Tag: trustee

Categories
Brandon Blog Post

7 REASONS WHY CANADIANS LIVING PAYCHEQUE TO PAYCHEQUE

Canadians living paycheque to paycheque, living paycheque to paycheque, debt, budget, balanced budget, trustees, trustee, Canadian Payroll Association, paycheck to paycheck, living paycheck to paycheck in america, more and more Canadians living paycheque to paycheque, not receiving their paycheque, Ira Smith Trustee & Receiver Inc., starting over starting now, how to stop living paycheque to paycheque, budget, Vaughan bankruptcy trustee, Vaughan bankruptcyMore and more Canadians living paycheque to paycheque (and people are also living paycheck to paycheck in America)

The results of a new survey released by the Canadian Payroll Association were quite frankly alarming.

  1. Almost half of people polled said they are Canadians living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week resulting in their not receiving their paycheque on time
  2. Less than 25% of respondents said they could probably not come up with $2,000 if an emergency arose within the next month
  3. 36% per cent of working Canadians said they felt overwhelmed by their level of debt
  4. 12% per cent doubted they’ll ever be debt free
  5. 75% of working Canadians polled reporting having put aside less than 25% of the money they expect to need in retirement
  6. 35% of respondents expect to work longer
  7. 20% of employees surveyed said they will need to work four years or more than they originally expected before retiring, citing a lack of sufficient savings as the main reason

How to stop living paycheque to paycheque – behaviour modification

Although this situation is nationwide, it’s worse in Ontario, British Columbia and Atlantic Canada. Can the Canadians living paycheque to paycheque problem be cured with a change in spending habits? According to BMO’s 2015 Psychology of Savings Report, it is.

The report shows a majority of Canadians, or 88% of respondents polled, said they are willing to improve their current financial status. However, 38% also admitted that they have developed bad spending and savings habits and 31% said they’re not willing to let go of them.

Consult your Vaughan bankruptcy trustee

As professional trustees we recognize and preach the importance of a balanced budget. In fact we published two blogs on the subject.

If you’re like many Canadians living paycheque to paycheque, it’s time to put an end to the constant struggle. Contact Ira Smith Trustee & Receiver Inc. today. We can help to restore you to financial health with a balanced budget and a plan for healthy financial living Starting Over, Starting Now.

Categories
Brandon Blog Post

# VIDEO: CANADIAN FAMILY DEBT: WE SEEM TO ADORE IT! #

Canadian family debt

Last week we published our blog CANADIAN HOUSEHOLD DEBT: WE SEEM TO LOVE IT! The week before that, our blog was THE NEW ECONOMIC ATTACK IS ON CANADA MIDDLE CLASS.
Those blogs garnered so much interest, we thought we would make a short video on the whole issue of Canadian family debt, containing some additional facts. Please click on the video below to watch it.

https://www.youtube.com/watch?v=y6sqAULV53c

Some interesting yet troubling facts

As seen in this video, some of the more interesting facts are, notwithstanding that the ratio of Canadian family debt to disposable income has hit a record high of 165%:

  • the average after tax family income in 1990 was $45,000 and in 2015 it is $73,000 which means that incomes have not gone up more than the rate of inflation
  • in 1990, the asset to debt ratio of the average Canadian family was 17.8, but in 2015, the asset to debt ratio is only 18.2
  • Therefore, for every $1 in Canadian family debt, in 1990, the average family had $17.8 of assets, which has only negligibly increased to $18.2 of assets for every $1 of debt in 2015

What is a person to do?

Are you walking a financial tightrope? If interest rates rise will you be able to afford your Canadian family debt? Better yet, would you know how to pay off debt?

Don’t wait for disaster to strike! The time for professional help is NOW. Contact Ira Smith Trustee & Receiver Inc. We’re experts in debt and debt management. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now we can give you financial peace of mind.

