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WHAT CAN I DEDUCT FOR SURPLUS INCOME IN BANKRUPTCY?

what can I deduct for surplus income in bankruptcy, surplus income in bankruptcy, surplus income, bankruptcy, Bankruptcy & Insolvency Act, Office of the Superintendent of Bankruptcy, trustee, starting over starting now“What can I deduct for surplus income in bankruptcy?” is one of the questions about bankruptcy that we are very frequently asked. The concept of surplus income in bankruptcy doesn’t really seem to make much sense. After all, if you are bankrupt, how can you have surplus income? So let’s start at the beginning and clear up all the confusion in order to answer the question “what can I deduct for surplus income in bankruptcy”.

What is surplus income in bankruptcy? If you have filed an assignment in bankruptcy, under the Bankruptcy & Insolvency Act you are required to make a surplus income payment each month based on your income. The more you earn, the more you are required to contribute. The Office of the Superintendent of Bankruptcy sets limits for what a family is allowed to earn. The larger your family, the more you are allowed to keep. The thresholds are increased each year. The government has established a list of income levels for households of different sizes. If the household’s income exceeds the level set by the government then you have surplus income in bankruptcy and additional payments must be made to your trustee during your bankruptcy. The government’s instructions regarding surplus income can be found in Directive 11R2 from the Office of the Superintendent of Bankruptcy.

What can I deduct for surplus income in bankruptcy? There are some allowable deductions for surplus income in bankruptcy:

  1. child support payments
  2. spousal support payments
  3. child care expenses
  4. expenses associated with a medical condition
  5. Court-imposed fines or penalties that are in the process of being paid
  6. expenses permitted by the Income Tax Act (or similar provincial legislation) that are a condition of employment
  7. any other debt where a stay of proceedings has been lifted by the Court, and a recourse authorized
  8. interest paid on debts that are not dischargeable in bankruptcy under paragraph 178(1)(g) of the Act

As a result of these deductions in the calculation, that is why everyone wants to know what can I deduct for surplus income in bankruptcy.

If you’re considering an assignment in bankruptcy you will require the services of a licensed bankruptcy trustee. Contact Ira Smith Trustee & Receiver Inc.We provide the depth of expertise found in a large company, delivered in a boutique setting that ensures high quality and cost effective service. 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. Take the first step to Starting Over, Starting Now.

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CANADIAN PAYDAY LOANS NO CREDIT CHECK: TOO GOOD TO BE TRUE!

Canadian payday loans no credit check, payday loans, credit check, credit, credit cards, lines of credit, trustee, bankruptcy, interest rates, debt, personal bankruptcy, bankruptcy alternatives, bankruptcy faqs, Cheri DiNovo, starting over starting nowIf something is too good to be true, like Canadian payday loans no credit check, it usually is. More companies seem to be springing up like weeds every day offering Canadian payday loans. No credit check is the hook they use to bait you. When it comes to money, no one offers you something for nothing. Think logically, if you have bad credit or no credit, why would any legitimate company be willing to give you money? You and I both know it doesn’t make sense. Yet, the Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. Why would anyone respond to an ad for Canadian payday loans no credit check? They don’t have access to conventional credit like credit cards, lines of credit or overdraft and they aren’t aware that they can solve their problems instead of taking on more debt.

How can a company offer Canadian payday loans no credit check and make money? Simple; they charge exorbitant interest rates which are disguised so that the consumer has no idea what they are signing on for. According to Scott Hannah, president of Canada’s Credit Counselling Society, when a payday lender offers you 21% interest for a 14 day loan, that is actually 546% annual interest! Can you imagine anyone agreeing to pay 546% annual interest? But when it’s disguised as 21% for a 14 days loan, it seems quite benign. The clients who make good on their loans pay for the ones that default on their loans and those outrageous interest rates offset the losses.

