Are you struggling with debt and feeling overwhelmed by financial stress? Consumer credit counseling might seem like the answer, but recent government investigations reveal that some debt advisory services may cost you more than they save.
As a Licensed Insolvency Trustee serving Toronto, Mississauga, Brampton, and Markham for decades, I’ve helped many people in the Greater Toronto Area navigate their debt challenges. In this comprehensive guide, I’ll explain what consumer credit counselling really offers, how to find legitimate help, and what alternatives might be better suited to your situation.
Financial difficulties affect millions of Canadians every year. The stress of mounting bills, collection calls, and uncertain futures can feel overwhelming. Consumer credit counseling presents itself as a solution, but understanding what it truly offers is crucial for making informed decisions about your financial future.
What is Consumer Credit Counseling?
Consumer credit counseling involves working with a certified credit counselor to address your debt problems. These services typically include:
Reviewing your complete financial situation
Creating personalized budgets and payment plans
Providing financial education and money management skills
Negotiating with creditors on your behalf
Offering ongoing support throughout your debt repayment journey
The goal is to help you regain control of your finances while avoiding more drastic measures like bankruptcy.
Who Can Benefit from Consumer Credit Counseling?
Consumer credit counseling can be helpful for people who:
Have steady income but struggle to manage multiple debts
Want to learn better budgeting and money management skills
Feel overwhelmed by financial decisions
Need help negotiating with creditors
Want to avoid bankruptcy or consumer proposals
However, consumer credit counseling isn’t right for everyone. If your debt is too high relative to your income, or if you’re facing immediate legal action from creditors, other debt relief options might be more appropriate.
The Empathetic Approach to Debt Relief and Financial Wellness
Legitimate consumer credit counseling recognizes that financial problems often involve more than just money. Good credit counselors understand the emotional stress of debt and provide compassionate, judgment-free support.
What empathetic counseling includes:
Active listening without blame or shame
Personalized solutions that fit your unique situation
Emotional support during difficult financial decisions
Education that empowers rather than overwhelms
Realistic timelines that consider your circumstances
The Foundation of Financial Recovery: What is Consumer Credit Counseling?
Understanding the fundamentals of consumer credit counseling helps you make informed decisions about whether it’s right for your situation.
Defining Consumer Credit Counseling
Consumer credit counseling is a service that helps people manage debt through education, budgeting assistance, and debt management plans. Legitimate consumer credit counseling agencies are typically non-profit organizations that charge minimal fees or offer free services.
Core components include:
Financial assessment and budget analysis
Debt management plan creation
Creditor communication and negotiation
Financial education and skill building
Ongoing support and monitoring
The Role of a Credit Counsellor: Your Trusted Financial Advisor
Initial Debt Evaluation: A Holistic Review of Your Financial Situation
The first step in consumer credit counseling involves a comprehensive review of your finances. This should include:
Complete debt inventory: All credit cards, loans, and other obligations
Income analysis: All sources of regular income
Expense review: Fixed and variable monthly expenses
Asset assessment: Property, investments, and valuable possessions
Credit report review: Understanding your credit history and score
This evaluation helps determine whether credit counseling is appropriate or if other debt relief options would work better.
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Why Choose Consumer Credit Counseling? Beyond Just Paying Off Debt
Credit counseling offers benefits that extend beyond simple debt repayment, addressing the root causes of financial stress.
Alleviating Financial Stress and Improving Mental Health
Financial problems create significant stress that affects your entire life. Quality credit counseling helps by:
Providing clarity about your financial situation
Creating realistic plans that reduce anxiety about the future
Offering emotional support during difficult times
Teaching coping strategies for financial stress
Restoring hope that your situation can improve
Studies show that people who complete credit counseling programs report significant improvements in their mental health and overall well-being.
Gaining Control Over Your Finances and Achieving Financial Freedom
Credit counseling helps you develop skills and habits that lead to long-term financial stability:
Better budgeting skills that prevent future debt problems
Improved money management through practical tools and techniques
Understanding of credit and how to use it responsibly
Emergency planning to handle unexpected expenses
Goal setting for future financial objectives
Receiving Personalized Financial Education and Budgeting Guidance
One of the most valuable aspects of consumer credit counseling is the education component. You’ll learn:
How to create and stick to realistic budgets
Strategies for reducing expenses without sacrificing quality of life
How to prioritize debt payments for maximum impact
Ways to increase income through career development
Long-term financial planning techniques
Stopping Collection Calls and Protecting Your Consumer Rights
When you enter a debt management plan through consumer credit counseling, creditors typically agree to stop collection activities. This provides immediate relief from:
Constant phone calls and letters
Threats of legal action
Stress and anxiety from creditor harassment
Confusion about your rights as a debtor
However, it’s important to understand that this protection isn’t automatic and depends on creditor cooperation.
Your Path to Financial Stability: The Step-by-Step Credit Counseling Process
Understanding what to expect from consumer credit counseling helps you prepare for success and identify quality services.
Step 1: The Confidential Debt Evaluation and Budget Counseling Session
Your first meeting with a credit counselor should be comprehensive and confidential. During this session:
Complete financial review: Every debt, income source, and expense
Credit report analysis: Understanding your current credit standing
Budget creation: Realistic monthly spending plan
Option exploration: All available debt relief strategies
Initial recommendations: Preliminary advice based on your situation
Important: This initial consultation should be free or very low cost (under $50).
Step 2: Crafting Your Personalized Debt Management Plan (DMP)
If a debt management plan is appropriate for your situation, your counselor will:
Calculate affordable payments based on your budget
Contact creditors to negotiate terms and interest rates
Consolidate payments into one monthly amount
Set realistic timelines for becoming debt-free
Explain all terms clearly before you commit
Key point: You should never feel pressured to sign up immediately. Take time to review and understand all terms.
