#VIDEO-GREY DIVORCE: BABY BOOMERS ARE SPLITTING UP#

Grey divorce is a growing trend

Some are calling it grey divorce.  Baby boomers divorcing after many years of marriage.  People think they will be married forever but many times, it isn’t meant to be.  People have their families, and increasingly, they then find after decades of marriage that they just can’t relate to each other anymore.  Ultimately, they have to accept things are as they are not as they wish them to be.

We have previously written on grey divorce:

Grey divorce trend is not stopping

Since 1990 the divorce rate has doubled for couples over age 50 and researchers found after age 40 its often the wife who wants the divorce. People are no longer willing to compromise to live in unhappy circumstances. Longevity is a key factor.  We are all living longer, and spending four or more decades with the same person is becoming more difficult.

Nowadays, people in their forties and fifties and sixties feel very youthful and if you’re in a marriage that your needs aren’t being met, we have choices. Financial independence is more prevalent among grey divorce couples and baby boomers put an emphasis on individual happiness.  Should you live unhappily or as roommates under the same roof?

Grey divorce can be financially complicated

Financial advisors caution that splitting up later can be complicated.  Timing is critically important because people that are in their late fifties or early sixties may have planned for retirement to be right around the corner, and the financial ramifications of grey divorce may substantially alter those plans for both spouses.

According to Investors Group:

  • 80% of those in grey divorce (people who divorced at the age of 50 or older), say they will delay retirement because they need to work longer than planned
  • 62% say their post-divorce savings and investments will no longer be adequate to fund their retirement
  • 54% of those who divorced at or past the age of 50 found it difficult to make financial decisions surrounding their divorce
  • 53% had to adjust their retirement plans
  • 47% will have to scale back on their anticipated retirement lifestyle
  • 26% no longer have enough retirement savings

What should you do if your life is financially complicated?

If you are going or have gone through grey divorce and are experiencing financial problems, instead of going deeper into debt and just putting your head in the sand like an ostrich, contact us today.  Seek the help from a professional trustee, even if you’re not considering bankruptcy at this stage.

A licensed insolvency trustee will evaluate your situation and help you to arrive at the best possible solution for your problems, whether that solution is a bankruptcy alternative like credit counselling, debt consolidation or a consumer proposal or even bankruptcy. With immediate action and the right plan the Ira Smith Team can solve your financial problems Starting Over, Starting Now. We’re just a phone call away.

This vlog was inspired by our eBook – PERSONAL BANKRUPTCY CANADA:  Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track

 

women and divorce, divorce advice for women, divorce for women, women divorce, divorce help for women, divorce and women, how to divorce your husband, divorce tactics for women, coping with divorce for women, divorce strategies for women, women going through a divorce, women dealing with divorce, separation and divorce for women, baby boomers divorce, grey divorce, divorce coach, how to survive grey divorce, fifty shades of grey (book), grey's anatomy clips, separating businesses in divorce, baby boomer divorce, family law (field of study), the "grey divorce", divorce after, grey talk on divorce, divorce, Current, Affair, A Current Affair (TV Program), Brady Halls, Nine Network, Channel 9, ACA, divorce, Jeffrey A. Landers, Jeff Landers, bankruptcy alternative, credit counselling, debt consolidation, ira smith trustee, bankruptcy, starting over starting now, consumer proposal, grey divorce why more retirees are calling it quits, grey divorce children, grey divorce support groups, grey divorce on the rise, grey divorce problems, grey divorce men, grey divorce retirement, grey divorce boom

STUDENT LOANS DEBT: WILL BANKRUPTCY ELIMINATE IT IF YOU ARE NOT THE STUDENT?

student loans, student loan, student loan debt, ira smith trustee, amazon.ca, starting over starting now, licensed insolvency trustee, bankruptcy, bankruptcy alternatives, credit counselling, consumer proposals, debt consolidation, Bankruptcy and Insolvency Act, BIA, student loans, debt, debts, personal bankruptcy, declare personal bankruptcy, student debt, student debt bankruptcy, Bankruptcy Reform Act, Bankruptcy Code, Code, toronto bankruptcy, vaughan bankruptcy, bankruptcy toronto, bankruptcy vaughan, consumer proposal toronto, consumer proposal vaughan, vaughan consumer proposal, toronto consumer proposal, personal bankruptcy vaughan, personal bankruptcy toronto, toronto personal bankruptcy, vaughan personal bankruptcy, ccaa, corporate bankruptcy;

