Tag: starting over starting now

BAD CREDIT HAS COSTS – IMPROVE YOURS NOW!

Post author By Brandon Smith
Post date June 10, 2014

Bad credit makes it impossible for you to get the credit you need in order to live your lifestyle. Making payments late or missing payments will result in a bad credit score. There is the possibility that your credit rating can be ruined even if you don’t do anything wrong.

Credit is something we take for granted but it can affect every aspect of our lives. Open your wallet and count the number of credit cards in it. Do you have a mortgage? Car loan or car lease? Bank loan? What do they all have in common? Credit. So you see, you cannot afford to have bad credit.

How can a bad credit score cost you money?

Anytime you apply for financing your credit rating is checked. If you have an excellent credit score you will pay less interest than someone with a moderate credit score. Over the term of your loan a less than stellar credit score can cost you thousands of dollars, particularly with a mortgage. Or, if your credit rating is poor, you may be refused financing. Too many potential credit grantors checking your credit score actually worsens your credit rating. If it is a poor credit score to start with, then too much checking pushes you that much closer to having bad credit.
Did you know that a poor credit rating can affect your car insurance premiums? Car insurance companies sometimes consider people with bad credit as high risk drivers. Having a poor credit rating can cost your hundreds of dollars per year in car insurance premiums.
Credit card debt can cost you up to 20% in interest.

Other ways that bad credit can affect you?

Some landlords and property management companies run credit checks when you apply for a rental unit and will not rent to people with bad credit. A bad credit score may result in you being denied housing.
You may not be able to turn on utilities in your name if you have a bad credit score or you did not pay your utilities in a timely fashion previously.

With bad credit, but with the need to obtain more credit to meet your expenses, it will force you to look for bad credit loans online, payday loans or brick and mortar bad credit loan companies. These lenders advertise guaranteed bad credit personal loans and take advantage of and attack the already vulnerable with their lending practices and high cost loans.

Order a copy of your credit report from Equifax or TransUnion. Bad credit can be repaired with professional help and a plan so that you can be Starting Over, Starting Now. There are several bankruptcy alternatives that can be used for people with bad credit needing help and avoid bankruptcy. Contact Ira Smith Trustee & Receiver Inc. today, get your life back on track.

Brandon Blog Post

LOANS TORONTO NO CREDIT CHECK: A DEBT SOLUTION?

Post author By Brandon Smith
Post date June 5, 2014

I never realized that loans Toronto no credit check was such a popular topic. I want to tell you about three experiences that I had in the past few days. They are all separate, yet all related.

Revelation #1 – You can’t even buy beer with bad credit!

Last Friday, we were having the whole family over for dinner. The weather was so warm and pleasant, that we were going to have a BBQ and eat outdoors on the back deck. I went to The Beer Store to pick up some additional beverages and when I went to check out, I had my first revelation. At the front of the line was a fellow paying for his beer by cheque. I never even realized that you could do that. The clerk inspected the cheque and then asked the gent for identification, and he produced his drivers licence. The clerk ran his information through The Beer Store’s electronic system and politely advised the gentleman that he has been declined to pay by ordinary cheque, and that he could only pay by cash, certified cheque or credit card. The man could not pay for his beer because of his bad credit and had to leave without his favourite brew. This man obviously has financial problems and has to solve them. How he wished he was able to get at that moment one or more loans Toronto no credit check so that he could enjoy his beer last weekend!

Revelation #2 – This man obviously was not alone needing loans Toronto no credit check

On the weekend I was looking at some analytics to see which of our blogs have been accessed the most over the last 30 days. To my shock (yes, notwithstanding our Firm has been helping people who have trouble living paycheque to paycheque and corporations in need of restructuring and turnarounds, I can still be shocked) the 4 most read blogs in the last month were::

There are obviously a lot of people concerned about their debt levels and looking for information on bad credit loans, payday loans, loans Toronto no credit check and how to tackle student loan debt. These blogs were not only the most viewed in the last 30 days, but our blogs on the topic of payday loans and bad credit loans are the most read. Obviously, there is a large demand in the Greater Toronto area for loans Toronto no credit check.

Revelation #3 – Our top searches are from people looking for loans Toronto no credit check

Yesterday I look at our analytics to see what were the top search terms that brought people to our blog and Firm website in the last 30 days. There were 221 visits to our website using the following search terms:

You don’t need me to tell you what this means. There are a lot of people with bad credit who are feeling pain in our society and believe that more loans Toronto no credit check is their solution. The amazing thing though is that rather than looking for bankruptcy alternatives such as consumer proposals, or if required, bankruptcy itself, these people are looking to borrow more money (apparently $5000 is a popular number) from high cost lenders.