Step 3: Communication and Advocacy with Creditors
Your credit counselor will serve as your advocate with creditors, working to:
Negotiate lower interest rates (often 0-10% instead of 18-25%)
Waive late fees and penalties that have accumulated
Stop collection activities during plan participation
Establish reasonable payment terms you can actually afford
Provide regular updates on your progress
Step 4: Ongoing Support, Financial Education, and Achieving Debt Free Status
Throughout your debt management plan, quality credit counseling includes:
Regular check-ins to monitor progress and address challenges
Continued education through workshops and resources
Budget adjustments when your circumstances change
Credit rebuilding guidance as you approach debt freedom
Graduation planning for maintaining financial health after completion
Most debt management plans take 3-5 years to complete, with many people becoming debt-free faster through improved financial habits.
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Debt Management Plans (DMPs) Explained: Key Benefits and Considerations
Debt management plans are the primary tool used in credit counseling, but they’re not right for everyone.
What Types of Debts are Included in a DMP?
Debt management plans typically include all unsecured debt:
Credit cards (all major issuers usually participate)
Store credit cards and retail financing
Personal loans from banks and credit unions
Medical debt and professional service bills
Some collection accounts (depending on the creditor)
Debts usually NOT included:
Secured debts (mortgages, car loans)
Government debts (taxes, student loans)
Court judgments and garnishments
Debt to family and friends
How DMPs Can Offer Interest Relief and Lower Monthly Payments
The primary benefits of debt management plans include:
Reduced interest rates: Often lowered to 0-10%
Waived fees: Late charges and over-limit fees eliminated
Single payment: One monthly payment instead of multiple bills
Fixed timeline: Clear end date for becoming debt-free
Example: Sarah owed $25,000 on five credit cards with an average interest rate of 22%. Through a DMP, her rate dropped to 8%, reducing her monthly payment from $890 to $520 and cutting three years off her repayment time.
The Impact of a DMP on Your Credit Score: Myth vs. Reality
There are many misconceptions about how debt management plans affect credit scores:
Myths:
“DMPs destroy your credit score”
“It’s as bad as bankruptcy on your credit report”
“You can’t get credit while on a DMP”
Reality:
DMPs may initially lower your score by 50-100 points
Your score typically recovers within 12-18 months
The impact is much less severe than bankruptcy or debt settlement
Many people see improved scores as they pay down debt
You can often qualify for new credit after 12 months of on-time payments
Comparing Your Options: Credit Counseling vs. Other Debt Relief Solutions
Understanding all your options helps you make the best choice for your specific situation.
Credit Counseling vs. Debt Consolidation Loans
Credit Counseling:
No new loan required
Works with existing creditors
Provides education and support
Minimal fees (usually under $100)
Available even with poor credit
Debt Consolidation Loans:
Requires qualifying for a new loan
May offer lower interest rates
No ongoing support or education
Higher fees (origination fees, interest)
Difficult to qualify with damaged credit
Best for: Credit counseling works better if you can’t qualify for a low-interest consolidation loan or need ongoing support.
Unfortunately, not all debt advisory services have your best interests in mind. Recent government investigations have revealed serious problems in Canada’s debt advisory marketplace.
Government Investigation Reveals Serious Issues
In December 2023, Canada’s Office of the Superintendent of Bankruptcy (OSB) released a position paper on The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System. This position paper detailed the environment of problematic debt advisory practices. Since then, over 100 complaints have been filed against debt advisors.
Major problems identified:
Charging fees for services that should be free
Misrepresenting themselves as government officials
Requiring upfront payments before providing help
Threatening to cancel debt solutions if clients stop paying
The Hidden Costs of Questionable Debt Advisors
The financial impact has been significant. Between December 2023 and April 2025:
Debt advisor involvement in bankruptcy cases dropped 59%
Monthly fees paid to advisors fell from $2.1 million to $1.2 million
This represents nearly $1 million monthly in unnecessary fees paid by struggling Canadians
Real example: One client was instructed to put debt advisor fees on credit cards, then include that new debt in their bankruptcy filing – a practice that may violate Canadian criminal law.
Red Flags to Watch For
Immediate warning signs:
Demands for large upfront payments
Claims they work “with the government”
Promises to “eliminate your debt” quickly
High-pressure sales tactics
Won’t provide clear fee information
Prevents direct communication with Licensed Insolvency Trustees
Common misleading tactics:
“You must pay us first” – False. You can contact Licensed Insolvency Trustees directly.
“We can get better deals than trustees” – Trustees have legal authority that debt advisors don’t have.
“Pay us or your proposal will fail” – Often a scare tactic without legal basis.
Finding Legitimate Consumer Credit Counseling Help
How to Identify Quality Credit Counseling Services
Look for these characteristics:
Non-profit status or transparent fee structure
Accreditation from recognized organizations
Free or low-cost initial consultations
Educational focus, not just debt management
Clear explanations of all options, not just their services
Willingness to refer you elsewhere if appropriate
Questions to Ask Any Credit Counseling Agency
Before committing to any service, ask:
“What are all your fees, and when do I pay them?”
“Are you accredited, and by whom?”
“What happens if I can’t make my payments?”
“How will this affect my credit score?”
“Can you provide references from past clients?”
“What other debt relief options should I consider?”
Maintain strict professional and ethical standards
Provide legal protection through bankruptcy and consumer proposal processes
Full Disclosure: Ira Smith Trustee & Receiver Inc. operates independently and has no relationships with unregulated debt advisory services.
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My Professional Experience and Qualifications
As a Licensed Insolvency Trustee serving the Greater Toronto Area for decades, I’ve helped thousands of individuals and families overcome financial challenges. My approach combines legal expertise with a genuine understanding of the emotional stress that debt creates.
Former senior banker with extensive credit and lending experience
Regular community education contributor on financial topics
Maintaining my continuing education in debt advisory and financial restructuring matters
My commitment: Every client receives honest, transparent advice tailored to their unique situation. I believe in empowering people with knowledge and supporting them through the recovery process.
Frequently Asked Questions About Consumer Credit Counseling
Q: Will consumer credit counseling hurt my credit score?
A: Quality credit counseling may initially lower your score by 50-100 points, but this recovers within 12-18 months as you pay down debt. The impact is much less severe than bankruptcy, debt settlement, or continuing to miss payments.
