Tag: personal bankruptcy

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CANADIAN PAYDAY LOANS NO CREDIT CHECK: TOO GOOD TO BE TRUE!

Canadian payday loans no credit check, payday loans, credit check, credit, credit cards, lines of credit, trustee, bankruptcy, interest rates, debt, personal bankruptcy, bankruptcy alternatives, bankruptcy faqs, Cheri DiNovo, starting over starting nowIf something is too good to be true, like Canadian payday loans no credit check, it usually is. More companies seem to be springing up like weeds every day offering Canadian payday loans. No credit check is the hook they use to bait you. When it comes to money, no one offers you something for nothing. Think logically, if you have bad credit or no credit, why would any legitimate company be willing to give you money? You and I both know it doesn’t make sense. Yet, the Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. Why would anyone respond to an ad for Canadian payday loans no credit check? They don’t have access to conventional credit like credit cards, lines of credit or overdraft and they aren’t aware that they can solve their problems instead of taking on more debt.

How can a company offer Canadian payday loans no credit check and make money? Simple; they charge exorbitant interest rates which are disguised so that the consumer has no idea what they are signing on for. According to Scott Hannah, president of Canada’s Credit Counselling Society, when a payday lender offers you 21% interest for a 14 day loan, that is actually 546% annual interest! Can you imagine anyone agreeing to pay 546% annual interest? But when it’s disguised as 21% for a 14 days loan, it seems quite benign. The clients who make good on their loans pay for the ones that default on their loans and those outrageous interest rates offset the losses.

Many people in the private and public sector are outraged at Canadian payday loans no credit check companies and many politicians like Cheri DiNovo are trying to shut them down. This is what she has to say:

Ontario NDP MPP for Parkdale-High Park, Cheri DiNovo

I feel they’re just ripping off poor people who have to go there for a loan and it’s just ridiculous what they charge. You’re only allowed to charge $17 on the hundred. Well with them, it’s a lot more. I think it’s something that should be outlawed and something the company should be shut down. I mean it’s outrageous.

There are better solutions to your financial problems than taking on more debt. Say NO to Canadian payday loans no credit check companies. Say YES to real financial advice from a professional trustee who is federally licensed and trained to deal with people facing a financial crisis or bankruptcy.

I understand that you are scared to declare personal bankruptcy. That is why personal bankruptcy is the last option we look at when providing you with a no charge first consultation. We first consider your entire situation, and discuss with you the bankruptcy alternatives that might be proper for you to consider. It is only after we exhaust every possible bankruptcy alternative, that we even consider discussing bankruptcy with you. Please check out the information we provide in our top 20 bankruptcy faqs section, so that you can gain real knowledge. More debt through the various Canadian payday loans no credit check companies is just a very expensive band aid, it is not a proper solution to living a debt free life!

Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you will be on your way to solving your problems, not taking on more debt.

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SCARED TO DECLARE PERSONAL BANKRUPTCY?

scared to declare personal bankruptcy, personal bankruptcy, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, consumer debt, credit card debt, debt, trustee, trusteesScared to declare personal bankruptcy? Don’t be. Bankruptcy is a legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts.

According to the Office of the Superintendent of Bankruptcy Canada:

Employment and Social Development Canada reports:

  • In 2011, 122,999 Canadians were unable to repay their debts.
  • Serious financial difficulties brought them to file either a payment proposal or a bankruptcy. The average amount owed was $119,021.
  • About 53% of Canadians filing a proposal or bankruptcy in 2011 were aged 30 to 49 years.
  • In 2007 individuals who were divorced or separated were more likely to file a proposal or bankruptcy than Canadian adults on average.
  • In 2008 the most frequent type of debt reported by individuals filing a proposal or bankruptcy was credit card debt (91%).

Still scared to declare personal bankruptcy? Huffington Post reports that one in six Canadians will eventually go bankrupt. Don’t be scared to declare personal bankruptcy; there are advantages:

  • It is relatively quick
  • It can be less expensive than other options
  • It eliminates your unsecured debts
  • You will have some protection from creditors, legal action and wage garnisheeing
  • After your discharge your credit risk can start to improve

If you are considering bankruptcy, your first step should be to meet with a trustee. Trustees are individuals licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer the bankruptcy process. Contact Ira Smith Trustee & Receiver Inc. We will evaluate your financial situation and discuss various bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals that could help you to solve your financial problems. Don’t be scared to declare personal bankruptcy. It’s just an option to consider so that Starting Over, Starting Now you can be well on your way to financial health.