Canadian family debt, debt, Trustee, starting over starting now, debt management, family debt, Canadian household debt, Canada middle class

Categories
Brandon Blog Post

CREDIT CARD DEBT: 9 REASONS HOUSEHOLDS ARE BEING CRUSHED BY CREDIT CARD DEBT

average credit card debt, credit card debt, credit card debt consolidation loan, credit card debt help, credit card reward points, credit card debt settlement, credit card debt solutions, credit card, credit cards, debt settlement company, Visa, MasterCard, American Express, TransUnion, interest rates, budget, how to pay off credit card debt, paying off credit card debt, trustee, nerdwallet.com, starting over starting now, Ira Smith Trustee & Receiver Inc., how to get out of credit card debtCredit card debt because of reward points?

The quest for credit card reward points has caused many Canadians to overspend and get deeper into debt. We’re being lured by the promise of free trips, free merchandise, services and cash back. As a result we’re overusing credit and we’re left with monthly balances that are accruing high interest charges.

The 9 reasons people are being crushed by credit card debt

According to Canada.CreditCards.com:

  1. 52% of Canadian households had credit card debt not being repaid in full by the due date in 2014
  2. Credit card debt as of November 30, 2014: $75 billion
  3. Average credit card debt as of Nov. 30, 2014: $2,627 for each Canadian age 18 or over
  4. Average number of credit cards per Canadian adult: 2.9 in 2013 (including Visa, MasterCard and American Express)
  5. Canadian adult credit card holders carrying cards with rewards: 77% in 2013
  6. The average Canadian household has members belonging to a total of 8.2 loyalty programs

The US statistics are even more eye popping

According to nerdwallet.com:

  1. The average US household credit card debt stands at $15,706, counting only those households carrying debt
  2. Based on an analysis of Federal Reserve statistics and other government data, the average credit card debt per household is $7,327 on their cards
  3. Looking only at indebted households, the average outstanding balance rises to $15,706

What are your reward points really costing you?

Many Canadians don’t understand the true value of reward points. Typically reward points are worth 2% or less. However, annual interest rates are typically in the range of 20%. The reality is that if you’re paying interest on an unpaid balance then you’re really going into debt and not benefitting anything from your reward points. They’re costing you way too much for no return.

Start learning now how to pay off your credit card

TransUnion Canada says for every $1,000 charged in a given month, only about $600 will be paid off by the due date to avoid interest charges. Instead of focusing on reward points, make every attempt to pay off your credit card balance. If you are one of the many not paying off your balance in full each month, stop paying 20% in interest charges by:

  • Making a budget and sticking to it
  • Include some amount in your budget for paying off credit card balances
  • Use cash, not a credit card, to pay for necessities
  • Pay for everyday items with cash

When looking for credit card debt help, people normally first think of either a debt consolidation loan or a debt settlement company. Although these are two of the several credit card debt solutions for settling credit card debt, we caution:

How to get out of debt? Take action right now!

Don’t add more debt to your existing debt and don’t ignore your debt! Contact a trustee for professional help. The Ira Smith Trustee & Receiver Inc. Team will evaluate your situation and come up with a solid financial plan to put you back on the right track. We will review your options with you on how to reduce credit card debt and eliminate it, hopefully using one of the bankruptcy alternatives. Call us today and take the first step towards living a debt free life Starting Over, Starting Now.

Categories
Brandon Blog Post

# VIDEO: THE HISTORY OF CONSUMER PROPOSAL DEFINITION #

consumer proposal definition, starting over starting now, trustee, BIA, Bankruptcy and Insolvency Act, debt, bankruptcy, trustee in bankruptcy, consumer proposal, debts, Office of the Superintendent of BankruptcyConsumer Proposal definition

It is important to know what the consumer proposal definition is. A consumer proposal is a relatively new addition to the Bankruptcy and Insolvency Act (BIA), even though it has been around for 23 years. Although the origins of the current BIA can be traced back to the original 1869 An Act respecting Insolvency, the consumer proposal section was enacted with the 1992 amendments to the BIA.