An interesting American case about student loans debt

Student loans debt is nearly impossible to get rid of in bankruptcy. A case winding its way through the US court system has piqued our intellectual interest.  A father, who is a discharged bankrupt, is taking the lender who HE borrowed funds from for his child’s education to Court.  The lender is continuing to pursue collection efforts against the father on the basis that the provisions of the Bankruptcy Reform Act of 1978, as amended, codified in Title 11 of the United States Code and commonly referred to as the “Bankruptcy Code” (“Code”), does not release the father from what is in reality student loans debt.  The father is taking the lender to Court for a ruling that by virtue of his discharge, he is released from that debt like all his other debts.  It has raised the question as to whether the same student loans debt rules should apply in that case.

The Canadian perspective

We are not qualified to express any opinion on the US legal case before the US Court, but we are qualified to discuss the issue from the Canadian perspective.  We started thinking whether or not this same situation could arise in Canada for student loans.

Last week we discussed student debt bankruptcy from the perspective of the student. Previously, we have written blogs and created a vlog about student loan debt, including:

So this week, we’re discussing student loan debt and bankruptcy from a very different and interesting angle. Could a Canadian lender take the position against a Canadian parent borrower who on the loan application described the purpose of the loans for the funding of his or her child’s Canadian post-secondary education, that the loans qualify as student loans under the applicable Canadian statutes, including, the Bankruptcy and Insolvency Act (Canada) (BIA).  Stated otherwise, are such loans the same as student loans under Canadian law and can bankruptcy eliminate such loans if you’re not the student?

Are student loans necessary?

Many young Canadians require student loans in order to get a post-secondary education. To qualify as Canadian student loan debt, the loans must be issued under a specific Canadian student loan statute:  the (i) Canada Student Loans Act; (ii) Canada Student Financial Assistance Act; (iii)  Apprentice Loans Act; or (iv) any enactment of a province that provides for loans or guarantees of loans to students.

All students require financial assistance to be full-time university students.  The only real places that such assistance can come from is either the parents, if they are willing and able to do so, student loans, or both.  Many Canadian parents pay a hefty portion of students’ tuition fees, even if it means sacrificing their financial stability, to help their children avoid a post-graduation life burdened by tens of thousands of dollars of student debt.  Others may wish to, but they cannot afford to do so.

So are student loans and the resultant debt necessary?  In most cases, yes.

Can a parent co-sign for or guarantee their child’s student loans?

The short answer is no.  As I have already stated, to qualify as a student loan, the loan has to be made under the provisions of one of the Federal loan statutes mentioned above, or any such similar Provincial legislation.  Nowhere in those student loans statutes is there a place for either a guarantor or cosigner.  In fact, the Federal statutes all have similar language stating that upon the death of the borrower, the Federal government will repay the outstanding portion of the loan.  In addition to there not being any sections that allow for a guarantor or cosigner, the specific section dealing with the death of the borrower does not limit the government’s guarantee by using words like “….and if the lender is unable to collect in full from any guarantor or cosigner”.  The reason is simple, student loans cannot be guaranteed or otherwise borrowed by anyone other than the student.

Will bankruptcy eliminate student loans debt?

Student loans are nearly impossible to get rid of in bankruptcy. Section 178(1) of the BIA states:

“(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred:

(i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or

(ii) within seven years after the date on which the bankrupt ceased to be a full- or part-time student;

(g.1) any debt or obligation in respect of a loan made under the Apprentice Loans Act where the date of bankruptcy of the bankrupt occurred

(i) before the date on which the bankrupt ceased, under that Act, to be an eligible apprentice within the meaning of that Act, or

(ii) within seven years after the date on which the bankrupt ceased to be an eligible apprentice;”

So if you’re a student, bankruptcy will only eliminate student loans if you’ve ceased to be a full or part-time student for more than seven years and either declare personal bankruptcy or make a debt proposal to your creditors, most likely through a consumer proposal. The only other option is to attempt to seek from the Court relief because of undue hardship, but this is very difficult, if not impossible.

What is required to meet the burden of undue hardship?

You’ll be discharged from your student loans obligations in bankruptcy only if the Court is satisfied that you meet the two pronged test:

  • acted in good faith in connection with your obligation to repay your student loan debt; and (emphasis added)
  • have experienced, and will continue to experience, financial difficulty that will prevent you from repaying this debt

It’s then up to the bankruptcy court to decide whether or not they forgive your loans, either in full or in part. One of the difficulties in trying to prove undue hardship is that there is no clear definition for what constitutes hardship; each bankruptcy court across Canada may use a slightly different interpretation. The only thing that’s clear is that you must prove that having to continue to pay the student loans after bankruptcy would be a financial hardship for you.  If you try this route, the Court will look at ALL of your income and expenses.

