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SENIORS DEBT RELIEF: GRAY DEBT ON THE RISE

seniors debt reliefSeniors debt relief introduction

The need for seniors debt relief is gaining more attention in Canada. Seniors in our country are having a very rough time. “A financially secure retirement is becoming the exception, not the norm”, says Lee Anne Davies, CEO of Agenomics, a consulting firm specializing in money management and ageing. We’ve spoken about the plight of our seniors in several blogs:

Seniors Acquiring More Debt Delays Retirement

What Do The Golden Years Really Look Like?

Help For Seniors In Debt

Senior Credit Card Debt Relief Or Declare Bankruptcy

Advice For Seniors With Credit Card Debt

Solve It Without Bankruptcy

However gray liabilities are on the rise and this problem is not going away any time soon. According to the Vanier Institute:

  • Bankruptcy rates for those aged 55 to 64 have increased by more than 600% over the last twenty years.

Agenomics reports:

  • The insolvency rate for those aged 65+ increased by 1,747% over the last twenty years.
  • The elderly, in particular, were 17 times more likely to become insolvent in 2010 than they were in 1990.

These are only two sources of the many who have written on this issue.

Why are elderly liabilities on the rise?

Mortgages: People nearing retirement are taking on mortgages thinking that the property will appreciate substantially and quickly, providing them with a nest egg or retirement income when they sell. Others are mortgaging their homes to help out their kids.

There really isn’t any seniors debt relief available from a secured creditor, such as a mortgagee, who holds a valid charge against your property.

Lifestyle Debt: Many retirees are still living the same lifestyle as they were during their working years, but now they don’t have to money to fund it and as a result are falling into debt. Usually, the type of debt that signifies lifestyle debt would amount owing to numerous credit cards. This would be unsecured debt from which relief is available. However, the necessary lifestyle changes that seniors debt relief would require would be significant, as the credit card liabilities have risen from spending more than the seniors earn.

Payday Loans: The number of elderly taking out payday loans is on the rise. Now retired, they may not qualify for traditional loans so they are falling prey to payday loan companies. Relief is available for unsecured payday loans, but like credit cards, the solution will involve lifestyle and spending changes.

Are you struggling financially, you require seniors debt relief (or not so grey relief) and don’t know where to turn? Contact Ira Smith Trustee & Receiver Inc. today. Our approach for every file is to create an outcome where Starting Over, Starting Now becomes a reality, beginning the moment you walk in the door. Call us today and take the first step towards living a debt-free life.

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EMPLOYMENT CREDIT CHECK IS LIKE A SCHOOL BULLY

credit, credit check, credit score, credit risk, credit report, credit rating, employment credit check, starting over starting now, trusteeCan the employment credit check beat you up? We previously discussed whether bad credit could hurt your job search. Now we know that an employment credit check certainly can. Even though a credit score was designed to predict whether or not you’re a good credit risk when you apply for a loan, a credit card, mortgage, a car lease, etc., more often than not you now have to submit to an employment credit check when applying for a job. But, should a potential employer be allowed to check your credit score and not offer you a job if you have a low one?

It sounds punitive, doesn’t it? After all, how can anyone improve their credit score without a good paying job? “There’s a certain irony that the people who are most vulnerable and who most require access to jobs could be discriminated against because they have poor credit ratings,” said Murray Rowe Jr., president of Forrest Green, a Richmond Hill-based credit advisory group.

Several states in the U.S. agree. California, Connecticut, Hawaii, Illinois, Oregon, Vermont, and Washington have enacted measures limiting the use of credit reports and the employment credit check when determining whether a person is the right fit for a job. New York City recently announced that lawmakers are expected to pass a bill prohibiting employers from reviewing the credit histories of prospective workers. And, according to a New York-based think tank, the application of credit reports has moved far beyond their intended purpose.

The federal government of Canada doesn’t agree. In fact it recently introduced mandatory credit checks as part of a new security screening procedure for public servants. Two unions representing federal employees object to the employment credit check policy and call it an unnecessary invasion of privacy.

Regardless of where you stand on the issue of employment credit check, the one thing that we can all agree on is that serious financial issues can jeopardize more than your bank account. It’s very important to deal with your financial problems as soon as possible with the help of a professional trustee and to not let them bully you. Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can live a debt free life and have the confidence to apply for the job of your dreams.