According to the Office of the Superintendent of Bankruptcy, the consumer proposal definition is:

“A consumer proposal is a formal, legally binding process that is administered by a bankruptcy trustee. In this process, the trustee will work with you to develop a “proposal”—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both. The term of a consumer proposal cannot exceed five years.

Payments are made through the trustee, and the trustee uses that money to pay each of your creditors.”

My consumer proposal definition

My consumer proposal definition is THE GREAT alternative to bankruptcy. It’s available only to people, whose total debts do not exceed $250,000, not including debts secured by their principal residence. Working with a trustee in bankruptcy you make a consumer proposal to:

  • Pay your creditors a percentage of what you owe them over a specific time
  • Extend the time you have to pay off the debt
  • Or a combination of both

Watch this short video

I hope that you enjoy the video. Most people facing financial challenges, or insurmountable debt that they can never repay, cannot focus on the consumer proposal definition. We understand that what you need is an experienced trustee to recommend you solutions tailored specifically to your situation. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice and a solid financial plan for Starting Over, Starting Now.

 

Categories
Brandon Blog Post

CANADIAN HOUSEHOLD DEBT: WE SEEM TO LOVE IT!

household debt, Canadian household debt, how to pay off debt, debt, mortgage debt, interest rates, financial danger zone, credit card, credit card spending, Moneris Solutions, Equifax, auto loans, seniors, trustee, lifestyle, Canadian debt, Canadian economyCanadian household debt at a record high

The ratio of Canadian household debt to disposable income has hit a record high of 164.6%. This means for every $1 of after tax income Canadians earned, they owed nearly $1.65 in credit market debt – mortgages, credit cards and other kinds of consumer loans. The reality is that many Canadians are living in a financial danger zone. They’re walking a financial tightrope where anything like the loss of a job or an increase in interest rates can throw off this delicate balance and plunge them into financial disaster.

Increase is no surprise

TD Bank economist Jonathan Bendiner wrote about Canadian household debt, “The increase came as no surprise. Rising mortgage debt drove most of the growth as interest rate cuts by the Bank of Canada earlier in the year spurred borrowing, especially in the hot housing markets in British Columbia with all the homes for sale in Mission BC and Ontario”. The great concern now is what happens once interest rates rise to more typical levels. How many Canadian will no longer be able to pay their bills or carry their household debt?

5 reasons why for the increase in Canadian household debt

Why is Canadian household debt at an all time high? In addition to rising mortgage debt it may come down to one simple word – lifestyle:

  • Credit card spending rose by 8% this year (Moneris Solutions Corp.)
  • Spending on restaurants and fast food rose by more than 12% (Moneris Solutions Corp.)
  • Home improvement spending soared nearly 10% in the second quarter of the year compared with the same time last year, led by sales of glass, paint, wallpaper and flooring (Moneris Solutions Corp.)
  • Furniture sales are up more than 17% (Moneris Solutions Corp.)
  • Auto loans rose nearly 4% in the second quarter on the back of record vehicle sales (Equifax)

Has income kept pace with Canadian household debt? No!

Unfortunately incomes haven’t increased in the Canadian economy to compensate for the increase in spending and Canadian household debt. A Bank of Montreal report states that approximately 80% of Canadians are in debt and nearly 66% would have trouble affording their household debt if interest rates went up by just two percentage points. Canadians now spend an average 14% of after tax income on their debts. Sadly, the group that’s struggling the most is seniors. According to Equifax, for the first time in five years, 90-day delinquency rates rose among seniors in the second quarter.

What is a person to do?

Are you walking a financial tightrope? If interest rates rise will you be able to afford your household debt? Better yet, would you know how to pay off debt?

Don’t wait for disaster to strike! The time for professional help is NOW. Contact Ira Smith Trustee & Receiver Inc. We’re experts in debt and debt management. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now we can give you financial peace of mind.

