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DEBTS SOLUTION: STRATEGIES TO DODGE CORRUPT DEBT RELIEF SCAMS

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Debts Solution: Introduction

Facing soaring expenses in housing, groceries, and fuel, Canadians grapple with amplified financial strains. The mounting necessity for a debts solution burgeons as debt problems and insolvencies surge. Seeking expert guidance becomes pivotal, steering clear of pitfalls entwined in deceptive debt relief enticements posing as saviours.

In this Brandon’s Blog, I provide insights on mitigating exposure to these cunning ploys by discussing the common warning signs that are prevalent with a debt help scammer. Unearth methods to shield you from the clutches of debt relief scams. Acquire proficiency in detecting warning signals, discerning credible services, and fortifying yourself against deceitful machinations. Delve into tangible scenarios and preemptive strategies to navigate the labyrinthine terrain of a possible debts solution, safely and securely.

Debts Solution: Recognizing Debt Relief Scams

Navigating through debt’s labyrinth often induces immense stress and a sense of being inundated, prompting many individuals to seek solace in debt alleviation initiatives. Yet, exercising prudence and vigilance within this sphere holds paramount significance. Within this industry, deceptive stratagems loom from for-profit debt settlement companies, preying on the susceptible, and exacerbating their financial woes. Deciphering these deceitful maneuvers becomes pivotal; doing so empowers you to shield yourself and judiciously discern the avenues for debt alleviation at your disposal.

Debts Solution: Scammers often ask for upfront fees and make unrealistic promises

Identifying a potential debt relief company scam often hinges on a prominent signal: the insistence on upfront fees by the entity or individual. Authentic debt relief programs typically levy charges solely after achieving a triumphant negotiation or formulation of a repayment strategy. Conversely, imposters brazenly demand payment in advance, vanishing into thin air without rendering any tangible aid.

Moreover, these malevolent actors might peddle unattainable assurances regarding debt eradication or swift resolution of financial problems. It’s imperative to grasp that an overnight miraculous debt dissolution remains an illusory prospect. Legitimate debt mitigation ventures engage in protracted negotiations with creditors, aiming for diminished interest rates or modified payment schemes. This, however, demands time and harmonious collaboration among all involved stakeholders.

When scrutinizing a debt relief initiative, exercise caution toward those espousing immediate or fanciful outcomes. Reputable entities furnish pragmatic prognoses, collaborating with you to sculpt a sustainable blueprint for enduring financial balance and security while providing you with lasting strategies to continually improve your financial situation.

Debts Solution: Beware of anyone who advises you to stop communicating with and paying your creditors

A conspicuous red flag signalling potential deceit in a debt relief scheme emerges when the program advocates severing communication and payments with your creditors. While succumbing to the allure of dodging creditor calls and missives may seem appealing, sidestepping dialogue can exacerbate your predicament.

Genuine debt mitigation programs engage in dialogue with your creditors, endeavouring to forge fresh payment terms or negotiate reduced settlements. They champion transparent communication and harmonious collaboration among all stakeholders. Conversely, swindlers might counsel total cessation of contact with creditors, precipitating escalated interest, penalties, and even legal ramifications.

Should a debt relief program advocate complete cessation of creditor payments, it unequivocally betrays your best interests. Upholding your financial commitments to the best of your capacity remains crucial while charting a course toward resolution via a reputable, trustworthy debts solution avenue.

Debts Solution: Debt relief scams may operate via social networks, text, or email

In the digital age, debt relief frauds have actually discovered their way onto various online platforms. Debt settlement firm fraudsters might connect to you with social media sites, text, or email, encouraging quick and very easy services to your financial obligation troubles.

If you obtain unwanted messages from unidentified sources offering debt settlement solutions, use caution. Reputable debt relief programs typically do not participate in hostile or unsolicited advertising and marketing tactics. It is necessary to do your research study and thoroughly vet any type of company before giving them personal information or agreeing to work with them.

When researching debt settlement choices online, be sure to verify the firm’s credentials and try to find reviews and testimonies from other customers. In addition, inspect if the firm is associated with any reliable industry organizations or if they have any accreditations that demonstrate their competence and trustworthiness.

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Debts Solution: Seeking Professional Help

Seeking adept guidance from recognized experts in managing your finances and addressing debt problems is a prudent choice. Licensed insolvency trustees emerge as specialists adept in aiding individuals and companies to restructure their way through financial quagmires. Their realm encompasses proffering no-cost initial consultations, delving into your fiscal panorama, dispensing counsel, and facilitating the exploration of diverse avenues in debt management.

The following are 3 legitimate options to consider in solving debt problems. In fact, the debts solution scammers, after sucking as much money out of you as they can, then introduce you to a licensed insolvency trustee to execute one of the below options. Why not avoid the middleman debts solution scammer? All of the “services” they provide, for which they charge you thousands of dollars, you can get from a licensed insolvency trustee during the initial no-cost consultation.

