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BANKRUPTCY FILINGS FREE PUBLIC RECORDS: WILL FREE SEARCHES TURN YOU INTO A PERSONAL BANKRUPTCY RECORDS SLEUTH FOR THE TRUTH

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After writing and recording this blog, the Office of the Superintendent of Bankruptcy issued a position paper on measures to limit public disclosure of personal information while meeting legislative requirements to establish a public record. So watch next week for our video and blog titled “ONLINE BANKRUPTCY SEARCH: THIS CANADIAN INSOLVENCY RECORDS SEARCH RENEWAL (IRS) WON’T CHASE YOU FOR MONEY!” where we will describe what they have advised to date.

Bankruptcy filings free public records: Introduction

Ottawa’s planning to drop the $8 online search cost for personal bankruptcy records. The change to bankruptcy filings free public records may make it harder for some people. Especially those with earlier economic problems to get a job or a home.

Bankruptcy filings free public records: No cost personal bankruptcy records search

The Office of the Superintendent of Bankruptcy Canada is updating its online bankruptcy document search that allows users to get access to public documents on bankruptcy estates. Their database allows users to search online for bankruptcies as well as receiverships. The have not explained yet why they are considering dropping the search cost so that the information becomes bankruptcy filings free public records.

Bankruptcy filings free public records: Why does a licensed insolvency trustee need to search for bankruptcy filings

A licensed insolvency trustee (LIT) maintains an account with the Superintendent of Bankruptcy. A LIT is allowed to do a bankruptcy search through its account for free. The bankruptcy system requires a LIT, prior to accepting either a personal bankruptcy or consumer proposal file, to do such a search.

The reason is that a LIT is required to find if the person considering filing has ever used the Canadian insolvency system before. If they have, what were the circumstances and what was the outcome?

This is important because one aim of the Canadian insolvency system is rehabilitating the honest but unfortunate debtor. For the person who is currently in financial trouble, the LIT must understand past problems, if any. The LIT must also find if the current problems are a result of the same behaviour and reasons as in the past or something different.

The LIT then has a duty to take all these factors into consideration when advising the person what their options are and the recommendations the LIT will make.


Bankruptcy filings free public records: Who else normally searches bankruptcy filings public records?

Right now, for $8 per search, employers, property owners, marketers or just meddlesome neighbors can conveniently access minimal information about an applicant’s, occupant’s or neighbour’s bankruptcy data. This will allow them to make assumptions about that person’s financial problems, credit worthiness or even trustworthiness.

The problem in doing so is that it is without proper context. If the federal government eliminates the $8 search fee, personal bankruptcy records can be searched for free.

Bankruptcy filings free public records: Reasons for personal bankruptcy

There can be many reasons why a person filed either a consumer proposal or for bankruptcy; divorce, illness, accident or plain overspending are just a few of the possibilities.

Bankruptcy filings free public records: What will personal bankruptcy case records search show us?

A search only tells the:

  • date when the specific person filed for bankruptcy or the consumer proposal;
  • overall worth of their assets and obligations;
  • name of the LIT;
  • whether they successfully completed their consumer proposal or obtained their absolute discharge from bankruptcy; and
  • discharge date of the LIT.
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    bankruptcy filings free public records


Bankruptcy filings free public records: Will this change to find personal bankruptcy records mean anything really?

The $8 cost likely limits random searches. A potential employer or landlord will not be deterred by this cost, but a nosy neighbour will be. This charge therefore provides some small security to personal information.

I believe the federal government earns about $4 million a year in bankruptcy search fees. That $4 million annually is a rounding error in terms of the size of the federal government’s budget.

However, in times where our Prime Minister Trudeau and our Finance Minister Morneau are looking to increase revenue, why give away $4 million? The government could use some of that money to give financial education to Canadians.

For the reasons I stated above, I doubt dropping the $8 search fee will increase the number of searches. You still have to know how to do the search. Nosy neighbours probably won’t spend the time to learn.

Equifax and TransUnion pay the Superintendent of Bankruptcy to get access to the bankruptcy search records. Therefore, the bankruptcy or consumer proposal information is available, if granted authorization, by obtaining a person’s credit report.

The Superintendent of Bankruptcy stated it will certainly protect the documents from trolling marketers. Exactly how they will do this has not been described. They also have not yet made public the date the searches will start to be free.

If you have actually been declined for a loan through a normal lender, then that is a signal that you have debt concerns that have to be handled.
Contact Ira Smith Trustee & Receiver Inc. today. We are professional trustees. As such, the Canadian government licenses and supervises us. First, we will assess your situation and help you to come to the very best possible solution for your troubles.