Q: How much does legitimate consumer credit counseling cost?
A: Non-profit credit counseling typically charges $20-50 for initial setup and $20-40 monthly for debt management plans. Be very wary of services charging hundreds or thousands of dollars upfront.
Q: Can I get out of a debt management plan if my situation changes?
A: Yes, you can exit a DMP at any time. However, creditors may reinstate original interest rates and fees. Discuss exit strategies with your counsellor, before starting.
Q: Will my creditors definitely agree to a debt management plan?
A: Most major credit card companies participate in DMPs, but participation is voluntary. Your counselor should be upfront about which creditors typically cooperate.
Q: Is consumer credit counseling better than bankruptcy?
A: It depends on your situation. Credit counseling works well if you have steady income and manageable debt levels. Bankruptcy might be better if your debt is too high relative to income or you’re facing immediate legal action.
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Taking Action: Your Next Steps Toward Financial Recovery
If You’re Considering Consumer Credit Counseling
Research thoroughly – Look for accredited, non-profit agencies
Get multiple consultations – Compare approaches and fees
Ask detailed questions – Understand exactly what you’re paying for
Review alternatives – Make sure counsellingcounsellor is your best option
Start with free resources – Many educational materials are available at no cost
If You Think You Need More Comprehensive Help
Sometimes consumer credit counseling isn’t enough. You might benefit from legal debt relief options like consumer proposals or bankruptcy if:
Your debt exceeds 40% of your gross annual income
You’re only making minimum payments with no progress
Creditors are threatening legal action
You’re using credit to pay for necessities
Financial stress is severely impacting your health or relationships
Free Consultation Available
If you’re dealing with overwhelming debt in the Greater Toronto Area, I invite you to book a free, no-obligation consultation with me. During our meeting, we’ll:
Complete review of your debt and financial situation
Explanation of how different solutions might affect your credit
Discussion of immediate steps you can take
Honest assessment of whether consumer credit counseling or other options are best for you
Clear answers to all your questions in a counselling language you understand
What makes my approach different:
We have years of experience with Canadian debt relief
Legal authority to implement solutions that debt advisors cannot
Regulated fees with no hidden costs
Genuine commitment to your long-term financial health
Comprehensive support throughout your recovery process
Conclusion: Making Informed Decisions About Consumer Credit Counseling
Consumer credit counseling can be a valuable tool for debt relief, but only when you choose the right service provider and understand all your options. The key is distinguishing between legitimate, educational counselling services and expensive programs that duplicate services available elsewhere for free.
Remember these crucial points:
Quality consumer credit counseling focuses on education and empowerment
Non-profit agencies typically offer the most trustworthy services
Be extremely cautious of high upfront fees or pressure tactics
Your current financial situation doesn’t define your future possibilities
Whether you choose credit counseling, work with a Licensed Insolvency Trustee, or pursue other debt relief options, the most important step is taking action. Financial problems rarely improve on their own, but with the right guidance and commitment, you can overcome debt challenges and build lasting financial stability.
The path to financial freedom in Canada’s current economic climate may be challenging, but it is not impossible. With the right information, a clear plan, and professional guidance, you can overcome your cost of living and debt challenges and move towards a more secure and hopeful financial future.
You’re not alone in this. There’s a path forward, and it starts with reaching out for the right kind of help. Take that step—you deserve it. If you’re a GTA resident dealing with overwhelming debt, don’t wait for your credit situation to get worse. As a licensed insolvency trustee serving Toronto, Mississauga, Brampton, Vaughan, Markham, and surrounding areas, I’m here to help you understand your options.
Remember: Your current financial situation doesn’t define your future. With the right help and information, you can overcome both debt challenges and credit score problems.
As a licensed insolvency trustee serving the Greater Toronto Area, I encourage consumers and business owners to view financial difficulties not as failures but as challenges that can be addressed with proper guidance. By understanding the warning signs of insolvency and seeking professional advice early, many people and businesses can find a path forward – whether through restructuring, strategic changes, or in some cases, an orderly wind-down that protects their future opportunities.
Remember: The earlier you seek help for company insolvency concerns, the more options you’ll have.
If you or someone you know is struggling with too much debt, remember that the financial restructuring process, while complex, offers viable solutions with the right guidance. As a licensed insolvency trustee serving the Greater Toronto Area, I help entrepreneurs understand their options and find a path forward during financial challenges.
At the Ira Smith Team, we understand the financial and emotional components of debt struggles. We’ve seen how traditional approaches often fall short in today’s economic environment, so we focus on modern debt relief options that can help you avoid bankruptcy while still achieving financial freedom.
The stress of financial challenges can be overwhelming. We take the time to understand your unique situation and develop customized strategies that address both your financial needs and emotional well-being. There’s no “one-size-fits-all” approach here—your financial solution should be as unique as the challenges you’re facing.
If any of this sounds familiar and you’re serious about finding a solution, reach out to the Ira Smith Trustee & Receiver Inc. team today for a free consultation. Ira Smith Trustee & Receiver Inc. is a Licensed Insolvency Trustee serving Toronto, Vaughan, Mississauga, Brampton, Markham, and the entire Greater Toronto Area. We’re committed to helping you or your company get back on the road to healthy, stress-free operations and recover from financial difficulties. Starting Over, Starting Now.
The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc., and any contributors do not assume any liability for any loss or damage.
For anyone interested in strategic acquisitions and investment opportunities, exploring bankruptcy sales can offer a unique avenue to acquire assets at distressed pricing. In this Brandon’s Blog, I delve into the intricacies of bankruptcy sales, particularly focusing on buying assets when a company is bankrupt in Ontario, to provide you with a comprehensive understanding of the process and considerations involved.
Types of Bankruptcy
Let’s embark on this journey together to unlock the potential of acquiring assets through bankruptcy sales. When I use the term “bankruptcy sale”, I mean all the various types of bankruptcy or insolvency processes. It could be in the context of a sale of assets by a court-appointed receiver or even the company that has filed for restructuring under bankruptcy protection and is looking to sell assets out of the ordinary course of business.