Here are 3 legitimate debt relief options for anyone looking for a debts solution:

Debts Solution: Debt Management Plan


A structured repayment scheme, a debt management plan, proves instrumental in efficaciously steering individuals through their debt labyrinth. Collaborating with a licensed insolvency trustee ensures in tailoring a blueprint attuned to your distinct fiscal landscape. Herein, regular remittances through a payment schedule are made to the trustee to find dispersion among your creditors under their auspices.

The virtues of a debt management plan abound. Primarily, it amalgamates your debts into a singular monthly payment, streamlining financial oversight. Coupled with this, it commonly encompasses a diminished interest rate, harbouring potential savings in the long haul. Furthermore, active participation in such a plan potentially serves as a conduit for the reconstruction of your credit score, contingent upon consistent and punctual payments.

 

Debts Solution: Consumer Proposal

Should your financial circumstances veer toward a more severe terrain, contemplating the avenue of a consumer proposal emerges as a viable debts solution recourse. It constitutes a binding accord, ensconced in legality, forged between you and your creditors, shepherded by a licensed insolvency trustee. It is the only approved debt settlement government program. In a consumer proposal, your trustee takes over all communication with creditors, freeing you of this burden.

Within this framework, you proffer a proposal to reimburse a segment of your unsecured debts over a stipulated timeframe, commonly spanning five years. This offer is grounded in your reasonable capacity and only requires you to pay a portion of the total indebtedness. Upon acceptance by your creditors, monthly disbursements to the trustee ensue, who, in turn, channels these funds to your creditors. After completing your total set of monthly payments, your entire debt is wiped out.

The merits of opting for a consumer proposal are many. Firstly, it furnishes immediate shielding against collection calls, wage garnishments and legal action reprisals instigated by your creditors. Simultaneously, it facilitates a reduction in your cumulative debt burden, given that the repayment amounts to less than the owed sum. Additionally, resorting to a consumer proposal carries less weight than declaring bankruptcy, exerting a comparably milder impact on your credit standing.

Debts Solution: Bankruptcy as a Last Resort

As a final debts solution recourse, bankruptcy emerges as a potential remedy for individuals ensnared in insurmountable debt with no viable alternatives. This legal recourse orchestrates a fresh start by absolving a significant portion of debts, facilitating a reboot of one’s financial trajectory and life.

However, navigating the terrain of bankruptcy demands judicious consideration, given its weighty repercussions. The enduring impact on your creditworthiness, spanning multiple years, can pose hurdles in securing future credit. Furthermore, the liquidation of certain assets to reimburse creditors and potential constraints on professional accreditation warrant conscientious contemplation in discussion with a licensed insolvency trustee.

Prudent counsel from a licensed insolvency trustee assumes paramount significance before delving into bankruptcy. Our expertise enables a comprehensive no-cost evaluation of your circumstances, guiding you toward the most fitting pathway forward.

Credit counseling is an important aspect of any service provided by a licensed insolvency trustee.

Debts Solution: Protecting Yourself from Fake Loan Scams


Many times debts solution scammers combine a mandatory loan program with their debt relief package. Here are some tips on how to avoid being a victim of these loan program scams.

Be cautious of deals that require payment upfront or appear too good to be real

A substantial indicator of a spurious finance scam materializes when the lender needs payment before finalizing the loan. That is what a bogus debt relief company does or arranges for you. Reputable companies who lend money typically deduct any type of fees or expenditures from the loan itself, avoiding any kind of in-advance payment. Furthermore, lenders that appear excessively beneficial are commonly deceptive. Fraudsters often attract people with implausibly low-interest rates or guarantees of assured loan authorizations, departing from the reasonable standards of the lending world.

Phony lending rip-offs assure loans even with a negative credit history yet never provide the loan

If you have a negative credit rating, scammers may attempt to take advantage of your scenario by encouraging loans without credit history checks or with assured authorizations. Nonetheless, genuine lending institutions always analyze the creditworthiness of a borrower before approving a loan. If a lender is not interested in your credit rating and claims to supply financing to any individual despite their credit rating, it is likely a fake funding fraud. Remember, no lender can ensure funding without appropriate analysis.

Stay clear of offering individual or financial details to unidentified sources

Protecting your personal and financial info is vital in the electronic age. Fraudsters may pose as loan providers and demand sensitive info, such as your social insurance number, bank account details, or driver’s certificate information. Never offer such information to unknown sources or through unknown sites or channels. Genuine lenders will have protected systems in position to secure your data, and they will not ask for unnecessary individual or financial information.

picture of man deep in debt going over a contract to hire a debts solution settlement company
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Debts Solution: Conclusion

Getting specialist support from a licensed insolvency trustee is essential in working through the details of your financial debt and money obstacles. Licensed insolvency trustees stand as important wellsprings, supplying invaluable advice, support, and strength for you to navigate the puzzle of economic problems. Whether designing a debt management plan approach or considering a consumer proposal, embarking on these paths alongside a seasoned specialist will let you recover your authority over your entire life. It minimizes the difficult anxiety you have carried and moulds a course towards a much more positive financial destiny.