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ALTERNATIVES TO PERSONAL BANKRUPTCY: DON’T AVOID THE BANKRUPTCY DISCUSSION

bankruptcy, alternatives to personal bankruptcy, bankrupt, Office of the Superintendent of Bankruptcy Canada, insolvent, lines of credit, credit score, trustee, starting over starting nowThankfully, there are alternatives to personal bankruptcy. Say the word bankruptcy and people naturally recoil. I don’t know if there is more stigma attached to another word in the English language. In reality bankruptcy is not something to be ashamed of, it should not be avoided at all costs and it’s not a deep dark hole; it can be the light at the end of the tunnel. As with other alternatives to personal bankruptcy, it is an option. Let’s explore why avoiding bankruptcy can do more harm than good.

What is bankruptcy? Bankruptcy is incredibly misunderstood. According to the Office of the Superintendent of Bankruptcy Canada Bankruptcy is a legal process designed to relieve honest but unfortunate debtors of their debts. At the end of the process, the bankrupt is released from the obligation to repay the debts they had when the bankruptcy was filed (with some exceptions).

Why avoiding bankruptcy can do more harm than good: Although there are alternatives to personal bankruptcy which merit review, bankruptcy is often a good thing. A recent report by the Federal Reserve Bank of New York states:

  • People who filed bankruptcy had access to more new lines of credit than those who limped along in a poor financial state which clearly puts to rest the misconception that filing bankruptcy closes the door to new credit.
  • Those who didn’t file bankruptcy were described as insolvent.
  • The individuals who go bankrupt experience a sharp boost in their credit score after bankruptcy, whereas the recovery in credit score is much lower for individuals who do not go bankrupt
  • Insolvent individuals who do not go bankrupt exhibit more financial stress than those who do.

Are you insolvent and looking for solutions? The Ira Smith Team is here to offer alternatives to personal bankruptcy and bankruptcy help in Vaughan and throughout the GTA. Starting Over, Starting Now, Ira Smith Trustee & Receiver Inc. can help you overcome your financially difficulties. Contact us today.

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HOW TO PREVENT IDENTITY THEFT: RECOGNIZE IF YOU’RE A VICTIM

how to prevent identity theft, identity theft, credit report, collection agencies, data breach, trustee, insolvency, starting over starting now, Vaughan bankruptcy trusteeHow to prevent identity theft. In our last blog we discussed Identity Theft: Are You at Risk? This week we’ll be discussing how to recognize if you’re a victim of identity theft.

The best way to know how to prevent identity theft, or at least minimize the impact of identity theft, is to recognize the signs early. Monitor your hard copy or online financial accounts frequently. Check your credit report on a regular basis because unexpected changes to your credit information are often the first signs that you’ve been victimized by identity theft.

Knowing what to look for is how to prevent identity theft. These are the signs that you are a victim of identity theft:

  • There are withdrawals from your bank account that you didn’t make.
  • Your regular bank or credit card statements fail to appear.
  • You notice that other mail is missing.
  • You receive credit card statements or other bills in your name, which you did not apply for.
  • Telephone calls or letters state that you have been approved or denied by a creditor that you never applied to.
  • Collection agencies call you about debts that aren’t yours.
  • A company that you have an account with had a data breach and your information was compromised.
  • You find accounts and/or charges on your credit report that aren’t yours.
  • You are denied a loan even though you believe that you have an excellent credit report.

How to prevent identity theft requires constant monitoring of the signs listed above. If you’ve been a victim of identity theft, sadly we can’t turn back the clock; but if you’re in financial jeopardy as a result and you have collection agencies hounding you, we can help.

Ira Smith Trustee & Receiver Inc. is an insolvency and financial restructuring practice for individuals and companies in the Greater Toronto Area (GTA) facing financial crisis. Our approach for every file is to create an outcome where Starting Over, Starting Now becomes a reality, beginning the moment you walk in the door. Contact us today, your Vaughan bankruptcy trustee, and put your financial problems behind you.

Watch for our next blog when we’ll be discussing Identity Theft – What To Do If You’re A Victim.

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40 PARK LANE CIRCLE, 44 PARK LANE CIRCLE TORONTO FOR SALE: ARE FINANCIAL PROBLEMS CONTAGIOUS?