For this Brandon’s Blog, you can consider it to mean any court-supervised insolvency process, be it out of a sale of assets when the company is bankrupt or in receivership under the Bankruptcy and Insolvency Act (Canada) (BIA). The issues are the same be it a bankruptcy or receivership.
When delving into the realm of bankruptcy sales, one encounters a landscape that offers both challenges and opportunities. The allure of acquiring distressed assets at potentially discounted prices is undeniable. Picture this: a sales process setting where bidders, including yourself, have the chance to engage in a fair competition, armed with the ability to conduct due diligence and submit bids for coveted assets. Such is the essence of a bankruptcy sale.
A bankruptcy sale isn’t just a run-of-the-mill transaction; it is a meticulously structured process governed by legal frameworks and case law. The principles applied from the leading case law act as a guiding light, laying down the procedures for sales that occur outside the typical course of business. It sets the stage for a structured process where the highest or best bid, subject to stakeholder approval, court approval, or both, emerges victorious.
The pivotal role of court approval in sale transactions cannot be overstated. It serves as the ultimate checkpoint, ensuring that the sale is conducted by the law and safeguarding the interests of all parties involved. Court approval is not merely a stamp of approval. The Court will only add its layer of legitimacy and finality to the transaction after it is satisfied that all legal standards have been met, assuring buyers of the validity of their acquisitions and unsuccessful buyers that the process was fair and transparent.
In the realm of bankruptcy sales, one must navigate the terrain with caution. While the prospect of purchasing assets free and clear of all creditor claims and liens is enticing, there are caveats to consider. Assets are typically sold in an “as-is, where-is” condition, with limited assurances from the licensed insolvency trustee who is the seller. The pace of proceedings is expedited, leaving little room for post-closing recourse or exhaustive due diligence.
Balancing these nuances is crucial for bidders eyeing strategic acquisitions in the bankruptcy sales arena. It requires a blend of foresight, adaptability, and a keen understanding of the intricacies of the process. Join me as we unravel the layers of bankruptcy sales and explore the dynamic landscape governing these kinds of transactions in Canada.
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Benefits and Downsides of Court-Supervised Sales When a Company is Bankrupt
As someone deeply involved in the field, I often find myself exploring the nuances of court-supervised sales, delving into their advantages and potential pitfalls. Let’s take a closer look at the intricacies of this unique opportunity.
Advantages of Purchasing Assets through Court-Supervised Sales
When I consider the benefits of acquiring assets from court-supervised insolvency process sales, one key advantage stands out – the opportunity to acquire assets at potentially distressed pricing. This presents a unique chance to make strategic acquisitions at potentially lower costs, providing a competitive edge in the market.
Moreover, the level playing field offered by court-supervised sales allows bidders to engage in fair competition, conduct thorough due diligence albeit in an environment where as much information as you would like may not be available, and submit bids directly to the licensed insolvency trustee. The ability to purchase assets free and clear of the company’s financial obligations and the secured debts and unsecured debts, with the transaction receiving court approval, provides a sense of finality and security that is highly valuable in such transactions.
Limitations and Challenges in Court-Supervised Sales
However, in the realm of Court-supervised sales, you need to be acutely aware of the limitations that come with this process. Assets in bankruptcy sales are always sold “as-is, where-is,” with such limited representations and warranties from the licensed insolvency trustee seller, there are essentially none. This, coupled with the fact that the licensed insolvency trustee was not the operator of the business utilizing those assets where the company was bankrupt. This makes due diligence both critical and yet challenging. The expedited timeline and lack of post-closing recourse further adds complexity to the transaction.
Additionally, since the company is bankrupt the buyer needs to bid without the safety net of due diligence and financing contingencies, which can be a daunting prospect. Balancing these limitations against the potential benefits requires a keen eye for detail and a strategic mindset.
Balancing Pros and Cons for Strategic Bidders
For strategic bidders, finding the equilibrium between the pros and cons of court-supervised sales is crucial. Evaluating the cost-benefit ratio, understanding the bidding process, and complying with the court-approved terms and conditions of sale are all essential steps in the process.
Navigating this complex landscape requires a strategic approach. By weighing these factors thoughtfully, the buyer must aim to make informed decisions that lead to successful and accretive acquisitions through the court-supervised sales process.
Company is Bankrupt: Tactical Considerations for Potential Bidders
If you are someone considering participating in a bankruptcy sale, understand the unique opportunity it presents to potentially acquire assets at favourable pricing. This process allows you to compete on a level playing field with other bidders, conducting due diligence and submitting bids directly to the licensed insolvency trustee.
One significant advantage of a bankruptcy sale is the ability to purchase assets free and clear of all creditor claims and liens, as finalized through court approval. The money you pay as the winning bidder stands in place of the assets. However, there are essential aspects to consider before diving into this opportunity.
Cost-Benefit Analysis of Participating in the Sale Process: Before getting involved, you need to evaluate the cost versus benefit of participating in the sale process. Understanding the potential risks and rewards is crucial for making informed decisions.
Key Elements of the Bidding Procedures: To make a successful bid, you must ensure that it meets all the necessary criteria and complies with the bidding procedures governing the bankruptcy sale. This requires attention to detail and a clear understanding of the requirements.
Strategies for Successful Participation in Bankruptcy Sales: To navigate the bankruptcy sale process effectively, you need to develop strategies that can help you stand out among other bidders. This involves setting clear goals, assessing the competition, and being prepared to act decisively.
By considering these tactical aspects carefully, you can position yourself for a successful experience in a bankruptcy sale. It’s about weighing the pros and cons, understanding the process, and strategizing effectively to make the most out of this unique opportunity.
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Company is Bankrupt: What the Court Requires
Being involved as a bidder in bankruptcy sales can be both exciting and daunting, laden with unique challenges and opportunities. Let’s delve into the intricacies of what the Court requires for the legal process to approve a particular sales process and sale of assets when the company is bankrupt or in receivership.