I hope you enjoyed this debts solution Brandon’s Blog. If you’re struggling with managing your overwhelming debt, don’t worry – there are some things you can do to take control of the situation. It is not your fault you can’t fix this problem on your own and it does not mean that you are a bad person.

First, it’s important to create a realistic budget and track your expenses. From there, you can prioritize your debt repayment and make consistent payments to chip away at what you owe. It’s also a good idea to seek professional financial advice to help guide you through the process. Just remember, managing debt is a gradual process that requires commitment and determination, but you can do it! So don’t hesitate to reach out for help from financial professionals.

Individuals and business owners must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your finances and find yourself burdened by stress, do not delay in pursuing aid.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses with debt problems that are in financial distress. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind.

The Ira Smith Team understands these financial health concerns. More significantly, we know the requirements of the business owner or the individual who has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. We can get you debt relief now!

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a Trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

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CANADA DEBT HELP: ARE YOU MAKING THESE DEBT RELIEF MISTAKES?

Introduction

On Friday, November 22, 2019, Manulife Bank published its most recent Manulife Bank Canada debt help survey. Manulife Bank publishes its survey annually. The 2019 survey, compared to previous ones, shows that two in five Canadians have given up all hope of ever being debt-free.

In Brandon’s Blog, I review the main findings of the survey. The results show the debt relief mistakes being made. I will also discuss how you can get yourself out of debt so that you won’t be one of the 40% of Canadians that have given up all hope.

Manulife Bank Canadian customer debt relief reviews

The Manulife Bank Canada poll questioned 2,001 Canadians in all provinces between ages 20 and 69 with household revenue of more than $40,000. The survey was carried out on the internet by Ipsos between September 20 to September 26, 2019. National results were weighted by gender, age, area as well as education.

The 2019 survey results show:

  1. Two in 5 question will they ever be debt-free in their lifetime.
  2. Spending-to-income % is trending negatively in Canada.
  3. Ninety-four percent of Canadians say the ordinary home is in too much financial debt.
  4. The spending-to-income proportion is trending adversely as 45 percent record that their expenses are rising faster than their revenue.
  5. Sixty-seven percent of Canadians with too much debt presume everybody else does too.

“There is a financial wellness crisis, and it’s affecting Canadians of all demographics,” said Rick Lunny, President and CEO, Manulife Bank.

Canadians not really asking “How can I get out of debt in Canada?”

One of the saddest parts of the survey is what I did not read. Apparently, Canadians surveyed are not asking how they can get out of debt. Rather, they are just resigned to that being their normal reality.

The survey also shows differences by generation. Whether you are a Boomer, Generation X or Millennial makes a difference. This makes sense as the different generations are at different stages of life.

The generational differences are:

  1. Boomers – 38% of these survey participants say that their spending is greater than their income and 31% feel they will never be debt-free.
  2. Millennials – 46% of those surveyed say that their costs are greater than their earnings and 42% feel they don’t see themselves ever paying off debt.
  3. Generation X – 54% of these study participants state that their expenses are higher than their earnings and 49% feel they will certainly never ever get out of debt.

How can I get relief from debt?

So with these survey results as a backdrop, the question these Canadians need to ask is how to get debt relief. There are no free Canadian government grants to pay off debt. According to Manulife Bank Canada debt help is required by many Canadians.

People have to take matters into their own hands. It starts with a household budget. All members of the family have to be involved in preparing it and you need complete buy-in for it to be successful. The budgeting process begins with understanding what the family’s after-tax income is every month and what all of the household expenses are. Then, all the expenses have to be looked at critically to determine which are necessary and which represent “wants” not “needs”. You can also look at the income side and see if there are opportunities to also increase income.

The goal of the budgeting process is to end up with a household budget that is realistic, will be tracked and all family members will be accountable for. Monthly expenses cannot be greater than the monthly net after-tax income. The budget must also have room for making regular monthly payments to pay down debt, including credit card debt. The budget must also include regular monthly savings, in order to build up an emergency fund. The emergency fund is essential to meet unexpected expenses or income loss.

The 6 main benefits of a household budget

The 6 main benefits of a household budget are:

