519-646-2222Category: Insolvency News
THE COST OF BUYING A HOUSE
Buying a house is not a good investment strategy and is a major transaction that should be entered into thoughtfully. Assumptions: 1) I am buying a house with an agreed price of $300,000 2) I have a mortgage for the full amount 3) I qualified for the financing at 3% fixed rate over 25 years […]
Read more“WHERE THERE’S MUCK, THERE’S BRASS”
‘Where there’s muck there’s brass’ is a 20th century expression which originated in Yorkshire, England where brass is still used as a slang term for money. Seems that Debt Settlement companies have been squeezed out by the passage of Bill 55 in Ontario but that squeeze has created opportunity for others. Law firms and paralegal […]
Read moreRE-ESTABLISHING CREDIT AFTER A BANKRUPTCY OR CONSUMER PROPOSAL
Credit is avaiable before, during and after filing a bankruptcy or proposal proceeding. Let’s preface this discussion by suggesting that we should think very carefully about both the costs and consequences of obtaining credit whether we have a good or a bad credit rating. TransUnion, the credit reporting agency, reported that 70% of people filing […]
Read moreOVER 100 YEARS OF CREDIT CARD PAYMENTS
Is this even legal? Yes, it is perfectly legal and sadly it is common practice. Credit card issuers borrow money from central banks at overnight rates that can be less than 1% then lend the same money out at rates ranging from 7% all the way up to over 30%. But what if the debtor […]
Read morePREPARE FOR A PARADIGM SHIFT
Stop demanding “credit” (or what we in the profession commonly refer to as “DEBT”) and start demanding jobs and wages. We all read, view or hear the news reports, a lack of good full time jobs, reduced wages, layoffs and so forth. These are all signs that we should be getting away from debt that […]
Read moreNEED A LOAN, A CREDIT CARD OR A MORTGAGE?
Some of the advertising we have been seeing lately seems to be quite at odds with the usual conservative image that is associated with various lenders. Expert Mortgage broker is advertising “The concept is simple – as long as you have a pulse, Expert Mortgage will provide you with a home equity loan, up to […]
Read moreCANADIAN BANK HANDLED NEGATIVE PRESS VERY WELL
The bank was able to turn negative press to a small advantage – but is the press really paying attention? Interest Rate differentials (“IRDs”) can be extremely costly. They are not based on the interest rate at which the loan was written but rather on the ‘differential’ between the actual loan rate and the prevailing posted […]
Read moreDON’T WAIT FOR A CHRISTMAS MIRACLE
Take action, deal with your debt problems and get on with life. Procrastination usually lasts longer than dealing with debt problems. In as little as nine months (rarely even less) a person can be discharged from bankruptcy and starting to rebuild their financial lives. Bankruptcy is not the only option to help people get out […]
Read moreCAN I GO BANKRUPT ON GOVERMENT DEBT?
This is a question we often get at this time of the year. Government debts such as taxes, EI and welfare overpayments and student loans are dischargeable in a bankruptcy or proposal proceeding.ice and arrange your free consultation. In some cases there are limitations in terms of values and time frames. For example for a student […]
Read moreSTUDENT LOANS AND BANKRUPTCY (OR CONSUMER PROPOSAL)
Student loans can be discharged under a bankruptcy or proposal proceeding but there are exceptions and limitations. We must look to Sections 178(1)(g)(h) and 178(1.1) of the Bankruptcy & Insolvency Act (“BIA”) to understand what the paremeters for discharging student loans are. Essentially the Sections were written expressly to deal with government backed loans, presumably with […]
Read moreBANKRUPTCY COULD BE A PART OF YOUR FINANCIAL PLAN
Now we are not suggesting that you should plan to go bankrupt but if you are struggling with debt it may be a good option and here’s why. Many people experiencing debt problems make the mistake of self-liquidation. While that appear to be the proper moral remedy it isn’t always the most sensible. After all […]
Read moreYOUR DEBTS WILL BE FORGIVEN AFTER TWO YEARS – OR WILL THEY?
Some so called Debt Consultants sell “get out of debt programmes” based on the Section 4 of the Limitations Act – but consumers beware! Here’s how the scheme works: You pay the debt consulting company a “membership fee” of $1,200 in consideration for which they advise the following: As a member they will help you […]
Read moreWELCOME TO CANADA – ARE YOU IN DEBT YET?
Canadian banks are aggressively targeting new immigrants to Canada: We are all seeing the advertisements whether it is Scotia Bank’s “StartRight”, HSBC’s “Newcomers” and so on… In each case the banks are aggressively going after new immigrants with offers of credit cards and other forms of credit. The offers usually involve credit cards with lower […]
Read moreMERRY CHRISTMAS – TO ALL OUR CLIENTS, FRIENDS AND FAMILIES
We sincerely hope you all enjoy and joyous festive season. Regardless of culture or religion we all celebrate the solstices – winter and summer. The solstices mark the end of an epoch and the beginning of a new one. For that reason, this is a good time of the year to reflect on the things that […]
Read moreCAVEAT EMPTOR – “BUYER BEWARE”
The ads are all over the radio again: “NEW FEDERAL GOVERNMENT PROGRAMS TO HELP YOU GET OUT OF DEBT” The ONLY “FEDERAL GOVERNMENT PROGRAMS” that will help you get out of debt are called “BANKRUPTCY” and “PROPOSAL” and they can ONLY be admistered by a licensed trustee in bankruptcy. Some suggestions: – Don’t get […]
Read moreTAX DEBT AND INSOLVENCY PROCEEDINGS
The government announced an increase of $444,000,000.00 to the CRA budget to collect taxes – how will that impact you? It is clear from past performances and the Federal Government’s own budget (2016) that the CRA is more likely to pursue low hanging fruit (small business) than wealthy tax dodgers. In fact the budget reads: […]
Read moreIS MINIMUM WAGE TOO MUCH?
Russell Brand doesn’t think so – and I tend to agree with Russell. When calculating surplus income, trustees in bankruptcy refer to the Federal Government’s poverty (LICO – Low Income Cut Off) guidelines. However, minimum wage, pensions, welfare payments and so forth all fall below in some cases (especially considering government payments for welfare and […]
Read moreARE YOU READY TO FLATLINE?
According to former CIBC Chief Economist Jeff Rubin we need to prepare ourselves for the economy to flat-line for a few years. For most of us that means knuckling down, paying down debt and easing back on spending. If Mr. Rubin’s predictions are accurate we will not see improvements in our incomes for at least […]
Read moreMORE DEBT CONSULTANTS THAN YOU CAN SHAKE A STICK AT!
I received a call from a banker asking me “if it would be advisable to refer a client to a debt consultant company” that appears online with no address, no office, no identified staff, just an online presence with a toll free number and a whole bunch of promises. Has the world gone stark raving […]
Read moreMARRIAGE BREAKDOWN AND BANKRUPTCY
Marriage breakdowns are a leading cause of bankruptcy, or wait a minute – is it that bankruptcy is a leading cause of marriage breakdowns. Hmm which came first There is no doubt that financial problems contribute to stress in matrimonial relationships. People are far more inclined to speak openly, with each other and with their […]
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