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LICENSED INSOLVENCY TRUSTEE: 12 THINGS THEY MAY NOT TELL YOU!

If you would like a free copy of our eBook:

12 THINGS A LICENSED INSOLVENCY TRUSTEE MAY NOT TELL YOU!

PLEASE CLICK HERE

Why won’t they tell me?

It is not the case that any licensed insolvency trustee purposely won’t tell you everything you need to know. It is just that in all walks of life, some people explain things better than others. Some take more time and care, some are better equipped to explain technical matters in plain English to the layperson and sometimes, like Ira Smith, you might have a senior moment!

So the purpose of this video is to educate the stressed-out person who is facing financial challenges, and who has an appointment to see a licensed insolvency trustee, to give you a checklist of important questions you should ask, so that you walk out of the first meeting with all the information you need to make an educated, informed decision. So, here is our checklist.

12 questions you must ask the Licensed Insolvency Trustee, to get the information you need

  1. Is my first consultation free and how long do I get to meet with the Licensed Insolvency Trustee?
  2. Do you have the necessary qualifications, how many cases like mine have you done before and do you go to Court also or do I have to hire a lawyer to do so?
  3. Is bankruptcy right for me and is it my only option?
  4. Are there other options to avoid bankruptcy?
  5. How much will it cost me?
  6. Will I be dealing with the actual licensee ultimately responsible to the Office of the Superintendent of Bankruptcy for my file or only one of his or her clerks once I enter my insolvency process with you?
  7. How did I feel after meeting the people at their office after my first consultation?
  8. Do you practice exclusively in the bankruptcy/insolvency area?
  9. Do you have experience in only personal insolvency matters, only corporate insolvency matters, or both?
  10. Do you have enough experience and the time to handle my matter?
  11. Will you communicate in a timely manner with me throughout?
  12. So how does this process really work and who do you really work for and what difference does it make?

We hope that you found this checklist useful.

Is this checklist everything the layperson needs to know?

When developing this vlog a while back, we started thinking about all the other things that the honest but unfortunate stressed out person in financial trouble needs to know. We looked around for an appropriate book on Canadian personal insolvency but, we couldn’t find one! We found many resources for lawyers, professional trustees and academics, but nothing for the person in financial trouble. So, we just kept writing and writing, and this ended up in an eBook titled:

 

FREE OFFER FROM IRA SMITH TRUSTEE & RECEIVER INC., A LICENSED INSOLVENCY TRUSTEE

So here is our offer to you. If you would like to receive a complimentary copy of our new eBook which has just been listed on Amazon.com, please subscribe to our blog email list in the form provided on this vlog. We have already sent to all of our subscribers an email with information as to how to get access to their free copy. By clicking on the above link and subscribing to our Brandon’s Blog, you can get one too. No one will ask you for a credit card, PayPal, or any other form of payment. This offer is limited and available only to our blog subscribers as our way of saying thank you.

What should you do if you have too much debt?

Call us today. If you or your company is trapped in high debt, you need the Ira Smith Team to help you manage the situation before it reaches a critical stage where bankruptcy or receivership is your only option. We have been able to help many people and companies carry out successful debt settlement programs or corporate restructuring and turnarounds. It all began with a first consultation. The first step is a realistic cash-flow budget.

We know full well the discomfort and tension excessive debt can create. We can help you to eliminate that pain and address your financial issues supplying timely, realistic and easy to implement action steps in finding the optimal strategy created just for you.

Call Ira Smith Trustee & Receiver Inc. today. Make a free appointment to visit with one of the Ira Smith Team for a totally free, no-obligation assessment. You can be on your path to a carefree life Starting Over, Starting Now. Give us a call today so that we can help you return to an anxiety-free and pain-free life, Starting Over, Starting Now.

Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life, Starting Over, Starting Now.

licensed insolvency trustee

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HOW SECRET REAL ESTATE FLIPPING BECOMES COSTLY FLOPPING

receiver mortgagee $6.2 million flipped $9 million, property flip, real estate flipping, bankruptcy, professional trustees, receiver, Receiver, receivership, trustee, ira smith trustee, Ahmed Baig, Soundair Corp., restructuring and turnaround, Ahmed Baig, Meridian Credit Union, Meridian Credit Union Limited v. Baig, bankruptcy trustee, starting over starting nowThe television air waves are clogged with real estate reality shows – buying properties, selling properties, real estate flipping properties, renovating properties, income properties… There’s a real estate show that demonstrates every facet of the business and it all looks very simple. But I’m pretty sure that not one real estate reality show told you that real estate flipping when purchasing from a Receiver in Ontario can land you in a heap of legal trouble. Here is the story surrounding the Court of Appeal for Ontario case of Meridian Credit Union Limited v. Baig, 2016 ONCA 150.

Real Estate Flipping

Mr. Ahmed Baig’s corporation bought a downtown Toronto property located 984 Bay Street in a receivership sale. The property was purchased from the court-appointed Receiver with court approval, for $6.2 million in August 2006. Before the deal went through Mr. Baig secretly flipped the property for $9 million, netting a tidy profit of $2.8 million. The Receiver had no clue that when Mr. Baig bought the property he’d already agreed to resell it to Yellowstone Property Consultants (Yellowstone). In fact the Receiver assumed Yellowstone was Baig’s company and neither Mr. Baig nor his lawyer corrected that misunderstanding. On the advice of counsel the deal was structured so that the property would go directly to Yellowstone to avoid duplicate land transfer taxes. What a score for a little paperwork and some creative bookkeeping!

The Flopping

It’s hard to keep a $2.8 million real estate flipping secret and in 2009 Meridian Credit Union Limited (Meridian), the first ranking secured creditor at the time of the sale, and the Applicant in the receivership case, discovered the resale to Yellowstone. Meridian sued Mr. Baig. The Receiver, obliged to maximize the return on assets of any sale, argued it would never have recommended court approval had it known about the real estate flipping.

The Court noted that one of the terms of the Agreement of Purchase and Sale entered into between the Receiver and Mr. Baig’s company stated:

“Article 39 of the agreement of purchase and sale provided that Mr. Baig could assign the agreement to a corporation to be incorporated for the purposes of the sale with the receiver’s consent which could not be unreasonably withheld. However, in respect of any other assignment, the receiver had a consent right and its consent “may be arbitrarily withheld”.”

In the original case in the Ontario Superior Court of Justice, The Honourable Mr. Justice F.L. Myers found that:

“Apart from the normal circumstances where any buyer would be reluctant to tell its vendor that there was another buyer available who would pay substantially more for the property, the fact that the sale occurred in a receivership is important. A receiver requires approval of the court to make a material sale of the debtor’s property. To obtain court approval, a receiver must establish that it engaged in a fair and commercially reasonable process to try to obtain fair market value for the property to maximize realization for the creditors. See: Royal Bank of Canada v. Soundair Corp., 1991 CanLII 2727 (ON CA), 1991 CanLII 2727 (ONCA). If a Receiver learns that it has undersold property it can be in a very difficult position in which it is contractually bound to seek court approval for its sale but it must, at the same time, disclose to the creditors and to the court that it has not maximized realization.”

The Honourable Mr. Justice Myers made the finding that Mr. Baig is liable to Meridian for fraudulent misrepresentation in an amount to be determined by the court.

The Appeal Court Ruled On The Real Estate Flipping

Upholding the lower court decision, the Court of Appeal found Ahmed Baig had deliberately misled the Receiver handling the receivership by failing to alert them to the resale through the real estate flipping. “In certain circumstances, silence and half-truths can amount to a misrepresentation,” the Appeal Court ruled. “Both the appellant and his counsel wanted to prevent the Receiver from discovering the sale to Yellowstone, because the $2.8 million differential in the price would jeopardize court approval,” the Appeal Court said. “Both the appellant and his counsel actively hid the agreement,” the Appeal Court found. Instead of making a fast $2.8 million Mr. Baig was held responsible for the misrepresentations made by his lawyer, who knew documents given to the receiver were false. While Baig had no obligation to disclose the resale agreement, the court decided that his failure to correct the misunderstanding that Yellowstone was his company amounted to fraudulent misrepresentation.

Would this real estate flipping decision be the same in a bankruptcy?