 

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PERSONAL LOANS FOR BAD CREDIT: INTERESTED?

personal loans for bad credit, personal loans, bad credit, trustee, bankruptcy, personal bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, financial plan, debt, high cost debt, starting over starting nowPersonal loans for bad credit commercials and advertisements are very seductive. It seems so easy – money in your bank account in no time and they can be arranged online 24/7. Serious debt can be debilitating, leaving you feeling helpless, out of control and not knowing where to turn. The answer to your problems is personal loans for bad credit, but is it really?

Personal loans for bad credit are not the same as a loan you’d get from your bank or credit union. The interest rates are much higher because the risk to the lender is much greater. As a professional trustee I can tell you that the last thing you need is more high cost debt. What you need is a solid financial plan to get you out of debt, not personal loans for bad credit.

How can you get out of debt without resorting to high cost personal loans for bad credit? There is no instant or quick fix for serious debt issues. What you need are answers, options and realistic plan for recovery. Firstly, make an appointment with a professional trustee as soon as possible. Relying on advertising for financial advice is never a good idea. Trustees are professional, licensed, federally regulated financial services professionals who are uniquely positioned to provide long term, sensible solutions on reducing debt. Personal bankruptcy is not your only choice. There are bankruptcy alternatives such as credit counselling, debt consolidation or consumer proposals.

Don’t fall prey to high cost personal loans for bad credit. For sound financial advice you can depend on, contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can be well on your way to a debt free future.

 

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BANKRUPTCY FAQ CANADA

bankruptcy faq canada, Top Ten List, bankruptcy, bankruptcy alternatives, debt consolidation, consumer proposals, consumer proposal, starting over starting now, living paycheque to paycheque, top 20 personal bankruptcy faqs, is my spouse affected by my bankruptcy, wages, budgeting, surplus income, student loans, debt relief worksheet, personal bankruptcy, debt settlement companies, bankruptcy process, trustee in bankruptcyBankruptcy FAQ Canada has been compiled from the questions most asked of us by people facing financial challenges.

If you’re like many Canadians who are struggling to pay the bills, living paycheque to paycheque and can’t even fathom a way out of this trouble, you need help from a professional, federally licensed trustee. Ira Smith Trustee & Receiver Inc. can help get your life back on track Starting Over, Starting Now. Contact us today.

And now, click for BANKRUPTCY FAQ CANADA

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CANADIAN REAL ESTATE BUBBLE BURST: WHEN?

Canadian real estate bubble, Canadian real estate bubble burst, The Suites at 1 King West, receivership, Court-appointed receivership, real estate, statistics, financial crisis in Canada, residential construction, debt-to-income ratio, financial crisis, residential mortgage debt, Canadian Bankers Association, Canadian real estate industry, living paycheque to paycheque, credit cards, credit card debt, credit report, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, personal bankruptcy, starting over starting now, debt settlement, debt settlement companiesWill the Canadian real estate bubble burst has been the subject of several articles in the newspapers recently quoting Canadian and American economists. So far from what I have read, half of the economists quoted say there is not a Canadian real estate bubble, with statistics to show that there is a healthy real estate market and therefore we will not have a Canadian real estate bubble burst.

The other half of the economists, provide statistics to show that there is a Canadian real estate bubble, it has reached the same unsustainable levels as was the case in 2008 in the United States and that there will be a Canadian real estate bubble burst to drag all of us down.

Although my Firm has done many real estate receiverships, the most famous so far being the Court-appointed receivership of the highly publicized The Suites at 1 King West, built by Harry Stinson, my crystal ball is no better than yours. I cannot tell you if:

  1. a Canadian real estate bubble burst will not happen since we are in a safe real estate market where Canada is attractive to immigrants from around the world looking for a safe haven for their money, and they truly believe Canadian real estate is it; or
  2. real estate prices are unreasonably high and that there will be a Canadian real estate bubble burst.

As far as the economist’s statistics, which are being used to prove both sides of the argument, all I can do is quote British Prime Minister Benjamin Disraeli when he said there are “Lies, damned lies, and statistics“, to describe the persuasive power of numbers, particularly the use of statistics, to bolster weak arguments.

In our recent blog, FINANCIAL CRISIS IN CANADA: CAN REAL ESTATE PRICES TRIGGER ONE?, we reported that:

  1. 7.5% of the Canadian workforce is in the construction industry, while 7% of the Canadian economy is based on residential construction – both record highs;
  2. the Canadian unemployment rate rose from 6.9% to 7.2%;
  3. the Canadian debt-to-income ratio has soared to a record 164%, above levels experienced in the U.S. before the financial crisis; and
  4. the Canadian Bankers Association reports that 70% of all household debt in Canada is made up of residential mortgage debt.