Categories
Brandon Blog Post

THE NEW ECONOMIC ATTACK IS ON CANADA MIDDLE CLASS

young Canada’s middle class, Canada’s middle class, Statistics Canada, renter households, living paycheque to paycheque, trustee, debt, starting over starting now, Vaughan, “middle class”, middle class, definition of Canada middle class

Canada middle class – what is your definition?

My definition of Canada middle class is the group under a new economic attack because of housing costs. Affordable rental housing for Canadians has become an oxymoron in term. In fact, rental housing has enslaved young Canada’s middle class, forcing them to spend so much of their incomes on a place to live, that many are in danger of becoming homeless.

What Statistics Canada says

According to the experts, spending more than 30% on housing is unaffordable. This doesn’t take into account food, clothing, transportation or any of the other necessities of life. According to data from Statistics Canada:

  • There are more than 4 million renters in Canada
  • Over 40% of all renter households are spending in excess of 30% of their gross income on rent
  • 20% of all renter households are spending in excess of 50% of their gross income on rent which housing advocates say puts them at high risk of becoming homeless
  • In Vancouver and Toronto, 45% of renter households are spending more than 30% of their income on rent

Not just a big city problem for Canada middle class

The lack of affordable rental housing is not a problem exclusive to the big cities. Renters in small cities across Canada are also struggling financially. In the Toronto area, average rents are higher in the suburban communities of Milton and Vaughan than in the City of Toronto. And, Mississauga ranked among the worst cities in the country when it comes to a shortage of affordable rental housing.

Traditionally people rented apartments to save money and eventually buy a house. With young Canada middle class enslaved by rental prices, buying a house isn’t even on their radar; keeping a rental roof over their heads is a primary concern.

What to do if you have debt problems

Are you living paycheque to paycheque because you’re enslaved by rental prices? We can’t help you find a cheaper place to live, but we can help you deal with what may seem to be insurmountable debt. Call Ira Smith Trustee & Receiver Inc. today. We’ll review your file and come up with a plan so that you can be Starting Over, Starting Now.

Categories
Brandon Blog Post

BANKRUPTCY AND DIVORCE: NOT ALL REASONS TO GO BANKRUPT ARE GOOD

Bankruptcy and divorce, how to file bankruptcy in canada, information on bankruptcy, bankruptcy alternatives, bankruptcy, Bankruptcy and Insolvency Act, Blatherwick, Blatherwick v Blatherwick, Blatherwick v Blatherwick, 2015 ONSC 2606 (CanLII), debt, divorce, equalization payment, grey divorce support groups, insolvent, Mareva injunction, Revenue Canada, starting over starting now, trusteeBankruptcy and divorce

Whenever we speak to groups about bankruptcy and divorce, and especially to grey divorce support groups, the same questions always arise regarding the interplay between the Federal Bankruptcy and Insolvency Act (BIA) and the Ontario family law provisions. I thought it would be best to address one such interesting issue in this week’s blog.

You may hate your soon-to-be ex, but the courts won’t allow you to use bankruptcy as a weapon against that spouse. Bankruptcy is legal proceeding involving an insolvent person or business that is unable to repay outstanding debts. It is not a way to avoid paying alimony or child support. There was a recent case that clearly demonstrates the court’s view on this very issue.

Blatherwick v Blatherwick

The case is Blatherwick v Blatherwick, 2015 ONSC 2606 (CanLII). The parties separated after 39 years of marriage. The wife was seeking spousal support and equalization, among other things. The husband disputed the amounts that the wife was seeking. The wife obtained a Mareva injunction which is a court order preventing a defendant from transferring assets until the outcome of the associated law suit is decided. However, the husband breached the Mareva injunction by declaring bankruptcy. And, to make matters worse he made false representations in bankruptcy, including the valuation of corporate assets and reporting of income. The husband thought that if he declared bankruptcy he would be putting his assets beyond the reach of his wife’s claim for equalization. (In a bona fide bankruptcy, it is true that an equalization claim is not a claim provable in the bankruptcy, unlike a claim for alimony and child support which cannot be extinguished as a result of a bankruptcy).