The Soundair principles
The Soundair principles are a collection of lawful standards developed by the Court of Appeal for Ontario in 1991 in the case of Royal Bank of Canada v. Soundair Corp., 1991 CanLII 2727 (ON CA). These principles are followed by all Canadian courts.
The Soundair principles are aimed at creating fairness and transparency in the sale of assets throughout bankruptcy or receivership cases. Thirty-one years later, it is still the leading case in Canadian insolvency asset sales rules and regulations. These concepts guide courts in evaluating whether the sale procedure carried out by a receiver (or a trustee in bankruptcy) has been fair and suitable.
Here are the Soundair principles in detail:
Diligent Efforts to Secure the Best Price: The receiver/trustee is obliged to exert sensible efforts to secure the highest possible price for the assets for the general benefit of creditors. This entails thoroughly advertising the assets for sale, soliciting competing bids, and ensuring that prospective purchasers are provided with sufficient information to submit proper offers to purchase. The goal is to get the highest sales price possible under the circumstances, to maximize the return for the benefit of creditors.
Fairness and Integrity in the Sale Process: It is essential to give all interested parties an equivalent opportunity to join the sales process and to avoid any potential purchaser from obtaining an unreasonable edge. Transparency and impartiality are vital, and conflicts of interest cannot be tolerated.
All Stakeholders’ Interests: The receiver/trustee must look out for the interests of all parties, secured creditors and unsecured creditors, shareholders, and any other appropriate stakeholders. It is very important for the licensed insolvency trustee to avoid preference for any party and to strive for a fair equilibrium of the interests among everybody affected because the company is bankrupt.
Input from significant creditors: This is a crucial consideration for the licensed insolvency trustee. While the trustee retains the ultimate decision-making authority, it is essential to carefully weigh and consider the recommendations and preferences of major creditors. Given that these creditors will bear financial implications based on the sale outcomes, their input carries substantial significance in the decision-making process.
Application of the Soundair principles
In practice, when a sale of assets is held because the company is bankrupt or in receivership, there are two stages of court review. First, the licensed insolvency trustee needs to get approval for the actual sales process itself. Then, the Court will review the process as implemented by the licensed insolvency trustee.
The Court’s reviews are to ensure conformity with these Soundair principles. This is the case if this is not a sale at arm’s length purchaser. The court will take into consideration the following elements:
Marketing Efforts: How the assets were advertised and marketed, including the period and reach of the advertising and marketing initiatives.
Number and Quality of Offers: The variety of offers obtained and whether they reflect reasonable market price. To assist the Court in determining the reasonableness of the offers received, the Trustee must provide evidence to the Court. An independent appraisal of the assets and other market data is the normal kind of evidence usedwhat a fair valuation of the assets is.
Transparency: Whether the sale process was conducted fairly and transparently, with appropriate details provided to all possible purchasers.
Stakeholder Consultation: Whether the licensed insolvency trustee has spoken with and taken into consideration the views of significant creditors and other stakeholders.
Authorization of Sale: Whether the proposed sale is supported by the significant creditors or as a minimum, is not being opposed.
The Soundair principles assist when a company is bankrupt or in receivership, in guaranteeing that the sale of assets in an insolvency context is carried out in a fashion that maximizes value, keeps fairness, and appreciates the interests of all the major stakeholders. By adhering to these concepts, the court aims to supply confidence in the integrity and fairness of the process and protect the rights of all stakeholders.
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Company is Bankrupt: Navigating Contracts and Leases
When it comes to Court-approved sales in bankruptcy proceedings, sometimes some contractual commitments or leases are in place. Even though the company is bankrupt or in receivership, a purchaser of the assets may need some or all of those contracts or leases to make the purchasing of those assets make sense. Expressed another way, having the assets may not be enough.
Having the rights and responsibilities that come with those contracts and leases may be required. Navigating contracts and leases is a crucial aspect that requires careful consideration and strategic decision-making. Let’s delve into some key points related to this intricate process.
Options Regarding Contracts and Leases
There are 2 primary options regarding contractual commitments and leases: rejection or assignment and assumption. Each option comes with its own set of implications and considerations that need to be weighed meticulously. Making the right choice can significantly impact the outcome of the sale process and the overall success of the bankruptcy proceedings.
Practical Challenges Regarding Contracts and Leases
There are some practical challenges regarding contracts and leases as follows:
Rejection: If there are contracts or leases that a purchaser does not require, this is the simplest. The purchaser will not purchase the licensed insolvency trustee’s right, title and interest, if any, in those obligations. By not purchasing those rights, the purchaser will simply not deal with them. The licensed insolvency trustee, acting as the receiver or bankruptcy trustee, will either ignore them or will formally reject them. Any rejection or repudiation will occur as part of the sales process.
Any claims by the party that contracted with the debtor company will be an unsecured claim caught in the court-supervised insolvency process as against the company and therefore, as against the pool of money obtained through the sales process. The Court will ultimately approve the distribution of funds by the Trustee, so the lessor/contracting party will be out of the money if the secured creditors suffer a shortfall.
Assumption and Assignment: One major challenge is determining whether contracts and leases can be assigned to the purchaser. In many cases, contracts contain anti-assignment clauses that prohibit transfer without consent from the other party.
Termination Rights: Contracts and leases might have termination clauses that can be triggered by the insolvency or the sale itself, complicating the continuity of these agreements.
Consent from Counterparties
Negotiating Consents: Obtaining necessary consents from counterparties to contracts and leases can be time-consuming and uncertain. Counterparties may demand changes to terms or additional payments as a condition for their consent. These negotiations normally are in addition to the process of purchasing the assets and do not involve the licensed insolvency trustee administering the sales process because the company is bankrupt or in receivership.
Legal Challenges: Even if a Trustee can theoretically assign a contract or lease, the counterparties might contest this in court, leading to potential delays and additional legal costs.
Successfully navigating contracts and leases in Canadian insolvency court-supervised sales requires a comprehensive understanding of the legal framework, meticulous attention to detail, and strategic decision-making. By carefully evaluating the options available, addressing challenges proactively, and adhering to legal requirements, potential purchasers can enhance the efficiency and efficacy of the sale process, ultimately maximizing the value of assets and securing a successful outcome in the proceedings.
