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# VIDEO – DIFFERENCE BETWEEN CONSUMER PROPOSAL AND BANKRUPTCY: LIST OF 5 DIFFERENCES TO KNOW ABOUT #

Difference between consumer proposal and bankruptcy

This short video explains the difference between a consumer proposal and bankruptcy. A consumer proposal is a deal to end your debts. A consumer proposal is a legally binding process that is administered by a licensed trustee.

5 things that make the difference between consumer proposal and bankruptcy

  1. In a bankruptcy, if your income goes up, the amount you have to pay to your Trustee may very well go up. In a consumer proposal, your payment is fixed.
  2. In a bankruptcy, you will lose your income tax refund, contributions to your RRSP in the last 12 months, RESP for your children and other assets. In a consumer proposal that is accepted by your creditors, you get to keep your assets.
  3. There is less reporting in a consumer proposal. You do not have to show proof of your income every month as long as you are keeping your consumer proposal payments current.
  4. In a bankruptcy, if there is opposition to your discharge from bankruptcy, then you must attend for a Court hearing.There is no Court process at the end of the administration or a discharge hearing in a consumer proposal.
  5. You stay in control of your assets and affairs in a consumer proposal that is accepted by your creditors and that you are performing.

These are the main things that create a difference between consumer proposal and bankruptcy.

If you have too much debt, call us now!

We offer personal bankruptcy and consumer proposal services, as well as corporate restructuring and corporate receivership and bankruptcy services to residents of the Greater Toronto Area. We explain the differences between a consumer proposal vs. personal bankruptcy. In most cases we can get a consumer proposal done and it usually results in a substantial reduction in the amount you have to repay. The amount you are required to pay when you file a consumer proposal depends on a number of factors as explained in this short video.

So now that you know the 5 major items that makes up the difference between consumer proposal and bankruptcy and if you are experiencing financial problems, or you know that you are insolvent and are considering a consumer proposal vs. personal bankruptcy, or looking at all of your realistic options, including all alternatives to bankruptcy, contact Ira Smith Trustee & Receiver Inc. Ira Smith Trustee & Receiver Inc. is a Vaughan (Toronto) bankruptcy trustee and consumer proposal administrator. We offer sound advice, a free consultation and a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt free life in no time.

difference between consumer proposal and bankruptcy

 

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#VIDEO – CONSUMER PROPOSAL FAQS: SECRETS FOR FENDING OFF BANKRUPTCY #

Consumer proposal faqs

We have made this video to answer the Consumer Proposal FAQs that we are normally asked. This information will hopefully help you understand better how it can help you clear your debts and AVOID bankruptcy.

In addition to this video, you can also check out other blogs and vlogs we have written on Proposals:

The most asked FAQs

The most asked of the FAQs is – What are the advantages? The main ones are:

  • You keep all of your assets
  • Actions against you by unsecured creditors, such as wage garnishments will be stopped
  • Unlike informal debt settlement, the proposal process is a forum where all of your creditors must deal with your restructuring
  • You don’t have to declare bankruptcy

Too much debt? Get the help you need now!

We hope you enjoy this video about consumer proposal FAQs. Click on this link to find out more. You can also have many of your questions about personal bankruptcy answered by clicking on our Bankruptcy FAQs link.

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

A trustee in bankruptcy will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. With immediate action and the right plan, the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.

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ADVANTAGES OF CONSUMER PROPOSALS VIDEO FOR YOU

Introduction

We have written many blogs on the advantages of consumer proposals, including:

We thought it would be good to now put together a short video on the topic.

The best alternative to personal bankruptcy in Canada

Of the various alternatives to bankruptcy, this government approved debt settlement plan is the one option with the most predictable and certain results for the insolvent person in dealing with their debt. You may have heard a proposal being called other names such as consumer credit proposal, debt proposal or debt settlement.

The main difference is that the only formal legal mechanism to be able to stop your creditors from continuing to harass and sue you is with a formal consumer proposal through a licensed trustee in bankruptcy. Unlike the other options, the consumer proposal is codified in the Canadian Bankruptcy and Insolvency Act which provides the trustee with certain weapons that can be used for your protection.

That is why we say that of all the bankruptcy alternatives, the consumer proposal is the best one. There are many bankruptcy options, but the consumer proposal also allows you to rebuild your credit thereby increasing your credit score.

Keep away from bankruptcy with the advantages of consumer proposals

If you are insolvent and are considering bankruptcy, contact Ira Smith Trustee & Receiver Inc. We offer sound advice, will check all of your bankruptcy options with you and then with you, formulate a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt-free life in no time.

