Tag: starting over starting now

PAYDAY LOANS TORONTO NO CREDIT CHECK

Post author By Brandon Smith
Post date August 14, 2014

Here is a very funny bit from “Last Week Tonight with John Oliver” on HBO regarding the predatory lending practices of payday loan companies. It is very sad, but true. It is well worth watching this video because among the humour, are some very good lessons as to why not to get involved with payday loan companies and their related very high cost of lending.

Although it applies to the US payday loan industry, it is equally applicable to Payday Loans Toronto No Credit Check also. We also have written other blogs on the dangers of the Payday Loan Industry, including:

And now, click on the video to listen to this very funny bit by John Oliver.

Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. We’re 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. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

Tags Bankruptcy, Debt, financial institution, financial institutions, financial plan, insolvency, interest rate, interest rates, living paycheque to paycheque, payday loan, payday loan companies, payday loans, PAYDAY LOANS TORONTO NO CREDIT CHECK, professional trustee, starting over starting now, The Cash Store, toronto, trustee

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DEBT COLLECTORS CALLING: COLLECTION AGENCY AFTER YOU?

Post author By Brandon Smith
Post date August 12, 2014

Are debt collectors calling? I recently read an article where the headline was 35% In US Facing Debt Collectors and it’s based on a study by the Urban Institute. This astonished me. How is it possible that 35% of Americans have debts and unpaid bills that have been reported to collection agencies? This means that one in three people in America is being hounded by a collection agency having their debt collectors calling for unpaid bills.

Imagine that one in three of your friends and coworkers are facing serious financial challenges and you probably don’t even know it. According to the study 35.1% of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The Association of Credit and Collection Professionals reports that healthcare related bills account for 37.9% of the debts collected. Student loan debt represents another 25.2% and credit card debt make up 10.1%. Other collections are monies owed to the government, retailers, telecoms and utilities. That is giving this industry a lot of work for their debt collectors calling one third of the American population!

This is not just an American problem although in Canada we are extremely fortunate that we don’t incur the amount of healthcare related debt that plagues the U.S. But that doesn’t make us immune from serious debt and debt collectors calling. According to an RBC poll which only measures non-mortgage debt such as credit cards, lines of credit and loans:

The average level of personal debt in Canada rose 21% per cent this year to $15,910
Albertans were the hardest hit with a 63% jump to $24,271 in debt
British Columbian personal debt loads went up by 38% to $15,549
Manitoba and Saskatchewan went up 32% to $16,145
Average debt in Ontario was up 13% to $17,416
Average debt in Quebec was up 3% to $10,458
Average debt was up in Atlantic Canada by 12% to $15,243

Before you get to the stage that the collection agencies are after you with their debt collectors calling, make an appointment with a professional trustee and deal with your debt; don’t hide from it. Contact Ira Smith Trustee & Receiver Inc. We help people everyday who are facing a financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t wait, especially if the collection agencies are hounding you with their debt collectors calling, call us today.

Watch for our next blog when we’ll be discussing what to do if the collection agencies are after you with their debt collectors calling.

Tags Bankruptcy, collection agencies, collection agency, credit card debt, credit record, Debt, debt collector, debt collectors, debt collectors calling, starting over starting now, student loan debt, toronto, trustee

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PAYDAY LOAN COMPANIES: THERE ARE OPTIONS

Post author By Brandon Smith
Post date July 29, 2014

Finally a financial institution has stepped up to the plate and is offering a viable alternative to payday loan companies. Sadly, people who typically turn to payday loan companies are low income earners who are barely surviving and living paycheque to paycheque. Payday loan companies are not helping them; they are creating higher debt loads and holding them hostage with insane interest rates.

The Cash Store, a payday loan company, offers a $300 loan for 14 days for $69, which is an annual interest rate 599.64% on their payday loans product. Vancity, Canada’s largest community credit union with branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish, launched a new financial product to combat payday loans, called Vancity Fair & Fast Loan. If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19% annual percentage rate.

The Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. There has been a lot of talk about “cleaning up the payday loan industry” but if more financial institutions follow Vancity’s lead, payday loan companies would disappear from our landscape without further government regulations.