Company is Bankrupt: Considerations for Governmental Approvals and Regulatory Reviews
Certain industries are regulated under provincial or federal government licenses or approvals. Purchasing the assets when a company is bankrupt or receivership is not enough to operate the business itself. The business operations require government approval. It is of paramount importance to navigate governmental approvals and regulatory reviews. These considerations are not mere formalities but critical steps that can significantly impact the success of the sale process.
Importance of Regulatory Approvals in Bankruptcy Sales: In the realm of bankruptcy sales, regulatory approvals play a pivotal role in ensuring that the transaction complies with all necessary laws and regulations. These approvals act as safeguards to protect the public. A prudent purchaser will make such regulatory approvals a buyer’s condition to purchase the assets.
Sometimes, such as my receivership file I referenced in my stalking horse Brandon’s Blog, we purposely made it a condition that the buyer is solely responsible for obtaining the necessary regulatory approval and not obtaining it is not a reason the purchaser can rely upon to not complete the transaction. The reason we did this is because we did not want the sale of assets to be conditional on obtaining regulatory approval. In such a circumstance, the purchaser must understand this and have a high expectation that they will be approved.
Transition Services Agreements for Regulated Industries: Operating in regulated industries adds another layer of complexity to bankruptcy sales. A sophisticated purchaser will recognize that they may need a transition services agreement as a crucial mechanism to facilitate the seamless transfer of assets while adhering to industry-specific regulations and requirements. These agreements outline the terms under which services will be provided post-sale, ensuring continuity and compliance.
Navigating Foreign Purchasers and Regulatory Requirements: Dealing with foreign purchasers introduces a host of additional challenges, particularly in terms of regulatory compliance. Understanding and adhering to the specific requirements imposed by different jurisdictions is vital to the sale’s success. Navigating these regulatory landscapes demands meticulous attention to detail and a comprehensive understanding of international laws. As the licensed insolvency trustee seller, it would be my preference to not sell to a foreign purchaser and have the sale hung up for a lengthy time pending the outcome of the regulator’s review of the suitability of the foreign purchaser.
Being mindful of these aspects is not just a matter of legal obligation but a strategic imperative. Failing to secure necessary approvals or overlooking regulatory nuances can derail the entire sale process, leading to potential legal repercussions and financial setbacks.
As someone immersed in the complex world of bankruptcy sales, I recognize the delicate balancing act required to maneuver through governmental approvals and regulatory reviews successfully. A purchaser needs to be informed, proactive, and meticulous in its approach, aiming to navigate these intricate processes with precision and expertise. If I must recommend a foreign purchaser in the sale of assets used in a regulated industry, I must have confidence in the purchaser’s ability to navigate the governmental approval process.
company is bankrupt
Company is Bankrupt: Addressing Liabilities Affecting Bankruptcy Sales
It’s important to recognize the significance of addressing potential liabilities throughout the process. One key aspect that stands out is the need for thorough identification and mitigation of these liabilities, ensuring a smooth and successful acquisition. As stated above, most liabilities of the company are caught in the bankruptcy estate or receivership process.
The sales of assets vests them out of the company to the purchaser and the money obtained from the sale stands in its place. The licensed insolvency trustee must then make its recommendation to the Court for the distribution of the money as the priorities require.
However, sometimes some liabilities may on a practical level make it difficult to use the assets as an operating business, without addressing certain liabilities. Here are some essential talking points to consider:
Identification and Mitigation of Potential Liabilities: Before diving headfirst into a bankruptcy sale, it’s crucial to conduct a comprehensive review of potential liabilities associated with the assets up for acquisition. Identifying any existing or potential risks early on allows for strategic planning to mitigate these liabilities effectively.
Thorough Due Diligence and Legal Counsel Consultation: Engaging in thorough due diligence, possibly with the support of legal counsel, can provide valuable insights into the liabilities that may not be immediately apparent. Legal experts can offer guidance on navigating complex legal frameworks and ensuring compliance with regulatory requirements.
Understanding Exceptions to ‘Free and Clear’ Asset Sales: While the concept of purchasing assets ‘free and clear’ in a bankruptcy sale may seem straightforward, it’s essential to be aware of exceptions that could impact the transaction. Certain liabilities, such as environmental issues, may not be absolved despite the ‘free and clear’ nature of the sale. Also, the business may be reliant on one or two essential suppliers and without their cooperation, it will be impossible to operate a business utilizing those assets.
The concerns and interests of such creditors who cannot be replaced going forward in the business operations and their respective unsecured creditors’ claims must be addressed before completing the purchase of the assets.
By paying close attention to these critical aspects, potential buyers can approach bankruptcy sales with a well-rounded strategy, safeguarding their interests and minimizing potential risks. Collaborating with legal experts and conducting in-depth due diligence are pillars of success in navigating the complexities of bankruptcy sales.
Company is Bankrupt: The Insolvency Process and Sale Order Approval
When diving into the world of bankruptcy sales, there is a mix of thrill and caution that comes with the territory. It’s a realm where opportunities to acquire assets at distressed pricing collide with the need for strategic decision-making and quick actions. You see, a bankruptcy sale isn’t your run-of-the-mill transaction – it’s a structured process overseen by the Bankruptcy Court, designed to ensure fairness and transparency for all parties involved.
As I take you through the stages where the company is bankrupt, the bankruptcy process, the role of the Bankruptcy Court in sale order approval, and the key milestones in bankruptcy asset sales, you’ll start to see the intricate dance that occurs in the world of distressed asset acquisitions.
Stages of the Bankruptcy Process
Filing for Bankruptcy: It all begins with the company filing for bankruptcy (or being placed into a court-supervised receivership) overseen by the Bankruptcy Court.
Approval for the Sales Process Including the Bidding Procedures: Once the company is bankrupt or in a court-supervised receivership, the licensed insolvency trustee will seek approval for the sales process including the bidding procedures from the court, setting the stage for the asset sale process.