When you come to us for your free consultation, we first check and figure out with you if one of the bankruptcy alternative choices is best for you. These include credit counselling, debt consolidation or a consumer proposal. If none of those options are available to you, only then will we discuss the bankruptcy route. Starting Over, Starting Now we can help recover you to financial health.

After writing and recording this blog, the Office of the Superintendent of Bankruptcy issued a position paper on measures to limit public disclosure of personal information while meeting legislative requirements to establish a public record. So watch next week for our video and blog titled “ONLINE BANKRUPTCY SEARCH: THIS CANADIAN INSOLVENCY RECORDS SEARCH RENEWAL (IRS) WON’T CHASE YOU FOR MONEY!” where we will describe what they have advised to date.

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INTEREST RATES IN CANADA: ARE YOU WORRIED THAT HIGHER INTEREST RATES WILL CAUSE YOU UNDUE FINANCIAL HARDSHIP POSSIBLY CAUSING BANKRUPTCY

bank interest rates canada

Interest rates: Introduction

Canadians have been on a borrowing binge due in large part to very low rates. But, the tide is beginning to change and interest rates, although still low, are beginning to creep up. This rise in rates is making many Canadians very nervous. For some, it could cause serious financial hardship.

Interest rates: The threat of rising interest rates

Forum Research Inc. conducted a survey after the Bank of Canada raised rates in September and the results are quite interesting:

  • 60% of young people are at least somewhat concerned by the prospect of rising rates
  • Over 50% of Canadians think that rising rates will negatively impact their personal finances
  • 35% of Millennials aged 18 to 34 have no savings at all
  • Only 26% have an emergency fund
  • 12% expressed concern that more rate hikes were on the way and that the impact would be extremely negative

Interest rates: “It was almost like money was free”

In theory, higher interest rates should provide an incentive for Canadians to save more, but the long period with low rates have taken their toll on many. “Rates were so low for so long, it was almost like money was free,” said Forum Research president Lorne Bozinoff in an interview. “Some may have overextended themselves during that time, thinking rates will never go up.”

Interest rates: How will you cope with higher interest rates?

The question now is how will Canadians cope with higher rates? “Some households might not be able to afford an increase,” says Frances Donald, senior economist with Manulife Asset Management. “And this is where we can see defaults, first on auto loans and then on housing.”

Interest rates: Are you worried about defaulting?

Are you worried about defaulting on your loans or mortgage? Are higher rates causing you financial hardship? There’s no time to waste. Contact Ira Smith Trustee & Receiver Inc. today.

We approach every file with the attitude that your financial problems can be solved given immediate action and the right plan. Together we will explore with you all the bankruptcy alternatives available to you. I know that we can help you get back on solid financial footing, the same way we have helped many others just like you, Starting Over, Starting Now.3bestaward

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RETIREMENT PLANNING ADVISOR: HAVE YOU GIVEN ENOUGH THOUGHT TO YOUR RETIREMENT PLAN?

 

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retirement planning advisor

Retirement planning advisor: Introduction

We’ve written many blogs about Canadians who haven’t saved for their retirement and now find their golden years less than golden. You, on the other hand have been saving, perhaps with the help of a retirement planning advisor. So your retirement should be relaxing and fun filled. Unfortunately that’s not necessarily the case. You may not have given enough thought to your retirement plan.

Retirement planning advisor: When you planned for retirement, how long did you plan for?

Canadians are living much longer than past generations. In fact the fastest growing age group is centenarians (Statistics Canada). And now, new census data reveals that for the first time in history the percentage of seniors (16.9%) now exceeds the number of children (16.6%).

Have you planned for what could be a 30-year retirement? The Government of Canada is recommending just that.

Retirement planning advisor: Do you know how much money you would need to retire?

According to a 2015 BlackRock survey:

  • 40% of Canadians said they only had a general sense of how much money they’d need to retire
  • 33% said they had no idea what-so-ever how much money they’d need to retire

Retirement planning advisor: How much money will you get in government pensions?

Most Canadians depend on Old Age Security (OAS), Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS) for the all or most of their retirement income. Do you have any idea how much money this amounts to? This federal government calculator will give you a rough estimate of how much income to expect from CPP and Old Age Security once you retire.

Retirement planning advisor: Have you planned for the unexpected?