Many people in the private and public sector are outraged at Canadian payday loans no credit check companies and many politicians like Cheri DiNovo are trying to shut them down. This is what she has to say:

Ontario NDP MPP for Parkdale-High Park, Cheri DiNovo

I feel they’re just ripping off poor people who have to go there for a loan and it’s just ridiculous what they charge. You’re only allowed to charge $17 on the hundred. Well with them, it’s a lot more. I think it’s something that should be outlawed and something the company should be shut down. I mean it’s outrageous.

There are better solutions to your financial problems than taking on more debt. Say NO to Canadian payday loans no credit check companies. Say YES to real financial advice from a professional trustee who is federally licensed and trained to deal with people facing a financial crisis or bankruptcy.

I understand that you are scared to declare personal bankruptcy. That is why personal bankruptcy is the last option we look at when providing you with a no charge first consultation. We first consider your entire situation, and discuss with you the bankruptcy alternatives that might be proper for you to consider. It is only after we exhaust every possible bankruptcy alternative, that we even consider discussing bankruptcy with you. Please check out the information we provide in our top 20 bankruptcy faqs section, so that you can gain real knowledge. More debt through the various Canadian payday loans no credit check companies is just a very expensive band aid, it is not a proper solution to living a debt free life!

Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you will be on your way to solving your problems, not taking on more debt.

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SCARED TO DECLARE PERSONAL BANKRUPTCY?

scared to declare personal bankruptcy, personal bankruptcy, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, consumer debt, credit card debt, debt, trustee, trusteesScared to declare personal bankruptcy? Don’t be. Bankruptcy is a legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts.

According to the Office of the Superintendent of Bankruptcy Canada:

Employment and Social Development Canada reports:

  • In 2011, 122,999 Canadians were unable to repay their debts.
  • Serious financial difficulties brought them to file either a payment proposal or a bankruptcy. The average amount owed was $119,021.
  • About 53% of Canadians filing a proposal or bankruptcy in 2011 were aged 30 to 49 years.
  • In 2007 individuals who were divorced or separated were more likely to file a proposal or bankruptcy than Canadian adults on average.
  • In 2008 the most frequent type of debt reported by individuals filing a proposal or bankruptcy was credit card debt (91%).

Still scared to declare personal bankruptcy? Huffington Post reports that one in six Canadians will eventually go bankrupt. Don’t be scared to declare personal bankruptcy; there are advantages:

  • It is relatively quick
  • It can be less expensive than other options
  • It eliminates your unsecured debts
  • You will have some protection from creditors, legal action and wage garnisheeing
  • After your discharge your credit risk can start to improve

If you are considering bankruptcy, your first step should be to meet with a trustee. Trustees are individuals licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer the bankruptcy process. Contact Ira Smith Trustee & Receiver Inc. We will evaluate your financial situation and discuss various bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals that could help you to solve your financial problems. Don’t be scared to declare personal bankruptcy. It’s just an option to consider so that Starting Over, Starting Now you can be well on your way to financial health.

 

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PERSONAL LOANS FOR BAD CREDIT: INTERESTED?

personal loans for bad credit, personal loans, bad credit, trustee, bankruptcy, personal bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, financial plan, debt, high cost debt, starting over starting nowPersonal loans for bad credit commercials and advertisements are very seductive. It seems so easy – money in your bank account in no time and they can be arranged online 24/7. Serious debt can be debilitating, leaving you feeling helpless, out of control and not knowing where to turn. The answer to your problems is personal loans for bad credit, but is it really?

Personal loans for bad credit are not the same as a loan you’d get from your bank or credit union. The interest rates are much higher because the risk to the lender is much greater. As a professional trustee I can tell you that the last thing you need is more high cost debt. What you need is a solid financial plan to get you out of debt, not personal loans for bad credit.

How can you get out of debt without resorting to high cost personal loans for bad credit? There is no instant or quick fix for serious debt issues. What you need are answers, options and realistic plan for recovery. Firstly, make an appointment with a professional trustee as soon as possible. Relying on advertising for financial advice is never a good idea. Trustees are professional, licensed, federally regulated financial services professionals who are uniquely positioned to provide long term, sensible solutions on reducing debt. Personal bankruptcy is not your only choice. There are bankruptcy alternatives such as credit counselling, debt consolidation or consumer proposals.