40 Park Lane Circle, 44 Park Lane Circle Toronto

40 Park Lane Circle, 44 Park Lane Circle Toronto for sale, 44 Park Lane Circle, 40 Park Lane Circle, debt, budget, collection agencies, trustee, financial plan, starting over starting now
40 Park Lane Circle, 44 Park Lane Circle

40 Park Lane Circle, 44 Park Lane Circle Toronto for sale: it seems that life in Toronto’s very exclusive Bridal Path is not always what it appears to be. We tend to categorize the people who own these properties as “the rich and famous” while in reality some of them are “not so rich and infamous”. Two Bridal Path properties have garnered quite a bit of attention #40 Park Lane Circle which used to be owned by Mahvash Lechcier-Kimel and #44 Park Lane Circle which used to be owned by Norma Walton and Ronauld Walton.

Are financial problems contagious?

Are financial problems contagious between 40 Park Lane Circle, 44 Park Lane Circle Toronto for sale or just the entire street? Of course not; but when you get caught up in a high flying Bridal Path lifestyle and have to support a massive property like either one of these, or any other property that the average person would describe as a mansion, it’s very easy to accumulate enormous amounts of debt, leaving you to house rich and cash poor. And, if the spending is not controlled and the debts keep piling up it can be easy to lose everything.

Everyone needs a realistic and proper budget

A realistic and proper budget should be an important part of your life. It will keep you from overextending yourself while trying to keep up with your next-door neighbours. Without a proper budget, it’s very easy to get caught up in a cycle of overspending – bigger houses, faster cars, and exotic vacations. The lure of luxury is intoxicating, especially in the low-interest-rate environment we currently live in; but what happens when you wake up and find letters from creditors in the mail demanding payment? How many of those demand letters do you think found their way to the mailboxes of these two luxury Bridle Path?

Call us for a no-cost consultation

So whether you are in over your head with debt due to the ownership of a massive property or for other reasons, such as you’re living a lifestyle that you can’t afford and are being hounded by creditors and collection agencies, now’s the time to contact a professional trustee today. The Ira Smith team can set you back on a path to financial health with immediate action and a solid financial plan. Starting Over, Starting Now you can live a debt-free life.

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DEATH OF A DEBTOR: WHO’S RESPONSIBLE FOR THE DEBTS?

death of a debtor, paycheque to paycheque, debt, debts, trustee, student loans, financial disaster, Bankruptcy and Insolvency Act, Starting Over Starting NowWhen you think of death of a debtor, you can’t help but be reminded of Death of a Salesman, Arthur Miller’s Pulitzer Prize winning play written in 1949 and still timely today. The play was essentially an attack on the American dream of materialism as embodied by the central character, Willy Loman. His entire life he lived paycheque to paycheque, waiting for his big break that never came. All the while the debts kept piling up. One day Willy Loman was fired and as a result he took his own life leaving his family to deal with the death of a debtor.

From time to time, we are consulted regarding insolvent estates of deceased persons.

When the death of a debtor occurs, who is responsible for the debts?

  • Although some creditors may try to collect from the spouse or other family members, debts do not transfer by virtue of marriage or death unless the debt is “joint” in which case the survivor will be required to pay the balance of the account.
  • Debts are normally paid out of the assets of the estate of the deceased before distributions are made to heirs (before any money can be distributed to heirs, all the proven debts must be paid).
  • If the estate is insolvent (the assets of the estate are not sufficient to pay the debts), then the order of payment is normally prescribed by provincial legislation.
  • If warranted, the executors can make application to Bankruptcy Court for an order allowing them to assign the deceased’s estate into bankruptcy. In that event, then the Bankruptcy and Insolvency Act (Canada), the federal legislation, will prescribe the order of payment.
  • If there is no money in the estate to pay the debt and if the debt is only in the name of the deceased person, the credit grantor will be left with no option but to write off the debt as uncollectible.

Some debts may be extinguished upon the death of the debtor:

  • Insured mortgages
  • Insured loans
  • The Canada Student Financial Assistance Act provides for some student loans to be repaid by the federal government in the event of the student’s death or permanent disability.

Make sure you know and understand the state of your finances before you have to deal with death of a debtor. If you’re living from paycheque to paycheque and on the edge of financial disaster, contact a professional trustee today. The Ira Smith team can help you solve your financial problems with immediate action and the right plan so that Starting Over, Starting Now you can enjoy financial freedom.