You may plan to work well into your 60s, 70s or beyond; but what will you do if you have to retire early because:

  • Your health won’t permit you to continue working
  • You have to assume the role of a caregiver for a loved one
  • You or a loved one require additional care

Even though you’ve been saving, it doesn’t mean you’ll have a well funded retirement. When making your retirement plan, take all of the things we’ve discussed in this blog into consideration.

Retirement planning advisor: How to get rid of a troublesome debt load

If you’re still carrying a troublesome debt load, you need more than just a retirement planning advisor. Now is the time to call a professional trustee. The earlier you can out debt behind you, the more you can save. Give the Ira Smith Team a call today and Starting Over, Starting Now your golden years will look a lot more golden.

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DELAYED RETIREMENT A NEW TREND: CAN GIVING MONEY TO ADULT CHILDREN COMPROMISE YOUR RETIREMENT?

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Delayed retirement a new trend: Introduction

Parents never stop wanting to help their children but there is a growing trend which can compromise the retirement of some seniors. It seems that many adult children are still financially reliant on their parents and treating them like an ATM. This makes delayed retirement a new trend.

Parents are paying for their adult children’s rent, cars, cell phones and even vacations, with money they often have to borrow. “There are quite a lot of our members, indeed, who have taken out loans to help their children and grandchildren because they have a better credit rating,” says CARP Vice President of Advocacy Susan Eng.

Delayed retirement a new trend: Grown children have a message for parents

A report by CIBC demonstrates clearly how helping adult children financially can negatively impact retirement plans.

  • 66% of parents are dipping into their nest eggs to support their adult children
  • 47% of parents said they have had to cut into their personal savings to help their children
  • 44% said they have had to limit travel or spending on themselves
  • 25% of parents are giving their adult children $500 or more each month
  • 71% helped their children by offering free room and board in the family home
  • 47% helped with groceries and household expenses
  • 35% helped with cell phone bills
  • 20% have delayed retirement
  • 14% have delayed selling or downsizing their home

Delayed retirement a new trend: Forget what the retirement savings calculator said!

Unfortunately, it seems that parents supporting adult children is becoming the new normal. But, how far should a parent go to financially support their adult children? Many are delaying retirement. Others are borrowing money and accumulating debt which will certainly compromise their retirement.

This is a problem that can’t be solved with a quick fix. As a first step we strongly recommend budgets for both the parents and the adult children. This may help to get the spending under control.

Delayed retirement a new trend: What can you do if you have too much debt?

For parents that now find themselves getting deeper and deeper in debt our best advice is to contact a professional trustee. The Ira Smith Team can help. We have a cumulative 50+ years of experience dealing with diverse issues and complex files and we deliver the highest quality of professional service. There is a way out of debt and back to financial peace of mind Starting Over, Starting Now. Give us a call today.3bestaward

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CREDIT CHECK FAILED REASONS: 5 STUPID REASONS STOPPING YOU FROM GETTING THE LOAN YOU COULD ACTUALLY REPAY

Credit check failed reasons: Introduction

Below is our list of 5 stupid credit check failed reasons stopping you from getting that loan you can repay. You likely recognize that not paying your credit card on schedule or missing out on a settlement could harm your credit score. That is probably the most common credit check fail. So, those reasons are not on our list of credit check failed reasons. There are much less clear methods to sink your rating. You could be doing some without understanding the influence you’re triggering.

Below are 5 unexpected methods you could be damaging your credit score:

  1. Credit check failed reasons: Decreasing your credit line

You might assume that you’re increasing your credit score by reducing your credit line on your credit card. However that could be having the other impact. Credit score use is the second-most vital credit score aspect, after history of credit card repayments.

Your credit use is your compared with just how much you’re using. When you lower that proportion, that is a good thing. Many professionals suggest maintaining it around 30 to 35 percent.

By reducing your authorized credit amount, you’re really increasing your credit use proportion.

Toronto financial advisor Seun Adeyemi says that most people are not aware that cancelled credit lines, even after making full repayment, can hurt your credit score.

Here is an example. Say you have 2 credit cards:

  1. a Visa with a $1,500 balance as well as a $4,000 credit limit;
  2. as well as a MasterCard with $1,500 outstanding and a $6,000 credit authorization.

Your credit usage is just 30 percent since you’re making use of $3,000 of your readily available $10,000.

If you reduced your credit limit to $4,000 on that MasterCard, you’re currently utilizing $3,000 of a readily available $8,000. This presses your credit usage to over 35%.