Marketing Assets: With the court’s approval, the licensed insolvency trustee starts marketing the assets to potential buyers, generating interest and gathering bids for the distressed assets.
Receiving Bids: Prospective buyers submit their bids, each vying for the opportunity to acquire the assets through the bankruptcy sale process.
Application to Court: The licensed insolvency trustee administering the bankruptcy or receivership process, will make its application to the Court, filing its evidence, which includes a Report to the Court explaining how the Court-approved sales process was conducted, the results of the process and the bids received, showing how the Soundair principles were adhered to and recommending a specific offer to be approved,.
Finalizing Sale with Court Approval: The sale approval order, once issued by the Bankruptcy Court, finalizes the transaction, paving the way for the transfer of assets to the successful bidder.
Each stage in the insolvency process plays a crucial role in the successful sale of distressed assets, ensuring that the interests of all stakeholders are protected and that the process remains transparent and fair.
Role of Court Resulting in the Sale Approval Order
The Court acts as the guardian of the bankruptcy or receivership process, overseeing the sale approval order and ensuring that all legal requirements and considerations are met. Its role is pivotal in maintaining the integrity of the asset sale process, providing a level playing field for prospective buyers and all stakeholders.
When a sale order is presented to the Court for approval, the court scrutinizes the terms of the transaction, ensuring that it aligns with the laws and the best interests of the parties involved. By granting the sale approval order, the court adds a layer of legitimacy and finality to the asset sale, safeguarding the rights of the buyer and seller.
Key Milestones and Deadlines in Bankruptcy Asset Sales
Deadlines are a crucial aspect of any bankruptcy or receivership asset sale, dictating the pace and efficiency of the process. Key milestones and deadlines serve as guideposts throughout the sale process, ensuring that each step is taken within the specified timeframe to maintain the momentum and integrity of the transaction.
From the initial filing for bankruptcy or receivership to the finalization of the sale order, adhering to these milestones and deadlines is essential for a smooth and successful asset sale. These markers not only provide clarity and structure to the process but also instill confidence in all parties involved, signalling a well-managed and efficient transaction.
Company is Bankrupt Conclusion: Key Takeaways for Successful Asset Acquisitions
As we wrap up our discussion on successful asset acquisitions in bankruptcy sales, let’s reflect on the pivotal points that can guide us toward making informed and strategic decisions in this unique process:
Firstly, navigating bankruptcy proceeding sales requires a nuanced understanding of the key considerations that come into play. Assets are sold “as-is, where-is,” with limited warranties and protections for buyers. This necessitates a careful evaluation of the risks and rewards before participating.
Secondly, being well-informed is crucial when participating. The competitive nature of these sales demands swift decision-making and strategic bidding strategies. Having a clear grasp of the process and a thorough assessment of the assets can give bidders a competitive edge.
Lastly, the guiding principles for acquiring distressed assets successfully revolve around finding the balance between opportunity and risk. Whether you are a strategic investor or a financial bidder, understanding the intricacies of bankruptcy sales and aligning your acquisition strategy with your overall goals is key to driving value from these transactions.
I hope you have enjoyed this company is bankrupt Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.
You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.
The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a plan, we know that we can help you.
We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.
That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.
Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.
The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.
We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.
Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.
what does receivership mean
What does receivership mean: Receivership is for secured claims
What does receivership mean? A receivership is an enforcement proceeding that helps secured creditors recover secured debts on debtor defaultson loan payments from troubled companies. There are two types of receivers and receiverships: Privately-appointed receivers and court-appointed receivers.
As you can tell from the title of this Brandon Blog, I am not going to be writing about receiverships. You can take a look at my April 14, 2021, Brandon Blog titled “WHAT IS A RECEIVERSHIP? OUR COMPLETE GUIDE TO RECEIVERSHIP SOLUTIONS” to read all about what receiverships are.
What does receivership mean? It is a remedy for secured creditors.
I want to go through two more concepts quickly, and then I will get to what I really want to talk to you about today.
What does receivership mean: Bankruptcy vs. receivership
Despite the fact that receivership and bankruptcy sometimes get used interchangeably, they are not the same thing. A bankruptcy proceeding and a receivership proceeding are both legal actions conducted under the Bankruptcy and Insolvency Act (Canada) (BIA) and governed by the Office of the Superintendent of Bankruptcy (OSB). According to the BIA, either a receiver or a bankruptcy trustee in Canada needs to be a licensed insolvency trustee, whose license is granted and whose actions are supervised by the federal government’s OSB.
Here is where the similarities end. In a receivership, a secured creditor would either hire a receiver privately or ask a court to place a company into receivership and appoint one to liquidate the collateral they have against the debtor. According to the Canadian bankruptcy process, either the person or company voluntaryfiles for bankruptcy with a licensed insolvency practitioner, or one or more unsecured creditors apply to the Court for the appointment of an insolvency trustee to administer the bankruptcy Estate.
Licensed insolvency trustees are needed in both cases. The receivership procedure is a secured creditor’s remedy and bankruptcy is an unsecured creditor‘s remedy. To read up more on the bankruptcy process, look at my September 30, 2020, Brandon Blog “DECLARE BANKRUPTCY: A COMPLETE GUIDE ON WHAT IS IT LIKE TO DECLARE BANKRUPTCY“.
What does receivership mean? Not the same as bankruptcy.
what does receivership mean
Employee Rights in Bankruptcy Protection and Bankruptcy⁄Receivership
Bankruptcy protection can be gained to try to make a troubled company stable and then return the company to profitability by filing pursuant to either the BIA or the Companies’ Creditors Arrangement Act (CCAA), employees retain their right to unpaid wages, vacation pay, and severance or termination pay. There is no difference between filing and not filing. They are unsecured creditors of a troubled company, and the company directors are personally responsible for amounts owed to employees.
For the company in receivership or bankruptcy, the employees do have greater rights. The receiver of a company in receivership must register with Service Canada under the Wage Earner Protection Program Act (WEPPA) for the Wage Earner Protection Program. This program provides some compensation to eligible employees who are owed money by a bankrupt or receivership company.