Don’t fall prey to high cost personal loans for bad credit. For sound financial advice you can depend on, contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can be well on your way to a debt free future.

 

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NO CREDIT CHECK LOAN: FOR CANADA DAY?

no credit check loan, credit card debt, July 4, Independence Day, Canada Day, good debt, bad debt, credit counselling, bankruptcy alternatives, consumer proposal, consumer proposals, bankruptcy, student loans, line of credit, bad credit, licensed professional trustee, trustee, starting over starting now, debt consolidation, bankruptcy faqsThe no credit check loan and credit card industries are being used to fund holiday travel. The American Automobile Association reported that: “This year nearly 41 million Americans plan to celebrate the nation’s birthday with a getaway…” said AAA President and CEO Robert L. Darbelnet.

AAA also reported that this July 4 Independence Day travel is because of the willingness of consumers to take on debt, NOT an increase in income, to fund for the increase in consumer spending. No credit check loan debt and credit card debt is cited as the two credit vehicles of choice being used to fund travel.

In July 2013 we discussed how even high flyers can’t sustain the income to fund their lifestyles, so all demographics means the rich and famous are included. In April 2014 we discussed that debt is increasing in Canada across all demographics, and at alarming rates. A check of our analytics indicates that “no credit check loan” and similar bad credit loan searches are by far outweighing other keywords that people are using. Every day, fewer and fewer people are using keyword search terms such as credit counselling, bankruptcy alternatives, consumer proposals or bankruptcy.

It would appear that Canadians are also much more willing to take on more debt, even though they know they have a debt problem because of a bad credit score. We know that there are two types of debt: good debt and bad debt. If there is such a thing as good debt and bad debt, what’s the difference? The distinction is based on the purpose for which it is taken on. Good debt can be defined as anything that builds your assets or increases the potential for you to earn more money. Bad debt is typically incurred to purchase things that have no value or quickly lose their value and usually carries a very high interest rate – which more often than not is found in no credit check loan debt and credit card debt.

Some examples of good debt:

  • Mortgage
  • Real estate
  • Student loans from the provincial or federal government
  • Investment loans

Some examples of bad debt:

There are a lot of people with bad credit who are feeling pain in our society and believe that another no credit check loan is their solution. These people are misguided in that they think that a further high cost no credit check loan will solve their problem. I understand the way these people think. It is hard for us to face our challenges. Whether it is about our health, our family or our financial situation, it is difficult and painful to look at our problems straight in the face, especially if we are the one who created the problem. These people mistakenly think that taking on more debt is the solution.

Well, it is not. These people need to recognize that their credit score is so poor because of choices they have made in the past, and their behaviour has to change. Taking on more debt through a high cost no credit check loan is just increasing their problems. They need to look at ways to budget so that their expenses are less than their income. They need to start saving to pay down debt.

If they can’t do it on their own, then they must consult a licensed professional trustee who can discuss options with them: budgeting, bankruptcy alternatives such as debt consolidation or a consumer proposal or perhaps even bankruptcy. If this sounds like you, contact Ira Smith Trustee & Receiver Inc. right away for a no charge consultation. You can even check out our bankruptcy faqs now online here. We will go over all of your options, and encourage and help you to implement the one that is right for you so that together we can solve your problems with immediate action and the right plan so that Starting Over, Starting Now will become your reality.

In the meantime, whether you are travelling for this Canada Day holiday or relaxing at home, we wish you a safe, fun, relaxing and hopefully only a good debt Canada Day holiday with family and friends.

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IS BABY BOOMERS DEBT PREVENTING THEM FROM GETTING MARRIED?

