Tag: too much debt

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EQUIFAX DATA BREACH: 3 THINGS YOU MUST DO NOW

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Introduction

You may have listened to the news about the Equifax data breach.

Equifax originally said that it impacted only a limited number of Canadians. They have now amended that report to say that 100,000 Canadians are affected. If your details were endangered, Equifax intends to get to you straight away with support as quickly as they have determined that.

In comparison, the Equifax data breach may have affected more than 143 million Americans!

Exactly what took place?

According to Equifax, the violation lasted from mid-May through July 2017. The hackers accessed people’s names, Social Security numbers, birthdays, addresses and, in some instances, vehicle driver’s permit numbers. They also swiped charge card numbers as well as disagreement files with individual identifying information. And they also obtained details of people in the UK and Canada too.

Equifax, is one of the two Canadian credit bureaus, was the subject of a data breach by hackers. This violation has affected lots of Americans, but for now Equifax believes the Equifax data breach has affected just a restricted number of Canadians. Equifax reminds everyone that the hacked US website is for US social security numbers, and does not work for Canadian consumers.

What information was taken?

In Canada, the hackers may have gotten sensitive details, such as names, addresses, and Social Insurance Numbers. Equifax believes that only a limited number of Canadians could have been impacted. They are working to figuring out the exact information. Equifax will update this information as they learn more.

Litigation and investigations begin

Considering that it is one of the largest hacks of the year, the compromised business is now dealing with loads of lawsuits. At least one legal action claims, among other things, that Equifax pumped up financial results to bring up the share price, prior to the hack being revealed. No allegations have yet been proven in Court.

After Equifax announced the Equifax data breach violation about $3 billion was cleaned away from the business’s market cap as its shares dropped by 17% immediately following the disclosure. Lawmakers are concerned that people’s delicate information was not correctly safeguarded. Investigations are ongoing.equifax data breach

Exactly how will this impact me?

The thing is that people who never bought any Equifax services will be negatively affected by the hack. If your details were jeopardized, it may put you at the threat of identity theft. Identification theft is when a person steals your personal information to open new accounts or dedicate activity utilizing your name. We urge you to check your credit score and stay alert in checking your credit card and any other financial account statements.

Equifax data breach: Have my details been endangered?

If you’ve ever before made an application for credit, as an example by requesting a charge card or a cellular phone service, Equifax has gathered your details. Equifax will only contact you if they have identified that your information has been breached. That is why we strongly recommend that you must carefully check all account statements you receive to make sure that: 1. You recognize the account as being yours; and 2. You do not see any suspicious activity in your accounts.

Equifax is the largest credit report bureau in Canada and is extensively made use by lenders, including banks, to prove creditworthiness. Equifax accumulates information from your bank as well as other sources to find your credit history, which is then given to lending institutions.

This case is the tip of the importance of data protection, which is something you must take very seriously. That is why IT people always recommend that you use bank-level encryption to safeguard your data. The Equifax data breach proves them right.

Canada’s privacy commissioner is interested in the Canadian data breach.

The Office of the Privacy Commissioner of Canada has received complaints and calls of concern about this data breach. The privacy commissioner is now considering the matter.

Equifax data breach: Your next steps

  1. Check your credit rating

It’s important you watch your credit report as well as your various financial accounts. That way you will be aware of any kind of adjustments or suspicious activity.

You can do what is called a “soft” credit check on yourself at no cost using one of two Canadian services. We explain it all in our blogs:

  1. Screen your credit card accounts as well as bank accounts

Your charge card and bank accounts are additionally important to watch. Keep an eye out for any transactions you did not make or approve as well as report any problems to your bank or credit card company right away.

  1. Record any theft or crime

If you find a suspicious activity that could involve the theft of either your identity or assets or other criminal offences, report the event to your regional police. You could also report the rip-off or fraud to the Canadian Anti-Fraud Centre. Inform your financial institution as well as bank card firms. As well shut any accounts and cards that could have been hacked instantly.

To find out more, please call Equifax at 1-866-828-5961 or visit their website here.

Equifax data breach: Are you struggling with too much debt?