These people are misguided in that they think that further high cost loans Toronto no credit check 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 loans Toronto no credit check is just more of the “same old same old”. 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.

There also needs to be a discussion regarding life after implementing the solution and working on improving their credit score. If any of this sounds like a situation you are in, taking on more debt through payday loans or loans Toronto no credit check is not your answer.

You need to 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.

Brandon Blog Post

BAD CREDIT LOANS GUARANTEED APPROVAL

Post author By Brandon Smith
Post date May 29, 2014

If you are searching for bad credit loans guaranteed approval, then you already know that one of the more frightening feelings common in the modern world is falling into debt and not knowing how to get out. Debt has a way of sneaking up and overwhelming us before we realize what is going on.

Many people have not had the training in personal financial management needed to stay out of debt, and they are in need of guidance from someone who has this expertise for resolving their financial problems. Unfortunately, people in this situation often get into more trouble by looking for bad credit loans guaranteed approval by a new creditor rather than finding the help they really need from a bankruptcy trustee.

Bad Credit Loans Guaranteed Approval

If you find yourself typing the above search term into your search engine, you may well be looking at one of the danger signs that you are in need of professional help in dealing with your debts. Other signs that debt is out of hand include:

not having any savings;
taking personal loans from family or friends;
missing payments on credit cards, mortgage, or rent;
using your credit card for buying groceries and other necessities;
relying on credit cards to get from one payday to the next;
not knowing the total amount you owe; and
not being able to manage living paycheque to paycheque.

The worry and stress created by these pressures makes finding a way out of the situation even harder. Uncontrolled debt can take a big toll on family life and reduce, or eliminate, the resources for relaxation and leisure, leaving the person with no time to even look for the light at the end of the tunnel. I can assure you from all of the cases we have handled, a bad credit loans guaranteed approval company is not a solution to your overall debt problem.

As the debt mounts, the prospect of looking at the whole picture becomes even more overwhelming. However, looking objectively at your whole situation is the most important first step for resolving the crisis, and this is exactly what you can gain by using the assistance and perspective of a professional licensed bankruptcy trustee. I can look at your situation clearly as a third party, and I will not charge you for that consultation. So all you have to lose, is your debt!

Avoiding Bad Credit Loans Guaranteed Approval

If you have found yourself seeking more bad credit loans, consider turning in a new direction that can lead you out of debt forever. Take a deep breath, step back for a moment and have a consultation with a licensed bankruptcy trustee who can help you in facing the full dimensions of your problem and then devise a plan that moves you toward a debt free life.

We have written several blogs about the high amounts charged by bad credit loans guaranteed approval companies and how they take advantage of people at their weakest moment, and you may wish to read some of them. They include: BAD CREDIT LOANS TORONTO: LEGIT COMPANIES DON’T GUARANTEE THEM, PAYDAY LOANS ARE NOT THE ANSWER TO YOUR FINANCIAL PROBLEMS, and THE CASH STORE ONTARIO: THIS PAYDAY LOAN OUTFIT NEEDED HELP AND CALLED A TRUSTEE! If you read these blogs, you will see why we say that a bad credit loans guaranteed approval company is not the way to solve your financial problems.

If debt has overwhelmed your life and you are still looking for more, that is a definite warning sign that it is time for professional financial help. Contact Ira Smith Trustee & Receiver Inc. immediately. We will evaluate your situation and provide you with a solid plan for moving forward so that Starting Over, Starting Now you can live a debt free life.

Brandon Blog Post

OWED WAGES BY EMPLOYER? FIND OUT IF YOU QUALIFY TO GET PAID

Post author By Brandon Smith
Post date May 11, 2014

Do you believe you wages are owing to by your employer? People ask us what if my employer owes me money & goes into either receivership or bankruptcy.

We answer if wages are owed by your employer and the company is either in receivership or is bankrupt don’t despair; there is hope for you to recuperate monies owed to you. The Wage Earner Protection Program (“WEPP”) Act – WEPPA – in conjunction with an amendment to the Bankruptcy and Insolvency Act (Canada) – BIA – created a mechanism for employees to be compensated for claims of unpaid wages, commissions and vacation pay accrued in the six months preceding the employer files for bankruptcy or being placed in receivership and wages are owed to you along with claims for unpaid termination and/or severance pay.