But there is one certainty I can tell you about. Even if there is a slowdown in the Canadian real estate industry, and not a Canadian real estate bubble burst, residential construction workers and real estate agents will suffer. A slowdown in residential construction, and less residences being sold, does not bode well for these two groups. So it will be the severity of the slowdown, and the effect on real estate prices, to know whether or not there actually is to be a Canadian real estate bubble burst.

So, what can they do to stop a Canadian real estate bubble burst? The answer is nothing. However, they should always have arranged their affairs so when there is a slowdown, they were always:

  1. living within their means by spending less than they earn so that they would not have problems living paycheque to paycheque;
  2. using proper budgeting techniques to make sure they were paying down a portion of their debt with every pay;
  3. paying themselves first by maintaining a program to make sure that they were putting away a portion of every pay into savings for investment so that they would be able to weather any downward blips in their income;
  4. making sure their income tax was paid up on time so that they would not have any large amounts outstanding from past years in a time when their incomes were reduced;
  5. only charging to credit cards what they would be able to pay off in full every month so as not to incur credit card debt with high interest costs; and
  6. reviewing their credit report to make sure their credit rating was accurate, and if they were experiencing any credit problems availing themselves of a proper credit counselling agency, NOT one of the debt settlement companies.

So as you can see, there is no magic pill that you can take to solve your financial problems if there is a Canadian real estate bubble burst, an illness, an emergency, or when life just throws a curve ball at you. The best time to have guarded against financial challenges, if you truly were worried about a Canadian real estate bubble burst, was before it happened.

If you’re financial well-being, and that of your entire family depends on the value of your real estate always rising, and you will be doomed if there is a Canadian real estate bubble burst, whether you wish to admit it or not, you have serious financial problems. Before disaster strikes as a result of a Canadian real estate bubble burst or otherwise, contact Ira Smith Trustee & Receiver Inc.

We can review your situation with you, in a no charge initial consultation meeting, and provide you with real options. If we meet early enough, we can discuss various bankruptcy alternatives such as credit counselling, debt consolidation or consumer proposals, all in order to avoid personal bankruptcy. We will go over all of your options, and encourage and help you to implement the one that is right for you.

Together we can solve your problems with immediate action and the right plan so that Starting Over, Starting Now will become your reality.

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DON’T BE MISLEAD BY ADVERTISING GIVING FINANCIAL ADVICE

tax lawyer, trustee, trustee in bankruptcy, bankruptcy trustee, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, financial restructuring, bankruptcy faqs, insolvency, tax lawyer in canadaHave you heard the radio advertising spots by a tax lawyer in Canada who is trying very hard to make you believe that he is The Rock Star in the world of tax problems and that he and only he can help you? One commercial ends with, “Don’t call a Trustee, call me”. Isn’t it amazing that without knowing anything about you and without a consultation, he knows exactly what your problems are and how to fix them? And, he has no way to know if a Trustee is all you require to solve your serious debt issues. However, fear based advertising must be working for him because he spends fortunes on it.

Don’t take advice from an advertisement. If you have legal issues, absolutely you need a lawyer in Canada. But, the reality is that Canadian bankruptcy law doesn’t differentiate between tax debts and other kinds of unsecured debt, therefore most people can declare bankruptcy on taxes owing. In fact, 50% of the people who file a consumer proposal or declare personal bankruptcy include some form of tax debt. If you are experiencing serious debt problems you must consult with a Trustee before declaring bankruptcy; no doubt you will have many questions about the bankruptcy process. The Trustee will evaluate your case and advise you on all of your alternatives – credit counselling, debt consolidation, consumer proposals, and bankruptcy. Bankruptcy and consumer proposals are administered by a Bankruptcy Trustee, not a lawyer. In fact you cannot declare bankruptcy through a lawyer unless the lawyer is also a Trustee in Bankruptcy.

There are cases in which you may need a lawyer:

  • Tax debts are generally discharged in bankruptcy like other debts. However, if you have tax debts and the CRA (Canada Revenue Agency) is opposing your discharge, it is recommended that you seek legal assistance.
  • In most cases Trustees do not act as your advocate. If you believe you need an advocate, you should consult a lawyer. Communication between you and your lawyer is confidential and privileged.