The Court may decide you are not trying hard enough, or, may look at things like your small car you use to get to work, which you purchased used (instead of taking public transit), your cell phone and your internet expenses, and decide that these are luxuries you do not require.  If you are a smoker, the Court may very well decide that if you were not addicted to tobacco, you could start to repay some portion of your student loans.

If you think my examples are picayune or silly, just look up the case of Fournier (Re), 2009 CanLII 31606 (ON SC).

Will bankruptcy eliminate student loan debt if you are not the student?

I don’t know what the eventual disposition of the US case which I mentioned at the beginning of this blog will be, but based on all of the above, in my view in the Canadian context, a parent, relative or friend cannot guarantee, cosign or borrow for a loan that qualifies as a Canadian student loan.  If you borrow in order to fund your child’s education, then you are borrowing under an ordinary commercial transaction and the applicable student loan sections of the BIA do not apply.

So if you have borrowed for this purpose, only the normal provisions of the BIA apply, and you will be discharged from that and your other debts upon your discharge from bankruptcy.  However, if you pledged any of your assets in support of such borrowings, such as your home, the lender does have the right to enforce its security against such assets if you cannot repay, whether you are bankrupt or not.

What should you do if you have too much debt?

If you’re drowning because of your finances, we know we can help you. Although many people believe that bankruptcy is the only way of out serious debt, that’s not always the case. Ira Smith Trustee & Receiver Inc.can discuss other bankruptcy alternatives with you which include credit counselling, debt consolidation and consumer proposals.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your financial challenges to go on to be a productive, contributing member of society and not be plagued by debt problems.

Bankruptcy law is very complicated and requires the expertise of a professional licensed insolvency trustee. Ira Smith Trustee & Receiver Inc. is here to help. With a cumulative 50+ years of experience dealing with diverse issues and complex files, we can get you back on your feet Starting Over, Starting Now. We can help. Call us today.


People consider us bankruptcy experts because we wrote the eBook which is sold on Amazon.ca, explaining the Canadian personal insolvency and bankruptcy system, specifically directed to the person stressed out with too much debt.

 

# VIDEO – CREDIT REPAIR COMPANIES: AN UNUSUAL WAY FOR YOU TO OBTAIN CREDIT REPAIR #

This video on credit repair companies was inspired by our eBook:

sheldon wolf, sheldon wolf calgary, sheldon wolf calgary businessman, ira smith trustee, a farber, hoyes michalos, david sklar, bankrutpcy, consumer proposal, debt settlement, toronto bankruptcy, vaughan bankruptcy, bankruptcy toronto, bankruptcy vaughan, consumer proposal toronto, consumer proposal vaughan, debt settlement toronto, debt settlement vaughan, personal bankruptcy toronto, personal bankruptcy vaughan, personal bankruptcy canada: not because you are a dummy, because you need to get your life back on track;

STUDENT DEBT BANKRUPTCY: NEW SECRET TACTIC TO AVOID BANKRUPTCY

student debt bankruptcy, student debt, bankruptcy, free tuition, student loan, trustee, financial plan, student loan debt, ira smith trustee, a farber, david sklar, hoyes michalos, consumer proposal, bankruptcy, toronto bankruptcy, vaughan bankruptcy, bankruptcy toronto, bankruptcy vaughan, toronto consumer proposal, vaughan consumer proposal, consumer proposal toronto, consumer proposal vaughan, personal bankruptcy toronto, personal bankruptcy vaughan;

Student debt bankruptcy inquiries on the rise

Student debt and student debt bankruptcy is a very serious issue in our country. We’ve looked at the problem from different angles in a series of blogs and like you, are left with more questions than answers.

Student debt bankruptcy cases on the rise

Unfortunately, regardless of which government is in power, there’s been no solution or improvement regarding student debt. In fact, student debt has now taken on epic proportions. According to the Canadian Federation of Students (the largest organization for post-secondary students in Canada), last year the number of student debt bankruptcy files of those who received student loans hit a 10-year high as more than 6,000 students declared bankruptcy in 2015, more than double the number in 2014.

