 range. You will also be responsible for the legal fees involved in preparing and registering the mortgage.

What is the downside of a Canadian reverse mortgage?

There are both advantages and disadvantages to this type of mortgage loan.

Advantages

  • You don’t need to make monthly payments.
  • You can turn some of the worth of your house into cash, without needing to sell it.
  • There is no tax to pay as a result of getting the cash.
  • This loan does not impact the Old-Age Security (OAS) or Guaranteed Income Supplement benefits seniors may receive.
  • You still own and live in your home.
  • You may have options as to when and how you get the money.

Disadvantages

  • Rates of interest are more than traditional home mortgages.
  • The equity you hold in your house will decrease as the interest on your home loan accumulates throughout the years. Depending on what happens to the market value of your home over the years, your home equity may decrease.
  • Your estate will have to repay the loan with interest in full within a set time period when you die.
  • The time needed to clear up an estate may be longer than the length of time permitted to repay a reverse home loan.
  • There might be less money in your estate to entrust to your children or other beneficiaries.
  • Expenses connected with a reverse home mortgage may be higher than a routine mortgage or other methods of financing.

Who offers reverse mortgages in Canada?

There are two lenders offering these loans in Canada: Canadian Home Income Plan (CHIP) and Seniors Money Canada. It is normal to go through a mortgage broker. However, HomeEquity Bank does also offer the CHIP product.

Why are seniors flocking to this type of debt?

A reverse home mortgage is not a new-fangled principle or invention. Actually, reverse mortgages have been around in Canada since 1983. But it’s just in recent times, as many senior citizens are desperate to find a means to fund their retired lives, that reverse home mortgages have become much more popular.

Financing one’s retirement has come to be progressively harder for many seniors. Pension plans are going away and also OAS and Canada Pension Plan (CPP) do not provide ample funds for today’s retirees. This is the main reason seniors have actually sought Canadian reverse home loans.

Many seniors with residences are house rich yet cash money poor. They’ve discovered that a reverse mortgage is a way to get the necessary cash to fund their retirement by using the equity in their home. As a retiree, they can no longer meet the income test to get traditional mortgage financing. So, the reverse mortgage solves that problem.

Senior Borrower Beware

I would be remiss if I did not provide a warning. A large proportion of reverse mortgages are arranged through mortgage brokers. Like any other financial professional, there are great ones, good ones, and not so good ones. Seniors are also more susceptible to scammers. So, it is always good for a senior to have a trusted advisor involved in the reverse mortgage loan process.

To start, there are some basic questions that every senior should ask BEFORE committing to a reverse mortgage loan. They are:

  • What are all the fees involved with this borrowing?
  • How the cash is actually paid to you?
  • What is the annual rate of interest charged?
  • Is there any type of extra charges if you sell your house within a certain period of time?
  • Just how much time you or your estate will need to pay off the loan if you need to sell your home or die?
  • What happens if it takes your estate longer than the specified amount of time to completely pay back the loan after your death?
  • What occurs if the amount of the funding plus interest winds up being greater than your home’s worth when it’s time to pay the loan back?
  • What are events of default?
  • If I default on something, like not paying my property taxes on time, what happens?
  • If such a default happens, will you lose your home?
  • Are there any other terms of the loan agreement that you must know?

It is important that seniors know the answers to these questions before signing on the dotted line!

Summary

Do you have too much debt? Before you get to the stage where you can’t make ends meet and you have to borrow against the equity in your home, reach out to a licensed insolvency trustee (formerly called a bankruptcy trustee). In fact, if you realize that you can’t pay your debts heading into retirement, contact us.

We understand the pain and stress too much debt can cause. We can help you remove that pain and solve your financial problems given immediate action and the right plan.

Call Ira Smith Trustee & Receiver Inc. today. Make an appointment with one of the Ira Smith Team for a free, no-obligation consultation and you can be on your way to enjoying a carefree retirement in your home Starting Over, Starting Now. Give us a call today.

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BANK OF CANADA NEW STUDY ON CANADIAN HOUSEHOLD DEBT

Bank of Canada: Introduction

There has been talking for many years now about the Canadian housing market and more particularly about the Toronto and Vancouver markets. The Bank of Canada (BOC) recently published a staff analytical note titled: Reassessing the Growth of HELOCs in Canada Using New Regulatory Data. This Brandon’s Blog discusses this new study which shows Canadians have been tapping into the equity in their homes using them as automated teller machines (ATM).