  1. A budget offers you the ability to have control over your cash: A budget plan is a list of all revenues and costs. It permits you to plan exactly how you intend to spend your money. Rather than money just flying out of your pocketbook, you make deliberate choices on where you desire your cash to go. You’ll never need to wonder each month where your money went.
  2. A budget keeps you concentrated on your economic goals: Budgeting will enable you to meet your money objectives – paying down debt, putting money away in a retirement savings plan, getting a home – as long as you follow it consistently. With a budget, you’ll know exactly what you can afford and you can separate your money appropriately. E.g. If your instant goal is to save for the deposit of a house, then you might need to pass up that holiday you wanted to take. Your spending plan will inform you specifically what you can or can’t manage.
  3. A budget plan will ensure that you do not spend what you do not have: Charge cards are a great convenience yet they also make it really easy to spend due to the fact that there is no cash exchanged in the transaction. Many Canadians rack up major credit card spending and land up deep in debt before they recognize what’s occurred. When you use and stay with your spending plan you need to record every little thing you spend, even if it’s a bank card purchase. You will not wake up deep in debt, ask yourself how you arrived there.
  4. A spending plan will prepare you for the unanticipated: Every budget plan must have a rainy day fund for those unanticipated costs. It’s recommended that you should budget for three months worth of costs for when there may be an unanticipated layoff or various other unplanned for a significant expense. Don’t be distressed; you do not need to save all the cash at once. Build your fund up slowly.
  5. A budget decreases tension: Lots of Canadians panic every month about where the money will come from to pay their bills. A budget will offer you satisfaction. It reveals to you just how much you earn and what your expenses are. If need be you can reduce unneeded expenditures or take on an extra gig to live within a well-balanced budget. No more panicking at the end of the month.
  6. A budget plan can assist you to pay for the retirement you’ve been desiring: Saving for your retirement is really essential and your spending plan can help you save for your future. Reserve part of your income every month for retirement savings. Beginning early as well as consistently stick to it. The money you conserve now will determine the type of retirement you can anticipate.

Is there a government debt relief program?

There is a government-approved debt relief program. It is governed under the federal Bankruptcy and Insolvency Act (Canada) (BIA). There are 3 personal debt government approved debt relief programs. The only person authorized to administer any of these debt settlement programs is a licensed insolvency trustee (formerly called a trustee in bankruptcy).

I have written about them before, but I will summarize here what they are:

  1. Consumer proposal: A consumer proposal is a streamlined process. This process enables insolvent people to make a formal deal with their creditors. This federal government authorized financial debt settlement program allows you to repay only a portion of what you owe to eliminate all of your debts. You can take as long as 5 years of routine month-to-month payments to do so. To qualify, you have to be insolvent and owe $250,000 or less to all creditors, apart from for any kind of financial obligations secured by way of registration against your house. A successful consumer proposal allows you to keep your assets that you can afford to keep. It also allows you to avoid bankruptcy.
  2. Division I proposal: A Division I proposal offers the same protections as a consumer proposal. If successfully completed, it provides the same benefits as the consumer proposal, including avoiding bankruptcy. This kind of proposal is not as streamlined as a consumer proposal and is for people who owe more than $250,000, not including any mortgage or other loan registration against your home. The other major difference is that an unsuccessful Division I Proposal results in an automatic bankruptcy. A consumer proposal does not have this same automatic provision.
  3. Bankruptcy: Bankruptcy is a process whereby in exchange for giving up your assets to the Trustee (with certain provincial exemptions), the honest but unfortunate debtor will be able to discharge all of their debts (with certain exceptions). When I meet with insolvent people for their no-cost consultation to explore their options, I always try to find the option that allows them to avoid bankruptcy as long as it is feasible and realistic.

Canada debt help summary

I hope you enjoyed this Brandon’s Blog on Canada debt help. Are you in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt. You are worried because you are facing significant financial challenges.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.

We know that people facing financial problems need realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team. That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious in finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation. We will get your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.canada debt help

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DEBT HELPERS: WHY CANADIANS DO NOT TRUST DEBT CONSULTANTS

Introduction

You may have read or heard about a recent survey. The headline was “Ipsos poll finds half of Canadians don’t trust professional help with debt”. The survey provided some interesting views but did not shed any light on why Canadians do not trust debt helpers.

I regularly speak with people who attend my office for a free initial consultation to try to solve their personal or company debt problems. From those experiences, I have compiled a list of the 10 most common reasons I believe why almost half of those surveyed do not trust debt professionals.

#1 What is a debt professional?

Confusion exists in the marketplace as to what you mean when you say the phrase “debt professional”. Depending on who is doing the talking, and the listening, you could mean:

Unfortunately, the survey does not define what the term “debt professional” really means.

#2 I don’t have a debt problem because I am making all my payments

People believe that if they can keep up all their minimum payments, then they are making all of their payments. So if the person says they are making all payments, they can’t have a debt problem. Therefore, they don’t trust anyone who tells them that they do.

However, especially with credit cards, there is a difference between making all the monthly minimum payments and paying the entire debt off every month. What they don’t recognize is that all they are doing is paying the credit card company interest and never actually paying down any debt. Eventually, it will catch up with them when they have no more credit.

#3 You will ruin my credit score

People with debt problems always tell me that they have a great credit score and either a consumer proposal or bankruptcy will ruin that. So with the belief that if they see a debt professional, all that person will do is ruin their credit score, distrust is born.

Even people who have recently been turned down for debt consolidation loans tell me that. What I tell them is that it is true that an insolvency filing will remain on their credit report for some time after they successfully complete their consumer proposal or get their bankruptcy discharge.

However, I also point out that in return, they will have their debt problems fixed. By fixing their debt problems, they will no longer suffer from pain, stress, anxiety, depression and sleepless nights. Some people then choose to take responsibility, fix their debt problems and rehabilitate themselves. Others choose discomfort, stress and anxiety, and sleep deprivation.