Student debt bankruptcy – we don’t have a level playing field nationally

The costs of post-secondary education have become prohibitive. Firstly, we don’t have a level playing field. The cost of tuition varies greatly from province to province, from city to city and from college to university (where the same program is offered). According to a study by the Canadian Centre for Policy Alternatives the cost of tuition alone (not including books, living expenses, transportation, entertainment, etc.) is:

  • $8,756 in Ontario
  • $6,969 in Nova Scotia
  • $2,655 in our easternmost province
  • $2,350 for the police foundations program at Georgian College
  • $4,466 for the police foundations program at Laurentian University in the same buildings with the same teachers as Georgian College

Some Provinces are coming up with a new secret tactic to lessen student debt bankruptcy

Newfoundland and Labrador have replaced student loans with needs-based grants, essentially wiping out tuition costs. Prince Edward Island and Nova Scotia don’t charge interest on student loans but there are still too many people who are being crushed by a mountain of student debt. Recently, the Ontario Liberal government announced in its recent budget that it is combining existing programs to create an Ontario Student Grant, which would pay for average college or university tuition for students from families with incomes of $50,000 or less.

The Canadian Federation of Students has called on the federal government to make tuition at university and college free for all students but that’s not going to happen.

So the new secret tactic is free university tuition?  It may be a nice idea but who’s going to pay for it?

What to do if you have too much debt

Unfortunately we can’t solve the student debt issue where during studies, or after graduation, (former) students have debt they cannot afford to repay.  However, we are experts in dealing with debt.

If you’re a student loan recipient who’s thinking of declaring bankruptcy or you’re being strangled by general financial obligations that you can’t meet, contact Ira Smith Trustee & Receiver Inc. Given immediate action and the right financial plan, we can have you on your way to a debt fee life Starting Over, Starting Now. Watch for our blog next Tuesday when we’ll be discussing Student Loan Debt: Will Bankruptcy Eliminate It If You Are Not The Student?

 

#VIDEO – SURPLUS INCOME LIMITS FOR 2015, 2016 & BEYOND: YOU WILL REALLY FEEL IT IN YOUR BANKRUPTCY #

Our inspiration for this vlog

This vlog was inspired by our new eBook:  PERSONAL BANKRUPTCY CANADA – Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track, which is sold on Amazon.com.  The eBook explains the Canadian personal insolvency and bankruptcy system, specifically directed to the person stressed out with too much debt.

The most asked question is about surplus income limits

The question we are always asked is:  What are the surplus income limits for 2015 and 2016 if I am in bankruptcy?  I don’t have any cash left over from each paycheque, so, how can you say that I have surplus income?

What are the surplus income limits for 2015, 2016 and beyond?

Surplus income is the amount of a debtor’s total income that exceeds what is necessary to maintain a reasonable standard of living according to the standards set by the Office of the Superintendent of Bankruptcy (remember, the actual standard is right at the poverty line so don’t get happy when you see words like “reasonable standard of living”). The bankrupt must make payments out of this surplus income to the Licensed Insolvency Trustee for distribution among the creditors.

It is part of the goals of the Canadian insolvency system that tries to balance the elimination of debt with the rights of creditors to be paid. The surplus income limits for 2015, 2016 and beyond, are set to allow Canadians to maintain what the Superintendent of Bankruptcy calls a reasonable standard of living during the bankruptcy process; the government has set thresholds or limits on net earnings (gross earnings after taxes and deductions) during the bankruptcy process. The Office of the Superintendent of Bankruptcy sets the threshold limits each year and these limits are indexed to inflation.

The threshold is set the same across Canada, regardless of what province or city you live in.  So, someone living in the Greater Toronto Area, whose costs for shelter and probably transportation are higher than other parts of the country, will find that the threshold for them is essentially at the poverty line.

An example of how to apply the surplus income limits for 2015 and 2016

Here is an example of how the surplus income amount is calculated.  Let’s assume we have a family of 4:  a husband, wife and two young children in school.  The husband earns (net of income tax) the annual amount of $46,000 and the wife earns (net of income tax) the annual amount of $18,000.  To keep it simple, let’s assume that their monthly take-home pay can is their annual amount divided by 12 or a monthly income of $3,833.33 for the husband and $1,500 for the wife.  Let’s assume that only the husband has to go bankrupt and not the wife.

The surplus income calculation for 2015 was:

(($3,833.33 + $1,500.00) – $3,831.00) X ($3,833.33/($3,833.33+$1,500)) = $539.90

This means the bankrupt husband will have to pay $539.90 to the Licensed Insolvency Trustee for a period of 21 months if he has never been bankrupt before, or for 36 months, if he has been bankrupt before, according to the Bankruptcy and Insolvency Act (Canada).

