{"id":3120,"date":"2017-02-22T21:00:12","date_gmt":"2017-02-23T02:00:12","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=3120"},"modified":"2020-03-18T15:17:42","modified_gmt":"2020-03-18T19:17:42","slug":"bankruptcy-trustee-in-vaughan","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/bankruptcy-trustee-in-vaughan\/","title":{"rendered":"BANKRUPTCY TRUSTEE IN VAUGHAN BECOMES LICENSED INSOLVENCY TRUSTEE"},"content":{"rendered":"<div style=\"width: 640px; max-width: 100%; margin: auto; clear: both;\">\n<div style=\"position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden;\"><iframe loading=\"lazy\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; padding: 0px; margin: 0px;\" src=\"\/\/snakeplayer.com\/watch?v=aXJhX3NtaXRoLTEzNg\" width=\"640\" height=\"360\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<div><img decoding=\"async\" style=\"width: 100%; height: auto; float: left; padding: 0px; margin: 0px; border: 0px;\" title=\"alternative to bankruptcy\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2018\/09\/a501831bba8bb8bf0473dd81d70a30db.png\" alt=\"alternative to bankruptcy\" \/><\/div>\n<\/div>\n<h2 id='the-bankruptcy-trustee-in-vaughan-why-did-we-transform-into-a-licensed-insolvency-trustee'  id=\"boomdevs_1\"><span style=\"color: #00ccff;\">The bankruptcy trustee in Vaughan: \u00a0Why did we transform into a licensed insolvency trustee?<\/span><\/h2>\n<p>Similar to\u00a0caterpillars turning into butterflies, this <strong><a href=\"http:\/\/www.irasmithinc.com\/blog\/bankruptcy-and-insolvency-act-3\/\">bankruptcy trustee<\/a> in Vaughan<\/strong>\u00a0went through a metamorphosis. The Office of the Superintendent of Bankruptcy officially changed the name &#8220;bankruptcy trustee&#8221; to &#8220;licensed insolvency trustee&#8221; (LIT). \u00a0As of April 1, 2017, all licensed trustees must have fully transitioned to the use of the LIT designation.<\/p>\n<p>The purpose of this blog is to offer\u00a0an overview of the Canadian insolvency process. Think of it as a bankruptcy and insolvency lesson 101.<\/p>\n<h2 id='what-is-the-purpose-of-the-bankruptcy-and-insolvency-act'  id=\"boomdevs_2\"><span style=\"color: #00ccff;\">What is the purpose of the Bankruptcy and Insolvency Act<\/span><\/h2>\n<p>Among the primary functions of <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_personal.html\">this insolvency process<\/a>, it is to release the individual from specific financial debts. \u00a0It is to give\u00a0a straightforward honest but unfortunate debtor a &#8220;new beginning.&#8221;. The debtor has no responsibility for discharged financial obligations.<\/p>\n<p>A discharge is available to personal bankrupts, not to corporations. Although a personal case typically causes a discharge of financial debts, the right to a discharge is not absolute. Some sorts of debts may not be released.\u00a0 <a href=\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-3\/page-44.html#docCont\" target=\"_blank\" rel=\"noopener\">Section 178(1) of the Bankruptcy and Insolvency Act (Canada)<\/a> (\u201cBIA\u201d) sets out the types of debts that are not released by the discharge of the bankrupt.\u00a0 The kinds of debts that are not released are:<\/p>\n<p>1.\u00a0 child support and alimony;<\/p>\n<p>2.\u00a0 fraud or near fraud;<\/p>\n<p>3.\u00a0 debts arising from Court orders.<\/p>\n<h2 id='where-can-i-do-some-of-my-research'  id=\"boomdevs_3\"><span style=\"color: #00ccff;\">Where can I do some of my research?<\/span><\/h2>\n<p>You must initially do some of your own research to get an idea of exactly what your choices are. One place to start is our website to learn about:<\/p>\n<ol>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_personal.html\">Personal Services<\/a>\n<ol>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_credit_counselling.html\">Credit Counselling<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_consumer-proposal.html\">Consumer Proposals<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_bankruptcy-alternatives.html\">Bankruptcy Alternatives<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_the-bankruptcy-process.html\">The Bankruptcy Process<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_why-use-a-trustee.html\">Why use a Licensed Insolvency Trustee?<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_rebuilding-credit.html\">Rebuilding Credit<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_personal-bankruptcy.html\">Personal Bankruptcy<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/faq.html\">TOP 20 PERSONAL BANKRUPTCY FAQs<\/a><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<ol start=\"2\">\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-corporate.html\">Corporate Services<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-creditor.html\">Creditor Services<\/a><\/li>\n<li>Our Blog titled\u00a0<a href=\"http:\/\/www.irasmithinc.com\/blog.php\">Brandon\u2019s Blog<\/a><\/li>\n<\/ol>\n<p>Once you have a good handle on what to expect, speak to a <a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\">LIT<\/a>\u00a0to begin discussing what actions you have to take next.