#4 Talking won’t do any good. What I need is a loan

Many people feel that talk is cheap. What they really need is money. The gambler with a gambling addiction thinks the next roll of the dice or the next hand of cards will produce all the winnings they need. In the same way, the debt addict believes that one more personal loan will solve all their debt problems. All it will really do is give them a bit more cash, which will never be enough to repay all of their debt.

Increasing debt is not a good strategy for getting out of debt. That extra bit of cash may feel good in the short term, but eventually, all it really is is more debt. What these people don’t realize is that by talking to a Trustee, when they find the right one for them, a relationship begins. The functioning partnership you create with your Trustee is a connection. As you create that connection, long-term modifications in your financial behaviour start to happen to produce good long term results.

#5 It would be weird speaking about such a personal thing with a stranger

In my experience, this may be an initial feeling but does not in fact happen. The majority of Trustees are competent at making you really feel comfy rapidly. They are neither impersonal nor judgmental.

As I mentioned above, once you find the right Trustee for you, a relationship begins. I have found that many of the people that I have helped, consider me a resource to call upon, even long after our professional relationship ends.

#6 I would rather speak to a friend or family member

I have heard this many times. This is really an excuse for not dealing with their debt problems. It is not a reason why people don’t trust debt professionals.

In fact, a recent Angus Reid poll titled The Awkward Silences Survey 2019 found that 17% of the Canadians surveyed do not like to talk about finances. Of those, the least favourite topics they like to talk about are:

  • Personal debt or bankruptcy – 34%
  • Assets, liabilities and net worth – 22%
  • Their income – 16%
  • How they spend their money – 12%
  • Savings and investments – 11%
  • Their mortgage – 5%

I get it. The topic is not pleasant. Speaking with a debt professional is an admission that you have a problem with debt. However, it is also the first positive step to take to solve your debt problems.

#7 Debt professionals do not truly respect you; they do it for the cash

Yes, there are unscrupulous people in the world who advertise themselves to be debt consultants. They make outlandish promises such as they will eliminate your debt without bankruptcy. I cannot speak for them, but I do know myself and many of my Trustee colleagues across Canada.

The Trustee and staff do earn money from helping people with their debt. Just like you earn money from your job or career. However, there is a common bond amongst all Trustees in Canada. That common bond is that they all enjoy helping people. They enjoy seeing your success from their assistance. If they did not, they would be doing something else.

#8 Everyone will know if I go to see a debt professional

This is a common feeling. Again I can only speak about Trustees. Although there is not the same confidentiality with a Trustee as there is with a lawyer, a Trustee does not blab. As big a country as Canada is and as big a city where I practice is, the Trustee community is small. If a Trustee broke confidences, word would get around quickly and that Trustee would not get any referrals.

Keep in mind that the word “trust” is found in “Trustee”. People trust us with some of their deepest problems and we help solve them. I don’t talk to others about your issues.

It is true that the Office of the Superintendent of Bankruptcy runs a database of all insolvency filings. This is a public database that anyone can search for $8. Also, the two Canadian credit reporting agencies, Equifax Canada and TransUnion Canada, purchase that information for their own databases. I have never had anyone tell me that their brother-in-law searched the government database and found out about their insolvency filing.

So at the end of the day, the only people who will know that you filed are yourself, your Trustee, your spouse and anyone that you have told.

#9 The professional fee is too expensive

That depends on who you go to see. If you go to a community credit counselling agency, it is probably no charge. If you go to a debt settlement company scammer, then every one cent is too expensive because they do not do anything useful for you. If you go to see a Trustee, the entire process may end up being free.

Let me explain. The initial consultation with any Trustee will be free. You should get that confirmed upfront when you make the appointment. Other than for situation where you have no assets and no income, a consumer proposal filing or a bankruptcy administration will probably end up not costing you any money specifically for professional fees. Here is why.

The Trustee will advise you what will happen to you and what your responsibilities are in a bankruptcy or consumer proposal. In a bankruptcy, other than for exempt assets, you have to turn over your assets to the Trustee. If you earn income, you may also have a surplus income obligation to pay. The Trustee, under the statute, will be entitled to a fee for services out of those proceeds. So, you will pay nothing for the Trustee’s approved fee.

In a consumer proposal, the Trustee has to first do the bankruptcy calculation. Under the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (BIA), a consumer proposal must produce a better result for your creditors than your bankruptcy. The Trustee will discuss with you his or her best estimate of how much you need to offer to your creditors in your consumer proposal in order to be successful. That calculation has nothing to do with the fee the Trustee is entitled to under the BIA. The statute says that the Trustee is entitled to a statutory fee from the consumer proposal fund.

So, in this way, the Trustee’s fee for a bankruptcy or consumer proposal administration costs you nothing.

#10 I don’t have time

I believe this also is more of an excuse, not a real reason for not trusting a debt professional. It is uncomfortable to face your debt problems head-on. It is more comfortable to ignore them.

A Trustee will provide a 1-hour consultation for free. In that hour, you will gain better insight to your debt issues and the realistic options available to you to fix them. I always have people tell me at the end of the free consultation, that I have helped them feel much better than they did when they first walked in.