IS DEBT PREVENTING BABY BOOMERS FROM GETTING MARRIED?Baby boomers debt is having an effect on baby boomers who wish to get married, but won’t. Shacking up is not exclusively for young people bucking societal traditions. About 33% of Baby Boomers are unmarried today and many are opting to live together instead of getting married, according to a survey done by the National Center for Family and Marriage Research at Bowling Green State University in Ohio. In fact, the number of Baby Boomers living together has more than doubled in 10 years – about 2.75 million people over the age of 50 were cohabiting in the United States in 2010 compared to 1.2 million a decade earlier, according to the research. U.S. Census Bureau data shows adults older than 50 are among the fastest growing segment of unmarried couples in the U.S.

Why are Baby Boomers choosing to cohabitate instead of tying the knot? The most common reason cited is money – debt, benefits, taxes and cash flow are preventing couples from saying I Do. Many Baby Boomers have assumed a heavy debt load as a result of:

Debt has hit the Baby Boomers hard and many are reluctant to enter into a marriage where they may be assuming additional debt as a result of the marriage. Others are reluctant after having suffered financially as a result of grey divorce. There are many reasons that Baby Boomers are in debt and we have explored them in several blogs – Baby Boomers Debt: Reasons Why It Is So High, Baby Boomers Debt Crisis: Waiting For An Inheritance To Bail You Out, and Grey Divorce Can Create Serious Debt For Boomer Retirees.

If you’re experiencing serious debt issues, then you already know that debt doesn’t miraculously disappear on its own. You need professional help and a solid plan for moving forward with your life Starting Over, Starting Now. Don’t let debt prevent you from doing the things that are important to you. Contact Ira Smith Trustee & Receiver Inc. today and take the first step towards living a debt free life.

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CRA: TAX RETURN FILED BUT NO MONEY TO PAY?

proposal, income tax, income tax debt, tax debt, CRA, Canada Revenue Agency, trustee, trustees, tax lawyer, consumer proposal, bankruptcy, bankruptcy alternatives, taxes in CanadaWill CRA be looking for you? June 17TH was the deadline for self-employed individuals in Canada to file their 2013 income tax and benefit return. You filed your return on time to avoid a late-filing penalty on amounts owing, and gasped when you saw how much money you owe the CRA. How are you going to pay your tax bill? The CRA is not known as a charitable organization and they have the power to withhold HST/GST and child tax credits, seize money in your bank account and garnish your wages. To add insult to injury the CRA can also continue to charge penalties and interest on the money you owe until your debt is paid in full. You need a plan and you need one now.

I’m sure you’ve been bombarded by the scare tactic radio ads that are flooding the air waves by a prominent tax lawyer. He’d like you to believe that he and only he can deal with the CRA and solve your tax problem; but, that simply isn’t true. Trustees are experts in solving debt issues and what you need is a professional, licensed trustee. Your trustee will present you with bankruptcy alternatives, one of which is a consumer proposal.

What is a proposal? In a proposal your trustee will work with you to determine how much you can afford to pay each month. Your trustee will then negotiate with your creditors, including the CRA, for you to pay a portion of your unsecured debt over a maximum of 5 years at a monthly rate that is affordable to you. Over 66 2/3% of your creditors ($ value, in addition to a majority in number) have to agree to accept the proposal. If your total debt, including income tax debt, is less than $250,000, then you can consider a streamlined proposal process, which is called a consumer proposal.

Will the CRA agree to a consumer proposal? Recent statistics from the CRA estimate there is currently about $8 billion in unpaid taxes in Canada. The reason that consumer proposals are almost always accepted is that they produce a better rate of recovery on your debts than if you’d filed for bankruptcy. For your consumer proposal the CRA will require that:

  • all outstanding tax returns are filed with CRA before they will accept the proposal
  • you have sufficient income to meet the payments in the proposal
  • you agree to make installments on your current year taxes, so that you don’t fall behind again on your taxes

Are you a good candidate for a consumer proposal? If you’re a business owner with a good cash flow and after coming up with all the deductions possible to give to your accountant you still had a large profit leading to the surprise income tax debt, you’re are a good candidate for a consumer proposal. We can also let you know why negotiating a reduction in your debt through a consumer proposal is better than a bankruptcy.