The surplus income calculation for 2016 is:

(($3,833.33 + $1,500.00) – $3,882.00) X ($3,833.33/($3,833.33+$1,500)) = $521.57

This means the bankrupt husband will have to pay $521.57 to the Licensed Insolvency Trustee for a period of 21 months if he has never been bankrupt before, or for 36 months, if he has been bankrupt before, according to the Bankruptcy and Insolvency Act (Canada) (BIA).

You cannot deduct your normal monthly living expenses against the monthly income in order to calculate the surplus income limits for 2015 or any other year.  However, if the bankrupt has any of the following types of expenses, they can be deducted from income in calculating the surplus income amount.

  1. Child Support
  2. Spousal Support
  3. Child Care Expense
  4. Expenses associated with medical condition
  5. Court imposed fines or penalties that are in process of being paid
  6. Expenses permitted by Income Tax Act that are a condition of employment
  7. Any other debt where the stay of proceeding has been lifted

The surplus income limits for 2015 and 2016, or put another way, the amount the Superintendent of Bankruptcy believes a family, where there is one bankrupt person in a family of four, should have a take-home monthly income of $3,882 or annual family take home pay of $46,584, before the bankrupt person has to start contributing 50% of his or her income for the benefit of the bankrupt’s creditors.  That is why we say the Federal government’s idea of a “reasonable standard of living” is really at the poverty line.

What to do if you have too much debt

If you’re in “survival mode” when it comes to your finances, we’ve got solutions for you. Although many people believe that bankruptcy is the only way out of serious debt, that’s not always the case. Ira Smith Trustee & Receiver Inc. can discuss other bankruptcy alternatives with you which include credit counsellingdebt consolidation and consumer proposals.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.  Come in for a no obligation, no fee consultation and let us help you get back on track to living a debt free life Starting Over, Starting Now. Give us a call today.

surplus income limits for 2015, starting over starting now, licensed insolvency trustee, ira smith trustee, a farber, hoyes michalos, david sklar, bankruptcy alternatives, consumer proposals, debt consolidation credit counselling, bankruptcy, consumer proposal, bankruptcy and insolvency act, bia, surplus income calculation for 2016, bankruptcy process, personal bankruptcy toronto, personal bankruptcy canada, eBook, surplus income threshold 2015, surplus income 2012, surplus income calculator, surplus income payments, surplus income calculator bc, surplus income guidelines 2014, hud income limits 2015, ssi income limits 2015

BANKRUPTCY ALTERNATIVE, REALLY? EMBARRASSED TO ADMIT YOU HATE YOUR RRSP?

bankruptcy alternative, RRSP, RRSPs, retirement, retirement income, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, trusteeRaiding your RRSP is the worst bankruptcy alternative and in this blog you will see why. The federal government introduced the Registered Retirement Savings Plan (RRSP) in 1957 to encourage Canadians to save for retirement. For many Canadians, RRSPs will be their only source of retirement income, in addition to Old Age Security (OAS) and Canada Pension Plan. However, according to a recent BMO survey Canadians are raiding their RRSPs to make ends meet and this is not advisable survival plan or bankruptcy alternative.

What is an RRSP?

A RRSP is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a tax-sheltered basis. It can contain a variety of investments including RRSP savings deposits, treasury bills, guaranteed investment certificates (GICs), mutual funds, exchange-traded funds (ETFs), bonds and equities. Your contributions are tax deductible and your investments inside the RRSP grow inside tax free. However, when you take money out of your RRSP, it’s taxed as if it was income earned that year.

Are Canadians really using their RRSPs as a bankruptcy alternative?

According to a new BMO survey:

  • 21% of Canadians have taken money out of their RRSP to cover living expenses or pay off debt
  • 15% took money out to cover costs after an emergency
  • 25% say they will likely never pay it back

So the results of the BMO survey show that rather than dealing with all of their debts once and for all using a proper bankruptcy alternative, they are creating a new, significant income tax debt by raiding their RRSPs to pay off some debt!  Not a very sound strategy.

Why is taking money out of an RRSP not advisable?