So think of all the things that you do in a day or week, and I am sure that you can find 1 hour to help yourself. If you have a job that makes it impossible to see a Trustee during normal business hours, a Trustee will accommodate you. I have held many early morning or evening appointments.

Debt helpers summary

I hope this debt helpers Brandon’s Blog helps you. As previously stated, there is a good reason not to trust certain debt helpers. You don’t need to feel that way about seeing a Trustee. Are you on the verge of bankruptcy? Do not let any misconceptions about being able to trust a Trustee stop you from understanding how you can restructure your financial affairs and avoid bankruptcy. You do not need to be one more person or company declaring bankruptcy in Canada.

As a licensed insolvency trustee (formerly called a bankruptcy trustee), we are the only specialists certified, accredited and overseen by the federal government to provide insolvency guidance and to apply remedies under the BIA. We will certainly help you to choose what is best for you to release you from your debt problems.

Call the Ira Smith Team today so we can get rid you for you the stress, anxiety, pain and discomfort that your money issues have created. With the distinct roadmap, we establish simply for you, we will without delay return you right into a healthy and balanced problem-free life, Starting Over Starting Now. Call the Ira Smith Team today.

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DEBT HELP NEAR ME: OUR TORONTO DEBT REPAYMENT CALCULATOR STRATEGY

Debt help: Introduction

Canadian household debt is a problem for many Canadian families. So in this Brandon’s Blog, let’s chat about it.

There are two primary techniques for debt settlement: (1) debt stacking technique (also called the debt avalanche approach) and; (2) the debt snowball technique.

Debt help: Are you an avalanche or a snowball?

In the avalanche method, you pay off your liability with the highest rate of interest first, second highest next and so on. In the snowball technique, you pay off the single amount with the smallest outstanding balance first, second smallest second and so on.

Both techniques use, as soon as you’ve settled one, what you were paying goes to your next target balance. Avalanche can clearly conserve you cash because you are saving on interest costs. The additional amount above the minimum payment you can put towards reducing the debt goes totally against reducing the principal balance. Snowball theoretically might not save you as much with time, yet by using this technique, the quicker checkpoints wind up motivating you to place even more money against your debt.

Avalanche is more about the long haul while snowball is more about changing the way you think. When you see that you are just $60 from cleaning up one of your debts, you could select to toss that $60 right against your debt as opposed to heading out to eat.

Debt help: A real example

The best way to show this is to use an example. I will use the same set of facts and show you how the two methods would work.

Assume that you have 5 sorts of debt:

  1. An auto loan which has a current balance of $18,000, with a minimum monthly payment of $500 a month, at a 4.9% interest rate.
  2. Two student loans. One is down to $20,000. Excellent work at having it that reduced! The minimum repayment a month on that one is $300 and the interest rate is 4.6%. The 2nd student loan has a $10,000 current balance. The minimum monthly payment is $100 and is at a 5.9% interest rate.
  3. You bought some furniture and took advantage of a 24 month zero interest special promotion. You currently owe $7,581, the required monthly payment is $399 and you have 19 months left to go at the special promotion interest rate. Again, it is at a 0% rate of interest. If you do not pay off the balance in the next 19 months, the balance will then click away at 29% per annum.
  4. You only have one credit card. You owe $12,000 and it has a minimum monthly payment of $100. The annual interest rate is 19.8%.

So currently, your total debt is $67,500. Your monthly minimum repayments are a total of $1,429. At that level, it will take you about another 5 years to repay all your debt or some time in 2024 (other than for the furniture debt).

Through your budgeting, you see that you can squeeze an extra $171 out of your monthly budget to put towards your debt repayment. So overall you are paying $1,600 a month towards your debt. In the avalanche method, you will be debt free in February 2023. The interest paid throughout that time is $11,149.00.

Debt help: Repayment strategy options – Snowball vs. avalanche

Under the snowball method, you are done in April 2023. The interest paid in snowball is higher at $14,445.00. This is a difference of $3,296.00. You can certainly put those interest cost savings into your own savings plan. Also under the snowball method, it has you paying off the zero percent interest furniture loan in 13 months. The avalanche method puts the extra money against your highest interest rate credit card debt. It also lets you use the entire remaining 19 months to pay off the principal only furniture loan.

Nonetheless, both methods are valid. Under both methods, you pay off your debt a year earlier than if you did not use either of these methods and putting a bit extra against your principal. It depends what the characteristics of your debt load are. In my example, you would certainly pick the avalanche method, not the snowball method. This highlights the importance of budgeting so that you know what amount extra if any, you can squeeze from your budget towards debt repayment. Also, you can use one of the many free online calculators to figure out both the snowball and avalanche methods. That way you will know what is best for your situation.

The graphs

Let’s look at the graphs of these timelines. As you can see, the avalanche method gives you a steeper downward curve than the snowball method. Again, it is because you are paying off your debt quicker.