Recent Bank of Canada Staff Analytical Note

The BOC staff warned that home equity may be concealing financial distress. They go on to warn that Canadian real estate owners may be hiding financial vulnerability using complex debt products.

BOC staff published this analytical note examining new home equity data. The new data gives more insight into home equity borrowing. The home equity line of credit (HELOC) borrowing has now been formally analyzed. HELOCs are usually advertised as a component of combined plans, provided with a mortgage and often, other credit items, such as personal lending and credit cards. Such a mixed plan can generally be broken down into a HELOC element, which is non-amortizing, as well as a home mortgage component, which is amortizing. Additionally, a part of the home mortgage component in such a combined strategy might be readvanceable, even though it is amortized.

The borrowing limit in combined plans is commonly tied to regional house prices. As market value increases, households can borrow much more. In the last few years, integrated mortgage-HELOC plans have actually expanded in importance. The BOC’s new analysis shows that it currently accounts for close to 40 percent of household residential debt owing to the chartered banks. In this way, Canadians are using their homes like debit cards at an ATM, but without having to go to the Bank to take out the money.

New reporting requirement for HELOCs

A new reporting standard has now been developed. A brand-new reporting form has been established to systematize the reporting on HELOCs. This new reporting is the end result of a years-long collective effort between the BOC, the Office of the Superintendent of Financial Institutions (OSFI) and the Canadian financial institutions. It is designed to improve the surveillance of financial stability concerns. The new reporting classifies household secured lending into:

  • stand-alone HELOCs
  • conventional home mortgages
  • integrated mortgage-HELOC plans

Also, it supplies a reporting on the consolidated plans into individual HELOC (non-amortizing) and mortgage (amortizing) parts. This will allow a better understanding of home equity debt.

I am sure that readers of my Brandon’s Blog are already familiar with the traditional segments of personal residential debt; first mortgage, second mortgage and secured line of credit. As the BOC statistics show, the less familiar combined mortgage HELOC product has become increasingly popular. No doubt some of that new popularity has been due to the heavy marketing of this new hybrid product by the chartered banks.

The readvanceable mortgage

I think in the future it will be better known by a name reflecting what it really is, such as readvanceable mortgages. They combine the fixed-rate mortgage with a variable rate HELOC. The amount of HELOC credit extended automatically increases with payments against the mortgage portion. So, borrowers can immediately replace the traditional mortgage debt with a new HELOC debt in exchange for the monthly payment against the mortgage principal.

Canadian homeowners can use the funds advanced by the HELOC portion for basically any use they want, including, home renovations, paying down higher interest rate debt or for investment. Under the readvanceable mortgage, borrowers, of course, will pay more interest on their total residential debt. The reason being that as you pay down the mortgage principal, the HELOC element availability increases.

It will be very tempting for Canadians to use this extra credit to pay down higher interest household debt they may be falling behind on, or at least, now be able to make the monthly payments on that higher interest rate debt, such as credit cards. So, the chartered banks, of course, will love this readvanceable mortgage credit product. More interest will be paid on the debt secured against the home while the higher interest rate payments continue to be made. A win-win for the bank, but not so much for Canadian household debt.

Canadian household debt can now replace higher rate debt with perpetual debt. There will be no incentive for Canadian households to reduce overall debt as long as interest rates stay low. It is great for the banks but not exactly a reason for households to celebrate.

Canadian household debt has a new love of these more complex loans

Let us go over Canada’s new love of these more complex loans. The BOC analysis confirms an increase in consolidated mortgage-HELOC plans, at 6.7 percent year over year. These plans appear to be taking market share from the conventional stand-alone mortgages and also traditional HELOCs; stand-alone home mortgages grew by a modest 2.0 percent,

While stand-alone HELOCs contracted by 7.6 percent during this time period. Furthermore, the new information on elements of combined plans shows that the growth of these plans is driven by the amortizing home mortgage element, which grew by 7.7 percent while the non-amortizing portion grew by 3.3 percent. These are all the same year over year statistics.

The balance of HELOCs (both stand-alone HELOCs and the non-amortizing part of the integrated mortgage-HELOC plans) is $173 billion as at the fourth quarter of 2018, $70 billion less than the previous amount of $243 billion. The overall balance of HELOCs reduced by 1 percent year over year. The overall balance of home mortgages (both stand-alone home loans and the amortizing element of mixed plans) increased by 3.8 percent.