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credit check failed reasons

  1. Credit check failed reasons: Leasing an automobile with a debit card as opposed to a credit card

When you’re leasing, it’s a great deal less complicated when you make use of a credit card.

Utilizing your debit card will lead to a pull on your credit report. While it could be a soft pull– implying it does not harm your debt– there’s a chance it might be a hard check. A hard check does affect your credit rating.

The procedure changes slightly in the auto rental business. Making use of a debit card will certainly result in a soft credit inquiry. However, when using a debit card to rent a car, there will probably be a hard pull on your credit rating at the first time (when you check-in and get the car).

There would not be a credit check if you use of a credit card for renting a car.

An included incentive of renting your car with a credit card as opposed to debit: Many credit cards offer vehicle rental insurance coverage. This saves you even thinking about taking the car rental company’s costly insurance package.

  1. Credit check failed reasons: Not paying your library fines (yes, libraries still exist!)

Not paying your penalties might lead the library to withdraw your privileges, as well sending your past due account to a collection company. When a collection agency obtains your overdue account, if you don’t pay, it will be noted on your credit report that you are in collection and have not paid. This will adversely influence your credit score.

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credit check failed reasons

Normally, you need to owe around $40 or more before the account being sent to collections. To prevent all this, check your public library’s plan on fines, as well as, obviously, paying your late charges in a prompt fashion.

  1. Credit check failed reasons: Not paying your parking tickets

When it concerns vehicle parking tickets, you have 2 choices:

  1. you could pay them; or
  2. go to Court and fight them.

Just what you do not want to do is disregard your parking tickets.

If you do choose to or forget to pay them, after a specific duration, your account will certainly go to collections. The policies on vehicle parking penalties differ by city. For instance, in Toronto, the use of debt collectors starts when your vehicle remains in plate rejection. This is when you could not restore your plate sticker label or acquire brand-new plates– for 2 years. Also, your tickets outstanding balance is more than $300.

  1. Credit check failed reasons: Owing the taxman

If you have an outstanding amount payable on your income tax return, it’s important to settle that financial obligation to the Canada Revenue Agency (CRA). Overdue tax obligations could cost you in penalties and interest. It will also make it more challenging to get loans.

When submitting your tax return, any amount owing is due on April 30th, or the next Monday if April 30 falls on a weekend.

Credit check failed reasons: Not paying CRA is a self-inflicted indirect hit

Not paying your taxes does not directly hit your credit rating. However, two standard questions on any loan application are:

  1. what is the last year you filed your income tax return for; and
  2. how much do you owe to CRA for personal tax.

Not being current in your filing, or having an amount owing to CRA, will limit your chances to get that loan you are applying for.

When applying for a mortgage or home equity line of credit, most lenders ask for a duplicate of your Notice of Assessment from the previous 2 years. If the potential lender sees that you owe the CRA a great deal of money, they might offer you a higher rate of interest than the posted rate or worse, refuse your application.

Credit check failed reasons: What to do if you can’t repay your debts – even if you still have an OK credit score

Maintaining a good credit score is more than just paying your credit card on schedule, yet it does not need to be made complex. You should always aim to pay any type of arrears in a prompt style, as well as understand how every activity or transaction can affect your credit score.

If you are having problems repaying your debt, don’t be afraid to seek professional help. Don’t be enticed by the commercials for debt settlement. A recent study by the federal government shows that people who first go to a debt settlement company, end up paying more to settle their debts than if they just went to see a . That same study shows that ultimately, the debt settlement program alone does not work and the person ends up filing a consumer proposal with a licensed insolvency trustee.

credit check failed reasons
credit check failed reasons

The Ira Smith Team has helped many people in debt get back on track and living debt free lives Starting Over, Starting Now. Take the first step and give us a call today.

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I WANT TO SAVE MONEY BUT HOW? GO ON A SHOPPING DIET

i want to save money but howI want to save money but how? Introduction

Many Canadians struggle with saving money. When people come to see us, they always say “I want to save money but how?”. They live from paycheque to paycheque and have no rainy day fund. This is a recipe for financial disaster, akin to walking a tightrope without a net.

I want to save money but how? How can you start saving money?

Before you can save money you need to know what you’re spending on. Make a list of everything that you spend money on – even small things. You may be shocked to learn where your money’s going. Then go on a shopping diet.

I want to save money but how? What is a shopping diet?

A shopping diet is no different from going on a food diet. Determining what to cut out or cut back on is tricky business. You need to reduce spending significantly to save, but still leave yourself a little money to buy some extras or you’ll never stick to it. It takes willpower and self-control. Dieting is not fun, but it beats the alternative.