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CONSUMER PROPOSAL VS DEBT SETTLEMENT

consumer proposal vs debt settlement
consumer proposal vs debt settlement

Consumer proposal vs debt settlement vs. debt settlement companies

If you have serious financial problems, there is an option available to you to avoid debt settlement companies and bankruptcy. In fact, more Canadians are now choosing consumer proposals instead of declaring personal bankruptcy. The purpose of this Brandon’s Blog is to explain the benefit of consumer proposal vs. debt settlement companies.

The advantages of consumer proposals with a Trustee can save you from debt settlement companies. Here’s how. Unlike a trustee in bankruptcy, debt settlement
companies have long been a hot-button issue and as a result, we’ve posted several blogs on the subject:

How successful is consumer proposal vs. debt settlement companies?

One of the advantages of consumer proposals vs. debt settlement companies is a high chance of success. Consumer proposals filed by a trustee have an excellent chance of being accepted by creditors. The consumer proposals our office files have experienced almost 100% acceptance by creditors. We know of other trustees who say their success rate with consumer proposals is in the high 90% range.

According to the Canadian Bankers Association, only 10% of offers received from debt settlement companies are accepted and it’s estimated that only 3% are successfully completed. As you can see, consumer proposals vs. debt settlement win hands down!

Advantages of using a licensed trustee in a consumer proposal vs debt settlement company

The reason for the advantages of consumer proposals is because a licensed trustee understands the behaviour of your creditors, is obligated to check all options with you and explain why a consumer proposal is a better option than other ones available, including personal bankruptcy. A trustee can recommend you properly on how to reach a mutually satisfactory compromise on your debt that you can actually complete it successfully, taking your family income and situation into consideration.

If you are considering consumer proposal vs. debt settlement companies

The advantages of consumer proposal vs. debt settlement companies are simple; a trained, educated, licensed financial services professional delivers results. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice and a solid financial plan for Starting Over, Starting Now.

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▓ VIDEO: CONSUMER PROPOSAL VS. PERSONAL BANKRUPTCY ▓

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This short video (found at the bottom of this page) explains the differences between a consumer proposal vs. personal bankruptcy. A consumer proposal is a deal to end your debts. A consumer proposal is a legally binding process that is administered by a licensed trustee. Ira Smith Trustee & Receiver Inc. is a Toronto bankruptcy trustee and consumer proposal administrator.

We have written previous blogs about consumer proposals, including:

We offer personal bankruptcy and consumer proposal services, as well as corporate restructuring and corporate receivership and bankruptcy services to residents of the Greater Toronto Area. We explain the differences between a consumer proposal vs. personal bankruptcy. In most cases we can get a consumer proposal done and it usually results in a substantial reduction in the amount you have to repay. The amount you are required to pay when you file a consumer proposal depends on a number of factors as explained in this short video. We hope that you find the short video informative and interesting. If you have any topics about debt, insolvency or finances that you would like us to cover in future videos, please let us know by leaving a comment.

If you are experiencing financial problems, or you know that you are insolvent and are considering a consumer proposal vs. personal bankruptcy, or looking at all of your realistic options, including all alternatives to bankruptcy, contact Ira Smith Trustee & Receiver Inc. We offer sound advice, a free consultation and a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt free life in no time.

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ECONOMIC DOWNTURN CAUSES MORE PEOPLE TO CONSIDER BANKRUPTCY OR PERSONAL BANKRUPTCY ALTERNATIVES

bankruptcy, alternative to bankruptcy, personal bankruptcy alternatives, alternatives to personal bankruptcy, Bankruptcy and Insolvency Act , BIA, bankruptcy solutions, lines of credit, credit card debt, credit counselling, debt consolidation, consumer proposals, budget, student loan debt, trustee, economic downturn, starting over starting now, information about bankruptcy, Toronto bankruptcy trusteeWhen do people generally want information about personal bankruptcy alternatives?

Personal bankruptcy alternatives are always sought after an economic downturn. The economic downturn is causing more people to rely on credit to supplement their income and/or their lifestyle. This mountain of debt will ultimately result in bankruptcy or hopefully, an alternative to bankruptcy.

What Bank of Montreal and Statistics Canada say about Canadian household debt

In BMO’s Annual Debt Report, the average household debt of those surveyed is $92,699, more than $4,000 higher than the four-year average dating back to 2012. And servicing that debt, which includes mortgages, lines of credit and credit card debt, is costing $1,165 a month.

According to Statistics Canada:

  • The debt-to-income ratio of Canadian households is 163.3% which means for every dollar Canadians earn, they owe $1.63 in debt
  • Canadian households now owe $1.841 trillion in various forms of debt
  • More than $1.1 trillion is from mortgages
  • $519 billion is consumer debt, like credit cards

Debt + More Debt = a Solution?