Don’t let tax debt paralyze you! Contact Ira Smith Trustee & Receiver Inc. today. We’ll create a solid financial plan for you so that you can be Starting Over, Starting Now.

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ABLE TO RETIRE? CAN YOU AFFORD TO – OR WANT TO?

ABLE TO RETIRERetirement has become a hot issue with record numbers of Canadians reaching retirement age asking themselves if they will ever be able to retire. We first reported on this in a blog – Will You Ever Be Able To Retire? Many can’t afford to retire; others don’t want to. We’re living longer than previously anticipated and in many cases are outliving our incomes. According to Statistics Canada, a 65 year old man can expect to live to 83; a 65 year old woman can look forward to blowing out the candles on her 86th birthday. Moshe Milevsky, an associate professor of finance at Toronto’s Schulich School of Business at York University, says there is a 41% chance that at least one member of a 65 year old couple will live to 90. Who is going to finance this longevity?

A new survey from ING Direct reports:

This indicates that a significant number of Canadians are not able to retire when they thought they should.

I came across an interesting story about an 84 year old retired factory worker who thought he was able to retire but was now trying to support 3 generations of his family (11 members) on his retirement income. How could he have foreseen that in retirement he would be called upon to help his children, grandchildren and great-grandchildren?

What happens if you are not able to retire or just don’t want to retire? What if you know that you don’t have enough saved to retire comfortably and are therefore not able to retire; or you have no idea what to do with yourself for the next 30 years? Can you be forced into retirement? This very issue was brought before the Supreme Court of Canada by John Michael McCormick, an equity partner in a national law firm who didn’t want to retire at age 65 as the partnership agreement stipulates.

CITATION: McCormick v. Fasken Martineau DuMoulin LLP, 2014

Mr. McCormick took the matter to the B.C. Human Rights Tribunal as an age discrimination in the workplace case. The Supreme Court of Canada ruled that since Mr. McCormick was an equity partner and could be part of management, he wasn’t controlled by the firm and therefore could not be subject to a Code to prevent discrimination in the workplace by those in a control position. It now begs the question, how would the Supreme Court of Canada have ruled if Mr. McCormick was not an equity partner? Would he have won his age discrimination case? What do you think? I would love to hear your take on it in the comments section below.

If you’re like many Canadians who are struggling to pay the bills, living paycheque to paycheque and can’t even say the word retirement out loud, you need help from a professional, federally licensed trustee. Ira Smith Trustee & Receiver Inc. can help get your life back on track Starting Over, Starting Now. Contact us today.

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BAD CREDIT LOANS GUARANTEED APPROVAL

bad credit loans guaranteed approval, debt, starting over starting now, financial help, trustee, professional licensed bankruptcy trustee, licensed trustee, personal financial management, financial problems, creditor, bankruptcy trustee, danger signs, debts, personal loans, credit cards, payday loans, living paycheque to paycheque, uncontrolled debt, bad credit loans, debt free life, professional financial helpIf you are searching for bad credit loans guaranteed approval, then you already know that one of the more frightening feelings common in the modern world is falling into debt and not knowing how to get out. Debt has a way of sneaking up and overwhelming us before we realize what is going on.

Many people have not had the training in personal financial management needed to stay out of debt, and they are in need of guidance from someone who has this expertise for resolving their financial problems. Unfortunately, people in this situation often get into more trouble by looking for bad credit loans guaranteed approval by a new creditor rather than finding the help they really need from a bankruptcy trustee.

Bad Credit Loans Guaranteed Approval

If you find yourself typing the above search term into your search engine, you may well be looking at one of the danger signs that you are in need of professional help in dealing with your debts. Other signs that debt is out of hand include:

  1. not having any savings;
  2. taking personal loans from family or friends;
  3. missing payments on credit cards, mortgage, or rent;
  4. using your credit card for buying groceries and other necessities;
  5. relying on credit cards to get from one payday to the next;
  6. not knowing the total amount you owe; and
  7. not being able to manage living paycheque to paycheque.