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Budgeting and motivation

This also shows us that you have a bit more adaptability if you need to make a reduced repayment one month. Financial instability makes it difficult to toss additional money at debt. So when you’re not obtaining those incentives of getting rid of a kind of debt, it’s a little tougher to be urged. Conversely, seeing that you are chipping away at your debt will motivate you to keep refining your budget so that you can find more money to put against your debt.

The most vital thing is that you have actually developed a budget. Through the budgeting procedure, you found extra savings each month to put towards debt repayment. It’s going to take you a long time to repay your debt if you only pay the minimum monthly amount. Also, you’ll be squandering a great deal of cash on interest if you’re simply paying the minimum.

Are you caught in the debt trap?

Are you caught in the trap of too much debt and only making minimum monthly payments? Do you need debt consolidation Toronto? Are you stressed that future rates of interest increases will make presently affordable debt payments completely unreachable? Is the stress, anxiety, and pain of your debt negatively affecting your health and wellness?

If so, call the Ira Smith Team today. We have decades and generations of experience helping people and companies requiring financial restructuring. As a licensed insolvency trustee, we are the only professionals licensed and overseen by the Federal government to supply financial restructuring solutions.

Call the Ira Smith Team today to make sure that we can start assisting you. We will quickly return you right into a healthy and well-balanced stress-free life. We can create a debt settlement plan just for you to avoid bankruptcy, where we can even make the interest clock stop. This way, all your payments go only against the principal balances owing.

You can have a no-cost appointment to help you to fix your loan troubles. We recognize the pain financial debts and economic distress causes. We can end it from your life. This will absolutely allow you to start a fresh start, Starting Over Starting Now.

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Brandon Blog Post

BANKRUPTCY HELP: SIGNS YOU NEED HELP

bankruptcy help

If you would rather listen to the audio version of this bankruptcy help Brandon’s Blog, scroll down to the bottom and click on the podcast.

Bankruptcy help: Introduction

When people ask for bankruptcy help, they really don’t want to talk about bankruptcy. What they are really asking for is help in eliminating the pain, suffering and stress they are going through dealing with their unmanageable debt. They want solutions to avoid bankruptcy. In this Brandon’s Blog, I discuss the debt danger signals and provide solutions to avoid bankruptcy.

As a licensed insolvency trustee (formerly known as a bankruptcy trustee), we are the only professionals licensed and monitored by the Federal Government. We provide options and proposed solutions to people and companies with too much debt. Our main goal is to help people and companies AVOID bankruptcy while solving their debt problems.

Bankruptcy help: 10 signs that you need help

  1. Your total debt has increased over the past year. You may be making minimum payments on some debt, paying down other debt, but increasing your debt in total. You have not accomplished anything in reducing your debt in the past year and this means you need help.
  2. Justified purchasing a new vehicle even though your existing one is fine, just not new. Taking on more debt just because of a “want” but not a “need” is irresponsible. You need help.
  3. Bought a new house with a larger mortgage, or mortgages, because you expect your income to rise in the future. Wages and salaries are not increasing in any real way. They are flat. Voluntarily carrying a larger debt load hoping that sometime in the future your income will catch up to your cash needs is not a responsible way of handling your affairs. You need help with your debt.
  4. Have borrowed money to go on a vacation. You should never go into debt to purchase something that is going to vanish in a week or two. The vacation will be gone but the debt will remain. If you can’t afford a vacation, you can’t go on one.
  5. Justify purchases based on what your peers are buying. Again, going into more debt because you want things your friends are buying is not a good reason. Their situation is not your situation. Maybe they can afford those things but you can’t. Maybe they can’t afford those things and will end up in bankruptcy. You just don’t know. Again, you can’t go into debt for “wants”.
  6. You have no emergency fund saved up. Recent surveys have shown that Canadians may be a few hundred dollars away from a financial disaster. Many Canadians are living paycheque to paycheque. You don’t know when a medical emergency, job loss or the need to replace a major appliance will happen. You need an emergency cash fund to cover those emergencies. If you have too much debt and no emergency fund savings, you need debt help.
  7. No retirement savings. It is never too soon to start planning to save a certain part of your take-home pay for retirement. A proper household budget will allow for such savings. If you are constantly battling your debt and have no money for savings, you need debt help.
  8. You quit your job without having another one lined up. This is probably the most irresponsible thing you can do. It may seem obvious to you, but trust me, I have seen it. The best way to land a better paying job or position is when you already have one. Trying it any other way is pure folly, especially when you have too much debt. Your regular monthly debt payments will not wait for you to have your income stream rolling again. Keep in mind that I am not talking about someone who is downsized and was given a package. I am talking about someone who quits without having new employment ready to go to.
  9. You are always borrowing from one source to pay down another. There isn’t enough money from your earnings to make your required debt payments. The fact is that you are borrowing from Peter to pay Paul. You’re in trouble and need debt help.
  10. You ignore your partner’s bad money habits or worse, financial infidelity. Your money habits may be impeccable. However, ignoring your partner’s money problems will bring you down too. You both need debt help.