So what does this Bank of Canada study really mean?

Against the background of the fear of climbing interest rates, tighter home mortgage qualification requirements and the stagnation in household spending throughout 2018, the information from existing regulatory filings reveals that HELOC balances expanded much faster than home mortgages. This suggests that families were had not stopped to borrow against the value of their residences even as borrowing tightened.

The convenience of accessibility to rotating credit supplied by standalone HELOCs and the new combined plans might help with the buildup of Canadian household debt. It will come at the cost of building equity in one’s home. Canadians collecting huge amounts of debt secured by their real estate may find themselves with marginal (or even negative) real estate equity if the value of their home falls.

These complex loan products may likewise be hiding emerging financial distress if Canadians are taking equity out of their homes to manage various other financial debt obligations or to fund their everyday expenses because they lack other cash resources. These are all factors to consider when tracking and analyzing both stand-alone HELOCs and the strategies of the combined plan.

Do you have too much debt?

Are you or your business in financial distress? Do you not have adequate funds to pay your debts as they come due?

If so, call the Ira Smith Team today. We have years and generations of experience aiding individuals and companies searching for financial restructuring or a debt settlement arrangement. As a licensed insolvency trustee (previously called a bankruptcy trustee), we are the only experts certified, acknowledged as well as overseen by the federal government to provide bankruptcy and insolvency guidance as well as execute methods to assist you to remain free from bankruptcy and your debts.

Call the Ira Smith Team today so you can reduce the tension, anxiety, and discomfort from your life that your financial problems have triggered. With the unique roadmap, we develop simply for you, we will promptly return you right into a healthy and balanced problem-free life.

You can have a no-cost evaluation so we can assist you to repair your credit and your debt problems. Call the Ira Smith Team today. This will certainly enable you to return to a brand-new healthy and balanced life, Starting Over Starting Now.bank of canada

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THE EVOLUTION OF MORTGAGE FRAUD CANADA DUE TO AVERAGE HOME PRICES TORONTO

average home prices toronto 5Average home prices Toronto: Introduction

Everyday we’re inundated with stories in the newspapers, on television and online about the average home prices in Toronto and in the rest of Canada. Many are left wondering what they can possibly do to get into this very hot market. Unfortunately as a result there’s been a surge in mortgage fraud.

Average home prices Toronto: What is mortgage fraud Canada?

Mortgage fraud takes place when fraudulent information is used to qualify for a mortgage. A classic example of mortgage fraud is a prospective home buyer submitting fake or altered employment letters, bank statements or tax returns to qualify for a large mortgage.

Average home prices Toronto: How prevalent is mortgage fraud Canada?

According to credit reporting agency Equifax:

  • The number of mortgage applications flagged as potentially fraudulent has risen 52% since 2013
  • About 90% of all mortgage applications flagged for potential fraud have come from banks and not other types of mortgage lenders, largely because banks have become better at spotting fraud attempts
  • 13% of Canadians told Equifax it was okay to tell “little white lies” on their mortgage applications
  • Roughly 67% of mortgage applications flagged for fraud came from Ontario
  • Approximately 12% of suspected mortgage fraud came from British Columbia
  • Only 8% admitted to actually falsifying information on their own credit applications

Average home prices Toronto: Why are typically law-abiding Canadians being driven to commit mortgage fraud in Canada?

It’s no secret that home prices are continuing to rise. The latest federal legislation has made it more difficult to qualify for an insured mortgage. Many Canadians are realizing that home ownership is beyond their reach. In fact according to an online survey by Equifax, 84% of Canadians felt the country’s housing market had become too expensive for first-time buyers. Of those who didn’t own a home, 20% said they worried they may never be able to save enough for a down payment. Clearly desperate times are calling for desperate measures and a surge in mortgage fraud is the result.

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Average home prices Toronto: What should you do if you have too much debt?

Committing a crime is never the answer. And make no mistake, mortgage fraud is a crime. It can be punishable by hefty fines and/or jail. If your goal is to buy a house, we can’t do anything about the real estate prices, but the Ira Smith Team can help you get your debt issues under control so that home ownership may be in your future. Give us a call today so that Starting Over, Starting Now you can conquer debt and start saving for your future.

