Bankruptcy Expert Strategies For The Financially Challenged

A licensed insolvency trustee is the bankruptcy expert

Richard is unable to pay his bills, unsure what to do Richard knows he has to speak to someone but talking with a bankruptcy expert scares him.  On the advice of a close friend, he contacts a Licensed Insolvency Trustee, a profes­sional licensed by the Office of the Superintendent of Bankruptcy Canada.

A bankruptcy expert can do more than just bankruptcies

While Licensed Insolvency Trustees can and do handle bankruptcies, they can also offer information about other possible options. These might include reworking his budget, consolidating his debts, selling his assets, or offering a proposal to his creditors.  Whatever option Richard chooses, the trustee will thoroughly explain the process.

I have a lot of questions for the bankruptcy expert

Of course, Richard has many questions, all of which the trustee takes the time to answer as part of the free first consultation.  Richard gets all the information he needs from the trustee.  The Trustee explains that his options include:

  1. credit counselling
  2. debt consolidation
  3. consumer proposal
  4. bankruptcy

Richard now also understands what he needs to do for rebuilding credit.  Knowing the options gives him the confidence he needs to take the steps necessary to get his financial house back in order.

Why use a licensed insolvency trustee instead of a debt consultant as your bankruptcy expert?

We:

  1. give the full range of options
  2. deal directly with creditors on your behalf
  3. are licensed by the federal government
  4. are federally regulated
  5. our fee is federally regulated
  6. are easy to find!

Do you have too much debt?  Be like Richard and speak to a bankruptcy expert

Are YOU in financial trouble?  Not sure where to turn?  Regulated by the Office of the Superintendent of Bankruptcy Canada, Ira Smith Trustee & Receiver Inc. is there to help-and we are the professionals who can file a consumer proposal or bankruptcy application in your name.

Are you insolvent and looking for solutions? The Ira Smith Team is here to offer alternatives to bankruptcy and bankruptcy.  We offer the help in Vaughan and throughout the GTA.

Are you a person or company who feels your situation is hopeless? Ira Smith Trustee & Receiver Inc. can prepare and put in place the plan MADE JUST FOR YOU.  The plan will free you from the burden of your financial challenges.  With our help, you will go on to live a productive, stress-free, financially sound life.

Our motto is Starting Over, Starting Now! Ira Smith Trustee & Receiver Inc. can help you overcome your financial difficulties. Contact us today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

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AVERAGE HOUSEHOLD DEBT IN CANADA: CANADIANS LOVE TO MAKE IT CONTINUALLY RISE!

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Average household debt in Canada:  the average of the amount of money that all Canadian adults in the household owe financial institutions.

Statistics Canada said that total household consumer debt, which includes consumer credit card and mortgage and non-mortgage loans, increased 1.2 per cent to $1.923 trillion at the end of last year.  The total included $573.6 billion in consumer credit debt, including credit card debt, and $1.262 trillion in mortgage debt.

The growth helped drive the ratio of household debt to disposable income to a new peak of 165.4 per cent in the fourth quarter of 2015, up from 164.5 per cent in the third quarter.

It’s unbelievable but true – average household debt in Canada continues to rise! Unfortunately it seems that nothing has so far been able to stem this tide, particularly as already sky-high housing prices continue to reach new heights. We’ve reported on this very alarming situation in a series of blogs and the situation continues to worsen.

Video – Household Debt In Canada Crisis

How Binge Borrowing Raises Canada’s Household Debt Burden

Canadian Household Debt: We Seem To Love It!

Household Debt; Canadian Levels Sound Alarm Bells

How is it affecting Canadians?

According to a ManuLife Bank survey:

  • 33% of homeowners have been “caught short” at least once in the past year and didn’t have enough money to cover expenses
  • 60% lack confidence that they’ll have enough savings for retirement
  • Average mortgage debt increased to $181,000 since last fall
  • 25% of homeowners predict that their home equity will make up 80% or more of their household wealth when they retire

What are the options available to Canadian homeowners with limited retirement income?

  • Delay retirement and keep working as long as possible
  • Work part-time
  • Move to a less expensive home and use the money to fund retirement
  • Sell the home and use the money to fund retirement
  • Borrow against the home equity

What is the top financial priority for Canadian home owners?