Bankruptcy help: How we provide debt help

The first thing we offer is a free first consultation. You explain to us the financial issues you are facing. Then we talk to you about your family assets, liabilities and income. We then describe to you some possible options to help you overcome your debt problems. More information will be needed from you, but at least we start by setting your mind a bit at ease by telling you that your situation is not hopeless and we can give you solutions. All of the solutions we offer, except maybe one, are all so you can avoid bankruptcy.

The takeaways we want everyone to get from this free consultation is that you feel:

  1. We have empathy for your situation.
  2. A rapport has been built.
  3. We are the kind of people you can see yourself working with.
  4. You trust us.

If you wish to go ahead with our solving your financial and debt problems, the next step is that we have you complete our standard intake sheet called the Debt Relief Worksheet. A fully completed worksheet, complete with backup documents, allows us to drill down into all the issues and come up with our definitive recommendations.

Bankruptcy help: What are some possible solutions

The range of possible solutions depends on when we get to speak with you. Most people wait until they have no more credit line to use. Sometimes it takes a major event like the Canada Revenue Agency garnisheeing their bank account or wages before they realize they have a debt problem. The earlier you recognize there might be a problem and come speak with us, the more options we will have for you to solve your debt problems.

The range of options might include:

Credit counselling

Credit counselling is in fact debt therapy. We give advice with a host of concerns connected to debt consisting of budgeting, debt remedies, working with your lenders as well as restoring credit scores.

Debt consolidation

Debt consolidation is replacing all of your debts with new single financing at a lower overall interest rate so that you only have one debt to focus on reducing.

Consumer proposal

A consumer proposal is an official deal made to your creditors under the Bankruptcy and Insolvency Act (Canada) to customize your repayments; e.g. paying a lesser amount every month for a longer amount of time and paying in total less than you owe. Another benefit is that the interest clock stops the moment you file your consumer proposal.

If none of the above 3 possible solutions to avoid bankruptcy will work for you, then you are a candidate to file for bankruptcy so that you can end the pain and stress your debts are causing you. This way you can be Starting Over, Starting Now.

Bankruptcy help: Do you have too much debt?

Do you have too much debt? Are you stressed that future interest rate increases will make currently affordable payments completely unaffordable? Is the pain, stress and anxiety hurting your wellness and health?

If so, speak to the Ira Smith Team today. We have decades and generations of helping people and companies looking for financial restructuring. As a licensed insolvency trustee (formerly called a bankruptcy trustee), we are the only experts licensed and supervised by the Federal government to provide insolvency services.

Call the Ira Smith Team today for your free consultation and to make sure that we can begin assisting you to return right into a healthy, balanced, hassle-free life.

 

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Brandon Blog Post

ARTICLES ABOUT DEBT HELP: ARE CANADIANS IMMUNE TO THE DANGERS OF DEBT?

articles about debt helpArticles about debt help: Introduction

I regularly write articles about debt help. Trends over the past few years about the increase in Canadian average household debt has gotten me thinking. We can get vaccinated for measles, mumps, rubella, influenza and a host of other diseases. Now it seems that without even getting a shot, Canadians have developed immunity to the dangers of debt.

How could this happen to what was traditionally a nation of savers? Did we just throw caution to the wind? Why did we stop heeding the warnings from the Bank of Canada, financial institutions, the Parliamentary Budget Office (PBO) and the credit reporting agencies?

Articles about debt help: Immunity to debt

Everyday there are headlines about the alarming levels of personal debt and how many Canadians are teetering on the brink of financial disaster. Have we stopped hearing the message or heeding the warnings? It seems that as we borrow more and take on more debt that our attitude to debt changes.

“People who don’t have any debts tend to be strongly opposed to debt… but if you put them into a situation where they are forced to acquire it, their attitudes change in the direction of toleration,” said Stephen Lea, an emeritus professor of psychology at the University of Exeter in the U.K. who has decades of experience studying the psychology of debt. As people acquire debt, Lea has found they also change their attitudes towards indebtedness. That’s an example of what psychologists call dissonance reduction. According to Mr. Lea, we really have developed immunity to debt.

Articles about debt help: Home prices and feeling immune to debt

There are more reasons why Canadians seem to feel immune to the dangers of debt. With house prices skyrocketing, home owners feel rich. And it seems that if Canadians are working and making their payments promptly, they feel in control of their finances. If interest rates continue to stay low, Canadians will continue to borrow more and more without realizing the dangers of accumulating debt.

Articles about debt help: Is there a solution to our immunity to the dangers of debt?

Saul Schwartz, who has studied personal debt as a professor of public policy at Carleton University believes that government should focus on policy actions that would rein in the lenders who are enabling all our borrowing because all the warnings are being ignored. I don’t know if that’s the answer but as a professional licensed insolvency trustee I can tell you that many Canadians felt immune to the dangers of debt until they faced a financial crisis.

Articles about debt help: What should you do if you are not immune to your debt load?

Take action before you find yourself in the throes of a financial crisis. Ira Smith Trustee & Receiver Inc. has helped many Canadian companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t delay. Give us a call today. Financial problems can be solved with immediate action and the right plan.3bestaward

Call a Trustee Now!