  • There is a withholding tax of 10% – 30% depending on the amount withdrawn
  • The money taken out has to be declared as income, and taxed again (unless you’re making withdrawals to buy a first home under the Home Buyers Plan or covering education costs under the Life Long Learning Plan)
  • If the funds, net of income tax, does not solve your debt problems, then it really isn’t a bankruptcy alternative

In a valid bankruptcy alternative, such as a consumer proposal, and in bankruptcy itself, other than for any contributions to your RRSP made in the 12 months prior to filing, you cannot lose the balance of your RRSP.  You will actually have more RRSP at the end of a successfully performed consumer proposal, than if you raid your RRSP to avoid a valid bankruptcy alternative!!!

What should I do so I don’t have to raid my RRSP?

If you’re in “survival mode” when it comes to your finances, instead of raiding your RRSPs, we’ve got much better options for you. Although many people believe that bankruptcy is the only way of out serious debt, that’s not always the case. Ira Smith Trustee & Receiver Inc. can discuss other bankruptcy alternatives with you which include credit counselling, debt consolidation and consumer proposals.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.

People consider us bankruptcy experts because we wrote the eBook which is sold on Amazon.com, explaining the Canadian personal insolvency and bankruptcy system, specifically directed to the person stressed out with too much debt.  Come in for a no obligation, no fee consultation and let us help you get back on track to living a debt free life Starting Over, Starting Now. Give us a call today.

LOAN SCAMS CANADA VIDEO

 Haven’t you already written on the loan scams Canada topic?

Yes, we have previously advised you of various loan scams Canada in our previous blogs and vlogs:

  1. CREDIT REPAIR TORONTO: HOW TO USE IT TO NOT RUIN YOUR LIFE
  2. ARE YOU UP ON THE LATEST PHISHING SCAMS? YOU SHOULD BE!
  3. #VIDEO: CRA PHONE SCAM: IF YOU WATCH ONLY 1 VIDEO WATCH THIS ONE! #
  4. CANADA REVENUE AGENCY SCAMS: IF YOU READ ONE ARTICLE, READ THIS ONE
  5. DISASTER RELIEF SCAMS BY THE NUMBERS
  6. VAUGHAN DEBT COUNSELLING ADVISES BEWARE OF TAX SEASON SCAMS
  7. SENIOR FINANCIAL ABUSE; SENIOR CITIZEN MONEY SCAMS
  8. BEWARE OF PHISHING AND SPEAR PHISHING SCAMS

“Will these loan scams Canada continue?

For sure loan scams will continue.  One main reason is that Canadians on a per capita basis are in debt at the highest level in all of Canadian history, and one of the highest in the entire world!  This is a very lucrative and enticing market for the scammers to perpetrate loan scams Canada!

How can I protect myself against loan scams Canada?

There are three general themes in common with all of the loan scams.  If you don’t fall for them, that is the best protection.  Here is our list of the three common loan scam Canada themes and how to protect yourself:

  1. Never give money or your credit card information over the telephone or in person to someone you don’t know – even if they sound like they’re from an established organization. Request additional information to be sent to you, review it with friends or family, or simply hang up if the whole thing sounds fishy!
  1. It’s important to know that no bank, store or Canada Revenue Agency will ever ask you for your password via email or telephone, so never respond to these requests. If you receive an email that has a sense of urgency requesting personal information, first contact the purported sender to see if the email is legitimate.
  1. Reputable lenders for personal loans will never ask you to pay an up-front insurance or application fee. Also, reputable lenders will never give you a guarantee that you will receive the loan approval before you provide your information.  If the person you are dealing with asks for the up-front fee, or guarantees that no one is ever declined, stop dealing with them.

What to do if you have too much debt and not enough cash

Rather than resorting to high interest rate payday loans or to lenders who charge up-front fees in return for all sorts of promises, talk to a licensed insolvency trusteeContact us now to obtain a solution, before bankruptcy is your only alternative.

We help individuals and companies throughout the Greater Toronto Area (GTA) facing financial crisis to avoid bankruptcy or bankruptcy, if the problems have been left too long without any corrections that need a plan for Starting Over, Starting Now. The Ira Smith Team brings a cumulative 50+ years of experience dealing with diverse issues and complex files, and we deliver the highest quality of professional service. Don’t worry about debt; instead take immediate action.

ira smith trustee, loan scams Canada, loan scams, Canada, bankruptcy, avoid bankruptcy, credit repair, payday loans, phishing, Canada Revenue Agency, CRA, sheldon wolf, credit slab, nulife, scams, Vaughan debt counselling, senior financial abuse, spear phishingPERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track, ira smith trustee, toronto bankruptcy, vaughan bankruptcy, consumer proposal, bankruptcy laws in bc, bankruptcy information online, canadian bankruptcy act, bia, canadian bankruptcy laws, bankruptcy protection canada, canadian bankruptcy laws and regulations, personal bankruptcy protection canada, canadian personal bankruptcy laws, canadian personal bankruptcies laws