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CANADIAN PARENTS PAYING STUDENT LOANS

Canadian parents paying student loans, student loans, bankruptcy, debt, trustee, starting over starting nowCanadian parents paying student loans is much more common than you’d think. That was never the plan. Your child was supposed to get a university degree with the help of student loans, graduate, land a good paying job and pay off their student loans. The reality of the situation is quite different. Firstly it’s a misconception that student loans cover the costs of a university degree. Student loans may cover a portion of tuition costs. Statistics Canada says undergraduate students paid an average of $5,772 in tuition fees in 2013 to 2014. But that average rises, depending on the field of study: law studies cost an average of $10,039 while undergraduate studies in dentistry cost $17,324 during that same year. This may seem manageable, but this only tells a small part of the story. When you factor in the costs of books, living expenses and transportation, according to a recent Bank of Montreal study the total current cost for an undergraduate university degree can exceed $80,000 and is expected to surpass $140,000 by the time a child born in 2014 is old enough to enroll.

The second misconception is that a university degree is a guarantee of a good paying job. The reality is that it’s a very competitive market out there and many students aren’t making enough to repay student loans. Instead Canadian parents paying student loans is becoming an all too common story. In addition they’re paying for books and living expenses, even if it means sacrificing their financial stability. They’re delaying retirement, working more and borrowing money, potentially putting themselves in financial jeopardy.

There appears to be very few options when it comes to repaying student loans and that is another reason that leads to Canadian parents paying student loans. Even bankruptcy doesn’t discharge student loans until seven years after you’ve left school. In exceptional cases after five years you can apply to the court for special consideration (e.g. a disability which prevents you from working).

Canadian parents paying student loans may be in a financial danger zone. If you’re experiencing serious debt issues as a result of student loans or any other reason, you need professional help today. Contact Ira Smith Trustee & Receiver Inc. With a cumulative 50+ years of experience dealing with diverse issues and complex files, the Ira Smith team delivers the highest quality of professional service. Starting Over, Starting Now we can help you solve your financial problems.

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VAUGHAN BANKRUPTCY TRUSTEE WARNS OF DANGERS IN TAKING FREE TAX ADVICE

Vaughan bankruptcy trustee, bankruptcy, trustee, tax season scams, income tax, income tax debt, Canada Revenue Agency, CRA, tax advice, tax professional, tax, starting over starting now, frequently asked bankruptcy questionsAs a Vaughan bankruptcy trustee, we always warn our clients that this time of year can be dangerous. In our last blog we warned you about tax season scams. This week your Vaughan bankruptcy trustee is warning you about the dangers of taking free tax advice. There are many places to get free tax advice, and quite frankly all of them are dubious. Unless the person giving the advice is a trained and licensed financial services professional, the only thing you should do with free tax advice is ignore it, or you could find yourself in a worse financial and legal position than you started in.

It seems that everyone is looking ways to avoid paying income tax. As we discussed in a previous blog The Tax Lawyer; Even A High Profile Tax Fighting Lawyer Has To Pay His Income Tax, there is no miracle cure or quick fix when you owe money to the Canada Revenue Agency (CRA). Yet that doesn’t stop people from posting all sorts of questions on the Internet looking for free advice. The problem is when you post questions in online forums and chat rooms you have no idea who is answering your question and giving you advice. As a Vaughan bankruptcy trustee, many times we are shocked to see the kind of advice is being posted on the Internet also about frequently asked bankruptcy questions.

Although we do not provide income tax advice, as a Vaughan bankruptcy trustee, we do set filters to obtain postings having to do with income tax debt; many questions and answers regarding income tax are posted. The Internet allows for anonymity and the person who has identified himself/herself as a tax professional may in reality be a teenager having some fun. Or worse, perhaps it is a scammer or malware malcontent collecting email addresses! Although the Internet can be a valuable resource, online forums and chat rooms are not the places to seek tax advice. The same applies to well meaning friends, family and colleagues unless they are trained financial services professionals.

Seek financial advice from a trained, experienced, licensed professional ONLY! If you’re experiencing financial difficulties for any reason including monies owed to the CRA contact your Vaughan bankruptcy trustee, Inc. today. Starting Over, Starting Now you can put your financial difficulties behind you.