More than anything, Canadian home owners want their average household debt in Canada at a manageable amount and ultimately zero;  i.e. be debt free.  If you’re like many Canadian home owners struggling with alarming levels of household debt, seek help as soon as possible. A professional trustee can help you deal with your debt problems, and believe me they are not insurmountable. With immediate action and the right financial plan the Ira Smith Team can help you realize your dream of living a debt free life Starting Over, Starting Now. We’re only a phone call away. Book your free consultation today.

#VIDEO – FILING BANKRUPTCY: WILL THEY FINALLY LEAVE ME ALONE? #

Filing bankruptcy is tough – but not as tough as you have already experienced

It has been a tough time for David and Julie and now they are seriously contemplating filing bankruptcy.  He has been laid off and the bills are piling up.  They have been thinking about bankruptcy.  David begins an online search to get information about bankruptcy and he finds the Office of the Superintendent of Bankruptcy, an organization that licenses and regulates licensed insolvency trustee professionals.

Based on his search, he finds a licensed insolvency trustee and gets an appointment to meet with the licensed insolvency trustee for filing bankruptcy.  During their first free consultation, the licensed insolvency trustee asks David and Julie various questions to get information about their current circumstances, their assets and their liabilities.  She also tells them about options to avoid bankruptcy.  David and Julie also have many questions about filing bankruptcy and Canadian bankruptcy laws.  The licensed insolvency trustee answers them easily because they are often asked questions.

How do you begin the process for filing bankruptcy?

Based on this discussion, Julie and David decide that bankruptcy is in fact theright tool.  They give the licensed insolvency trustee the necessary information and documents.  The licensed insolvency trustee prepares the necessary paperwork to file an assignment in bankruptcy.  Julie and David then sign the documents.

What happens next once the filing bankruptcy process has begun?

The licensed insolvency trustee files the bankruptcy application with the Office of the Superintendent of Bankruptcy. Once the the trustee files the assignment in bankruptcy, the trustee takes care of communicating with David and Julie’s creditors directly. The trustee is now in charge of reporting directly and prepares a report on David and Julie’s affairs.

Upon filing, all legal actions against David and Julie stop and no one can sue or garnishee. Some of David and Julie’s assets they will be able to keep because those assets are protected by provincial and federal laws.  Other assets will be sold and the proceeds used to help repay their creditors.  Their creditors will be notified of the bankruptcy.  If a meeting of creditors needs to be called, David and Julie will have to attend.

David and Julie will also have to attend two counselling sessions to help them get back on the road to financial health.  Finally, if David and Julie have enough joint income that surplus income arises in the bankruptcy, David and Julie will  have to pay a calculated amount towards their debts.  After doing so, they will get their discharge from bankruptcy, relieving them from the obligation of repaying most of the debts they had when they filed for bankruptcy.

Certain debts will not be discharged by the bankruptcy.  Examples of such debts are:

  • any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;
  • any award of damages by a court in civil proceedings in respect of
    • (i) bodily harm intentionally inflicted, or sexual assault, or
    • (ii) wrongful death resulting therefrom;
  • any debt or liability for alimony or alimentary pension;
  • any debt or liability arising under a judicial decision establishing affiliation or respecting support or maintenance, or under an agreement for maintenance and support of a spouse, former spouse, former common-law partner or child living apart from the bankrupt;
  • any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a trustee or administrator of the property of others;
  • any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim;
  • liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
  • 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;
  • 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; or
  • any debt for interest owed in relation to an amount referred to in any of the above paragraphs.

David and Julie want to know how the bankruptcy will affect their credit rating.  The licensed insolvency trustee tells them that it will negatively impact their credit rating for the years they are in bankruptcy.  She also tells them that once they are discharged from bankruptcy, they can start to rebuild their financial future.   It’s not an ideal situation but dealing with this does lift a weight off their shoulders.

Are you considering filing bankruptcy?

Are you insolvent and looking for solutions? The Ira Smith Team is here to offer alternatives to bankruptcy and bankruptcy.  We offer the help in Vaughan and throughout the GTA.

Are you an person or company who feels your situation is hopeless? Ira Smith Trustee & Receiver Inc. can prepare and put in place the plan MADE JUST FOR YOU.  The plan will free you from the burden of your financial challenges.  With our help, you will go on to live a productive, stress-free, financially sound life.