Unfortunately for Mr. Blatherwick, the intersection of bankruptcy and divorce does not work that way!

The Judge’s view on Mr. Blatherwick’s bankruptcy

The Judge stated:

“303 I find as a fact that Mr. Blatherwick made false statements which were significant in his Statement of Affairs.

304 I find as a fact that he made the assignment into bankruptcy to avoid making an equalization payment to Mrs. Blatherwick and to avoid his financial obligations arising from his voluntary disclosure to Revenue Canada.

305 I find as a fact that the purpose of Mr. Blatherwick going bankrupt was to obtain a collateral benefit in the matrimonial proceedings.

306 I conclude there was no bona fide financial reason for making a voluntary assignment into bankruptcy.”

Accordingly, the court annulled the bankruptcy. In the truest sense, it was as if the bankruptcy never happened at all. In this case, bankruptcy and divorce did could not be combined.

Summary

Trying to cheat the system by making false statements on your sworn statement of affairs to make yourself appear insolvent is never a good idea and can even lead to criminal charges. The bankruptcy can, as demonstrated in this case, be annulled.

If you are insolvent and are considering bankruptcy, contact Ira Smith Trustee & Receiver Inc. We offer sound advice and a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt free life in no time.

Categories
Brandon Blog Post

BANKRUPTCY QUESTIONS VIDEO: THE BEST ADVICE WE EVER HEARD

:bankruptcy alternatives, alternatives to bankruptcy, bankruptcy questions, debt, debt problems, debt settlement, debt settlement companies, licensed trustee, starting over starting now, trusteeYou probably have many bankruptcy questions if you’re experiencing serious debt problems and you are no doubt going through a very stressful time in your life and you may not know where to turn. Ira Smith Trustee & Receiver Inc. is here to tell you that there is help available, answers to your bankruptcy questions and there are solutions to your debt problems. The best thing that you can do is contact a Licensed Trustee as soon as possible. There is a popular misconception that Licensed Trustees only deal with bankruptcy, but that is only one of our many functions. We can and do help with debt problems considering various alternatives to bankruptcy also.

http://youtu.be/4tJwFT36FPI

Contact Ira Smith Trustee & Receiver Inc. for a free consultation today. We can help you with your debt problems and answer your bankruptcy questions. Starting Over, Starting now you can live a debt free life.

Categories
Brandon Blog Post

WANT TO IMPROVE YOUR CREDIT SCORING? THEN CHOOSE YOUR FACEBOOK FRIENDS WISELY

credit score, credit scoring, Facebook, Facebook credit score patent, Facebook friends, loan, social media, credit ratings, social network, credit score, loan applications, financial danger zone, trustee, debt, social media, starting over starting nowWhat does credit scoring have to do with your Facebook Friends?

To improve your credit scoring, you are going to have to choose your Facebook Friends more wisely. Many people believe that when it comes to social media, it’s a numbers game and whoever has the most, wins. As a result they will “friend” anyone who asks. They don’t care who they are or why they want to be Facebook friends; the only thing that matters is that their number of friends keeps going up. That may now be a very dangerous game to play. Those Facebook friends that you’ve been amassing may be a liability if you apply for a loan.

It’s well known that Facebook mines data from its users for the purposes of pushing targeted advertising. However, Facebook now has a patent for authorizing and authenticating a user based on their social network on Facebook. Although this patent can be used for several benign functions like helping with search queries, it also states very clearly that it could be used to approve a loan based on a user’s social connections. In other words, the new Facebook algorithm can be used by lenders in determining your credit scoring when applying for a loan or mortgage.