This is not an advertisement and we’re not telling you that we are Rock Stars. Ira Smith Trustee & Receiver Inc. is a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Our bankruptcy law is complicated. Canada (Superintendent of Bankruptcy) v. 407 ETR. Also check out our bankruptcy faqs. If you’re having serious debt issues, and yes, even tax debt, contact us today. We can provide you with realistic choices for practical decision-making.

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ADVICE FOR SENIORS WITH CREDIT CARD DEBT-SENIORS IN DEBT, PART 4

debt, seniors in debt, bankruptcy, personal bankruptcy, trustee, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, insolvency, restructuring, starting over starting now, seniors trying to start over, seniors with credit card debtLast week we discussed whether or not seniors should try and pay off their debt or declare bankruptcy. This week we’ve got some great advice for seniors in debt, seniors with credit card debt, seniors looking for Starting Over, Starting Now.

Seniors in debt is a serious problem that continues to get worse:

  • According to Statistics Canada, one in three retirees over 55 and two in three over 55 who aren’t yet retired are in debt.
  • A recent TD Bank study has shown that older Canadians have increased their debt load by 15% (an average of $6000/person) from the previous year. Seniors living in Alberta, Ontario and Quebec had the highest rates of debt accumulation in 2012.
  • According to Boomers and Retirement, a new survey by TD Ameritrade, the average Baby Boomer is about a half-million dollars short on retirement savings.

The most important piece of advice we can give seniors trying to start over is to eliminate debt! Carrying debt into retirement is a recipe for disaster. Once you retire and begin living on a fixed income you will no longer have the funds required to service the debt; this is especially true for seniors with credit card debt at high rates of interest. Here are 5 tips for seniors in debt:

  1. Postpone retirement if at all possible and pay down as much debt as you can. If working fulltime is not an option, consider part-time work.
  2. Pay down credit card balances as quickly as possible. They are generally the highest-interest loans that seniors carry. You can also call the credit card company and ask for a lower interest rate. They will sometimes agree.
  3. Limit the number of credit cards that you have.
  4. Stay away from debt settlement companies! Consumers are continuing to be taken in by false claims offering to settle your debts for pennies on the dollar quickly and easily. The reality is that when something seems too good to be true, it usually is. Debt settlement companies exist for only one reason – to take your money! They will not help you solve your debt problems. There is no instant or quick fix for serious debt issues.
  5. Protect yourself against fraud and/or abuse. Run away from get rich schemes. There are many scammers out there who have duped seniors out of their life savings and continue to seek out new targets.

As we discussed in Seniors in Debt, Part 3, the right debt relief option you ultimately decide upon will depend on whether or not you have assets, who you owe money to, and how much you owe. For seniors trying to start over there are bankruptcy alternatives – credit counselling, debt consolidation, consumer proposals – which in many cases are better options than declaring personal bankruptcy.

If you’re planning to retire soon or you have already retired and find yourself dealing with serious debt, consult a professional Trustee. Contact Ira Smith Trustee & Receiver Inc. We are a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. We can help.

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SENIOR CREDIT CARD DEBT RELIEF OR DECLARE BANKRUPTCY-SENIORS IN DEBT, PART 3

senior credit card debt relief, should seniors file a consumer proposal, bankruptcy, personal bankruptcy, declare bankruptcy, trustee, bankruptcy alternatives, bankruptcy process, credit counselling, debt consolidation, consumer proposals, wagesLast week we discussed why the majority of seniors are in debt. This week we’ll be addressing if seniors should try and pay off their debts to obtain senior credit card debt relief or declare bankruptcy.

Life is very difficult for many seniors who anticipated that their golden years would be a carefree retirement. Instead, according to the Vanier Institute for the Family, Canadians over the age of 65 have the highest insolvency and bankruptcy rates in the country. With increasing expenses and a significantly reduced income and return on investments, more seniors are contemplating bankruptcy; but is it the best and/or only option?

While it’s true that bankruptcy can eliminate many of your debts, people typically file personal bankruptcy as a means of protection from creditors. If you are working, bankruptcy will protect you from creditors garnisheeing your wages. However, if you are retired and your sole source of income is your pension, then there are no wages to garnishee. It is very difficult for a creditor to garnishee a pension with one notable exception. If you owe the CRA (Canada Revenue Agency) for unpaid taxes, they are permitted to garnishee all types of pension income under Section 224.1 of the Income Tax Act. It is rare that the CRA will garnishee your pension income, but it is a possibility. If you have a significant tax debt and the CRA has threatened a pension garnishment, the bankruptcy process is an option that has to be considered.