Our motto is Starting Over, Starting Now! Ira Smith Trustee & Receiver Inc. can help you overcome your financial difficulties. Contact us today.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

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Canadian Payday Loans: 546 Reasons We Need Tough Federal Rules on Payday Lenders and 1 Possible Solution

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Canadian payday loans offered through payday loan companies are a scourge on society.  Payday lenders must not be allowed to run. They take advantage of the disadvantaged portion of our population who can least afford it. Canadians need protection from payday lenders and it’s high time that the government stepped in and took action. The Ira Smith Team can’t change the law on payday lenders but we can do our best to alert you to the dangers of payday loan companies with our blogs.

Why is the USA ahead of Canada?

When it comes to payday loan companies, the U.S. government seems much more on the ball than the Canadian government. In Canada, it’s the individual provinces that cap the rate lenders can charge borrowers in interest and they apparently aren’t doing much to protect their citizens.

In Ontario the province caps interest on payday loans at $21 per $100 dollars for a two-week period. This may not sound like much to you but on an annual basis it comes to 546%. This is not a typo. The annual interest is 546%.

Canada’s criminal usury rate is 60%. Payday loans are very short-term so they aren’t expressed as annualized amounts making it very easy for payday lenders to hide the fact that you’re actually paying 546% interest on Canadian payday loans.

What is the U.S. government doing about payday lenders?

The U.S. Consumer Financial Protection Bureau has proposed the following regulations:

  • Lenders must conduct a “full-payment test.” This means that payday loan companies would have to prove that borrowers are able to repay the money without having to renew the loan repeatedly. Typically most payday loans are required to be paid in full two weeks to one month after the person borrows the money  and this sets off a cycle of borrowing to repay the previously borrowed money.
  • Restriction on the number of times a borrower can renew the loan.
  • Lenders must give extra warnings before attempting to debit a borrower’s bank account. This should lower the frequency of overdraft fees that are common with people who take out payday loans.
  • Restriction on the number of times the lender can attempt to debit the account.

What can the Canadian government do about Canadian payday loans?

Canadian activists ACORN are urging the Canadian government to follow the U.S. in regulating these predators. In addition, ACORN is proposing that the federal government:

  • Create a national database of payday loan users to stop users from taking out a loan to pay off another.
  • Cap all payday loan fees at $15 on every $100.
  • Amend the Criminal Code to lower the ceiling for the interest rate from 60% to 30%.

“Too many borrowers seeking a short-term cash fix are saddled with loans they cannot afford and sink into long-term debt,” CFPB Director Richard Cordray said in a statement. “Many borrowers turn to payday loans for fast cash to cover bills when they are rejected by the banks. This allows payday lenders to take advantage of people who have nowhere else to turn”, said Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction. “The predatory nature of payday loans is a failure of the national banking system, which means they should be a federal responsibility”.

Is there an alternative to Canadian payday loans?

According to Duff Conacher, co-founder of Democracy Watch, the alternative is the federal government direct that banks must have branches in low-income neighbourhoods that offer credit lines to lower-income people at the same rate they offer to others. That, he said, would end the need for payday lenders.

What is the solution?

Please don’t resort to payday loan companies! Make a date for a free consultation with a professional trustee instead. Ira Smith Trustee & Receiver Inc. is here to help with sensible advice and a plan to conquer your debt problems so that you can rid yourself of debt Starting Over, Starting Now. Give us a call today.

#VIDEO-CONSUMER PROPOSAL PROCESS: THE SECRET TO SETTLING DEBTS AND AVOIDING BANKRUPTCY#

The consumer proposal process says bankruptcy may not be necessary

This is the story of Mary and Paul, who thought they would have to file bankruptcy, but instead, were able to avail themselves of the consumer proposal process. Mary took a job right out of college but recently she’s had to take a lot of time off to care for her sick husband Paul. With reduced income they are now considering bankruptcy. They went to visit a licensed insolvency trustee. A professional who is licensed by the Office of the Superintendent of Bankruptcy can practise as a licensed insolvency trustee. The trustee told them that the bankruptcy route may not be necessary.

Explaining the consumer proposal process

The trustee recommended a bankruptcy alternative called the consumer proposal. The consumer proposal process is an offer to creditors to pay back a percentage of what is owed over no more than period of up to five years. There are advantages to filing for consumer proposal:

  • you get to keep your possessions;
  • collection calls and lawsuits are stopped;
  • wage garnishment is stopped; and
  • if successful, you will avoid bankruptcy.

Mary and Paul really liked the idea of avoiding bankruptcy. To get things underway, the trustee explains that Mary and Paul must provide a complete list of what they own and what they owe. The trustee will put a consumer proposal process together based on their ability to pay. The proposal will be filed with the Office of the Superintendent of Bankruptcy. This is the federal organization that regulates Licensed Insolvency Trustees.

