Licensed Insolvency Trustee Advice: 4 Things for Debt Solutions

What Are The 4 Things For A Debt Package?

In this video, Richard Killen, Licensed Insolvency Trustee based in Toronto, Scarborough, and 8 other debt relief locations in Ontario talks about 4 important things to keep in mind before deciding on a Licensed Insolvency Trustee.

When people start looking for insolvency solutions, they are usually operating under a fair amount of stress for quite some time. Which is why you should always keep the following in mind before you go any further in your search.

  1. Always use a Licensed Insolvency Trustee (LIT) – this is one of the best ways to ensure that you’ll be able to handle all the stress associated with bankruptcy procedures. Richard Killen and Associates is licensed by the federal government to administer the processes provided by law which is the quickest way to deal with all the stress and worry you may be experiencing.
  2. LIT will review all your options with you – an LIT is legally obligated to review all your options and help you make the right decision based on your financial situation.
  3. Stress relief happens immediately – some may be reluctant to visit an LIT due to the negative impression of filing for bankruptcy. Fortunately, LIT can offer bankruptcy alternatives and explain to you all of them which alleviates the stress of feeling like you have no other options.
  4. Misinformation – there has been so many myths and false information available today about bankruptcy and the insolvency process that you shouldn’t immediately believe. The Bankruptcy and Insolvency Act – the law that we operate under – provides bonafide solutions to problems that can’t be solved in any ordinary manner. These are solutions that work.

So remember, only a Licensed Insolvency Trustee can work with you and show you all of your options and help you find the right solution for yourself and we can put that solution into effect as soon as possible.

There is no cost for your initial meeting and we will explain all of your options to you. We can meet with you during business hours or book after hours appointments if that is more convenient. Richard Killen and Associates is a Licensed Insolvency Trustee in Scarborough and have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511

The Role of a Licensed Insolvency Trustee in Mississauga

The role of a Licensed Insolvency Trustee in bankruptcy Mississauga is critical in helping consumers who choose to go through the process of filing for bankruptcy to solve their overwhelming debt problems. Not only do they play a very big part in helping to minimize confusion, but they are present from beginning to end to make sure that every step of the process gets done as quickly and efficiently as possible.

Licensed Insolvency Trustees (LITs) are the only professionals licensed by the Federal Government of Canada to provide debtor information and advice to individuals and businesses with debt problems to help them make informed choices to deal with their financial difficulties. In addition, they are the only ones permitted by law to provide and perform debt restructuring services under the Bankruptcy & insolvency Act (BIA).

Licensed Insolvency Trustees in bankruptcy Mississauga were previously called bankruptcy trustees, or trustees in bankruptcy. The Office of the Superintendent of Bankruptcy Canada has recently changed their designation from bankruptcy trustee to Licensed Insolvency Trustee (LIT) in order to clearly differentiate them from debt consultants who are not licensed by the federal government to provide debt services.

Consumer Proposals & Debt Relief in Cooksville, Port Credit & Mississauga

The new designation is important to help eliminate any confusion or doubt among consumers about the legitimacy of LIT’s to provide government programs to eliminate debt. When dealing with a Licensed Insolvency Trustee, consumers are protected in three ways:

The Canadian government regulates the insolvency profession and ensures that Trustees are efficient and effective in complying with the insolvency process.

The Code of Ethics for Trustees establishes a standard for services that they are required to provide to a business or individual who has filed for bankruptcy.

The laws regulating the insolvency process makes sure that both the debtor’s rights and the creditor’s rights are respected.

In Mississauga, a Licensed Insolvency Trustee can provide a wide range of debt management solutions, including consumer proposals, loan consolidations, and bankruptcies. Insolvency Trustees are the most highly trained and educated debt experts that you can talk to. In most cases, trustees have obtained a university degree and most of them hold an accounting designation. For licensing, all trustees are required to complete a three-year bankruptcy and law course, pass a comprehensive oral examination, and undergo background investigation by the federal and national police force of Canada (the Royal Canadian Mounted Police). Only trustees who are licensed by the Office of the Superintendent of Bankruptcy Canada (OSB) can hold the designation of Licensed Insolvency Trustees.