If you’re struggling with too much debt, give the Ira Smith Team a call. We can help with budgeting and credit counselling so that you can get back on track Starting Over, Starting Now.

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BUYING REAL ESTATE FROM A RECEIVER: READ, REMEMBER AND FOLLOW THE CONTRACT LAW FINE PRINT

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Buying real estate from a receiver: Introduction

Buying real estate from a receiver is a little different from a normal real estate transaction. In this Brandon’s Blog I describe a recent Court of Appeal Decision that shows it can even be tricky for the receiver.

Buying real estate from a receiver: Court appointed receiver+real estate

K was the court-appointed receiver (the “Receiver”) of the assets, properties and undertaking of a lakeside hotel in British Columbia, Carmel Cove Resort & Spa Inc. On October 25, 2013, the Receiver went into a contract in writing to sell the real property owned by the company in receivership to the participant, B.C. Ltd. (the “Purchaser”). The Contract of Purchase and Sale (the “Contract”) was in the form of the standard agreement of the British Columbia Real Estate Association and the Canadian Bar Association (B.C. Branch).

Buying real estate from a receiver: Contract fine print example

One of the conditions in the Contract was that the deal was subject to approval by the Supreme Court of British Columbia (the “Court”). It had to be obtained within twenty-one (21) days of acceptance of the Contract by both parties. Clause 3 in the Contract (“Clause 3”) stated that unless each condition was either waived or satisfied by written notice provided by the benefiting party to the other party on or before the date specified for every condition, the Contract would end.

On November 14, 2013, the twenty-first day after the Receiver’s approval of the deal, an application for court authorization was heard and approved. Five days later, on November 19, 2013, the Receiver gave the Purchaser written notice of the Receiver’s fulfillment of the condition for court approval.

Buying real estate from a receiver: Fine print matters

The Purchaser chose not to finish the transaction. The Purchaser refused to do so. The Purchaser claimed it was partly because it thought the Contract was terminated due to the Receiver’s failing to offer written notification on time. The Receiver ultimately sold the asset to another purchaser. It sold the property for $925,000 less than it would have obtained if the Receiver completed the sale to the Purchaser.

The Receiver expended $312,150.96 to run the resort and administer the receivership in between the collapse of the sale to the Purchaser and the sale to the succeeding buyer closing. Therefore, the Receiver began an action, suing the Purchaser for $1,237,150.96. It applied to Court for a summary trial.

Buying real estate from a receiver: Fine print can’t lie

At the trial, both sides set out their disagreements and arguments on the condition precedent issue:

  • the Purchaser recognized that the Receiver met the need for court authorization by the twenty-first day adhering to the Receiver’s acceptance of the agreement.
  • The Purchaser pointed out, nonetheless, that the Receiver did not conform with Clause 3 by offering the Purchaser written notice of satisfaction of the condition on or before the day specified for the condition; i.e.: on the twenty-first day.
  • The Receiver’s position was that Purchaser knew the outcome of the court application on the day that it was heard.
  • The Receiver stated therefore written notice was superfluous, unnecessary, and duplicative.3bestaward

Buying real estate from a receiver: Here comes the judge

The Court kept in mind that the trouble with the Receiver’s position right here was that it was, truly, an invitation to the court to reword the terms of the contract. The notification stipulation in Clause 3 was quickly parsed by any type of literate individual. It was not unclear. The clause did not need interpretation. There was no need to refer to evidence to figure out what it suggested.

By its clear language, the notification arrangement in Clause 3 needed the party benefiting from the condition– in this situation the Receiver– to give written notification– e.g.:

  • a letter.
  • an e-mail.
  • a written note in crayon on the back of an envelope.

The notification that the condition– court authorization–was obtained on or before the day defined for the condition– i.e.: not greater than twenty-one days’ after the Receiver’s acceptance.

Did the Receiver do just what Clause 3 required? It did not. Rather, it offered the Purchaser written notification 4 days later which was also 4 days too late.

The trial judge held that the failure to give written notice of fulfillment of the condition as specifically stated in Clause 3 ended the Contract. For that reason, the Court rejected the Receiver’s claim.