Once it is filed, Mary and Paul will stop making payments directly to their unsecured creditors. The trustee also explains that after filing the consumer proposal and related documents with the Office of the Superintendent of Bankruptcy, the trustee will then submit the consumer proposal to the couples’ creditors. The creditors will then have 45 days for accepting or rejecting the consumer proposal. If the creditors are unsatisfied with the consumer proposal the trustee may also negotiate so that a consumer proposal acceptable to the creditors which Mary and Paul can afford will be established.

Once the consumer proposal is accepted, Mary and Paul will then be responsible for making periodic payments to the trustee. The trustee will use that money to make a distribution to the creditors. Mary and Paul will also have to attend two counselling sessions to help them. If Mary and Paul make all the required payments and attend the two counselling sessions, then they will be legally released from the debts that were included in the consumer proposal. Mary asked if her and Paul’s credit rating will be affected. The trustee answered yes it will be affected but once the consumer proposal is fully completed, they can start rebuilding their credit.

How can you determine if the consumer proposal process can help you with your debt?

If you’re considering bankruptcy you need the services of a licensed insolvency trustee. Contact Ira Smith Trustee & Receiver Inc. We provide the depth of expertise found in a large company, delivered in an informal setting. We ensure you will receive a high quality and cost effective service.

We will use our combined 50+ years of experience dealing with diverse issues and complex files, to solve your financial problems and provide you with the highest quality of professional service. Take the first step to Starting Over, Starting Now by calling us.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

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FINANCIAL DEBT COUNSELLING: THE #1 SECRET THAT ALWAYS SHOCKS PEOPLE

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The #1 secret we have learned through financial debt counselling

When performing financial debt counselling, we discovered many people are confused by financial lingo. As a result people have been negatively affected financially.

As a result we started a series on confusing financial terms. We began with Balloon Payments Can Cost You More Than You Bargained For. Today we’re going to be discussing APY – Annual Percentage Yield.  Interest rates play an important role in borrowing and investing. Understanding your APY can will give you a clear picture of what you owe or could maybe gain.

What is APY?

APY is the true annual rate of return taking into account the effect of compounding interest. If you have a credit card and carry a balance each month you’ll be paying interest on top of the previous principal and interest.  The interest each month (in effect it’s interest on interest) calculates on a daily basis. It is an important aspect of financial debt counselling.

Why is APY important?

APY is a great tool for evaluating the true interest rate paid on a loan or the return on an investment. It takes compounding into consideration and thus is actually higher than the stated annual interest rate.

If you owe money on a credit card, your APY will almost always wind up being higher than your card’s listed APR (Annual Percentage Rate). Interest charges added to your balance for every month you fail to pay it off in full is the reason. This means that over time you’ll be paying interest not only on the principal amount you owe, but on the interest as well.

In our financial debt counselling sessions, we always expose the APY secret.  We will now expose it for you.  Say your credit card has a stated APR of 19.99%.  If you carry a credit card balance from month to month, an APR of 19.99% compounded daily equals an APY of 22.1214%.

Are you unable to make your monthly payments?  Were you not aware of APY?

The reality is that you could be paying a much higher amount than you bargained for.  It also may be a much higher amount than you can afford.  Most people we counsel are not aware of or didn’t understand APY. In our financial debt counselling sessions, this is everyone’s “AHA” moment.

If you’re dealing with insurmountable debt for any reason contact Ira Smith Trustee & Receiver Inc. today. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Give us a call today.

We can help. Maybe all you need is some financial debt counselling.  Perhaps you need to explore one of the many bankruptcy alternatives.  Either way we can devised a plan that allows you to carry on a debt free, stress free life.

Watch for future blogs when we’ll be discussing other confusing terms that can impact you financially.

 

#VIDEO – WHY SURPLUS INCOME IS SO POPULAR UNTIL YOU ARE FORCED INTO BANKRUPTCY #

This is one of the most popular questions about bankruptcy we are always asked. The concept of surplus income in bankruptcy doesn’t 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. That way we can explain the answer to the question “What is surplus income in bankruptcy?”.

The surplus income answer

Heading into bankruptcy, your licensed insolvency trustee (LIT) must make an assessment. The more you earn, the more you must contribute. A definition of surplus income is:

The amount of a debtor’s total income that exceeds what is necessary to maintain a reasonable standard of living.  A reasonable standard of living is according to the standards set by the Office of the Superintendent of Bankruptcy.