Are there any exceptions to this? What are the rules?

There are a few exceptions. You are generally not eligible if, during the period for which you wages are owed to you by your employer, you:

were an officer or a director of your former employer
had a controlling interest in the business of your former employer
were a manager whose responsibilities included making binding financial decisions impacting the business of your former employer, and/or making binding decisions on the payment or non-payment of wages by your former employer

Who is eligible for the WEPP? You may apply if wages are owed to you by your employer and:

your former employer has filed for bankruptcy or is subject to a receivership
wages are owed to you by your employer, vacation pay, termination or severance pay from your former employer
amounts earned during the eligibility period or, in the case of termination or severance pay, your employment was terminated during the eligibility period ending on the date of bankruptcy or receivership

One more very important exception – it only applies if wages are owed to you by your employer and your employer is in either receivership or bankruptcy and owes you wages. If your employer is attempting a corporate restructuring under a Notice of Intention to Make a Proposal, a Division I Proposal or the Companies’ Creditors Arrangement Act, then WEPPA and its provisions do not come into play.

Claim limits

Regardless of the total amount owing to you, the maximum any employee can receive under WEPPA is the greater of $3,200 or four times the maximum weekly insurable earnings under the Employment Insurance Act (which is now greater than $3,200). Once employees file claims with both the Trustee and Service Canada, Service Canada pays their claims for owed wages by employer and Service Canada becomes the creditor. The amendment to the BIA has recognized WEPPA and created a priority charge that supersedes all secured charges except CRA’s deemed trust claim (and the reclaiming rights of farmers and suppliers) to a max of $2,000 per employee, secured against current assets.

Documentation

While no one wants – or expects – to be part of a receivership or bankruptcy, you should always keep detailed records of hours worked for any pay period. On any occasion when you discover there will be no paycheque, record the loss that you will suffer, such as not being able to pay bills or buy groceries. Ask for a formal explanation from your employer and keep detailed notes on your efforts. It’s important to prove that when owed wages by employer; you still expect to be paid, even if it’s late.

If your employer is in receivership or bankruptcy proceedings, and you believe you have a claim for owed wages by employer, find the trustee and get in touch with Service Canada. Have your records ready and make sure you get your Proof of Claim.

If you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We are a licensed trustee and will listen to your issues and offer compassionate, professional assistance to aid you to avoid bankruptcy, so that you can regain control of your life, Starting Over, Starting Now.

Sharing With Your Spouse Is Great, But Not Your Pin Number

Tags avoid bankruptcy, bankrupt, Bankruptcy, Bankruptcy and Insolvency Act, BIA, Companies’ Creditors Arrangement Act, Division I Proposal, licensed trustee, notice of intention to make a proposal, owed wages by employer, receivership, Service Canada, starting over starting now, trustee, vacation pay, Vaughan, Wage Earner Protection Program Act, wages, WEPPA

Brandon Blog Post

CREDIT REPORT: CHECK IT TO IMPROVE A POOR CREDIT SCORE OR A BAD CREDIT SCORE

Post author By Brandon Smith
Post date May 6, 2014

Have you checked your credit report lately? Everyone I know does not wish to have either a poor credit score or worse, a bad credit score, but many Canadians pay little or no attention to their credit report and that’s a mistake that can seriously impact your life.

According to the Public Interest Advocacy Centre:

17% of Canadian adults had checked their credit reports in the prior three years
Of those who checked, 18% found inaccuracies in their credit reports
10% believed they were denied access to financial services because of report inaccuracies

In fact, some credit bureau watchers estimate that there are errors in 10% to 33% of credit files. You may be surprised to know that one of the biggest sources of conflict isn’t fraud, it’s cell phone providers who send overdue accounts to collection. We reported on one such story in a blog titled Your Credit Rating Can Be Ruined Even If You Don’t Do Anything Wrong. Mr. Dave Johnson of Pembroke, Ontario had his credit rating ruined by Rogers even though he never had a Rogers account and he has spent three years fighting a Rogers Bill that isn’t his. “That one derogatory record has a substantial impact on credit score and it stands out on the credit report,” says Tim Ashby, a vice-president of personal solutions for Equifax. If your credit is not in good standing you will most likely be denied a loan or mortgage. It can also affect your ability to rent housing or get hired for a job.

How often should I check my credit report?