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I want to save money but how? 12 tips for going on a shopping diet:

  1. If you’re still smoking, stop now! In addition to the serious health ramifications, a pack a day habit/month can cost as much as a car lease, all of your utilities or a large part of your rent.
  2. Cut out or drastically cut back on designer coffee/tea. Did you know that a latte a day can set you back as much as $1,500/year?
  3. Swap department store face products for drug store face products. They’re just as good and you can save thousands.
  4. Review your plans – cell phone, cable TV, internet… and make sure you’re getting the best deals.
  5. Don’t automatically renew your car insurance and/or house insurance. Call around different to companies and brokers to make sure you’re getting the best prices.
  6. Go to a supermarket that offers the best deals or allows you to price match. Shopping at the most convenient place may add up to 25% to your grocery bills.
  7. Try a no-frills hair salon instead of a fancy salon. You’ll be shocked at how much you can save.
  8. Take public transit where possible instead of paying for gas and expensive parking.
  9. Cut back on your bar bills. Sharing a bottle of wine with dinner can cost more than the dinner. A few beers with your mates after work on a regular basis can add up to a pretty penny.
  10. Do you really need a new wardrobe? A few new pieces on sale may do the trick.
  11. Stay away from the make-up counter. How many lipsticks and eye shadows do you really need?
  12. Stop impulse shopping! Shop with a list and a purpose.

I want to save money but how? Do you need an experienced trainer to help you go on your shopping diet?

A shopping diet goes hand in hand with a budget. Now that you realize how much you can save by going on a shopping diet, you’ll be able to live within your means and save money.

If you feel like an out of control spender and are in serious financial trouble, or heading there, contact Ira Smith Trustee & Receiver Inc. today. We can help get you out of debt Starting Over, Starting Now. With immediate action and the right plan you’ll be on your way to debt free living and saving for the future.

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CURRENT INSOLVENCY ASSIGNMENTS: A WARNING TO ALL CREDITORS TO STAY IN THE PRESENT TO PRESERVE YOUR RIGHTS

Current insolvency assignments: Introduction

One of our current insolvency assignments teaches creditors a valuable lesson if they wish to take part in a debtor’s restructuring proposal. Every licensed insolvency trustee maintains a website listing their current insolvency assignments that are noteworthy or of public interest. Today I want to tell you about a recent case of ours. It is not of public interest, but it is noteworthy, especially for trustees and lawyers practicing in the insolvency area. Notwithstanding the large volume of receivership and bankruptcy case-law, the issue we came across was novel and never decided in Court before.

Current insolvency assignments: Mr. and Mrs. R

Mr. R was the sole shareholder of a company that serviced the construction industry. Both Mr. and Mrs. R were both Officers and Directors of the company. The company became insolvent, could not continue and ceased operating. Mr. and Mrs. R., in addition to their personal debts, which were significant, were now also faced with extensive claims against them in their capacity as Directors.

Current insolvency assignments: Consultation with Mr. and Mrs. R

Mr. and Mrs. R’s litigation lawyer referred them to us. We advised them that they should not declare bankruptcy, but rather attempt to avoid bankruptcy and restructure by filing a joint proposal under Part III Division I of the Bankruptcy and Insolvency Act (Canada) (BIA). Their had a complicated situation and they required an immediate stay of proceedings to deal with all the lawsuits against them.

Therefore, we first filed a joint Notice of Intention to Make a Proposal (NOI) on June 8, 2016. This first step provided Mr. and Mrs. R with a first 30-day grace period, where no creditor could begin or continue legal proceedings or enforcement against them while we were working with them to finish developing their restructuring proposal.

Current insolvency assignments: A certain creditor’s reaction

As Trustee, we served the NOI on all known creditors by ordinary mail, as we are required to under the BIA. We served one creditor, Royal Bank of Canada (RBC) at two addresses: i) legal counsel for RBC; and ii) BH, an agent for RBC that we regularly deal with. At the time of mailing out the NOI, we did not know if this agent would be on the file, but we provided them with notice out of to be extra cautious. We mailed the NOI on June 9, 2016.

The NOI sent to the creditors, including RBC, did not contain any proposal whatsoever, because it had not been written yet! This is standard for the filing of an NOI before the proposal.

In response to the NOI, by letter dated June 20, 2016, we received, from another agent for RBC that we had never dealt with before and who was not on our original mailing list, two proofs of claim, each in the amount of $438,434.31; one proof for each of Mr. and Mrs. R, individually.