In my view, this ruling would also extend to bankruptcy administrations, as the bankruptcy trustee would be required to obtain either inspector or court approval, and be held to the same high standards as in this case. As professional trustees we are extremely ethical and would never support a fraud or blatant misrepresentation. We help individuals and companies throughout the Greater Toronto Area (GTA) facing financial crisis in need of restructuring and turnaround, receivership or bankruptcy that need a plan for Starting Over, Starting Now. The Ira Smith Team brings a cumulative 50+ years of experience dealing with diverse issues and complex files, and we deliver the highest quality of professional service. Don’t worry about debt; instead take immediate action.

Call us today. If you or your company is trapped in high debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy or receivership is your only option. We have been able to help many individuals and companies carry out a successful debt settlement programs or corporate restructuring and turnarounds. It all began with an initial consultation. The first step is a realistic cash-flow budget. Successful completion of such a program, will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

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DO YOU NEED A HOUSEHOLD BUDGET? MOST CANADIANS DO!

household budget, household debt, canadian household debt, G7 nations, debt-to-income, debt service, debt service obligations, binge borrowing, hot housing market, low interest rates, trustee, debt, debt settlement program, ira smith trustee, starting over starting nowMany Canadians must not follow a household budget. Canada has a lot to be proud of, but not the dubious honour of being a world leader in household debt among G7 nations. The G7 nations are Canada, United States, United Kingdom, France, Germany, Italy and Japan and together the gross domestic product of these seven member nations makes up approximately 50% of the global economy. Unfortunately we are leading our member nations in household debt.

Canada’s household budget watchdog says household debt continues to reach new highs!

According to the Parliamentary Budget Office (PBO), Canada’s budget watchdog, Canadian households could soon be carrying the heaviest debt-to-income loads in history, reaching 174% later this year. Who is the household budget watchdog in your home? If you are the average Canadian, the answer is nobody!

Any sudden economic change can spell financial disaster for your household budget.

The danger is not so much the level of the debt relative to income, but whether we can meet our debt service obligations. Do we have enough disposable income to pay our debts? In increasing numbers Canadians do not have enough disposable income to pay their debts. And, even if they do now, many Canadians are in an extremely vulnerable state.

Any sudden economic changes like a job loss or higher interest rates can spell economic disaster. According to the PBO, our household debt servicing capacity will become stretched further as interest rates rise to normal levels over the next five years. Canadians have been binge borrowing as a result of historically low interest rates and these low interest rates are in large part responsible for the hot housing market.

If you are following a household budget, have you left any room in it for an increase in interest rates, and therefore debt service costs? Canadians are getting in over their heads and could face financial crises when the housing market cools down or interest rates rise.

What will you do if the housing market cools down and/or the interest rates rise? What will it do to your household budget?

The economic warning signs are out there. If you’re trapped in high household debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy is your only option. We have been able to help many individuals carry out a successful debt settlement program. The first step is a realistic household budget. Successful completion of such a program, will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

If you’re like many Canadians on the brink of a financial crisis, you need the help of a professional trustee today while you have options. The Ira Smith Team can help before disaster strikes. There is a way to manage debt Starting Over, Starting Now. Contact us today.

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SENIOR CITIZEN DEBT RELIEF: DO CANADIANS BELIEVE CPP/QPP WILL BE ENOUGH?

senior citizen debt relief

Introduction

Believe it or not, when it comes to senior citizen debt relief, many Canadians believe that they can comfortably retire on Canada Pension Plan (CPP) and Old Age Security (OAS) benefits alone. According to a 2014 Bank of Montreal study:

  • 89% of Canadians said they expected CPP or the Quebec Pension Plan to fund part of their retirement
  • 31% said they expected to rely heavily on their CPP/QPP

Is expecting the government to fund your retirement realistic?

No! Paul Shelestowsky, a senior wealth adviser with Meridian Credit Union in Niagara-on-the-Lake, Ontario believes that Canadians are playing a dangerous game with their future by expecting the benefits of making up for meagre savings. “CPP and OAS were never meant to form somebody’s retirement plan. They were meant to augment it and help as one of the pieces of the puzzle,” Mr. Shelestowsky says.

Do you know how much you’d earn if CPP and OAS were your only sources of income in 2015?

Your net income would be $17,883/year or $1,490/month. Could you possibly live out your golden years in the manner you had imagined with such a scant income? How would you ever obtain senior citizen debt relief?