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 LIT for distribution among the creditors.

The Office of the Superintendent of Bankruptcy sets limits for what a family can earn. The larger your family, the more you can keep. The thresholds increase 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. Payments are made to your LIT. The government’s instructions about surplus income are in the Superintendent’s Directive 11R2.

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

If my income changes, does my surplus income change?

During your bankruptcy, you will have to report your monthly income and expenses to your LIT.  The LIT must perform the surplus income calculation every time your income changes while you are in bankruptcy.  You must make up any extra amount required if your income rises while you are in bankruptcy.

In a debt settlement restructuring, the amount you and your creditors have agreed upon, is the same amount you pay. There is no monthly reporting of your income to your LIT and no recalibration to an increased amount if your income rises.

What now if I have too much debt?

If you’re considering bankruptcy you need the services of a LIT. Contact Ira Smith Trustee & Receiver Inc. We provide the depth of expertise found in a large company, delivered in an informal setting. We ensure you will receive a high quality and cost effective service.

With a combined 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.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

 

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FINANCIAL FRAUD AND BANKRUPTCY: DID YOU REALLY MEAN TO DO IT?

 

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The Financial Fraud Bankruptcy Case

The bankruptcy financial fraud case that created this important precedent is R. v. Shek. Wilson Chi-Man Shek was charged with six counts under section 198(1)(g) of the Bankruptcy and Insolvency Act (BIA) after he obtained $186,000 on credit and then filed for bankruptcy.

This section of the BIA states:

“after or within one year immediately preceding the date of the initial bankruptcy event, hypothecates, pawns, pledges or disposes of any   property that the bankrupt has obtained on credit and has not paid for,   unless in the case of a trader the hypothecation, pawning, pledging or disposing is in the ordinary way of trade and unless the bankrupt had no intent to defraud,…”

He had received credit from five different credit card companies. He had 13 different credit cards, as well as lines of credit. Shek ran through all this credit by:

  • writing cheques;
  • obtaining cash advances (some of which were obtained at casinos while he was gambling and losing); and
  • making cash withdrawals on his accounts. His luck and credit ran out and he filed for bankruptcy on Feb. 12, 2013.

The Verdict

To the amazement of many the judge dismissed all charges. It all boiled down to intent to defraud and the lack of ability to prove that Mr. Shek intended to commit financial fraud.

“So one reasonable inference is that Mr. Shek began to gamble, which is legal, with credit that he obtained, which is legal and had no intention to defraud his creditors, but rather hoped as all gamblers do that his luck would turn and he would be able to pay enough to maintain his credit.

This may have been unrealistic given interest charges and the perils of poker and slot machines, but it is Mr. Shek’s true subjective state of mind that is relevant to the words ’unless there is no intent to defraud,’” wrote the judge. “But I genuinely do not know what occurred here regarding Mr. Shek’s intent when he spent the money that he obtained on credit. It follows that all charges are dismissed.”

The judge’s ruling states that insolvent gamblers who have legitimately obtained credit and believe their luck will turn cannot be convicted of financial fraud. This will no doubt be an important precedent that will impact how some cases are prosecuted under Canada’s bankruptcy law.

What to do if you have too much debt – hint:  don’t commit financial fraud!

Please do not test out this precedent! If you are experiencing serious financial difficulties, DO NOT apply for credit cards and lines of credit to get funds to gamble with. This is not the way to solve financial problems. Consult a professional trustee. Ira Smith Trustee & Receive Inc. are experts in dealing with debt. With immediate action and the right financial plan you can be well on your way to a debt free life Starting Over, Starting Now. Give us a call today.

#VIDEO – BANKRUPTCY INFORMATION ONLINE: WHAT EVERY CANADIAN OUGHT TO KNOW#

Is there bankruptcy information online?

There is a large amount of bankruptcy information online.  Just go to the website of any Licensed Insolvency Trustee or bankruptcy lawyer.  There is information about:

  • Canadian bankruptcy
  • the Canadian Bankruptcy Act (BIA)
  • general bankruptcy information

Bankruptcy information online at the Ira Smith Trustee website

On our website, you will find bankruptcy information online such as:

The other source for bankruptcy information online

Canadian bankruptcy information online is at the Superintendent of Bankruptcy Canada website.