This agent also sent a voting letter. It asked the Trustee to count RBC’s vote “with respect to the proposal” of Mr. and Mrs. R “against acceptance of the proposal made as of the 08th day of June, 2016.”

Current insolvency assignments: The Trustee’s reaction

On June 22, we wrote to the agent advising that the Trustee’s position was that because no proposal was yet in existence, the RBC “vote” was invalid and that RBC would have to offer a proper voting letter once it received the proposal. This was also sent to RBC’s counsel. The Trustee received no response to this communication.

Current insolvency assignments: The joint proposal of Mr. and Mrs. R

The debtors, Mr. and Mrs. R, filed a proposal July 7. We served the proposal on all creditors. The Trustee served RBC three ways to: i) RBC’s counsel; ii) RBC’s agent BH; and iii) the agent who wrote us the June 22 letter with enclosures. Our package included not only the proposal but notice of the first meeting of creditors and forms for proof of claim and a voting letter.

We received nothing further from RBC. The meeting proceeded on July 27. RBC did not attend. One creditor, with a claim of $278,561.29, attended and voted for the joint proposal. The joint proposal was deemed to have been accepted. Consistent with our position, as Trustee, we did not count the RBC June 22 “vote”.

(2017), 2017 ONSC 4234, 2017 CarswellOnt 12497, Rizzo, Re

Current insolvency assignments: Off to Court for approval

After the acceptance of a proposal by the requisite majority of the creditors, a licensed insolvency trustee must make application to Court, for approval of the proposal. The proposal is not binding until there is a valid and subsisting approval order of the Court.

Our motion for approval of the joint restructuring proposal of the debtors, Mr. and Mrs. R, was heard on August 9, 2016. RBC opposed. RBC opposed on the basis that its vote against the joint proposal was not counted. RBC’s vote, if counted, would have defeated the proposal and Mr. and Mrs. R would be bankrupt.

Our lawyer made various submissions, including, that the “vote” of RBC:

  • was not valid;
  • that RBC was advised of this and did nothing to file a valid vote; and
  • RBC failed to attend the meeting of creditors.

As indicated above, only one creditor voted; it voted in favour of the joint proposal.

RBC claimed its vote was valid and ought to have been counted. The Court did not go so far as to say a creditor could never lodge a valid vote against a proposal before receiving it. In this case, the Court agreed with us and found the vote was not valid. The Court went on to say that the Trustee was correct in not counting it.

Current insolvency assignments: What the Court said

The threshold question was whether the Trustee was right to reject RBC’s purported “vote.” Section 53 of the BIA permits a creditor to assent or dissent “from a proposal” before a meeting. Section 54 says the creditors may accept or refuse “the proposal” at the meeting. However, the statutory scheme for creditor voting assumes there is a proposal.

The Court found that:

  • the agent’s purported “vote” was on its face defective;
  • there was no proposal of June 8;
  • RBC or its agent had never seen the joint proposal when it voted;
  • the Trustee was right to reject an obviously defective “vote”;
  • the Trustee made its position abundantly clear to RBC’s agents; and
  • RBC had every opportunity to cure the defect and it failed to do so.

Current insolvency assignments: What the Court ordered

The Court found that:

  • the Trustee was correct in rejecting the June 22 “vote”; and
  • RBC was not denied due process.

The Court granted our motion for approval of the joint proposal and awarded us our costs.

Current insolvency assignments: What does this mean?

What this means is very simple. Make sure that in anything you do, you understand what the rules are, don’t take your eye off the ball and never fall asleep at the switch. If this creditor’s agent and legal counsel had merely reacted to the mailing of the joint proposal and cast a proper vote, we never would have ended up in this situation.

There was nothing wrong with the proof of claim (although it was filed unnecessarily in duplicate). All RBC’s agent or lawyer had to do when it received the joint proposal mailing, was take 2 minutes to complete a new voting letter and send it in to the Trustee. If they had done this simple step, assuming they voted against the joint proposal, Mr. and Mrs. R would now be bankrupts. Instead, they are making their proposal payments to the Trustee to restructure themselves and avoided bankruptcy.

Mr. and Mrs. R have each secured full-time employment, and are making more money than in the last few years of running their company.

Current insolvency assignments: What to do because of too much debt

Being a Director of a corporation can be risky business. If the corporation is insolvent and continues to carry on business, and you continue to act as a Director, it can land you in a personal financial mess.

Are you experiencing financial distress because of acting as a Director or otherwise? Is your business struggling and you can’t seem to find a way out?