If you’re like many Canadians you’re in a total state of shock right now. In 2013, a Leger Marketing survey for H&R Block found that 7 out of 10 non-retired Canadians were unaware of how much money CPP pays out monthly. The maximum in 2015 was $1,065 a month, but this is the maximum. The average CPP payment is only about $550.

What about senior citizen debt relief?

How many of you could maintain close to your current lifestyle on $1,490/month? It would be hard enough to pay your monthly bills, let along pay down your liabilities. Yet seniors are adding to their financial load even faster than the general population, with the average Canadian senior owing approximately $15,000. This is a serious issue and as a result, we’ve done a series of blogs/vlog about this issue:

Your solution

If you’re in need of senior citizen financial relief, you need a professional trustee to help you manage your financial problems before it reaches a critical stage where bankruptcy is your only option. We have been able to help many seniors carry out a successful debt settlement program. Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

You should never take liabilities into retirement. NOW is the time to deal with financial problems; not once you’re on a seriously limited income and barely making ends meet. Sit down with a professional trustee and discuss your options. We’re experts on dealing with senior citizen debt relief and not so senior citizen financial issues. With immediate action and the right financial plan in place, you can be well on your way to a debt-free life Starting Over, Starting Now. Contact Ira Smith Trustee & Receiver Inc. today. Help is only a phone call away.

 

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#VIDEO: DOES SURPLUS INCOME IN BANKRUPTCY SOMETIMES MAKE YOU FEEL STUPID?#

If you don’t know what surplus income in bankruptcy is don’t feel that you aren’t as smart as the next person because most people don’t know what it means or how it is even possible. We hope this short video will explain things easier for you.

We have previously written about surplus income in bankruptcy in our blogs:

On the list of items that generally seems to be difficult for many individuals to understand is how there can be surplus income in bankruptcy. The reason for the confusion is because it has nothing to do with the normal usage of the word “surplus”, being “more than what is needed or used; excess”.

What is surplus income in bankruptcy?

Within a personal bankruptcy, the context is a measure of what a bankrupt has to pay to the Trustee month-to-month. It is one of the aims of the Canadian bankruptcy system to balance the discharge of one’s personal debt with the expectation of the creditors that they should be paid.

To allow Canadians to keep a basic standard of living during the personal bankruptcy procedure, the government features collection thresholds on income (after income tax as well as certain deductions) meant to enable the bankrupt to keep a basic standard of living while contributing an amount to the Trustee for the benefit of his or her creditors.

Exactly how is the surplus income in bankruptcy payment determined?

The surplus income payment is determined according to a prescribed surplus income calculation mandated by the federal government, without any distinction for the area somebody lives in. To learn exactly what your surplus income in bankruptcy obligation would be, if any, you need to speak to a Trustee.

Surplus income in bankruptcy thresholds are structured based on national “poverty line” stats and the thresholds are set regardless of what part of the country or city that you live in. Surplus income in bankruptcy has nothing to do with what you have left over in funds every month. It is a federal solution which takes your monthly after-tax wages or salary, allows for a specific number of non-discretionary expenses, and takes into account your family size. Your Trustee then inputs this information into the government mandated formula, to calculate your surplus income in bankruptcy obligation.

If you have too much debt, contact us

If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

If you’re experiencing serious debt issues with the CRA, or for any reason, contact a professional trustee for a free, no obligation consultation. The Ira Smith Team does not try to write new insolvency law or tax law. Rather, we will evaluate your situation within the existing statutes, and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal. Starting Over, Starting Now you can be debt free with the help of a professional, licensed trustee in bankruptcy. Contact us today.

surplus income in bankruptcy, ira smith trustee, starting over starting now, debt, consumer proposal, bankruptcy, credit counselling, debt consolidation, bankruptcy alternative, surplus income payment, surplus income calculation

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CORPORATE BANKRUPTCY SERVICES: WHO WILL GET ON THE 2016 LIST?

corporate bancruptcy services, bancruptcy, corporate bankruptcy services, Canadian industries, oil and gas industry, automotive industry, construction industry, bankruptcy, bankruptcy leader, lines of credit, home-equity loans, car leases, credit cards, mortgages, debt, ira smith trustee, starting over starting now, corporate bankruptcyWhich industries may require corporate bankruptcy services in 2016?