<\/p>\n<figure id=\"attachment_3176\" aria-describedby=\"caption-attachment-3176\" style=\"width: 1015px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3176 size-full\" title=\"bankruptcy trustee in vaughan\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/3bestaward.jpg\" alt=\"bankruptcy trustee in vaughan\" width=\"1015\" height=\"475\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/3bestaward.jpg 1015w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/3bestaward-300x140.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/3bestaward-768x359.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/3bestaward-500x234.jpg 500w\" sizes=\"auto, (max-width: 1015px) 100vw, 1015px\" \/><figcaption id=\"caption-attachment-3176\" class=\"wp-caption-text\">bankruptcy trustee in vaughan<\/figcaption><\/figure>\n<h2 id='the-bia'  id=\"boomdevs_4\"><span style=\"color: #00ccff;\">The BIA<\/span><\/h2>\n<p>The BIA allows for a procedure that permits people and companies to be released from all of their financial debts through either:<\/p>\n<ol>\n<li>a restructuring (<a href=\"https:\/\/www.ic.gc.ca\/eic\/site\/bsf-osb.nsf\/eng\/br02051.html\" target=\"_blank\" rel=\"noopener\">Consumer Proposal<\/a>, <a href=\"https:\/\/www.ic.gc.ca\/eic\/site\/bsf-osb.nsf\/eng\/br01977.html\" target=\"_blank\" rel=\"noopener\">Division I Proposal<\/a> or the <a href=\"https:\/\/www.ic.gc.ca\/eic\/site\/bsf-osb.nsf\/eng\/br02284.html\" target=\"_blank\" rel=\"noopener\">Companies\u2019 Creditors Arrangement Act<\/a>) under secure arrangements of the federal insolvency statute; or<\/li>\n<li>through bankruptcy by turning over their property to a <a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\">licensed insolvency trustee<\/a> to realize upon it for the general benefit of creditors.<\/li>\n<\/ol>\n<p>Either way, the funds available for distribution to the creditors are paid out by the licensed insolvency trustee. \u00a0It is according to the scheme of priority laid out in the BIA.<\/p>\n<p>The Court will consider approving a <a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposal-vs-bankruptcy-3\/\">repayment plan<\/a> that will repay the approved part of the financial obligations in no more than 5 years. When you use the\u00a0restructuring provisions of the BIA (<a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposals-ontario\/\">Consumer Proposal<\/a> or <a href=\"http:\/\/www.irasmithinc.com\/blog\/division-one-proposal-ontario-documents\/\">Division I Proposal<\/a>), you need to have a payback strategy to show your creditors just how you are going to pay back your debts. A successful restructuring plan is an <a href=\"http:\/\/www.irasmithinc.com\/blog\/bankruptcy-alternative-rrsp\/\">alternative to bankruptcy<\/a> and will allow a person or company to <a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposal-process-2\/\">avoid bankruptcy<\/a>.<\/p>\n<p>There are various rules and ways that must be followed. Your <a href=\"http:\/\/www.irasmithinc.com\/\">licensed insolvency trustee<\/a> can go over all the issues with you and is there to aid you through the process.<\/p>\n<h2 id='how-does-it-all-work'  id=\"boomdevs_5\"><span style=\"color: #00ccff;\">How does it all work?<\/span><\/h2>\n<p>Canada&#8217;s insolvency legislation is designed for debtors experiencing financial problems who cannot pay their present financial obligations and don\u2019t have enough cash flow to offer a restructuring plan to avoid bankruptcy. The aim is to get a release from their existing debts.<\/p>\n<p>The premise of the BIA is that the individual must deliver all of his or her non-exempt assets to the licensed insolvency trustee.\u00a0 The trustee will sell them for distribution to the creditors. In return, other than for either secured debts or the class of debts not released by a discharge from bankruptcy discussed above, the person\u2019s debts will be erased. The person will be able to maintain any type of property that is categorized as exempt under provincial regulations. In this way, a discharge allows the individual to return to society as discharged bankrupt.\u00a0 This allows the person to start all over again.<\/p>\n<h2 id='your-credit-score'  id=\"boomdevs_6\"><span style=\"color: #00ccff;\">Your credit score<\/span><\/h2>\n<p><a href=\"http:\/\/www.irasmithinc.com\/blog\/cost-of-filing-for-bankruptcy\/\">Filing in an insolvency process<\/a>\u00a0could impact your financial resources and credit score for years.\u00a0You should very carefully weigh all your options before choosing the bankruptcy option.\u00a0 That is a discussion a licensed insolvency trustee will be happy to have with you and will help you in first trying to find one of the possible <a href=\"http:\/\/www.irasmithinc.com\/blog\/economic-downturn-causes-more-people-to-consider-bankruptcy-or-personal-bankruptcy-alternatives\/\">bankruptcy alternatives<\/a>.\u00a0 Hopefully, together you can see which one is best for you.