If you’re struggling with debt for any reason Ira Smith Trustee & Receiver Inc. can help. We’re experts in dealing with debt. Give us a call today and take the first step towards conquering debt Starting Over, Starting Now.

2016 CarswellOnt 21774, 2016 ONSC 8192, IN THE MATTER OF THE PROPOSAL OF MARCO RIZZO AND ANGELA RIZZO

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#VIDEO – CAUTION REQUIRED WHEN SEEKING HELP ON HOW TO PAY OFF DEBT IN TORONTO OR HOW TO IMPROVE CREDIT SCORE IN TORONTO ONTARIO

How to improve credit score: The Financial Consumer Agency of Canada alert

The Financial Consumer Agency of Canada (FCAC) is alerting people who could no longer stay current with their debt payments to be mindful when looking how to improve credit score.

Some businesses are misleading consumers by guaranteeing quick and easy solutions to help settle their financial debt or improve credit score. In many cases, consumers could wind up in a worse economic scenario compared to before they got aid.

How to improve credit score: Beware of credit repair firms

It’s crucial to understand that these firms:

  • cannot make sure they will solve your debt problems
  • could not swiftly and quickly repair your credit rating
  • need to not motivate you to get a high-interest loan as a service until other loan alternatives are available

How to improve credit score: What you should do before starting to repair your credit

Before registering for help to repay debt or repair or improve credit score, customers need to:

  • get suggestions from various reputable sources such as an accredited financial consultant, an approved credit counsellor or a licensed insolvency trustee
  • do inquiries and compare options
  • never be pressured to register right away
  • check out the small print and recognize the conditions before authorizing a contract or an arrangement
  • when seeking information on insolvency options, ask “Are you a licensed insolvency trustee?” Only a licensed insolvency trustee can administer options such as consumer proposals and bankruptcies.

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How to improve credit score: What the FCAC financial literacy leader warns

Jane Rooney, Financial Literacy Leader, FCAC warns:

“It’s important for consumers to understand what companies can and can’t do when offering services to help with debt repayment or credit repair. The Financial Consumer Agency of Canada has information to help consumers better understand the types of services available to them and where to get help. Having the necessary information is the first step to empowering consumers to make informed decisions and meet their financial challenges head on.”

How to improve credit score: Beware of credit repair firm tricks of the trade

Some firms or agencies declare that they can swiftly fix your credit report. It’s difficult to change or erase info that’s part of your credit rating, unless a detail is incorrect. Improving your credit history will take some time. You need to prove that your credit practices have enhanced by repaying your financial obligations on time.

Some firms could likewise offer you a loan suggesting it will certainly aid in fixing your credit history. The firm could assert that making timely payments on this loan will repair your credit report. When you sign up for this type of loan, you never in fact receive any cash because the company will tell you the financing will cover its services or programs. Rather, you make normal payments to the company to pay off the loan.

Be aware; this type of loan generally has a high rate of interest. This solution does not help cut any of your other financial obligations. You are required to keep making your payments on any other financial debts you owe. You could only be left with even more debt and no change to your credit rating.

How to improve credit score: What the Canadian government advises you to do

The Canadian government recommends that you speak to a licensed insolvency trustee. Although the challenges are enormous, they are not insurmountable. If you and your spouse have too much debt because of financial infidelity or for any other reason, you need to contact a licensed insolvency trustee (LIT) now. Through financial counselling, a LIT can aid in getting the resources you need to fix the root causes of the financial infidelity and to deal with the debt that you and your spouse cannot repay.

You need the Ira Smith Team. We’re experts in dealing with debt. No matter how you got into difficulty we can help return you to financial well-being. Contact us today and free yourself of debt Starting Over, Starting Now

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ADVANTAGES AND DISADVANTAGES OF CONSUMER PROPOSALS TORONTO ON CANADA

Advantages and disadvantages of consumer proposals: Introduction

In this vlog, we answer the question “What are the advantages and disadvantages of consumer proposals?”.

Advantages and disadvantages of consumer proposals: Who is it for?

A Consumer proposal is a part of the Bankruptcy and Insolvency Act (BIA) found in Part III Division 2 of the BIA. It is available for people who do not owe more than $250,000 to their creditors, NOT including any mortgages or other loans registered against a principal residence.