Canada and Canadians are facing serious economic challenges, and certain industries have been much harder hit than others. Oil and gas, automotive and construction have taken the biggest hit and there are no clear signs of recovery any time soon. They may very well require corporate bankruptcy services (sometimes misspelled corporate bancruptcy services) in 2016. And, according to Statistics Canada, accommodation and food services, transportation and warehousing, and information and cultural industries experienced the biggest increase in insolvencies.

Our list of the top candidates for corporate bankruptcy services in 2016

  • The oil and gas industry: According to Bloomberg business, the oil price crash is taking a heavy toll on Canada and the worst is yet to come. As a result, Calgary is taking the brunt of it with crime on the rise, house prices falling rapidly and food banks being overwhelmed. “We all know someone who has lost a job,” Naheed Nenshi, the city’s mayor, said in a speech this month, lamenting the “funeral”-like atmosphere in the business community. The bloodletting isn’t over yet. Already 40,000 oil and natural gas positions have been lost in the last 18 months and many more job cuts are predicted in 2016.
  • The automotive industry: The auto industry is on very shaky ground. Mexico and Tennessee have replaced Michigan and Ontario as the North American auto industry’s manufacturing hubs. Canada’s auto trade has gone from a surplus of $15-billion in 1999 to a deficit of $18-billion in 2013; half of which came from trade with Mexico. Production commitments made by General Motors Co. (GM), including those made within the corporate bankruptcy services that created “Old GM” and “New GM”, and Chrysler Group LLC as part of their $13.7-billion bailouts, are set to expire at the end of 2016, leaving them free to close plants and lay off workers if they see fit. According to Charlotte Yates, dean of social sciences at McMaster University and head of the new Canadian Automotive Policy Partnership, if Canada is determined to keep trying to compete in today’s globalized auto industry, it can’t do it without subsidies.
  • The construction industry: The construction industry is a corporate bankruptcy services leader. Industry Canada’s July bankruptcy statistics have ranked the construction industry as one of the leaders in bankruptcies and experts attributed the statistics to a risky business with poor management and cash-flow monitoring.

Canadians and their debt

Canadian consumers are the most indebted in the world according to Tom Bradley of Steadyhand funds, “Lines of credit, home-equity loans, car leases, credit cards, high-ratio mortgages—they’re well-versed in them all. The level of consumer debt will make it difficult to attain the growth and employment levels of previous cycles; past purchases were borrowed from the future. Extensive use of leverage will also make Canadian families and the overall economy vulnerable in the next economic slowdown”.

If you’re like many Canadians and Canadian corporations experiencing serious financial problems, now is the time to deal with them. The Ira Smith Team will tackle your financial issues head on and with immediate action and a solid plan you can be on your way to a debt free life Starting Over, Starting Now. Contact us today.

 

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MEDICAL DEBTS? DON’T BE FOOLED BY UNIVERSAL HEALTHCARE

medical debts, free healthcare, universal healthcare, healthcare debt, disability, long-term care, prescription drugs, medical debt, medical debt assistance, medical dental, medical bills, debt, ira smith trustee, starting over starting nowMedical debts? Don’t we have free healthcare?

As Canadians we pride ourselves on our universal healthcare system, which we view as free healthcare. We therefore assume that medical debts cannot arise. However, when I read that Pamela Bowes, manager of the Money Matters and workplace programs at Wellspring in Toronto recently said, “I have had more people tell me they worry more about money than they worry about cancer”, I was quite frankly shocked. Clearly Canadians don’t understand that even though we have universal healthcare, we can get into serious financial problems due to medical debt.