Their role as debt professionals include the following:

  • Provide free initial consultation to review your financial situation
  • Explain to you in detail all your debt relief options, not just bankruptcy
  • Recommend the best debt management solution that is best to your situation, which may or may not include any type of insolvency solution provided by the Bankruptcy & Insolvency Act
  • Administer consumer proposals and bankruptcies and manage assets held in trust
  • Gather all vital information to file the necessary documents and start insolvency proceedings
  • Notify your creditors, accept and review all claims and administer the rules of the process
  • Apply for your discharge or completion certificate once you’ve completed all your duties
  • Ensure that everyone complies with their duties and responsibilities under the law.

If you are deep in debt and are getting harassed by non-stop collection calls and wage garnishments, consulting with a trustee is the most risk-free and inexpensive option you can take towards the right direction. A Licensed Insolvency Trustee in Mississauga can help you determine which debt relief option is best for you and your family so you can be on the road towards a debt free life.

Personal Finance- New Years Resolutions

Personal Finance New Years Resolutions?

In this video, Richard Killen, Licensed Insolvency Trustee providing debt counselling in Toronto, Scarborough, Ontario talks about New Years Resolutions about personal finance.

Though New Years’ Resolutions, by and large, tend to last no longer than it takes to make them, here’s what you never hear people talk about.

You are far more likely to make a resolution work if you make it than if you don’t make it. So, make the resolution.

Personal finance is all about control, and control is all about self­ discipline, and self-discipline is greatly helped by having a plan that is realistic and do-able.

Should you find yourself in debt and worrying about how you are going to make your next month’s payments, maybe it is time to have a conversation with Richard or one of the other Licenced Insolvency Trustees at Richard Killen & Associates.

There is zero cost for your first meeting and we will explain all of your options to you so you can make an educated decision. We have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511 for debt counselling in Toronto or any bankruptcy service needs.

Debt Counselors Toronto and Consumer Credit

Many, many times in the years that I have been a Licensed Insolvency Trustee in Toronto I have met people who had very little understanding of how credit works, especially consumer credit. In fact, when I started my trustee business one of the first persons who came to work for me had almost zero knowledge of how credit worked. Having had years of experience in the consumer credit field, I found that interesting. But as I later discovered, this was a much more common situation than I thought. I guess that’s where Financial Debt Counselling in Toronto, or elsewhere, come into the picture.

For some reason Debt Counselling as a preventative measure is not provided in high schools, or anywhere else that I can see. But since debt, or at least consumer debt, or consumer credit, is such a prominent part of modern society, maybe we should all try to understand it a bit better.

Historically consumer credit is a rather recent innovation. Before the Second World War it basically didn’t exist. In the 1920s and 1930s it was pretty hard for the ordinary working person to get a loan for anything. A person could perhaps get a mortgage loan to buy a house, with at least a 25% down-payment. But if a family wanted to buy a washing machine they either paid cash, or they bought it on the lay-away plan; i.e. they paid a certain amount every week to the appliance store and when they had paid the full price of the machine, the store would deliver it. If a person needed $300 cash he probably went to a pawn shop. It was practically impossible to get a loan from a bank, unless they already had a lot of money, so they probably didn’t need it anyway. A contradiction, I know.

So really, in those days people didn’t need much in the way of Debt Counselling.

But then after WWII was over and the millions of men who had been in uniform returned to normal civilian life and started families and so forth, they found that they needed and wanted all kinds of things, from washing machines to cars. After having made the sacrifices the war had asked of them they were in no mood to wait  for the lay-away plan. So, as happens in a free market system, a need presented itself and someone jumped in to fill that need. Presto! Consumer Credit.

Companies like Household Finance and Beneficial Finance decided to take a chance on these ordinary people. Instead of only lending money to people who already had money, these companies saw that it might be good business to lend money to people on the strength of their employment – they had an income. Guess what? They were right. Ordinary working people were able to get what they needed now and paying for it later. The Great Big Consumer Wheel started to turn.

