519-646-2222Category: Insolvency News
IS CHRONIC INDEBTEDNESS A SIGN OF A MENTAL DISORDER?
Or is it simply a case of “you have got it all wrong, change your attitude”? The DSM (or Diagnostic and Statistical Manual for Mental Disorders) lists “cognitive dissonance” as one of the symptoms (or indicators) of mental disorders such as schizophrenia and manic depression. Cognitive dissonance plays a huge part in the way that […]
Read moreFIVE REASONS WHY YOU SHOULD WORK WITH A LOCAL TRUSTEE:
Accessibility is a very big reason. 1. Local trustees are local business people, when their business grows they hire local employees and when they make money from their business they spend money in other businesses and services in the local community. 2. You don’t have to make long distance calls to speak with your trustee’s […]
Read moreINTERESTING ROUNDTABLE BUDGET DISCUSSION
Are you earning enough to live on? This morning in a discussion involving nine professionals, with backgrounds ranging from accounting to lending and investing and small business, it was determined that by their best estimate one or two people living a modest lifestyle in London (ON) would require a take home pay of about $3,600.00. […]
Read moreHOW CAN I BECOME A BANKRUPTCY TRUSTEE?
When jobs are scarce people look to areas they believe are busy. Becoming a bankruptcy trustee is not easy. Although the course required has changed making it easier to get a license it will still take 3-4 years of self study and you must obtain practical on-the-job experience.
Read moreFEBRUARY IS PSYCHOLOGY MONTH:
February is “Psychology Month” in Canada – we have just come off another month dedicated to raising public awareness of mental health issues for children. The terms “psychology” and “mental health” carry with them a great deal of stigma, most people still prefer to avoid discussing their own mental well-being. Think about it! After all […]
Read morePaying your debts – a moral dilemma
Sadly, mounting numbers of Canadian consumers are using debt to pay for debt. There is very little doubt that lenders have become facilitators, banks now offer variety packs of credit cards (VISA ‘and’ Amex ‘and’ MasterCard – where they formerly only offered one credit card). Couple these credit cards with various lines of credit and […]
Read moreConsumer Proposals – to pay out or not to pay out?
Here are some problems with early payout We have seen a recent surge of people paying out their consumer proposals earlier than expected, but this may not be the smartest thing to do, and here are some reasons why:Many of the payouts have come from refinancing real estate. Imagine a scenario where the debtor has […]
Read moreCANADIANS IN RECESSION
We seem to go in an out of recessions… It is not unusual to read about fears of recession or depression in the media – but at what point does a recession become a depression? One might suppose that depends on who you and what is happening in your life. According to economists the definition […]
Read moreGETTING CREDIT AFTER BANKRUPTCY
Re-establishing credit after a bankruptcy is usually a lot easier than expected. Interestingly enough, one of the first questions that people ask after they have just filed for bankruptcy is “how long does it take to get my credit back?” The question is not an easy one to answer since there are many factors that […]
Read moreDEBT CONSULTANT SCHEME
Debt consulting proposal loans purportedly confer an “advantage” to the borrower but do they? Are such loans in some way fraudulent or are they just questionably ethical? The “advantage loan” scheme involves trustees who work with particular debt consultants. It doesn’t matter who see the client first, the trustee or the debt consultant. Either way […]
Read moreIT’S EVERYWHERE YOU WANT TO BE
Remember the slogans used by credit card companies “it’s everywhere you want to be” and “don’t leave home without it”? Yes, the convenience that was being sold is certainly “everywhere you want to be” but what about the debt? Do you really-not want to “leave home without it”? Just imagine being in a place where […]
Read moreTHE PROBLEM WITH DEBT SETTLEMENTS
There are actually many problems with debt settlements but let’s discuss a few. The first problem is finding someone you can trust and count on to represent your best interests, not just their own. Neither law firms nor collection agencies work for either free or cheap. O.K. so let’s say you found a reasonably priced […]
Read moreREGULATING CREDIT CARDS
Lenders will not regulate themselves – but they clearly need rules. The government has imposed some rules on credit card issuers for instance requiring that they inform consumers how long it will take them to pay off their balances with minimum monthly payments. That is of little comfort to elderly borrowers on fixed incomes with […]
Read moreLIFE IN TAX PURGATORY AND PROPOSALS TO THE CRA
Proposals can be a good way of solving many debt problems including CRA tax issues but they can be far more problematic for the debtor if they are not carefully and thoughtfully conceived. Many self-employed people have tax problems from unwanted audits to arbitrary assessments. Self-employed people are far more likely to attract the attention […]
Read more407 ETR SUPREME COURT OF CANADA DECISION STILL PENDING
It seems that the Supreme Court is really moving slowly on resolving this issue. The question at hand for the Supreme Court is largely the supremacy of legislation and whether or not the Federal Bankruptcy & Insolvency Act effectively trumps Provincial Statutes such as the Ontario Highway Traffic Act. But there is a far more […]
Read moreARE YOU A HIGH TAX DEBTOR?
If you have high tax debts here are some things you need to know. High tax debts are personal taxes over a value of $200,000 that constitute 75% or more of the debtor’s total unsecured debts. So for example if you owed Revenue Canada $300,000 for income taxes and only owed $100,000 on other debts […]
Read moreCOULD YOU SURVIVE A RATE INCREASE?
If you have a $200,000.00 mortgage at 3% interest amortized over 25 years with a five year term, your monthly payments would be about $946.00. During the five year term you will pay about $27,739.00 in interest. If you had to pay the same mortgage at the rate of 6% over the same term, you […]
Read moreDO YOU OWN YOUR HOME OR DO YOU RENT IT FROM THE MORTGAGEE?
You might not like the answer. The fact is that more Canadians (69% of households) have their names on title on their homes than ever before – but they also own far less of the value of the property than ever before. There are more mortgages, institutional and private than ever in history. According to […]
Read moreCONSUMER PROPOSAL ACCEPTANCE:
A question I am frequently asked is: “what are the chances that my consumer proposal will be accepted by my creditors?” The answer in a nutshell is “very good!” The reason is that a basic premise underlying all consumer proposal filings is that they must provide the creditors with a better return than they would […]
Read moreCASH STORES vs FIRST TIER LENDERS
This is an excellent article by Doug Hoyes on the perils of payday loans and borrowing money from Cash Advance outlets, whether on the Main Street or found online. Interestingly, toward the end of the article, Doug turns his attention to a problem that I have frequently blogged about “irresponsible top tier lending”. Unfortunately he […]
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