So what does receivership mean to an employee with unpaid wages? It means they can claim a priority and get paid by Service Canada.
What does receivership mean: Receivership – a typical appointment
Now I will get to what this Brandon Blog is actually about. In Canada, it is the norm for secured creditors advancing loans secured against company assets, to also take a personal guarantee on the same debt from the principals of the company. In all entrepreneurial companies in Canada, that is at least the president running company affairs. If the lender-secured creditorsuffers a shortfall from the liquidation of the company assets, the lender then looks to the guarantor(s) of the company debt to make good on the lender’s loss. Many times the company president/guarantor has no choice but to file consumer bankruptcy.
I was involved in a bankruptcy discharge hearing for one of our personal bankrupts in April 2021. He caused his company, being its sole Director, to file for bankruptcy with another Trustee. That same Trustee was also appointed as the company’s private receiver by the secured creditor. The company president provided the secured creditor with a personal guarantee.
Realizing that they would suffer a shortfall from the company situation, rather than suing on their personal guarantee, they approached us to consent to act as the Trustee in a Bankruptcy Application against the company president. We consented and the company president ultimately consented to a Bankruptcy Order being made to put him into bankruptcy with my Firm as the Trustee.
what does receivership mean
What does receivership mean: The bankruptcy of the guarantor
We administered the consumer bankruptcy. There were some assets to realize upon which we did. One realization required court approval as we were selling seat licenses and the right to purchase tickets for the Toronto Maple Leafs to a related party. The bankrupt person’s largest single consumer creditor was Canada Revenue Agency for unpaid income tax. The company in receivership was also a creditor as the president owed the company money. The secured creditor of the company was also an unsecured creditor of his in his personal bankruptcy for the personal guarantee on the shortfall.
The known creditors each filed their respective proof of claim in his bankruptcy, including the company by its privately-appointed receiver. We believed that the company by its receiver was a creditor for the amount of the shareholder loan owing to the company. The proof of claim they filed was for a much larger amount. As Trustee, we neither admitted nor disallowed any proofs of claim filed in this bankruptcy estate. The Trustee would have to take a cold hard look at the receiver’s proof of claim at some future date it is determined that a dividend will be paid to the creditors in this bankruptcy estate, which is highly unlikely.
What does receivership mean: The receiver opposes a bankruptcy discharge
Only one unsecured creditor opposed the bankrupt’s discharge. That was the receiver, or more correctly, the company in receivership by its privately-appointed receiver. The Trustee had not opposed. The lender, as an unsecured creditor, did not oppose either along with the other consumer creditors.
As I mentioned, in April 2021, the discharge hearing was held before the Master sitting as Registrar in Bankruptcy Court. The court raised a novel issue. Does the receiver have the standing to oppose the bankrupt’s discharge? The court allowed the hearing to be completed and allowed the parties to file further submissions, subsequent to the hearing, on this issue. Submissions were received from us, the Trustee and from the Receiver in mid-May, 2021. The bankrupt took no position on the issue.
what does receivership mean
Does the Receiver have standing to oppose the bankrupt’s discharge?
Here is what I wrote to the court.
The security documents under which a privately-appointed receiver is appointed will determine if an unsecured amount owing by a bankrupt debtor is an asset secured by security held by a creditor over the assets of another party. If so, then the privately-appointed receiver has the right to file a proof of claim in the debtor’s bankruptcy as part of attempting to realize upon that asset forming part of the secured creditor’s collateral.
In doing so, the privately-appointed receiver is acting as Agent for the secured creditor. If the privately-appointed receiver files a proof of claim in the bankruptcy that is not disallowed by the licensed insolvency trustee administering the bankruptcy estate, then, in order to oppose the discharge of the bankrupt, the privately-appointed receiver must also be able to be the Agent for the debtor in receivership.
If the security under which the privately-appointed receiver is appointed allows for that receiver to operate the business of the debtor in receivership, then that receiver has the ability to be an Agent of the debtor in receivership and bring a claim in the name of that debtor.
In this matter, of the various pieces of security held by the secured creditor, only the General Security Agreement (the “GSA”), allows a receiver appointed in writing under it to operate the business of the debtor company. Under the GSA, the privately-appointed receiver has the ability to act as both Agent of the secured creditor and Agent of the company. The appointment letter appointing the receiver confirms that the appointment is under all security held, including the GSA.
Therefore, my opinion was that although we have concerns about the amount being claimed, the receiver has the ability to both file a proof of claim in this bankruptcy and oppose the discharge of the bankrupt as an Agent of the company. I believed it aided the administration of this bankruptcy to allow the receiver to oppose because it is able to draw the attention of the court to conduct of the bankrupt of which the court otherwise might not be aware of.
Finally, I advised the court that if there still was concern that it is formal defect or irregularity section 187(9) of the BIA, the court can determine that such formal defect or irregularity will not invalidate the opposition to the discharge of the bankrupt.
What the bankruptcy court decided
The court accepted our submission and agreed with it. The court continued to be skeptical of the amount of the company’s proof of claim filed by the receiver. The court noted that as Trustee, I reported that the bankrupt has fulfilled all statutory duties. Income and expense statements were provided and there was no surplus income payable.
On a general perusal of the Trustee’s s. 170 report, the Trustee does not report any significant misconduct or concerns but reserved its rights as to its position on the discharge pending the hearing and matters disclosed therein. In the court’s view, the Trustee’s non-opposition to discharge is a factor favouring the bankrupt’s discharge. After considering all facts, the court gave the bankrupt an absolute discharge from bankruptcy.
what does receivership mean
What does receivership mean summary
I hope that you found this what does receivership mean Brandon Blog helpful in describing the role of a privately appointed receiver especially in opposing the discharge of the bankrupt guarantor of the company’s secured debt. Problems will arise when you are cash-starved and in debt. There are several insolvency processes available to a person or company with too much debt. You may not need to file for bankruptcy.
If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.
It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.
The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as analternative to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.
The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.
We understand that people with credit cards maxed out and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.
That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free,contact the Ira Smith Trustee & Receiver Inc. group today.
We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.
Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.
