519-646-2222Blog Articles
BANKS’ RIGHT OF OFFSET OR SETOFF
In some situations banks have rights that extend beyond legal limitation barriers. Limitations Acts are designed to provide a regulatory framework for our legal system forcing actions to be taken within reasonable timeframes. This effectively stops the accrual of interest over a protracted term and prevents elements of undue hardship being imposed through negligence or […]
Read moreDO YOU NEED HELP GETTING OUT OF DEBT?
If you live in London, Chatham, Sarnia, Windsor or Woodstock we can help! Locke Consulting has offices throughout Southwestern Ontario to help you to find solutions for problem debts. Consider all of your options from an informal restructuring to a formal insolvency proceeding. We will lay out the costs and consequences of all the options […]
Read moreHOW DO PROPOSAL ADMINISTRATORS (BANKRUPTCY TRUSTEES) GET PAID?
Call us at 519-646-2222 for more information The answer to this question can be quite complicated because every individual’s financial situation is different including assets and other monies that are available to pay creditors and to pay trustee fees. However, all trustees are governed by the Bankruptcy & Insolvency Act (“BIA”) and the Rules and […]
Read moreGETTING OUT OF DEBT IS THE EASY PART
The real challenge is getting back into debt in a manageable way. One of the greatest fears we hear expressed from people filing either a bankruptcy or a proposal is that they will never get credit again. A common urban myth is that it will take seven years to rebuild credit – the “seven years” […]
Read moreWHY I DON’T LIKE REVERSE MORTGAGES
Reverse mortgages can be predatory by targeting vulnerable and often ill-informed senior citizens. Let’s assume your un-mortgaged home is worth $350,000 and you take out a reverse mortgage at age 65. The mortgage can go to as much as 55% of the property value so $192,500. Additionally you will have to pay, up-front, an appraisal fee, legal costs […]
Read moreARE YOU LIVING DEBT FREE?
Are you comfortable living with debt? According to Trans Union the average Canadian consumer’s debt load is continuing to increase. So it would appear that being indentured is not only a way of life for Canadians but one that we have become very accustomed to. Statistics get very difficult to interpret as data is often […]
Read moreWHY THE INCREASE IN CANADIAN MORTGAGE DEBT?
The answer is simple – people are broke and money is cheap! Whether the trigger is a loss of job, decreasing family incomes or simply a refusal to change lifestyle people, find themselves leveraging the equity in their homes again and again to manage out of control credit card and other unsecured debt. Mortgages are […]
Read moreCREDIT IS LIKE A PARTY BALLOON
Bright and shiny helium filled balloons fill the room, they are filled with joy, happiness and hope. Credit is very similar to brightly coloured party balloons. When you have a line of credit and several credit cards, each has the promise of something desireable. A vacation, new clothes, furniture, each credit limit is filled with promise, […]
Read moreBankruptcy & Insolvency Myths:
Myths are often fact based and there are exceptions to all rules, the following represent a number of general misconceptions about how the Bankruptcy & Insolvency Act is applied. 1. The trustee will control my bank account – ordinarily the trustee has no reason to take control of your bank account. In corporate insolvencies the […]
Read moreHow badly do you want a credit card??
By David LazarusFebruary 17, 2014, 4:32 p.m. Ding-dong, Cap One calling. Credit card issuer Capital One isn’t shy about getting into customers’ faces. The company recently sent a contract update to cardholders that makes clear it can drop by any time it pleases. The update specifies that “we may contact you in any manner we […]
Read moreWE ARE UNDER CONSTRUCTION
ALL BLOG ARTICLES, AND PAGES ARE BEING UPDATED Our web page is being completely updated, all blog articles and other pages are under review and will updated, republished or deleted. Check back from time to time to see our new look and more up-to-date information.
Read moreBANKRUPTCY TRUSTEE NAME CHANGE IS OFFICIAL
The Office of the Superintendent of Bankruptcy has released Directive No. 33 The Office of the Superintendent of Bankruptcy, the oversight body charged with licensing and regulating Bankruptcy Trustees has issued a new directive to Trustees regarding their name change. Over the next year Trustee firms will transition to the new title of Licensed Insolvency Trustee […]
Read moreARE GROCERIES GETTING TOO EXPENSIVE FOR YOU?
Still think minimum wage is too high? Prices at the grocery stores have been steadily increasing for a very long time, some apples are at five bucks a pound. They used be fives bucks for ten pounds – not that long ago. More and more, people are using credit cards to purchase groceries – not […]
Read moreDON’T TALK TO A TRUSTEE UNTIL YOU READ THIS
There are many myths about Insolvency (Bankruptcy) Trustees. Rethink your conversations. The fact remains that Licensed Insolvency Trustees (formerly Licensed Trustees in Bankruptcy) are the best trained debt-help professionals in the country. Just because you speak to a trustee does not mean that your information is automatically on the public record. Speaking to trustee will not […]
Read moreBANKRUPTS CAN LEAVE THE COUNTRY
There are a lot of urban myths about bankruptcy – one is that bankrupts cannot travel outside of the country. Canadian bankruptcy laws do not impose an automatic travel restriction on people filing for bankruptcy. Of course there are exceptions to every rule and if it were thought that a bankrupt individual might be planning […]
Read moreINSOLVENCY STATISTICS – MAY 2014
Interesting differences between Ontario and most other provinces. The latest insolvency statistics have been released by the Office of the Superintendent of Bankruptcy. Although May 2014 (the last reported month) saw a slight decrease in the number of filings over the same month in the prior year overall the numbers have increased slightly. However, what […]
Read moreWHAT IS THE FORMULA TO QUALIFY FOR A MORTGAGE
Many Canadian banks use TDS (Total Debt Service) and GDS (Gross Debt Service) Ratios to help them determine how much money you can afford to pay for your mortgage. The rules and guidelines for getting people into the largest single debt they will ever carry are somewhat fuzzy. As a first time homebuyer you can […]
Read moreHOW FLEXIBLE ARE CONSUMER PROPOSAL PAYMENTS?
Can the proposal’s terms be varied (changed) once agreed to? Consumer Proposals can be made provided that the total of all debts excluding a mortgage on a principal residence do not exceed $250,000. That value does, however, include car loans and mortgages on properties that are not a principal residence. Proposals can be very creative, […]
Read moreBANKRUPTCY AND THE CRA
Many people query whether or not the Bankruptcy & Insolvency Act (“BIA”) applies to the Canada Revenue Agency (“CRA”) in respect of government debt. The answer in most situations is categorically “YES“. Insolvency professionals (trustees) have a long history of working with the CRA and other government agencies to assist debtors in finding relief from […]
Read moreWHAT PERCENTAGE OF DEBT DO I PAY IN A PROPOSAL?
This is the magic bullet question. The Insolvency Trustee’s role in negotiating a proposal is to find the appropriate balance point between what you can reasonably afford to pay and what your creditors would find acceptable. The trustee is not there to either maximize returns for the creditors (that is their own role in the […]
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