Here’s what I mean. Because I have a job and can afford the monthly payments, HFC lends me $1,000 to buy a 1949 Ford. A whole bunch of other people then benefit from this. The car salesman makes his commission; the truck driver who delivered the car to the dealership gets paid, as does the assembly line worker who makes the car, the people who produced the parts to supply the assembly line, the people providing the raw materials from which the parts are made, the designer of the car, the advertising guy who comes up with ad that entices me to buy it, and so on, and so on. They all have a job and an income because of HFC lent me the $1,000. And because they get paid they can could go out and finance a car of their own and keep the wheel turning. They also have a new car of their own.

70 years down the line here we are – a consumer credit society – like it or lump it.

But all that is the good side of this equation; when things go right. It is not too much of a stretch to say that this system allows people like us to enjoy the highest standard of living anyone has ever enjoyed in the history of the world. (I speak here of material standards.) Some of us who have been around awhile can remember what things were like 40 or 50 years ago and can compare that to what we enjoy today. The difference is huge and is due in large part to the practical effect of consumer finance.

But things are never universally wonderful, are they? What happens if a person can’t meet the payments that this wonderful system is built on? What then? Well, that’s when we enter the world of the Debt Counsellor. Consumer Credit, as we just discussed, can be a good thing – if properly handled. But if you don’t know how to handle it. Or if unpleasant changes happen in our life that compromises our ability to keep up. That’s when a Debt Counsellor can help.

When it comes to Debt Counselling there are different kinds of help that can be given. At the basic level, there are straight out budgeting practices that can be learned. How to keep track of our money: the coming and the going out. Always good to know, and very important if they can be applied in time to keep things from going astray.

Then there are habits and disciplines that can be learned which can go a long way towards putting those budgeting methods to good effect, as well as to put us in a position to take better advantage of the credit that might be available to us in the future.

And then there is the kind of debt Counselling that assists in rectifying an already bad situation, when applied in conjunction with legal solutions such as bankruptcy or a consumer proposal. This, of course is the area that Richard Killen & Associates Ltd., in its capacity of Licensed Insolvency Trustee and certified Debt Counsellor can really help. After all, one of the two main purposes of the Bankruptcy and Insolvency Act  is to promote the financial rehabilitation of the individual. It is one thing to deal with the debts themselves. It is something else to get the information, advice and training which can prevent a future recurrence of the same problem. That’s where the Insolvency Debt Counsellor can make a big difference.

The Federal Government licenses an Insolvency Trustee to perform many important tasks designed to benefit either or both the debtor and his creditors. One of the most important of these tasks is to provide the debtor with the best opportunity to learn the things he needs to avoid a repetition of the current problems. Most importantly he can learn the skills and habits which will empower him to take control of his financial life and pave the way to a much more successful financial future.

In its role as a Debt Counsellor Richard Killen & Associates Ltd. provides the kind of assistance that are designed to achieve these goals. Like any other successful counselling, success will primarily depend on what the individual being counselled “brings to the table”, as the phrase goes. No one can make someone else learn something. But, with an open mind and a desire to learn and grow, the information we can provide can make the kind of difference that has a huge effect on a person’s financial future.

So though the term Debt Counsellor can sound pretty generic and bland, in the insolvency process, whether bankruptcy or proposal, the effect of Financial Debt Counselling in Toronto can be the most beneficial of all.

A New Name – Licensed Insolvency Trustee

Richard Killen - Licensed Insolvency TrusteeThe bankruptcy and proposal business is going to have a new player – at least it will appear that way. Since 1920 Trustees have had the title “Trustee in Bankruptcy”. Effective April 1st, 2016, Trustees are going to have a new name. We will be called “Licensed Insolvency Trustees”.

Actually this change has been coming for some time. Over the past 25 years the insolvency business has changed considerably. Trustees, who used to primarily handle bankruptcies and some business receiverships, have gradually morphed into people who do a lot more than that.

On the corporate side we have become the go-to people for effective restructuring when a company gets into certain kinds of trouble, but does not want to close their doors. This might mean re-organizing via a corporate proposal, or the use of the Company Creditors Arrangement Act, or even informal restructuring and deal-making. In other words as expansive a menu of solutions as the imagination and skills of a Trustee can supply to try to save the business.