According to the Financial Consumer Agency of Canada, check your credit report at least once a year. Review it carefully for errors and signs of identity theft. Order your credit report from both credit reporting agencies. Consider requesting your report from one agency and then waiting six months before you order from the other agency. By spacing out your requests in this way, you may be able to detect any problems sooner.

Who are the credit reporting agencies and how can I contact them to get my credit report?

The credit reporting agencies are TransUnion and Equifax. By clicking on the links you will be taken to their websites where you can access their phone numbers, fax and email in addition to information on how you get your credit report.

Should you discover that you have a poor credit score or a bad credit score, you may need professional help to return to financial health. Ira Smith Trustee & Receiver Inc. is a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Contact us today.

Tags bad credit score, Bankruptcy, credit bureau, credit report, credit reporting agencies, credit score, Equifax, insolvency, poor credit score, starting over starting now, TransUnion, trustee

Brandon Blog Post

PAYDAY LOANS: ONTARIO CRACKS DOWN ON THE CASH STORE

Post author By Brandon Smith
Post date May 4, 2014

Payday loans. We’ve been making you aware of the dangers of using them in our previous blogs – Legitimate Companies Don’t Guarantee Loans If You Have Bad Credit Or No Credit, Payday Loans Are Not The Answer To Your Financial Problems, Beware of Payday Loan Companies Targeting you with Mobile Apps! and Online Bad Credit Loans Attack the Already Vulnerable. The Ontario Ministry of Consumer Services refused to issue a lender’s license to The Cash Store under the Payday Loans Act, 2008, S.O. 2008, Ch. 9 which was upheld by the Court. The result is that The Cash Store is not currently permitted to sell any payday loan products or line of credit products in Ontario. The Ontario Government found that The Cash Store was attacking the already vulnerable, in ways we have explained in our previous blogs (which you can read by clicking on the links above). Watch the video below to find out more. There is no quick fix for serious debt problems and digging a deeper hole for yourself with a high interest payday loan is only going to make matters worse. Stop the downward debt spiral and seek out a professional trustee. At Ira Smith Trustee & Receiver Inc. helping clients deal with serious debt issues is our business. There are a variety of options available to you including bankruptcy alternatives – credit counselling, debt consolidation, and consumer proposals – and bankruptcy. Let us help you end the downward debt spiral so that Starting Over, Starting Now you can live a debt free life. Here is the video of a news report which was done prior to the Court upholding the Ontario Government’s decision to ban The Cash Store from making payday loans or other loans –

Brandon Blog Post

BAD CREDIT LOANS ONLINE ATTACK THE ALREADY VULNERABLE

Post author By Brandon Smith
Post date May 1, 2014

One of the primary reasons why borrowers who are offered bad credit loans online (or in a retail location) must pay such high down payments and high interest rates is because they are considered a high-risk borrower. We’ve been making you aware of the dangers of payday loan companies and bad credit loans online in our previous blogs – Legitimate Companies Don’t Guarantee Loans If You Have Bad Credit Or No Credit, Payday Loans Are Not The Answer To Your Financial Problems and Beware of Payday Loan Companies Targeting you with Mobile Apps!

Instead of applying for these high-risk and expensive bad credit loans online or in person, it is better to repair and rebuild your credit. Read on, and find how the people who run these online bad credit loan scams who advertise “legit short term loans for bad credit“, “bad credit loans online” or “guaranteed consolidation loan Ontario” attack the already vulnerable. Payday loan operators provide relatively small, short-term loans or payday advances. People tend to borrow $1,500 or less for a maximum of 62 days and the money is advanced in exchange for a post-dated cheque or some other form of pre-authorized payment.

In her article in the Financial Post on April 8, 2014, Melissa Leong interviewed someone who resorted to these bad credit loans online scams:

“The interest kills you, says Lucy, who asked that her name not be disclosed. The 51-year-old Toronto resident receives disability support payments and has gotten payday loans online and in the stores to help her endure unexpected events. She took out a $1,000 payday loan this year to cover cancer medicine and orthodontic work for her son. She had to pay back $1,200.”

Don’t set yourself up for failure using these high cost bad credit loans online or at one of the payday loan locations, your credit score will suffer. The best advice I can offer is to make an appointment to see a professional trustee as soon as possible, before disaster strikes. Before bankruptcy becomes your only option, there are bankruptcy alternatives including credit counselling, debt consolidation, and consumer proposals. Contact us today. We are a licensed trustee and the team at Ira Smith Trustee & Receiver Inc. will work with you to ensure that Starting Over, Starting Now you can regain financial health.