BANKRUPTCY EXPERTS DISCUSS POSSIBLE DANGER OF USING DIGITAL WALLET APPS

digital wallet, digital wallets, budget, apps that help you budget, Smartphone app, desktop app, PayPal, Apple Pay, Android Pay, Samsung Pay, trustee, ira smith trustee, bankruptcy experts;

Last week we discussed apps that can help you budget. As we’re now moving away from the “cash age” to the “app age” we’d like to explore the use of digital wallets and whether they’ll help you budget or blow the budget.

Bankruptcy experts define what a digital wallet is

A digital wallet is the equivalent of the physical wallet you have on your desk or in your pocket or your purse. A digital wallet refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet. There are two types of digital wallets:

  1. Smartphone app for making financial transactions in a retail store such as the Starbucks app
  2. Desktop app for making credit card purchases online such as PayPal

Our list of the 4 most popular digital wallets

PayPal: One of the most popular and trusted digital wallets, boasting an impressive 173 million users across 203 countries and 26 currencies

Apple Pay: For iPhone, Apple Watch or iPad – simple to use and works with the cards you already have on the devices you use every day

Android Wallet: Google’s mobile wallet app for Android-powered phones – use it to tap and pay in stores and you can use it to make in-app payments

Samsung Pay: Enables you to tap and pay using your Samsung Galaxy phone (only available for use with newer Samsung Galaxy phones such as the Galaxy S6 Edgeand/or the Galaxy Note5) at brick-and-mortar locations

Bankruptcy experts ask:  will a digital wallet help you budget of blow the budget?

The only true way to control your spending is to pay with cash or debit because if the money isn’t there, you can’t make a purchase. Digital wallets can enable credit card purchases more quickly and conveniently than having to take out your credit card.

As bankruptcy experts, what we worry about is does using a digital wallet, combined with the ease of online shopping, encourage overspending? The speed at which you can process a payment certainly gives you less time to think about it. If you’re prone to overspending, a digital wallet will help you overspend even quicker. If you’re diligent about staying within your budget, then a digital wallet will be a convenience.

What to do if you’re overspending and deep in debt?  Go see one of y our local bankruptcy experts – a licensed insolvency trustee

Apps are not going to help you; there is no replacement for the help of a professional trustee. We have the expertise to help you manage your debt and get you back on track to living a financially healthy life Starting Over, Starting Now. Give the Ira Smith Team a call today and book your free consultation.

If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.

People consider us bankruptcy experts because we wrote the eBook which is sold on Amazon.com.  Click on the image below to find out more about the eBook which explains the Canadian personal insolvency and bankruptcy system.

#VIDEO – HOUSEHOLD DEBT IN CANADA CRISIS#

Household debt in Canada can lead us into crisis

On January 16, 2016, the Office of the Parliamentary Budget Officer (PBO) released its report titled: “Household Indebtedness and Financial Vulnerability“.  A summary of the PBO’s findings are:

In the third quarter of 2015, total household debt in Canada reached 171 per cent of disposable income. In other words, for every $100 of disposable income, households had debt obligations of $171. This is the highest level recorded since 1990 and the highest level.  The report also found that:

  • Among G7 countries, Canada has experienced the largest increase in household debt relative to income since 2000. Households in Canada have become more indebted than any other G7 country over recent history.
  • Analysis conducted at the Bank of Canada suggests that low interest rates, higher house prices and financial innovation have contributed to the increase in household indebtedness.
  • A financially vulnerable household is one that is required to devote a substantial portion of its income to service its debt. It faces greater exposure to negative income and interest rate shocks, and is more likely to be delinquent in its debt payments.
  • The PBO does not see the trend correcting itself until 2020.

We discussed the issue of rising household debt in Canada in the past

The PBO report produced a graph on household debt ratios

Household Indebtedness and Financial Vulnerability,household debt in canada,canadian household debt,canadian household debt statistics,average canadian household debt,canadian household debt to income ratio,statistics canada,canadian household debt by province,canadian household debt to income ratio graph,canadian household debt ratio calculator,canadian household debt 2015,ira smith trustee,household debt in canada

Graph courtesy of the Report of the PBO “Household
Indebtedness and
Financial
Vulnerability” dated January 19, 2016

The PBO’s point in this graphical analysis is that the projected increase in the total household debt service ratio (DSR) to 15.9 per cent would be 3.1 percentage points above the long-term historical average of 12.8 per cent (from 1990Q1 to 2015Q3). It would also be almost one full percentage point above its highest level over the past 25 years, 14.9 per cent , which was reached in 2007Q4.