Medical debts without enough private insurance coverage

Here’s the reality of healthcare debt in Canada. According to a 2014 BMO Wealth Institute Report:

  • Without private coverage, Canadians can expect to spend an average of $5,391 a year on out-of-pocket medical dental costs after 65
  • Disability poses a large threat: Between ages 65 to 74, 26.3% will be become disabled
  • If the disability is mild, there may be a need for changes to a home, such as electric wheelchairs ($2,050 and up) and other devices such as scooters ($1,000-$5,000) and walkers ($150 and up)
  • If a person is severely disabled, he/she may need a personal care worker at a cost of $16 to $30 an hour or a registered nurse at a cost of $24 to $76 an hour

Medical debts for long-term care

Long-term care is another area where Canadians are totally unprepared. Stephen Frank, vice-president of policy development and health at Canadian Life and Health Insurance Association reports that 75% of Canadians have no long-term financial plan for long-term care if they need it. Long-term care isn’t covered under the Canada Health Act. Home care may be covered, partly covered or not covered at all depending on the province you reside in and our annual income. According to Statistics Canada there is about a:

  • 10% chance of needing long-term care by age 55
  • 30% chance by 65
  • 50% chance by 75

A nursing home in Ontario can cost between $14,000 and $132,000 annually, while long-term care averages $20,800 to $29,300 (Senioropolis). Add to this the cost of certain medical treatment and the medical bills could pile up. Provincial plans cover most prescription drugs for seniors 65 years of age and older, but younger retirees have to pay for their medications unless they have an extended healthcare plan. And, then there are certain drugs that are not covered under the provincial plans, regardless of your age. This may leave a Canadian with thousands of dollars of medication debt.

Do you have too much debt? Contact us

If you are an individual or company who needs to free themselves from the stress and strain of too much debt, and especially if you have been told your situation is hopeless, Ira Smith Trustee & Receiver Inc. can prepare and carry out the plan made just for you, to free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

If you’re struggling with a mountain of unexpected medical debts and need medical debt help, or any serious debt issues, help is just a phone call away. Starting Over, Starting Now we can help you deal with what seems like insurmountable debt and breathe easy again. Contact the Ira Smith Team today.

 

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407ETR BANKRUPTCY DEBT CHECKLIST: YOU NEED IT NOW!

407, 407 bankruptcy, 407 debt, 407 debt settlement, 407 etr, 407 ETR bill, 407 ETR debt, 407 ETR debt settlement, 407ETR bankruptcy, 407ETR bankruptcy debt, Bankruptcy, bankruptcy alternative, Bankruptcy and Insolvency Act, BIA, Consumer Proposal, credit counselling, debt consolidation, debt settlement, Highway 407 Act, Ira Smith Trustee, Matthew David Moore, Moore Decision, plate denial, professional trustee, SCC, starting over starting now, Superintendent of Bankruptcy, Supreme Court of Canada, trustee, trustee in bankruptcyTo access the 407ETR bankruptcy debt checklist, simply click on the picture either at the top or bottom of this blog. It will take you to our secure website for access.

407ETR Bankruptcy Debt: How did the Checklist come about?

407ETR bankruptcy debt was the topic of last week’s blog 407ETR DEBT SETTLEMENT: OUR NEWEST GUILT FREE WAY TO DO IT, we reported on the Supreme Court of Canada (SCC) decision in 407 ETR Concession Co. v. Canada (Superintendent of Bankruptcy), 2015 SCC 52 (CanLII) (the Moore Decision).

To summarize that decision, the SCC dismissed the 407ETR’s appeal because the discharge provisions of the BIA override the plate denial provisions of the Highway 407 Act.

We also reported that the effect of the SCC’s decision is that:

  1. Pre-bankruptcy amounts owed to 407ETR are deemed to be provable claims under the BIA and can no longer be collected through plate denial under the Highway 407 Act following a customer’s discharge from bankruptcy
  2. Where a person has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial, which are provable claims under the BIA, 407ETR will credit these amounts (plus interest and fees incurred on those amounts) on the person’s 407ETR bill, upon receipt of a Notice of Bankruptcy, and an Order of Discharge or a Certificate of Discharge.

In both cases, once the amount owing is credited, then the person is free to obtain plate renewal from the Province.

But the Court won’t tell me how to get my plate after getting rid of my 407ETR bankruptcy debt!

That is all well and good, but the SCC did not and would not tell the “man on the street” how to go about having the combination of the 407ETR and the Province of Ontario reflect all this and issue a new vehicle plate registered in the name of the discharged bankrupt. So we did!

Where do I get these tools?

We prepared a checklist so that discharged bankrupts and their advisors will have a roadmap as to what needs to be done and what tools are required in order for 407ETR and the Province to have the proper information in order to amend their records and allow for the vehicle plate registration.