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ALTERNATIVE MORTGAGE LENDERS CANADA REVIEW

Alternative mortgage lenders CanadaAlternative mortgage lenders Canada: Introduction

Alternative mortgage lenders Canada have now made sure that mortgages and loans are no longer the exclusive domain of banks and other brick and mortar financial institutions. Fintechs (financial technology companies) have changed the game in the same way that Uber disrupted the taxi industry. In fact banks who don’t want to be left are changing the way they do business and investing in or partnering with fintechs.

We recently blogged our review of two recent alternative lenders in Canada:

  1. # VIDEO – CREDIT KARMA CANADA REVIEW: IS IT REALLY FREE AND LEGITIMATE? #
  2. #VIDEO- GOOD AND BAD CREDIT LOANS REVIEW CANADA #

Alternative mortgage lenders Canada: Fintechs are a legitimate alternative

We’ve traditionally thought of alternative lenders as shady operators or payday lenders who prey on the most vulnerable. However a new crop of alternative lenders has emerged in the mortgage game – the fintechs. Some are publicly traded companies and perfectly legitimate. They market to the millennials who want everything online and in an instant; and that’s what some of the new fintechs deliver.

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Alternative mortgage lenders Canada: How do the fintechs offering mortgages work?

  • They can register as a broker and have licensed brokers on staff
  • In addition to mortgages they can offer personal loans
  • They work on a fee-based model which gives them upfront revenue without capital requirements or credit risk
  • They receive a commission on mortgages completed through their service

Alternative mortgage lenders Canada: Fintechs technology advantage

Fintechs take advantage of technology to change the mortgage process. They try to create a more personal experience for users (more akin to online banking) and believe that their process of acquiring a mortgage is more transparent than that of traditional financial institutions. Some even give perks such a bottle of champagne to celebrate your new mortgage and/or dinner for meeting payment milestones. Some fintechs offer:

  • A mobile interface where users can compare rates, apply for a mortgage and track their payment progress
  • An interactive dashboard that walks users through the mortgage process
  • The ability to set up things like payment reminders and progress trackers

Alternative mortgage lenders Canada: What does it mean for you?

For one thing, the banks and other financial institutions have competition, and competition always benefits the consumer. Chances are if you’re already indoctrinated in digital and reach for Apple Pay or Android Pay instead of your wallet, you may welcome fintechs into the mortgage scene. But, not all fintechs are created equal. It’s up to you to check them out thoroughly and check out the rates to make sure they are giving you a good deal. You have options when it comes to taking out a mortgage but make sure you do your homework.

Alternative mortgage lenders Canada: What if you have too much debt?

Not all homeowners’ stories have happy endings. If you’ve bitten off more than you can chew or life has thrown you a curve ball and you can’t make the mortgage payments, contact Ira Smith Trustee & Receiver Inc. We’re here to help you solve your debt problems and set you on a path to debt free living Starting Over, Starting Now. All it takes is one phone call to schedule a free, no obligation appointment.

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BALLOON PAYMENT CAN COST YOU MORE THAN YOU BARGAINED FOR

balloon payments, balloon payment, loan, car payment, mortgage, personal loan, debt, ira smith trustee

A balloon payment is one example of financial lingo that can be very confusing. Often we get involved in situations that we don’t really understand. We’re going to be delving into financial terms that not only cause confusion, but can cost you more than you bargained for. Balloon payments are a perfect case in point.

What is a balloon payment?

A balloon payment is a lump sum payment that’s attached to a loan which could be in the form of a mortgage, car payment or personal loan. It has a much higher value than your regular repayment charges and is typically applied at the end of the loan period.

What is the advantage of a balloon payment?

A balloon payment allows you to defer a predetermined amount or percentage of the total amount of your loan to a lump sum at the end of your finance period. This allows you to make much lower repayments than you would if the entire amount owing was spread out during your finance term.

What is the disadvantage of a balloon payment?

The disadvantage of a balloon payment is that at the end of the term you have to come up with what can be a HUGE lump sum payment to pay off the remaining balance of the loan in full. Unless you’ve been very diligent about budgeting and squirreling away the money for being able to make that special payment, chances are you’ll be left in financial hot water.

Is a balloon payment right for me?