Don’t wait for payday loans to disappear before searching out more permanent solutions. Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. We’re 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. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

Tags Bankruptcy, Debt, financial institution, financial institutions, financial plan, insolvency, interest rate, interest rates, living paycheque to paycheque, payday loan, payday loan companies, payday loans, professional trustee, starting over starting now, The Cash Store, trustee, VanCity

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WHAT CAN I DEDUCT FOR SURPLUS INCOME IN BANKRUPTCY?

Post author By Brandon Smith
Post date July 22, 2014

“What can I deduct for surplus income in bankruptcy?” is one of the questions about bankruptcy that we are very frequently asked. The concept of surplus income in bankruptcy doesn’t really seem to make much sense. After all, if you are bankrupt, how can you have surplus income? So let’s start at the beginning and clear up all the confusion in order to answer the question “what can I deduct for surplus income in bankruptcy”.

What is surplus income in bankruptcy? If you have filed an assignment in bankruptcy, under the Bankruptcy & Insolvency Act you are required to make a surplus income payment each month based on your income. The more you earn, the more you are required to contribute. The Office of the Superintendent of Bankruptcy sets limits for what a family is allowed to earn. The larger your family, the more you are allowed to keep. The thresholds are increased each year. The government has established a list of income levels for households of different sizes. If the household’s income exceeds the level set by the government then you have surplus income in bankruptcy and additional payments must be made to your trustee during your bankruptcy. The government’s instructions regarding surplus income can be found in Directive 11R2 from the Office of the Superintendent of Bankruptcy.

What can I deduct for surplus income in bankruptcy? There are some allowable deductions for surplus income in bankruptcy:

child support payments
spousal support payments
child care expenses
expenses associated with a medical condition
Court-imposed fines or penalties that are in the process of being paid
expenses permitted by the Income Tax Act (or similar provincial legislation) that are a condition of employment
any other debt where a stay of proceedings has been lifted by the Court, and a recourse authorized
interest paid on debts that are not dischargeable in bankruptcy under paragraph 178(1)(g) of the Act

As a result of these deductions in the calculation, that is why everyone wants to know what can I deduct for surplus income in bankruptcy.

If you’re considering an assignment in bankruptcy you will require the services of a licensed bankruptcy trustee. Contact Ira Smith Trustee & Receiver Inc.We provide the depth of expertise found in a large company, delivered in a boutique setting that ensures high quality and cost effective service. With a cumulative 50+ years of experience dealing with diverse issues and complex files, the Ira Smith team delivers the highest quality of professional service. Take the first step to Starting Over, Starting Now.

Tags Bankruptcy, Bankruptcy & Insolvency Act, Office of the Superintendent of Bankruptcy, starting over starting now, surplus income, surplus income in bankruptcy, trustee, what can I deduct for surplus income in bankruptcy

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

Post author By Brandon Smith
Post date July 15, 2014

If 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.

Tags Bankruptcy, bankruptcy alternatives, bankruptcy faqs, Canadian payday loans no credit check, Cheri DiNovo, Credit, credit check, Debt, interest rates, Lines of Credit, payday loans, personal bankruptcy, starting over starting now, toronto, trustee

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PERSONAL LOANS FOR BAD CREDIT: INTERESTED?

Post author By Brandon Smith
Post date July 1, 2014

Personal 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.

Tags bad credit, Bankruptcy, bankruptcy alternatives, consumer proposals, credit counselling, Debt, debt consolidation, financial plan, high cost debt, personal bankruptcy, personal loans, personal loans for bad credit, professional trustee, starting over starting now, toronto, trustee

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NO CREDIT CHECK LOAN: FOR CANADA DAY?

Post author By Brandon Smith
Post date June 29, 2014

The no credit check loan and credit card industries are being used to fund holiday travel. The American Automobile Association reported that: “This year nearly 41 million Americans plan to celebrate the nation’s birthday with a getaway…” said AAA President and CEO Robert L. Darbelnet.