Adding debt to more debt is not a solution to the problem; it compounds the problem. If you are using credit cards to supplement your income or your lifestyle, you have a serious problem that needs professional help. Don’t wait until bankruptcy is your only option. You should be learning about personal bankruptcy alternatives before it is too late.

Is there such a thing as bankruptcy solutions?

We are asked this question all the time. Before even considering bankruptcy, I always want to discuss 3 formal alternatives to personal bankruptcy:

  1. Credit Counselling
    Credit counselling is in reality debt counselling. Professionals provide assistance with a host of issues related to debt including budgeting, finding debt solutions, working with your creditors and rebuilding credit.
  2. Debt Consolidation
    Debt consolidation is a single loan that allows you to repay your debts to several or all of your creditors at once, leaving you with only one outstanding loan.
  3. Consumer Proposals
    Consumer proposals are formal offers made to your creditors under the Bankruptcy and Insolvency Act (BIA) to modify your payments. e.g. paying a lesser amount each month for a longer period of time and paying a total lesser amount than you owe, all on an interest-free basis!

In addition there are informal personal bankruptcy alternatives including budget review, contacting your creditors (including your mortgage lender), selling an asset and contacting the Federal Government’s Repayment Assistance Plan (if you’re having difficulty repaying your student loan debt).

Just ask your Toronto bankruptcy trustee

A professional trustee can open up a world of possibilities for you. Contact Ira Smith Trustee & Receiver Inc. for help with your financial problems. With just one phone call you can be well on your way to a debt free life Starting Over, Starting Now.

 

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DAVID CASSIDY PARTRIDGE FAMILY TOUR BETTER START SOON

David Cassidy
David Cassidy

What happened to David Cassidy?


This YouTube David Cassidy video says it all. His bankruptcy, notwithstanding he refutes it, must be related in some small part to his alcoholism and the several David Cassidy DUI events. The US Bankruptcy Court has ordered that he now must have his Florida home sold by auction.

For those of you too young to remember him, here is the link to the David Cassidy bio. As you can see, he was a huge music and television star heartthrob. Whatever happened to him over the years, David Cassidy now must pull his life back together. Like all of us, he must learn to live within his means and budget properly. Mr. Cassidy certainly isn’t the first, and won’t be the last celebrity having financial problems.

Next Steps

So who knows? Maybe Mr. Cassidy will have to go back on tour with a Partridge Family revival tour, or at least a David Cassidy tour, to earn extra income! Like all of us, he will have to learn to live within his means. Dealing with his personal problems will also be a great new beginning for him.

And what if you were not famous but are struggling?

If you’re struggling to support a lifestyle you can no longer afford, take immediate action and contact a professional trustee and explore your alternatives to bankruptcy. There are alternatives to personal bankruptcy – credit counselling, debt consolidation and consumer proposals. However, regardless of the choice that’s right for you, a balanced budget is always part of the equation. As we’ve stressed before, a balanced budget is to financial health what a balanced diet is to physical health. You’ll have to take a realistic look at your lifestyle and a serious look at your big ticket items – luxury home(s), exotic vacations, luxury cars, designer clothes and expensive entertaining and start living within your budget in order to benefit from one of the alternatives to bankruptcy .

The Ira Smith team approaches every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Contact us today and Starting Over, Starting Now you can be on the path to a debt free life.

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ALTERNATIVES TO BANKRUPTCY IF YOUR INCOME DECLINES SUBSTANTIALLY

alternatives to bankruptcy, bankruptcy, trustee, alternatives to personal bankruptcy, credit counselling, debt consolidation, consumer proposals, budget, balanced budget, financial, insolvency, personal insolvency, starting over starting nowAlternatives to bankruptcy

Our insolvency clients, be they personal or corporate, usually want to start a consultation by asking us bankruptcy questions. However, I first start by obtaining a full understanding of the person’s or company’s financial challenges, so that we may consider all of the realistic options before discussing the topic of bankruptcy. I first wish to find the best alternative to bankruptcy.

I am finding now that many families, even high earners, are struggling in the “new economy”. We’ve spoken about their plight in our blogs:

There is yet another group that is now in great danger of bankruptcy – families whose previously very healthy income has taken a serious downturn and are now struggling to maintain a lifestyle they can no longer support. These families need to act fast and consider their alternatives to bankruptcy before it is too late to take remedial action. The natural inclination is to tough it out and hope for better times, but serious financial times demand serious financial decisions, not a hope and a prayer. As these families wait for better times to come they are burning through whatever savings they have, going further into debt by living off credit and will eventually run out of both money and credit.

This is not the best approach. At the first sign of financial trouble, these families should seek the advice of their legal counsel or accountant. These trusted professionals will be able to refer the families in financial trouble to a trustee in bankruptcy that they trust. With the trust factor bridge now in place with the trustee, that trustee can review the situation and provide the families with their realistic alternatives to bankruptcy.