The first test is being insolvent? What I mean by that is:

  1. are your financial obligations greater than the worth of your property?
  2. if you sold your assets you would not have enough funds to settle your financial commitments totally
  3. you are having problems making the total required payments to pay off in full each of your financial commitments monthly

advantages and disadvantages of consumer proposals

Advantages and disadvantages of consumer proposals: The Advantages

If so, then teaming up with a licensed insolvency trustee (LIT) acting as your consumer proposal administrator, the advantages are:

  1. Pay your creditors part of what you owe them over a period not greater than 60 months.
  2. Broaden the time you can use to pay off your financial debts.
  3. Stop the interest clock.
  4. Make monthly payments to the LIT for the benefit of your creditors that you can afford within your budget.
  5. If successful, you get to keep your assets.
  6. If successful, the cost of your consumer proposal can be thought of as being free. The BIA sets the fee of the LIT. The amount of payments you must promise to make to get your creditors to vote in favour ignores the fee of the LIT in performing that calculation.
  7. Remain free from bankruptcy.

You should think of a consumer proposal as obtaining an interest-free loan to combine your debts, pay only a part to get rid of them all. Your interest-free loan can have a term of no longer than 5 years.

Advantages and disadvantages of consumer proposals: The Disadvantages

There are not many disadvantages to a consumer proposal. The only one I can think of is that it is an insolvency proceeding under the BIA, so it will be and stay on your credit record for some time. But if you have so much debt you don’t know where to turn and you can’t pay it off, then your credit score has probably already taken a hit.

Get started now to gain back control of your life

If you’re thinking of a consumer proposal as an option to deal with your financial debts, telephone Ira Smith Trustee & Receiver Inc. now.

Our method is to set up an outcome for you where Starting Over, Starting Now becomes a reality, beginning the minute you walk through our door. You’re simply one telephone call away from leading a healthy, balanced and stress-free life again.

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BANK STAFF SALES TARGETS: WHAT CAN CANADIAN CONSUMERS DO TO PROTECT THEMSELVES?

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Bank staff sales targets: Introduction

All hell broke loose when the CBC’s Go Public exposed a wide-spread banking problem – bank staff sales targets. The report stated that tellers try to meet their bank staff sales goals by signing customers up for products and/or services that they may not need.

Bank staff sales targets: It isn’t just one bank!

Although this article focused on the employees of one Canadian Chartered Bank who initially came forward to Go Public, the problem caused by bank teller sales goals is rampant across the banking industry and has been for some time. And, in fact it’s a badly kept secret that this is a common practice at every bank.

After the story broke, employees from all five of Canada’s big banks came forward to Go Public with stories of how they are required to up sell, trick and even lie to customers to meet unrealistic sales targets and keep their jobs.

Bank staff sales targets: Meet the sales goals or get written up, or worse

This isn’t just hearsay or a smear campaign against the banking industry; documents obtained by Go Public show tellers who fail to reach their sales goals are called “underperformers” and placed on a “Performance Improvement Plan”. This Plan involves daily coaching and monitoring by managers.

If sales performance doesn’t improve, warnings are given to underperforming employees that “employment could be terminated.” Approximately 1,000 emails from RBC, BMO, CIBC, TD and Scotiabank employees described the pressures they were under to meet sales revenue targets while being monitored weekly, daily or hourly. The message was loud and clear – it doesn’t matter how you hit your numbers as long as you do.

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Bank staff sales targets: Who is most at risk from these sales tactics?

Unfortunately, as with most financial schemes, the most vulnerable are the ones most at risk from these bank teller sales targets. Seniors and new immigrants are most likely to believe advice from their bank without further analysis. However, in our increasing common sales culture, we’re all at risk. After all, if you can’t trust your own bank to manage your money, who can you trust?

Bank staff sales targets: What should consumers do to protect themselves?

The sad truth is that you can no longer assume that your bank is your trusted financial advisor and has your best interests at heart. Consumers need to be vigilant. If a teller or a financial services advisor recommends a product or service ask questions:

  • How much does it cost?
  • What are the fees?
  • Why do I need it?
  • What will the financial benefit be to me?

Bank staff sales targets: Just say no

Very importantly, consumers need to learn how to say no. Don’t be bullied into signing up for products and/or services that you don’t need because of bank staff sales targets. Clearly there needs to be more regulation in the banking industry and hopefully there is an investigation underway.

If you are experiencing debt issues for any reason please come to a professional trustee. We’re strictly licensed and we can’t profit from giving bad advice. The Ira Smith Team is here to help. Our commitment to you is to bring value added solutions that fit your unique issues and circumstances. Contact us today and Starting Over, Starting Now you can conquer debt.

 

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