Brandon Blog Post

SECURED CREDIT CARD

Post author By Brandon Smith
Post date April 24, 2014

A secured credit card functions in the same manner as a regular credit card. The only exception being that the card is secured by the amount of deposited funds that remain safeguarded in the institution where the individual acquires the card. The card looks like a regular credit card and acts like a traditional credit card. Purchases are limited by the amount of funds backing the card. The majority of institutions require a minimum secure balance of $500. However, individuals or businesses may deposit more if desired.

Who Uses a Secured Credit Card?

The card might be used by anyone with a past or current history of bad credit. When first starting out, many young people or students have no line of credit. The card might serve as a means of establishing a credit history. Someone recently moving to Canada, having recently undergone bankruptcy or having difficulty obtaining a conventional credit card may also look into acquiring a secured card.

Newlyweds starting a life together often look for ways of establishing credit. Anyone having endured a divorce or the death of a spouse may also need to start over and rebuilding credit. Entrepreneurs having difficulty getting financial backing or searching for a means of creating a financial history might also be interested in securing a card.

Benefits of a Secured Credit Card

Getting approved for a secured card is practically guaranteed. Having a card eliminates the need to withdraw and carry cash. However, in case someone needs cash for an emergency, the card enables users to get cash advances. Numerous other conveniences of having a credit card include using the card for making reservations, purchases or services rendered.

A secured credit card offers an ideal way to establish or improve credit scores, which are typically required when needing to apply for loans. By making monthly payments for goods or services, in the same way that one would if having a traditional credit card, you can learn how to create and stick to a budget.

Many secured credit cards don’t carry the same fees that are required by traditional cards so using them is not only convenient but less expensive.

Ensuring Good Credit

After applying for and acquiring the credit card, maintaining good credit means:

i. Paying off the balance monthly

ii. Paying more than the minimal monthly amount required

iii. Making payments on time

Get a Secured Credit Card Today

Regardless of your current financial situation we can help. To find out more about secured credit cards, and even to apply for a secured credit card, click on this link for the application form. If you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We are a licensed trustee and will listen to your issues and provide compassionate, professional assistance to assist you to avoid bankruptcy.

We will explore alternatives to bankruptcy, such as debt consolidation, credit counselling and consumer proposals. Starting Over, Starting Now, we will assist you to regain your financial health.

Tags alternatives to bankruptcy, avoid bankruptcy, bad credit, Bankruptcy, consumer proposals, credit card, credit counselling, credit history, credit scores, debt consolidation, financial health, financial history, licensed trustee, rebuilding credit, secured credit card, secured credit card offers, starting over starting now

Brandon Blog Post

BANKRUPTCY TRUSTEE TORONTO: HELPING YOU STARTING OVER, STARTING NOW

Post author By Brandon Smith
Post date April 6, 2014

A bankruptcy trustee Toronto understands that insolvency and filing for bankruptcy can be a very distressing time in someone’s life. Many people feel like failures at this time and need to have someone to whom they can turn to help them understand their options. People filing for bankruptcy can choose a federally regulated bankruptcy trustee Toronto they feel the most comfortable with to assist them in the process.

When Bankruptcy Becomes Necessary

When a person becomes insolvent, they cannot pay back what they owe to their creditors; in fact, what they owe may far outweigh the assets that they have. At this point, an individual may consider declaring bankruptcy. There are several clues, such as the following, that indicate that one is nearing this point of no return and should consult with a bankruptcy trustee Toronto:

▪ Garnished wages from each paycheque

▪ Contact from one or more collection agencies

▪ Utilities or household services that have been stopped from lack of payment

▪ You can no longer make ends meet living paycheque to paycheque

Bankruptcy and Its Benefits

Although it should be noted that bankruptcy is not the perfect solution for everyone because it will be quite costly and destructive to one’s credit score, it does have several advantages. Of course, there will be no more harassment from creditors or collection agencies during and following the bankruptcy process, and the person involved will be able to feel a greater peace of mind. In addition, many times people are allowed to keep their homes and property during bankruptcy. Finally, employers cannot discriminate against individuals who file for bankruptcy.

What a Bankruptcy Trustee Toronto Does

Anyone filing for bankruptcy in the GTA can choose the bankruptcy trustee Toronto they feel the most comfortable with to assist them. A bankruptcy trustee Toronto has numerous tasks. In general, the trustee is an impartial intermediary who will make sure that every part of the process is performed correctly, that there is no fraud and that assets are liquidated appropriately. Before the actual bankruptcy filing, he or she will meet with the person to review the individual’s situation, consider all alternatives to bankruptcy, including credit counselling, debt consolidation and consumer proposals.