The worry and stress created by these pressures makes finding a way out of the situation even harder. Uncontrolled debt can take a big toll on family life and reduce, or eliminate, the resources for relaxation and leisure, leaving the person with no time to even look for the light at the end of the tunnel. I can assure you from all of the cases we have handled, a bad credit loans guaranteed approval company is not a solution to your overall debt problem.

As the debt mounts, the prospect of looking at the whole picture becomes even more overwhelming. However, looking objectively at your whole situation is the most important first step for resolving the crisis, and this is exactly what you can gain by using the assistance and perspective of a professional licensed bankruptcy trustee. I can look at your situation clearly as a third party, and I will not charge you for that consultation. So all you have to lose, is your debt!

Avoiding Bad Credit Loans Guaranteed Approval

If you have found yourself seeking more bad credit loans, consider turning in a new direction that can lead you out of debt forever. Take a deep breath, step back for a moment and have a consultation with a licensed bankruptcy trustee who can help you in facing the full dimensions of your problem and then devise a plan that moves you toward a debt free life.

We have written several blogs about the high amounts charged by bad credit loans guaranteed approval companies and how they take advantage of people at their weakest moment, and you may wish to read some of them. They include: BAD CREDIT LOANS TORONTO: LEGIT COMPANIES DON’T GUARANTEE THEM, PAYDAY LOANS ARE NOT THE ANSWER TO YOUR FINANCIAL PROBLEMS, and THE CASH STORE ONTARIO: THIS PAYDAY LOAN OUTFIT NEEDED HELP AND CALLED A TRUSTEE! If you read these blogs, you will see why we say that a bad credit loans guaranteed approval company is not the way to solve your financial problems.

If debt has overwhelmed your life and you are still looking for more, that is a definite warning sign that it is time for professional financial help. Contact Ira Smith Trustee & Receiver Inc. immediately. We will evaluate your situation and provide you with a solid plan for moving forward so that Starting Over, Starting Now you can live a debt free life.

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STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?

STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?Student loan debt is not just a problem for students and their families to deal with. It’s a serious problem that has invaded all facets of our society and has significantly impacted our economy. According to the Canadian Federation of Students:

  • The average student loan debt is $27,000
  • Between 2012 and 2013 more than 400,000 students borrowed money to help pay for more schooling
  • The CSLP (Canada Student Loans Program) expected to lend approximately $2.46 billion during the 2013-14 academic year

Statistics Canada’s Survey of Financial Security reports that student debt grew 44.1% from 1999 to 2012, or 24.4% between 2005 and 2012. And, one in eight Canadian families is carrying student debt. The average student is having a great deal of difficulty paying off their student loans and according to the Canada Student Loans Program, most students take nearly 10 years to pay off their loans – with some taking the maximum 14.5 years. In September 2010 the amount of student loans owed to the Government of Canada was more than $15 billion dollars, which is greater than the debt of some provinces. The federal government has written off another $231 million in unpaid student loans this year from more than 44,000 cases, after exhausting all avenues attempting to collect.

A study last year from TD Bank found that students are increasingly delaying major life milestones due to the rising costs of education. How can someone who is still paying off student loans assume a mortgage or car loan? Students are shackled by their student loan debt and there is no relief. Student loans can only be discharged by bankruptcy if you have been out of school entirely (full time or part time) for 7 years or more. Student loan debt has significantly impacted our economy because university graduates lack the disposable income to create a buoyant housing market, brisk car sales and restricts the purchase of high ticket items which all fuel the economy. The CSLP does not have a program for student loan debt forgiveness or student loan debt relief.

If you’re facing financial crisis or bankruptcy, you need a plan for Starting Over, Starting Now. Ira Smith Trustee & Receiver Inc. can solve your problems with immediate action and the right plan. Contact us today.

Call a Trustee Now!