On the personal or human side, Trustees have become the go-to people to provide the kind of knowledge an insolvent individual needs to achieve financial rehabilitation.

An insolvent person is by definition a person who can no longer keep all his creditors happy all the time – can’t keep all his debt payments up to date. This is usually disastrous for that person. A Trustee is uniquely placed to be able to provide that person with the tools to solve his problems. These might involve a bankruptcy solution or a consumer proposal in Toronto, or a more informal option. But the real solution will be that the insolvent person will have the chance to re-take control over their affairs. Though a lot of work will still have to be done, at least they can be in charge of doing it.

So the new title, which will be in use immediately, will be Licensed Insolvency Trustee.

Licensed –  Because a Trustee must be licensed by the Federal Government, through the Office of The Superintendent of Bankruptcy, to have the authority to perform his duties.

Insolvency  – Because the problems facing people today are not those of the past and the solutions and consequences have to be seen in a much more contemporary context. We are no longer necessarily talking about bankruptcy. There is much more to what we do.

Trustee – That stays because it properly reflects what we are – people who act in trust for others. Unlike a lawyer or other professional a Trustee does not work for only one side. A Trustee acts impartially in the interests of all the parties involved. This operates strongly to maintain public confidence in the legal insolvency process.

Hooray for the move forward!

Being Human: Debt relief is just a phone call away

Debt Relief, Just Ahead Green Road Sign in Toronto Over Dramatic Sky, Clouds and Sunburst.

When people come to Richard Killen & Associates for bankruptcy or debt counselling in Toronto, we don’t sit in judgment. It wouldn’t be fair anyway, because most people are their own harshest critics.

These people come to us at one of the worst times of their lives, when their worlds seem to be crashing around them. They feel afraid and guilty. The very act of opening the front door to our office can require an enormous act of will, to confront the bad news.

We sit down with them and listen to their story and ask the right questions. While each person’s situation is unique, and we have probably heard a similar story before, we can give them practical options to solve their problems; whether it is loan consolidation, credit counselling, creditor negotiation, a consumer proposal or even declaring bankruptcy in Toronto. We will let them know the pros and cons of every choice so they can decide what measure or measures suit them best. Their decision, not ours.

But, we will also try to make them understand that there is nothing they need to apologize for – unless it is being human. We humans all make mistakes. So if we are going to make mistakes, all we can do is try to make sure we don’t repeat them. In other words, make sure each mistake is a new one.

There are all kinds of reasons why people find themselves behind the eight ball financially: sickness, job loss, marital troubles, etc. But more often than not these problems have been made worse by their own mistakes, such as letting their spending get away from them and perhaps living beyond their means.

We try to help people see their situation in its proper perspective. We let them know that they are not the first to cope with this problem. Their crisis doesn’t make them bad people and it doesn’t define who they are. If they made mistakes they can also learn from them. In other words, turn a problem into an opportunity. We know this to be true. We’ve seen it happen many times.

Don’t get us wrong. We are Licensed Insolvency Trustees, not social workers or crisis counsellors. We serve a purpose defined and regulated by government and made accountable by law. But, one aspect of the legal process involves insolvency counselling, so we try to make sure that, at the very least, they can use their financial misfortune as a stepping stone to better control their financial future.

We have obligations to every person who walks through our door. Not just to help them find a solution to the problem in front of them, but to come out the other end in the best possible shape. The better they understand their situation with the proper perspective the better chance they have to achieve this goal.

So if you are living with the kind of financial problems we’ve described don’t be afraid to contact us. As we say in our TV ads, a phone call to us can be the most stress-relieving call you ever make.  A debt relief program can put you back on the road to financial security sooner than you think.

5 Signs That You Have Too Much Debt And Need Debt Help

Debt File Turned Into Savings With Debt HelpThere are lots of different tells that you have that let debt levels get out of control and you should consider getting some debt help. Basically, if you are even asking yourself if this is the case, there’s a good chance you are in trouble and need some financial debt counselling.

 

But see if any of these warning signs resonate with you.