After this initial assessment, if bankruptcy is the best option, the federally regulated bankruptcy trustee will explain the bankruptcy process to you, prepare and look over any paperwork before it is filed, if necessary will hold a meeting of creditors for the individual and will ensure that creditors are paid their pro rata share in accordance with the provisions of the Bankruptcy and Insolvency Act.

Some people fear that a bankruptcy trustee Toronto will make their lives miserable each step of the way. However, although the trustee may have some difficult and painful tasks to fulfill, they will ensure that each step of the process is performed thoroughly, accurately and with complete professionalism. Those people who are in a position to benefit from declaring bankruptcy will find the work of a trustee to be invaluable and allow you after your discharge from bankruptcy to rebuild your credit.

Bankruptcy Trustee Toronto

If you feel you are a candidate for bankruptcy, you can first do some self-study by reviewing our bankruptcy faqs. After reviewing the bankruptcy alternatives, if the best solution for you is bankruptcy, you should feel comfortable that your choice of trustee will treat you with the compassion and respect you deserve. Contact Ira Smith Trustee & Receiver Inc. and Starting Over Starting Now you’ll be on your way to living a debt free life.

Brandon Blog Post

CONSUMER PROPOSALS: WHAT YOU NEED TO KNOW

Post author By Brandon Smith
Post date April 3, 2014

Before contemplating a bankruptcy, those who have too much debt should give strong consideration to consumer proposals, one of the alternatives to bankruptcy. As long as you owe less than $250,000, this is possible. This limitation excludes any mortgage you have for your home.

The advantage of consumer proposals

Consumer proposals gives individuals a chance to reorganize their finances and get back on their feet without having to go through a bankruptcy. By avoiding bankruptcy, a person’s credit rating is not seriously damaged. In addition, after all of the debts are dealt with, through consumer proposals, people have a strong feeling of accomplishment and self-worth.

Consulting with a bankruptcy trustee to find out more about consumer proposals

The first step in pursuing a consumer proposal is to meet with a bankruptcy trustee to evaluate your financial circumstances. The trustee will help draft a proposal for your creditors based upon your finances. If the proposal is accepted, you will then make your payments directly to the trustee. The exact form a proposal will take is dependent upon many variables.

In some circumstances, you may be paying only a partial amount of the debt you owe over time. In other circumstances, the debt will not be reduced, but reorganized in a way that gives you a chance to pay it all back. In consumer proposals, no further interest or fees can be charged. Sometimes it is just a longer period of time to pay back the debt. Either way, consumer proposals should be thought of as providing you with the equivalent of an interest-free loan. Whatever the final proposal is, it will help bring needed relief to your financial situation.

After filing a consumer proposal

From the time your consumer proposal is filed, you will no longer be making any payments directly to your creditors provided that the debt is unsecured. Any wage garnishment that is in place is suspended while the proposal is examined by your creditors. Lawsuits over debt recovery are also placed on hold. The proposal and the accompanying trustee’s report will provide details on your personal finances and will include an explanation of how your debts became such a problem that it has led to a need to reorganize the debt structure. Your creditors will have up to 45 days to decide to accept the offer or not. If one or more of your creditors is owed more than a fourth of the total debt, they have the right to request a meeting with you and the trustee. This request for a meeting must be done in the same 45 day time limit.

If you are in a situation where you are overwhelmed by debt with no hope of paying it back under the current circumstances, there is not much of a downside to pursuing a consumer proposal. The worst thing that can happen is that creditors do not agree to the proposal, and in this situation, bankruptcy is still an option. If it does work then you save yourself the grief of having a bankruptcy on your credit history.

If you wish to compare this information about consumer proposlas to a bankruptcy, start by reviewing our bankruptcy faqs. Contact Ira Smith Trustee & Receiver Inc. as soon as possible regarding your debt problems, to find out more about consumer proposals and Starting Over, Starting Now you’ll be on your way to living a debt free life.

Tags alternatives to bankruptcy, avoiding bankruptcy, Bankruptcy, bankruptcy faqs, bankruptcy trustee, Consumer Proposal, consumer proposals, credit history, credit rating, Debt, debt recovery, debts, interest-free loan, overwhelmed by debt, proposal, starting over starting now, too much debt, trustee, wage garnishment

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