If you are VERY sure of what your financial situation will be by the end of the loan term and you know with certainty that you’ll be able to make your balloon payment, then it may be right for you. However, for the majority of consumers, this type of financing may pose too big a risk. At the end of the loan term if you don’t have the money for the larger repayment amount and if refinancing isn’t an option you could lose your car or house (or whatever you’ve financed).

Are you heading into financial trouble due to an upcoming balloon payment?

Are you in financial hot water as result of an upcoming large loan repayment? Are you struggling with debt? Contact the Ira Smith Team. We’ve got the solutions to your debt problems. Book a free consultation today and Starting Over, Starting Now you can rid yourself from an unmanageable debt load. Watch for future blogs when we’ll be discussing other confusing terms that can impact you financially.

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IS BABY BOOMERS DEBT PREVENTING THEM FROM GETTING MARRIED?

IS DEBT PREVENTING BABY BOOMERS FROM GETTING MARRIED?Baby boomers debt is having an effect on baby boomers who wish to get married, but won’t. Shacking up is not exclusively for young people bucking societal traditions. About 33% of Baby Boomers are unmarried today and many are opting to live together instead of getting married, according to a survey done by the National Center for Family and Marriage Research at Bowling Green State University in Ohio. In fact, the number of Baby Boomers living together has more than doubled in 10 years – about 2.75 million people over the age of 50 were cohabiting in the United States in 2010 compared to 1.2 million a decade earlier, according to the research. U.S. Census Bureau data shows adults older than 50 are among the fastest growing segment of unmarried couples in the U.S.

Why are Baby Boomers choosing to cohabitate instead of tying the knot? The most common reason cited is money – debt, benefits, taxes and cash flow are preventing couples from saying I Do. Many Baby Boomers have assumed a heavy debt load as a result of:

Debt has hit the Baby Boomers hard and many are reluctant to enter into a marriage where they may be assuming additional debt as a result of the marriage. Others are reluctant after having suffered financially as a result of grey divorce. There are many reasons that Baby Boomers are in debt and we have explored them in several blogs – Baby Boomers Debt: Reasons Why It Is So High, Baby Boomers Debt Crisis: Waiting For An Inheritance To Bail You Out, and Grey Divorce Can Create Serious Debt For Boomer Retirees.

If you’re experiencing serious debt issues, then you already know that debt doesn’t miraculously disappear on its own. You need professional help and a solid plan for moving forward with your life Starting Over, Starting Now. Don’t let debt prevent you from doing the things that are important to you. Contact Ira Smith Trustee & Receiver Inc. today and take the first step towards living a debt free life.

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STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?

STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?Student loan debt is not just a problem for students and their families to deal with. It’s a serious problem that has invaded all facets of our society and has significantly impacted our economy. According to the Canadian Federation of Students:

  • The average student loan debt is $27,000
  • Between 2012 and 2013 more than 400,000 students borrowed money to help pay for more schooling
  • The CSLP (Canada Student Loans Program) expected to lend approximately $2.46 billion during the 2013-14 academic year

Statistics Canada’s Survey of Financial Security reports that student debt grew 44.1% from 1999 to 2012, or 24.4% between 2005 and 2012. And, one in eight Canadian families is carrying student debt. The average student is having a great deal of difficulty paying off their student loans and according to the Canada Student Loans Program, most students take nearly 10 years to pay off their loans – with some taking the maximum 14.5 years. In September 2010 the amount of student loans owed to the Government of Canada was more than $15 billion dollars, which is greater than the debt of some provinces. The federal government has written off another $231 million in unpaid student loans this year from more than 44,000 cases, after exhausting all avenues attempting to collect.

A study last year from TD Bank found that students are increasingly delaying major life milestones due to the rising costs of education. How can someone who is still paying off student loans assume a mortgage or car loan? Students are shackled by their student loan debt and there is no relief. Student loans can only be discharged by bankruptcy if you have been out of school entirely (full time or part time) for 7 years or more. Student loan debt has significantly impacted our economy because university graduates lack the disposable income to create a buoyant housing market, brisk car sales and restricts the purchase of high ticket items which all fuel the economy. The CSLP does not have a program for student loan debt forgiveness or student loan debt relief.

If you’re facing financial crisis or bankruptcy, you need a plan for Starting Over, Starting Now. Ira Smith Trustee & Receiver Inc. can solve your problems with immediate action and the right plan. Contact us today.

Call a Trustee Now!