So as you can see from this analysis, there is apparently no end in sight for Canadians’ appetite to take on more debt, and it therefore takes more income to service the higher debt.  Unfortunately, the only thing that will seem to break this cycle is some shock to the Canadian economic system, and this will not be good news for many who will find themselves strung out on debt and not able to service it when the shock comes.

What to do if you or your company can no longer service your debt?

Is your household debt in Canada out of control?  Have those spending habits creeped into your company’s spending?  If so, you need to contact us now to obtain a solution, before bankruptcy is your only alternative.

We help individuals and companies throughout the Greater Toronto Area (GTA) facing financial crisis in need of restructuring and turnaround, receivership or bankruptcy that need a plan for Starting Over, Starting Now. The Ira Smith Team brings a cumulative 50+ years of experience dealing with diverse issues and complex files, and we deliver the highest quality of professional service. Don’t worry about debt; instead take immediate action.

Call us today.  If you or your company is trapped in high debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy or receivership is your only option. We have been able to help many individuals and companies carry out a successful debt settlement programs or corporate restructuring and turnarounds.

It all began with an initial consultation.  The first step is a realistic cash-flow budget.  Successful completion of restructuring, will free you or your company from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track, ira smith trustee, toronto bankruptcy, vaughan bankruptcy, consumer proposal, bankruptcy laws in bc, bankruptcy information online, canadian bankruptcy act, bia, canadian bankruptcy laws, bankruptcy protection canada, canadian bankruptcy laws and regulations, personal bankruptcy protection canada, canadian personal bankruptcy laws, canadian personal bankruptcies laws

 

HAVING TROUBLE BUDGETING? OUR TOP 6 LIST OF APPS TO HELP YOU

budgeting app, budget, Mint app, PocketGuard app, GoodBudget app, Mvelopes app, Wally app, Level Money app, trustee, digital wallets, money management, budgeting, ira smith trustee, starting over starting now

Spring clean your budgeting

Spring is in the air and it’s time to spring clean your finances. Help can sometimes come in mysterious ways and from mysterious sources. In this case it’s your Smartphone that can help get you on track financially. If you have difficulty understanding your spending habits and managing your money, there are now apps for that. With the help of a budgeting app you’ll have assistance identifying where you’re wasting money, how to pay down debt and how to save money.

Our list of 6 best budgeting apps

Here are six of the best budgeting apps for iPhone and Android for 2016:

  1. Mint for iPhone and Android: Mint simplifies making a budget. It connects to your bank and the app can use your details to help create a personalized budget.
  2. PocketGuard for iPhone and Android: PocketGuard categorizes and organizes your expenses, monthly bills and subscriptions into clear tabs and graphs so you’ll always be on top of your finances.
  3. GoodBudget for iPhone and Android: GoodBudget is an expense and budget tracker that allows you to proactively plan finances ahead of time with the Envelope system of budgeting.
  4. Mvelopes for iPhone and Android: Mvelopes is a money management budget app that allows you to import your bank and credit card accounts and track your spending.
  5. Wally for iPhone and Android: Wally is an expense tracker. It lets you log your expenses with a manual entry or with a photo of your receipt.
  6. Level Money for iPhone and Android: Level Money can detect your income and expenses and then show you what you can spend. The app also helps you figure out how to save for bigger purchases or pay down debt.

What to do if you need more than just budgeting help for your debts

Using a budgeting app is a great preventative measure, but if you’re already deep in financial difficulties, I’m afraid that there isn’t an app for that. You need the help of a professional trustee. We can help restore you to financial health with immediate action and a sound financial plan. Contact Ira Smith Trustee & Receiver Inc. today and Starting Over, Starting Now your financial difficulties will be a thing of the past. Watch for our next blog when we’ll be discussing digital wallets and how they can affect your spending habits.

consumer proposal vs bankruptcy, ira smith trustee, personal bankruptcy canada, personal bankruptcy toronto, toronto bankruptcy, ira smith trustee, debt, consumer proposal, bankruptcy, bankruptcy alternatives, alterantives to bankruptcy, vaughan bankruptcy