If you’re struggling to support a lifestyle you can no longer afford, take immediate action and contact a professional trustee and explore your alternatives to bankruptcy. There are alternatives to personal bankruptcy – credit counselling, debt consolidation and consumer proposals. However, regardless of the choice that’s right for you, a balanced budget is always part of the equation. As we’ve stressed before, a balanced budget is to financial health what a balanced diet is to physical health. You’ll have to take a realistic look at your lifestyle and a serious look at your big ticket items – luxury home(s), exotic vacations, luxury cars, designer clothes and expensive entertaining and start living within your budget in order to benefit from one of the alternatives to bankruptcy .

The Ira Smith team approaches every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Contact us today and Starting Over, Starting Now you can be on the path to a debt free life.

http://youtu.be/qcr1ga9Jtw4
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HOW ADVANTAGES OF CONSUMER PROPOSALS SAVES YOU FROM DEBT SETTLEMENT COMPANIES

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HAPPY CANADA DAY!

The advantages of consumer proposals with a Trustee can save you from debt settlement companies. Here’s how.

Continue reading “HOW ADVANTAGES OF CONSUMER PROPOSALS SAVES YOU FROM DEBT SETTLEMENT COMPANIES”
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BANKRUPTCY CANADA FAQ WILL CHANGE YOUR LIFE

 

Bankruptcy Canada FAQ, Better Business Bureau, BBB, scam, travel scam, SaveOnResorts, RipOffReport, financial plan, starting over starting nowBankruptcy Canada FAQ could change your life, but only if you took positive action after reading it. Can the Better Business Bureau (BBB) change your life? Definitely. We all think that the BBB could only change your life in a positive way. However the BBB could also change your life if it helped one of its member’s perpetrate a scam. If you suffer financial damage by relying on a BBB member’s scam, then you very well may have to read our Bankruptcy Canada FAQ to consider getting out of the debt the scam placed you in. In the past we’re warned you about several scams:

As consumers we all try to be diligent about companies we choose to do business with and it’s quite common to check with the BBB to see how they’re rated. However, it’s a common misconception that the BBB is a government agency that advocates and protects the consumer. We should be wary about relying on the BBB ratings. Any scam will hurt you and if it has caused a serious debt problem, then you will have to read our Bankruptcy Canada FAQ in order to change your life for the better.

What is the BBB?

  • The BBB is NOT a government agency.
  • It is a FOR PROFIT
  • It is NOT a consumer watchdog.
  • BBBs are franchises designed to generate profit.
  • They sell advertising and memberships to companies.

How does a company acquire a BBB accreditation? Businesses pay a fee for accreditation review and monitoring for continued compliance and for support of BBB services to the public.

How is the BBB funded? The BBB is funded from the advertising and membership dues paid by its accredited companies.

Could this create a conflict of interest? This has been an ongoing issue and many are of the belief that this is a conflict of interest. Do you believe the BBB can accurately “rate” a company that is one of its paying clients? In addition only companies that are BBB members can defend their reviews and you can’t post a positive review about a company that is not a BBB member, so it’s not a level playing field.

Here is a perfect example: SaveOnResorts.com is rated an A+ by the BBB. Yet many websites including Scam-Detector, RipOffReport and ComplaintsBoard have numerous complaints against them dating as far back as 2007, and call it a travel scam. Even TripAdvisor advises caution when booking with SaveOnResorts. Logic dictates that there is no conceivable way that SaveOnResorts.com could have an A+ rating. Yet, they are a paying member of BBB and enjoy an A+ rating, which no doubt has cost many people money. There is nothing new about a travel scam, but one that comes with a glowing report from the BBB is a prime candidate to have to drive you to read our Bankruptcy Canada FAQ.

It seems that having a BBB accreditation will not prevent you from being ripped off by that BBB accredited member! Buyer Beware! Don’t take things for granted and always do your due diligence. Such a scam could cause you serious financial harm, forcing you to consider all options in dealing with your debt, including reading our Bankruptcy Canada FAQ to find out more about the bankruptcy process.

We hope that you will never be a victim of a scam or experience serious financial difficulties for any reason. But if life throws you a curveball, find out information by reading our Bankruptcy Canada FAQ and then contact the Ira Smith Team today. We can help put you back on the road to financial health with practical advice and a solid financial plan. You can also gain quick answers to find out all about the personal bankruptcy process by reading our Bankruptcy Canada FAQ. Starting Over, Starting Now you can put your money problems behind you and regain a great quality of life.

Watch for our next blog when we’ll be discussing Disaster Relief Scams.

Call a Trustee Now!