\u00a0 Only if there is not an available alternative, will the trustee recommend bankruptcy?<\/p>\n<p>A current bankruptcy filing may prevent you from acquiring a mortgage or other financing for years. <a href=\"http:\/\/www.irasmithinc.com\/blog\/credit-card-debt-help\/\">Credit card businesses<\/a> will instantly end your charge cards when you file for bankruptcy. Likewise, if you are trying to find a job or rent a place to live, some employers or property owners might look unfavourably on a current bankruptcy filing. If other applicants are as qualified as you and don\u2019t have a bankruptcy on their record, you probably won&#8217;t be chosen.<\/p>\n<h2 id='fresh-start'  id=\"boomdevs_7\"><span style=\"color: #00ccff;\">Fresh start<\/span><\/h2>\n<p>Bankruptcy permits people or companies that are unable to pay their debts to settle their monetary difficulties and start <a href=\"http:\/\/www.irasmithinc.com\/repairyourcredit.html\">restoring their credit<\/a>. Declaring bankruptcy will trigger the &#8220;stay of proceedings&#8221;, preventing creditors from starting or continuing any legal action to collect their debts.<\/p>\n<p>A\u00a0bankruptcy filing will stay on your credit report for about <a href=\"http:\/\/www.irasmithinc.com\/blog\/after-bankruptcy-discharge-canada\/\">7 years<\/a>.\u00a0Since many financial debts can be discharged in bankruptcy with certain exceptions, people can take certain steps to begin <a href=\"http:\/\/www.irasmithinc.com\/repairyourcredit.html\">boosting their credit rating<\/a> after filing for bankruptcy and for sure after obtaining their discharge.<\/p>\n<h2 id='what-to-do-if-you-are-experiencing-financial-hardship'  id=\"boomdevs_8\"><span style=\"color: #00ccff;\">What to do if you are experiencing financial hardship<\/span><\/h2>\n<p>I hope this bankruptcy trustee in Vaughan Brandon&#8217;s Blog was helpful to you.\u00a0 People experience financial hardship for many reasons. If you\u2019re experiencing financial hardship and are looking for a way out, contact <a href=\"http:\/\/www.irasmithinc.com\">Ira Smith<\/a> Trustee &amp; Receiver Inc. With immediate action and the right plan for moving forward, we can set you on a path to debt-free living <a href=\"http:\/\/www.irasmithinc.com\/index.html\">Starting Over, Starting Now<\/a>. All it takes is one <a href=\"http:\/\/irasmithinc.com\/contact_us.html\">phone call<\/a>.<\/p>\n<figure id=\"attachment_3177\" aria-describedby=\"caption-attachment-3177\" style=\"width: 406px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3177\" title=\"Bankruptcy and Insolvency Act\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/licensed-insolvency-trustee_1.jpg\" alt=\"Bankruptcy and Insolvency Act\" width=\"406\" height=\"649\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/licensed-insolvency-trustee_1.jpg 406w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2017\/02\/licensed-insolvency-trustee_1-188x300.jpg 188w\" sizes=\"auto, (max-width: 406px) 100vw, 406px\" \/><figcaption id=\"caption-attachment-3177\" class=\"wp-caption-text\">vaughan bankruptcy Big canada ira smith trustee<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The bankruptcy trustee in Vaughan: \u00a0Why did we transform into a licensed insolvency trustee? Similar to\u00a0caterpillars turning into butterflies, this bankruptcy trustee in Vaughan\u00a0went through a metamorphosis. The Office of the Superintendent of Bankruptcy officially changed the name &#8220;bankruptcy trustee&#8221; to &#8220;licensed insolvency trustee&#8221; (LIT). \u00a0As of April 1, 2017, all licensed trustees must have [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[690,302,16,562,1548,1547,1550,34,1545,274,362,6,3,300,29,28,983,74,863,990,1549,1546,133,1069,47],"class_list":["post-3120","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-alternative-to-bankruptcy","tag-avoid-bankruptcy","tag-bankruptcy-and-insolvency-act","tag-bankruptcy-and-insolvency-act-bia","tag-bankruptcy-court","tag-bankruptcy-courts","tag-bankruptcy-filing","tag-bankruptcy-trustee","tag-bankruptcy-trustee-in-vaughan","tag-bia","tag-companies-creditors-arrangement-act","tag-consumer-proposal","tag-credit","tag-credit-card","tag-credit-report","tag-credit-score","tag-creditors","tag-division-1-proposal","tag-ira-smith-trustee","tag-licensed-insolvency-trustee","tag-licensed-insolvency-trustee-in-vaughan","tag-repayment-plan","tag-starting-over-starting-now","tag-unsecured-creditors","tag-vaughan"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/3120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=3120"}],"version-history":[{"count":5,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/3120\/revisions"}],"predecessor-version":[{"id":9079,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/3120\/revisions\/9079"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=3120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=3120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=3120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}