To access the 407ETR bankruptcy debt checklist, simply click on the picture either at the top or bottom of this blog. It will take you to our secure website for access.

 

Do you have too much 407 debt and other debts?

Instead of going deeper into debt seek the help from a professional trustee, even if you’re not considering bankruptcy at this stage. A trustee in bankruptcy will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. With immediate action and the right plan the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.

407, 407 bankruptcy, 407 debt, 407 debt settlement, 407 etr, 407 ETR bill, 407 ETR debt, 407 ETR debt settlement, 407ETR bankruptcy, 407ETR bankruptcy debt, Bankruptcy, bankruptcy alternative, Bankruptcy and Insolvency Act, BIA, Consumer Proposal, credit counselling, debt consolidation, debt settlement, Highway 407 Act, Ira Smith Trustee, Matthew David Moore, Moore Decision, plate denial, professional trustee, SCC, starting over starting now, Superintendent of Bankruptcy, Supreme Court of Canada, trustee, trustee in bankruptcy

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CANADA REVENUE AGENCY SCAMS: IF YOU READ ONE ARTICLE, READ THIS ONE

canada revenue agency scams
canada revenue agency scams

Canada Revenue Agency scams

Canada Revenue Agency, or as it is also known, CRA, has noticed an increase in telephone scams where the caller claims to be from the CRA but is not, and is asking Canadians to beware. There is a CRA newsletter on the issue of Canada Revenue Agency scams and the fake Canada Revenue Agency scammers. These calls are fraudulent and could result in identity and financial theft, or vulnerable people being bullied into making a payment to a bogus Canada Revenue Agency officer. They will try to make you believe that the payment is going to a legitimate CRA account, but it isn’t. There is no such CRA program.

Canda Revenue Agency scams: Anyone is a target

Everyone is at risk of having their identity stolen and it’s easy to be taken in. Most people get a little nervous when they receive a phone call from the CRA; it’s like having a police car driving right behind you even if you’re not doing anything wrong. Recognizing the importance of warning the public about identity theft, we have already published several blogs on the subject:

Canada Revenue Agency scams: It will never happen to me, right?

A recent event prompted us to reach out and let you know that anyone can be a target. Ira Smith of Ira Smith Trustee & Receiver Inc. recently received a voicemail at home from someone claiming to be from CRA collections. Being a seasoned, professional trustee and aware of the recent uptick in identity fraud scams, Ira was immediately on guard when the caller asked him to have his SIN number ready for security purposes. Ira Googled the phone number that was left on the voicemail and sure enough, it was a scam.

Click below to listen to the CRA scam voicemail

Canda Revenue Agency scams: Do the RCMP know about this?

According to Corporal Josée Rousseau of the RCMP’s anti-fraud department, police first started seeing the scam two years ago. Callers work from boiler rooms and randomly phone people from purchased calling lists. They tell their victims they’re from Canada Revenue Agency, and they owe money in unpaid taxes. The RCMP also stated the callers are aggressive and often claim they will come to the victim’s house and arrest them if the money is not paid. They say many of the callers speak with a foreign accent and insist the money be paid immediately, either by credit card or via Western Union.

If you get a call from someone claiming to work for the CRA and want to confirm the authenticity of the call contact the CRA at 1-800-959-5525 for business-related calls and 1-800-959-8281 for individual calls. Or you can do as Ira did and Google the number and see what other people are reporting.

Canda Revenue Agency scams: Tips to identify possible scams

Here are some tips from the Canada Revenue Agency to help you identify possible tax scams:

The CRA:

  • never requests prepaid credit cards;
  • doesn’t ask for information about your passport, health card, or driver’s license;
  • does not share your taxpayer information with another person, unless you have provided the appropriate authorization; and
  • never leaves personal information on your answering machine or asks you to leave a message containing your personal information on an answering machine.

When in doubt, ask yourself the following:

  • Is there a reason that the CRA may be calling? Do I have a tax balance outstanding?
  • Is the requester asking for information I would not include on CRA forms with my tax return?
  • Is the requester asking for information I know the CRA already has on file for me?
  • How did the requester get my email address or telephone number?
  • Am I confident I know who is asking for the information?