 

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VAUGHAN DEBT COUNSELLING ADVISES BEWARE OF TAX SEASON SCAMS

Vaughan debt counselling, Vaughan, debt, debt counselling, trustee, receiver, bankruptcy, Canada Revenue Agency, CRA, tax scams, email scams, phone scams, starting over starting nowWhen we perform Vaughan debt counselling, we always advise that there is no miracle cure or quick fix when you owe money to the Canada Revenue Agency (CRA). For a real life example, see our discussion in an earlier blog The Tax Lawyer; Even A High Profile Tax Fighting Lawyer Has To Pay His Income Tax. Unfortunately there is more to worry about than the CRA during tax season. There are scam artists out there just waiting to take your money. Through our Vaughan debt counselling, Ira Smith Trustee & Receiver Inc., we are able to provide some valuable information and advice to help protect you from the villainous forces lurking at the other end of a phone call or email transmission.

In fact, it was through our Vaughan debt counselling that we learned of these scams. Scammers are sending emails and making phone calls, claiming to be the CRA. These communications, asking for information including credit card data, bank account numbers and passwords and passport numbers are designed to steal your identity and/or your money. Email scams frequently contain embedded malicious software that can harm your computer and put your personal information at risk. DO NOT click on any of the links in the emails. Typically an email or telephone scam involves one of these two scenarios.

  1. You have a refund pending from CRA and the communications will go on to instruct the receiver to provide personal information in order to receive the benefit.
  2. You or your company, as a result of an audit, owe “back taxes”. You are advised you have to “pay up” ASAP to avoid a fine or the person is told there is an outstanding arrest warrant which can be avoided if the tax payment is made promptly. In many cases individuals are being told they will be deported if the taxes are not paid right away.

These types of communication are not from the CRA, should be ignored and reported to the RCMP or Canadian Anti-Fraud Centre at 1-888-495-8501 or http://www.antifraudcentre.ca.

The CRA:

  • NEVER requests information from a taxpayer about a passport, health card or driver’s license.
  • NEVER divulges taxpayer information to another person unless formal authorization is provided by the taxpayer.
  • NEVER leaves any personal information on an answering machine or asks taxpayers to leave a message with their personal information on an answering machine.

If you find yourself in financial difficulties as a result of a scam or for any other reason contact Ira Smith Trustee & Receiver Inc. We serve the GTA through our Vaughan debt counselling and our other services that are bankruptcy alternatives. We can help get you back on the road to solid financial footing Starting Over, Starting Now. Watch for our next blog when we’ll be discussing the dangers of taking free tax advice.

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FINANCIAL INFIDELITY DEFINITION: HAVE YOU EXPERIENCED IT?

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Financial infidelity definition: Introduction

Financial infidelity in marriage is the biggest danger to your marriage. Contrary to popular belief, a spouse with a roving eye is not the biggest danger; it is financial infidelity. You may be surprised to learn what the financial infidelity definition is. Financial infidelity in marriage is more common than you think. According to a 2014 survey by the National Endowment for Financial Education:

  • 33% of people with joint finances have lied to their partner about money.
  • 30% concealed a purchase, bank account, statement, bill or cash from the other.
  • 10% lied about their finances, earnings and debt.
  • 35% have been financially deceived by a partner.

Financial infidelity definition: How much damage can financial infidelity cause?

How much damage does financial infidelity in marriage cause? According to the same 2014 survey by the National Endowment for Financial Education:

  • 76% of those surveyed said financial deception has adversely affected their relationships.
  • 47% admitted it caused an argument.
  • 33% reported that it had resulted in less trust in the relationship.
  • 10% said that the deception ultimately resulted in divorce.
  • 8% blamed it for a separation.

Financial infidelity definition: Money is the top predictor of divorce

The top predictor of divorce is arguing about money, regardless of the couple’s income, debt or net worth, according to a Kansas State University study. If you have financial infidelity in marriage, the secrecy has to end and you must be open and honest. Full disclosure is the only way. You need to:

  • Have an open and honest conversation about money and shake all the skeletons out of the closet.
  • Create a budget that you can both live with.
  • Set financial rules and goals.
  • Seek financial help

Financial infidelity definition: We can help get you out of trouble

Contact Ira Smith Trustee & Receiver Inc. We are professionals who serve companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. There is a way back from financial infidelity in marriage. It takes a solid financial plan and hard work. Call us today for a consultation and take the first step towards getting your marriage and finances back on track.

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