The Facebook credit rating patent

“When an individual applies for a loan, the lender examines the credit ratings of members of the individual’s social network who are connected to the individual through authorized nodes,” the patent reads. “If the average credit rating of these members is at least a minimum credit score, the lender continues to process the loan application. Otherwise, the loan application is rejected.” So your Facebook Friends credit scoring, affects yours too!

Lenders are already using social media when considering your loan application

In case you find this shocking and futuristic, social media strategist and University of Sydney academic Laurel Papworth says that lenders in 36 countries are now using Facebook data as part of their tools for approving or rejecting loan applications. This puts a lot of power in the hands of your Facebook friends, especially when you consider that according to CNN there are 83 million fake profiles.

So do you really know your entire list of Facebook friends well and better yet, their financial situation and credit scoring? It’s time to take a serious look at your Facebook friends and start trimming the fat. Who you don’t actually know, and who you do know with poor credit scoring, can hurt you.

If you have been rejected for a loan – take action now!

If you have been rejected for a loan application because of a poor credit scoring, chances are that you are in a financial danger zone. The best thing you can do is contact a professional trustee as soon as possible. The Ira Smith team is here to help you conquer debt and live a financially healthy life Starting Over, Starting Now.

 

Categories
Brandon Blog Post

BACK TO SCHOOL: TEACH YOUR KIDS ABOUT MANAGING DEBT

back to school, debt, living paycheque to paycheque, student loan, financial plan, credit score, RRSPs, RESPs, life insurance, budgets, trustee, starting over starting now, how to manage debt, managing debt, personal debt in Canada, dealing with debt, how to get help with debtManaging debt or talking about sex?

It’s commonly believed that all parents dread having the “sex” talk with their kids, but a recent study from BMO shows parents would rather talk to their kids about sex than their financial situation and managing debt. Imagine that! Canadians are stressed about money and probably feel ill-equipped to educate their kids about finances and managing debt.

Personal debt in Canada

According to a new national study conducted by Leger:

  • Canadians struggle with regret over financial decisions
  • Argue over spending
  • Feel pressure to keep up with friends or colleagues
  • Bend the truth to friends and family about their financial situation in order to save face

A Bank of Montreal study reports that:

  • More than 33% of all Canadians are ashamed of the debt that they have
  • Almost 40% say they stress over debt levels multiple times a day

There’s no doubt about it, money and managing debt is the top source of stress in our lives. Why are we so financially stressed? Why are Canadians stressed over debt and have so much trouble managing debt? Here are 10 of the most common reasons:

  1. Expenses are greater than your income
  2. You worry about job security
  3. You’re living paycheque to paycheque
  4. You’re fighting with your spouse/partner about money
  5. You’re paying bills late
  6. You use your home equity like an ATM machine
  7. You’re counting on an inheritance to solve your money problems
  8. You’re late on student loan payments
  9. You’re helping out your parents and your kids
  10. You don’t have a financial plan

Dealing with debt

It’s time to become financially literate and educate your kids, not just about the birds and the bees, but about finances and managing debt. Foresters recently offered 5 tips to get smarter about your finances:

  1. Learn everything you can about your finances, including your mortgage terms, bank interest rates and credit score
  2. Start with the simple things like contributing to RRSPs, setting up RESPs for your kids and protecting your family’s financial future with life insurance
  3. Keep track of every penny you spend for a couple of months and look for ways to cut back and start saving. Even a small commitment to saving will make you feel better about your finances
  4. Look ahead 10, 20 and 30 years. Imagine the life you want and what it will take to make that happen
  5. Talk to your kids regularly about money, involve them in household budgeting, open bank accounts for them and encourage them to save for things they want

How to get help with debt

All of this is great advice to avoid financial problems, but if you are already in serious financial difficulty and don’t know where you will begin on how to manage your debt, you need professional help now. Contact Ira Smith Trustee & Receiver Inc. Don’t ignore your debt issues. Face them head on and with the help of the Ira Smith team you’ll be on your way to conquering debt Starting Over, Starting Now.

 

Call a Trustee Now!