If you have too much debt you need to take action NOW

Have you been a victim of identity theft or financial theft? If for any reason you’re facing serious financial difficulties, contact Ira Smith Trustee & Receiver Inc. today. We will review your file and take immediate action to get you back on a path towards debt-free living Starting Over, Starting Now.

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407 ETR DEBT SETTLEMENT: OUR NEWEST GUILT FREE WAY TO DO IT

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This 407 ETR debt settlement blog was reviewed earlier this week by Mr. Brian Empey, Partner, Goodmans LLP. We wish to express our thanks to Mr. Empey who made a valuable suggestion which we incorporated.

We have updated this blog for 2018 where 407 ETR has implemented some changes. Check out our blog 407 ETR RATES: THE ONLY 407 ETR RATES DEBT SETTLEMENT PLAN GUARANTEED TO ACTUALLY WORK for the update.

 

In January 2014 in our blog titled 407ETR FAIRNESS-ONTARIO COURT OF APPEAL ENSURES FRESH START we described to you the decision of the Court of Appeal for Ontario in 407 ETR Concession Company Limited v. Superintendent of Bankruptcy (In the Matter of the Bankruptcy of Matthew David Moore) (the Moore Decision).

The highway’s owners appealed that decision to the Supreme Court of Canada (SCC). On Friday, November 13, 2015, the SCC released three decisions all dealing with the same basic issue: does the federal Bankruptcy and Insolvency Act (BIA) take paramountcy over provincial laws purporting to deal with the issue of debt and bankruptcy in Canada. The SCC answer was a resounding YES!

What did the SCC decide about the provincial law about 407 debt settlement?

The SCC dismissed the appeal of the ETR. The SCC considered whether the plate denial provisions of the Highway 407 Act conflicted with the discharge provisions of the BIA. ETR’s position was that provincial law about plate denial should apply following a person’s discharge from bankruptcy. The Attorneys General for several provinces, including the Province of Ontario, advanced positions in support of the provinces’ jurisdiction to legislate in vehicle licensing.

The SCC’s decision upheld the Moore Decision which found that the discharge provisions of the BIA override the plate denial provisions of the Highway 407 Act.

What is the effect on ETR debt settlement?

The effect of the SCC’s decision is that pre-bankruptcy amounts owed to the ETR are deemed to be provable claims under the BIA and can no longer be collected through plate denial under the Highway 407 Act following a customer’s discharge from bankruptcy. Therefore, 407 etr debt settlement is possible.

Where a person has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial, which are provable claims under the BIA, 407 ETR will credit these amounts (plus interest and fees incurred on those amounts) on the person’s 407 ETR bill, upon receipt of a Notice of Bankruptcy, and an Order of Discharge or a Certificate of Discharge.

In both cases, once the amount owing is credited, then the person is free to get plate renewal from the Province.

What will 407 ETR do next?

407 ETR must and is abiding by the SCC decision. They will set up a protocol whereby those who have already been discharged from bankruptcy and have been denied a plate renewal will be able to prove they have been discharged, get the 407 ETR debt, including penalty and interest, reversed, and get a plate renewal.

Those who are still in the middle of their bankruptcy proceedings and not yet discharged will be able to apply to have a plate renewal, once they are discharged from bankruptcy and prove it to 407 ETR.

Interestingly enough, there was no evidence whatsoever in any of the Court cases, including this one before the SCC, as to the 407 ETR’s right to deny anyone credit. When you get your transponder, the 407 ETR is actually extending credit to you, in the form of use of the toll highway in return for the toll charges they expect you to pay. It is no different from the bank loaning you money, and expecting you to repay it in full, with interest.

Will 407 ETR deny extending credit to discharged bankrupts? Will they only issue a new transponder to discharged bankrupts who give them a large cash deposit so that use of the 407 ETR will only be on a “cash and carry” basis? We don’t know, they have so far been silent on the issue, but it is still early in the game.

Do you need 407 etr debt settlement and a plan for your other debts too?

Instead of going deeper into debt seek help from a professional trustee, even if you’re not considering bankruptcy at this stage. A trustee in bankruptcy will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or bankruptcy. With immediate action and the right plan, the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.

Call a Trustee Now!