AAA also reported that this July 4 Independence Day travel is because of the willingness of consumers to take on debt, NOT an increase in income, to fund for the increase in consumer spending. No credit check loan debt and credit card debt is cited as the two credit vehicles of choice being used to fund travel.

In July 2013 we discussed how even high flyers can’t sustain the income to fund their lifestyles, so all demographics means the rich and famous are included. In April 2014 we discussed that debt is increasing in Canada across all demographics, and at alarming rates. A check of our analytics indicates that “no credit check loan” and similar bad credit loan searches are by far outweighing other keywords that people are using. Every day, fewer and fewer people are using keyword search terms such as credit counselling, bankruptcy alternatives, consumer proposals or bankruptcy.

It would appear that Canadians are also much more willing to take on more debt, even though they know they have a debt problem because of a bad credit score. We know that there are two types of debt: good debt and bad debt. If there is such a thing as good debt and bad debt, what’s the difference? The distinction is based on the purpose for which it is taken on. Good debt can be defined as anything that builds your assets or increases the potential for you to earn more money. Bad debt is typically incurred to purchase things that have no value or quickly lose their value and usually carries a very high interest rate – which more often than not is found in no credit check loan debt and credit card debt.

Some examples of good debt:

Mortgage
Real estate
Student loans from the provincial or federal government
Investment loans

Some examples of bad debt:

Credit card debt
Car loans (if it isn’t to get you to and from work, but rather a “toy”)
Line of credit
Debt to take a vacation
No credit check loan debt

There are a lot of people with bad credit who are feeling pain in our society and believe that another no credit check loan is their solution. These people are misguided in that they think that a further high cost no credit check loan will solve their problem. I understand the way these people think. It is hard for us to face our challenges. Whether it is about our health, our family or our financial situation, it is difficult and painful to look at our problems straight in the face, especially if we are the one who created the problem. These people mistakenly think that taking on more debt is the solution.

Well, it is not. These people need to recognize that their credit score is so poor because of choices they have made in the past, and their behaviour has to change. Taking on more debt through a high cost no credit check loan is just increasing their problems. They need to look at ways to budget so that their expenses are less than their income. They need to start saving to pay down debt.

If they can’t do it on their own, then they must consult a licensed professional trustee who can discuss options with them: budgeting, bankruptcy alternatives such as debt consolidation or a consumer proposal or perhaps even bankruptcy. If this sounds like you, contact Ira Smith Trustee & Receiver Inc. right away for a no charge consultation. You can even check out our bankruptcy faqs now online here. We will go over all of your options, and encourage and help you to implement the one that is right for you so that together we can solve your problems with immediate action and the right plan so that Starting Over, Starting Now will become your reality.

In the meantime, whether you are travelling for this Canada Day holiday or relaxing at home, we wish you a safe, fun, relaxing and hopefully only a good debt Canada Day holiday with family and friends.

Brandon Blog Post

IS BABY BOOMERS DEBT PREVENTING THEM FROM GETTING MARRIED?

Post author By Brandon Smith
Post date June 24, 2014

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

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

Supporting children and/or aging parents
Grey divorce
Paying for children’s post secondary education
Pay off children’s student loans
Mortgage
Credit card debt

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

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

Tags baby boomers, baby boomers debt, boomers, credit card debt, Debt, mortgage, post secondary education, starting over starting now, student loans, trustee

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BANKRUPTCY FAQ CANADA

Post author By Brandon Smith
Post date June 15, 2014

Bankruptcy 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

Tags Bankruptcy, bankruptcy alternatives, bankruptcy faq canada, Consumer Proposal, living paycheque to paycheque, personal bankruptcy, starting over starting now

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CANADIAN REAL ESTATE BUBBLE BURST: WHEN?

Post author By Brandon Smith
Post date June 12, 2014

Will 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:

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
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:

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;
the Canadian unemployment rate rose from 6.9% to 7.2%;
the Canadian debt-to-income ratio has soared to a record 164%, above levels experienced in the U.S. before the financial crisis; and
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:

living within their means by spending less than they earn so that they would not have problems living paycheque to paycheque;
using proper budgeting techniques to make sure they were paying down a portion of their debt with every pay;
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;
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;
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
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.