Buying real estate from a receiver: The appeal

The Receiver appealed the decision. The appellate court dismissed the Receiver’s application. The Court of Appeal noted that it is necessary to give effect to notice arrangements included in commercial agreements to offer assurance between the participants who contract with each other.

Buying real estate from a receiver: What if you have too much debt?

Do you or your company have too much debt due to a contract gone wrong, losing in litigation or for any other reason? If you’re trying to find a way to restructure your debt, contact Ira Smith Trustee & Receiver Inc.

Our philosophy for every person is to develop an outcome where Starting Over, Starting Now happens, beginning the minute you come in the door. You’re just one call away from taking the essential action steps to get back to leading a healthy and balanced stress and anxiety free life.

You may read the entire Court of Appeal decision by clicking here KPMG Inc. v. 0747825 B.C. Ltd., 2017 BCCA 277 (CanLII)BUYING REAL ESTATE FROM A RECEIVER 4

 

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BANKRUPTCY TRUSTEES ADVISE BANKRUPTCY IS A FINANCIAL TOOL

bankruptcy trustees, financial distress, financial tool, bankruptcy, too much debt, collection letters, collection calls, bankruptcy alternatives, personal bankruptcy, Bankruptcy and Insolvency Act, bankruptcy legislation, corporate bankruptcy, bankruptcy protection, Air Canada bankruptcy, American Airlines bankruptcy, consumer proposal, starting over starting now, bankruptcy trusteeBankruptcy trustees advise people in financial distress to think of bankruptcy as just another financial tool. Bankruptcy still carries a stigma with it for many people, but if you have too much debt, cannot repay your debts and are afraid to open the mail or answer the phone because of all the collection letters and collection calls you receive, you need to take some positive step to eliminate this stress in your life by finding a responsible and realistic solution.

Bankruptcy trustees will tell you that none of their clients wanted to call and for sure did not wish to see them. People come to bankruptcy trustees feeling ashamed, guilty and worthless. It is normal to feel that you have failed in such circumstances, but it is also important for your emotional and financial well-being to think of bankruptcy or one of the various bankruptcy alternatives as another financial tool and to use one of these tools to fix the situation for yourself.

Our media promotes the feeling that personal bankruptcy is somehow equated with failure, instead of it being described as merely a negative financial outcome for the honest, but unfortunate person. Everyone deserves a second chance, and using bankruptcy, or one of the bankruptcy alternatives is a way to get that second chance. Many people have done so in the past, and many will do so in the future; that is why Parliament created the laws forming our bankruptcy legislation, the Bankruptcy and Insolvency Act. Keep in mind, many famous people have previously filed for bankruptcy.

It is interesting that our media casts personal bankruptcy in a negative light, but shows corporate bankruptcy protection as something positive. When we heard years ago about Air Canada filing for bankruptcy protection, or more recently, American Airlines filing for bankruptcy, people did not stop flying the airlines because they were disgusted that a company would dare to make use of the bankruptcy financial tool, but rather, people were worried about whether or not they would lose any of their airline point privileges!

Why can’t we think of personal bankruptcy as the same positive step forward financial tool in dealing with an unfortunate situation?

Bankruptcy trustees are the people licensed by the Government of Canada to administer the provisions of the Bankruptcy and Insolvency Act. Bankruptcy trustees need to obtain a full understanding of your assets and liabilities and understand your personal situation in order to advise whether you should go bankrupt, or if you are a candidate for a consumer proposal instead. No doubt people seeking the assistance of bankruptcy trustees have many questions needing to be answered also.

Are you suffering financially for any reason? Don’t be ashamed; contact Ira Smith Trustee & Receiver Inc. Debt won’t go away on its own. You need professional help Starting Over, Starting Now so that you can regain your dignity and resume on a path to debt free living.

Watch this 5 minute video to listen to how another bankruptcy trustee explains it.

http://youtu.be/GCcCHJl1V44

 

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CONSUMER PROPOSALS: WHAT YOU NEED TO KNOW

CONSUMER PROPOSALS: WHAT YOU NEED TO KNOWBefore 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.

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