To take action you have to take it offline

Once you have gotten the online information, to take action, you need to take it offline.  It is not possible in Canada to file bankruptcy online yourself.

To file either a consumer proposal to achieve debt settlement or bankruptcy, you need to select a Licensed Insolvency Trustee.  A Licensed Insolvency Trustee administers the insolvency process in Canada.

The 10 Step Program of the Canadian Insolvency System

  1. Meet with a trustee to talk about your personal situation and your options.
  2. Work with the trustee to complete the required forms.
  3. The trustee filing your consumer proposal or bankruptcy and notifying your creditors.
  4. You attend a meeting of creditors, if required.
  5. You attend two counselling sessions.
  6. Subject to your provincial exemptions, the trustee sells your assets; you may also have to make surplus income payments to the trustee.
  7. In certain circumstances, you may have to attend an examination by an officer at the OSB.
  8. The trustee prepares a report to the OSB describing your actions during the bankruptcy.
  9. You attend the discharge hearing, if required.
  10. Your discharge from your bankruptcy and then the trustee completes the administration.

This is why to take action in the Canadian insolvency system you have to take it offline

How To Take Action To Achieve Debt Settlement

If you’re in deep financial difficulties and are looking for a way out, there is help for you. You need help from experts in debt – professional trustees.

We are:

  1. regulated by the Canadian government, as are our fees;
  2. licensed and have undergone a background check by the RCMP;
  3. subject to a stringent code of ethics; and
  4. required to maintain our competency by completing ongoing mandatory professional development each year.

Are you an individual or company who feels your situation is hopeless? Ira Smith Trustee & Receiver Inc. can prepare and put in place the plan MADE JUST FOR YOU.  The plan will free you from the burden of your financial challenges.  With our help, you will go on to live a productive, stress-free, financially sound life.

Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can free yourself from debt.

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

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SUBPRIME PERSONAL LOANS SECRETS REVEALED

subprime lending, subprime loans, subprime borrowers, trustee, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, subprime personal loans, cctvnews, subprime lenders, subprime, prime lending, subprime auto loans, subprime loan, subprime mortgage lending, subprime crisis, predatory lending, big short, subprime lending, subprime loans, subprime borrowers, trustee, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, subprime personal loansWhat are subprime personal loans?

Subprime personal loans lending is dangerous business. It was instrumental in pushing the U.S. financial system to the brink of collapse from 2007 – 2008.

You may have read the book or seen the movie The Big Short.  It is a 2015 American film directed and co-written by Adam McKay. It is based on the non-fiction 2010 book of the same name by Michael Lewis.  It is  about the financial crisis of 2007–2008, triggered by the United States housing bubble. The film stars Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.

Now, could subprime lending spell doom for Canada?

What is subprime lending?

Subprime personal loans lending refers to giving loans to individuals who don’t qualify for prime rate or regular loans.  The reason they don’t qualify is usually because of poor credit ratings.  There could also be other factors that set off red flags about their ability to repay the loan. As a result subprime loans carry a higher interest rate than normal loans.  This is because of the increased risk that the borrowers will default on payment.

Subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule.  Their diffculty is sometimes reflecting setbacks, such as unemployment, divorce or medical emergencies.

What is the state of subprime lending in Canada?

According to TransUnion, subprime lending is becoming a bigger part of the credit business in Canada.

  • The average amount owed on Canadian credit cards rose by 1.8% over the past year
  • But among subprime borrowers, it rose at more than triple that rate, up 5.7% in a year
  • The share of Canadian mortgage-holders with high debt levels (above 500% of disposable income) jumped from 3% in 1999 to 11% by 2012
  • Debt delinquencies are on the rise. The share of indebted consumers who failed to make a debt payment for 90 days rose by almost 3% over the past year

What to do if you think you need another loan but can no longer qualify for a normal loan

If you can’t qualify for a traditional loan, a subprime loan is not the answer to your problems.  High interest rate subprime personal loans is not an answer for being unable to repay your debts. Taking control of your debt with the help of a professional trustee is the answer.

Make an appointment for a free consultation with Ira Smith Trustee & Receiver Inc.

We’ll discuss all your options.  The options include bankruptcy alternativescredit counselling, debt consolidation and consumer proposals.  We will also tell you about bankruptcy if that’s the best option for you.

There is a way out of your financial problems.  We can provide the right solution for you.  We will do so without resorting to a subprime loan Starting Over, Starting Now.