The right debt relief option you ultimately decide upon will depend on whether or not you have assets, who you owe money to, and how much you owe. For seniors in debt there are bankruptcy alternatives – credit counselling, debt consolidation, consumer proposals – which in many cases are better options than declaring personal bankruptcy. In our next blog, we will be considering various options, including should seniors file a consumer proposal?

Unfortunately too few Canadians are properly prepared for the financial reality of retirement. They get caught up in a downward financial spiral and some pass away leaving significant debt. The family is then left with the unpleasant options of paying the debt themselves or bankrupting the estate. If you are a senior in serious debt, consult a professional Trustee as soon as possible. Contact Ira Smith Trustee & Receiver Inc. for professional advice and an action plan that’s right for you. Starting Over, Starting Now we can give you the help that you need to deal with your financial problems, and peace of mind.

Watch for our next blog when we’ll be discussing some advice we have for seniors in debt.

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CONSUMER PROPOSALS OR PERSONAL BANKRUPTCY; WHICH IS RIGHT FOR YOU?

credit, credit scores, credit score, credit report, credit reporting agencies, problems with credit, toronto, bankruptcy, vaughan bankruptcyIf you are experiencing serious financial problems you need professional advice and a plan of action. The first thing that you should do is contact a licensed trustee. A licensed trustee is a federally regulated professional who will evaluate your situation and help you to arrive at the best possible solution for your problems. Consumer proposals and personal bankruptcy are two options for insolvency. Which is right for you?

CONSUMER PROPOSALS

PERSONAL BANKRUPTCY

Stops creditors from taking legal action against a debtorStops creditors from taking legal action against a debtor
Requires a licensed trusteeRequires a licensed trustee
Your total debt cannot exceed a $250,000 (excluding a mortgage)If you owe more than $1,000 you are eligible & no limit on the amount of debt
Your monthly payment is fixedMonthly payments may vary as they are based on your income and assets
You retain your assetsCertain assets may have to be seized by the Trustee
No monthly tasks or reportingMonthly income and expense reporting is required
You are still entitled to all tax refund(s) and/or credits which you are owed.Tax refunds for the year of your bankruptcy and any prior unfiled years will be forfeited
After the completion of a consumer proposal your credit rating is R7After a bankruptcy your credit rating is R9
A Consumer Proposal will appear on your Credit Report for three years after completionA first Bankruptcy will appear on your Credit Report for six to seven years (in Ontario) after your final discharge from the Bankruptcy (14 years for a second Bankruptcy)

Ira Smith Trustee & Receiver Inc. can provide you with solutions to your financial problems and with a plan of action, Starting Over, Starting Now we can help you achieve your goal of a debt free life. Take the first step and contact us today.

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Is it Time to Declare Personal Bankruptcy?

bankruptcy, personal bankruptcy, declare personal bankruptcy, bankruptcy alternatives, licensed trusteeIf you are considering personal bankruptcy you are no doubt feeling helpless as a result of a loss or significant reduction of income. The decision to declare personal bankruptcy is a serious one and should be made only after consulting with a licensed trustee. It’s not an easy fix for your financial problems and should be considered a last resort. Bankruptcy is hard on your credit rating, all debts may not be erased, you may have to surrender most of your possessions to your trustee, and you may have difficulty obtaining credit in the future for some time. There are also emotional and psychological effects of bankruptcy to consider. Although your financial problems may seem insurmountable, there are bankruptcy alternatives that may be better options for you. These include:

When is it time to consult a licensed trustee? Consult a licensed trustee as soon as possible if:

  • You have failed to make one or more payments on a mortgage or loan.
  • Your credit cards are constantly at their limit.
  • You are paying bills by taking credit card cash advances.
  • Your creditors have passed your account to collection agencies who are now calling you.
  • You have received notice of legal action against you to collect money you owe.

Why choose personal bankruptcy:

  • It is relatively quick
  • It can be less expensive than other options
  • It eliminates your unsecured debts
  • You will have some protection from creditors, legal action and wage garnisheeing
  • After your discharge your credit risk can start to improve

Can anyone declare personal bankruptcy? Anyone who is insolvent and owes more than $1,000 is eligible for personal bankruptcy in Canada.

To learn more about personal bankruptcy and bankruptcy alternatives please visit our website. Contact Ira Smith Trustee & Receiver to discuss the right option for you. There is no reason to struggle beneath a mountain of debt when you can gain back your former quality of life Starting Over, Starting Now.

Call a Trustee Now!