1. You have no money in your savings account

Having money in savings is about creating a nest egg for the future and putting aside funds for emergencies. A tapped-out account is a sign that you are living from paycheque to paycheque, with no cushion for life’s inevitable ups and downs.

2. You’re having trouble paying your bills

You are letting your bills accumulate, getting past their due dates. This will affect your credit rating. Paying only the minimum amount on credit card bills carries the balance to the next billing cycle and makes interest accumulate. If you have to pay your bills with loans from family, friends, credit cards, or cash advance outlets, you have too much debt. And eventually people will start saying no.

3. You’ve been told no for new credit

You’ve been playing the juggling game, applying for new credit to help pay for your debts or lifestyle. But you receive a letter of rejection, explaining that you have a poor credit score, too high a balance, too much credit or no credit history. At times it may seem like there is no end to the amount of credit you can get. But eventually the train does come to a screeching halt as creditors realize that you have become a bad risk.

4. You’re way too stressed

You’re losing sleep over your financial situation. Your work performance is suffering, as is your relationship with friends and family. You’re fearful, depressed and perhaps turning to alcohol or drugs for relief. Worrying about debt can take a terrible toll physically and mentally.

5. You don’t know how much you owe

Basically your head is buried in the ground. You don’t look at bills. You spend without checking your bank balances. You use your credit cards without thought. And you don’t know if you owe $1,000 or $10,000. You’re probably waiting for the axe to fall.

As we said, if you’re worried about debt, then debt is probably a problem. Problems also have solutions. Come to Richard Killen & Associates for a free consultation and get some debt help. We will help you to understand what your options are, so you can replace worry with hope, and debt with a clean balance sheet.

Five Reasons People Consider Declaring Bankruptcy

Senior Couple Looking at Bills Considering Declaring BankruptcyWhile many people believe that declaring bankruptcy in Toronto is always a sign of financial mismanagement, this is not always the case. Misfortune and disaster can also lay low someone who had been keeping their head above the financial waters. So here are five common reasons people become insolvent and may need a bankruptcy or a consumer proposal to solve their problem:

 

1. Losing their job

In an “iffy” economy, unexpected job loss is an increasingly common reason for people to get into financial trouble. Along with the serious blow to their self-esteem that accompanies being downsized, they could also be put in a precarious position with a sudden drop in income. If this is compounded by their spouse loses his/her job, or being laid low by illness disaster can really strike. Suddenly they find themselves coping with bills not covered by unemployment benefits or health insurance, and begin the slippery slope of using credit to pay for everything.

2. Separation and Divorce

Not only does marital breakdown come with a high emotional toll, it can hit the pocketbook equally hard. Legal expenses can quickly mount up, especially in a contested divorce. And then living expenses are doubled as each ex-spouse sets up their own household. Everything can quickly get very expensive.

3. When Lighting Strikes

The nature of many disasters is that they come out of the blue. Your car suddenly breaks down and costs thousands to fix up. Your roof gets irreparably damaged and your insurance doesn’t cover it. No matter what the disaster is, it has to be met and savings can dry up almost overnight.

4. Retiring With Debt

In an era where fewer people have adequate pensions, more and more people are retiring with serious debt loads, and reduced income to meet the payments and little prospect of increasing that income. Or, they may go into debt helping out their children or grandchildren who find themselves in financial straits. Stats show that number of seniors filing for bankruptcy is greatly on the rise.

5. Financial Mismanagement

OK, this one has to be said. This may come as a shock, but people are human. With the modern reality of easy access to credit, anything from a shopping spree to a vacation, to a house purchase can be a mistake, although it doesn’t appear to be at the time. So people take the risk and later live to regret it.

Every one of us makes mistakes daily. This does not define us. What we do about them is what defines us.

So misspending can get people into trouble. But this is a human mistake that many of us make. They just need to learn to forgive themselves, take the necessary steps to address the situation, and then get on with their life.

However, the last paragraph is easier said than done for most people. We can help by showing what the options are for dealing with debt crisis.

If you are considering declaring bankruptcy in Toronto call Richard Killen & Associates for a free assessment and a chance for a new start.

Debt Consultant- Canadian Debt Alert!

Hand Drowning in water representing debt.Many more Canadians are tying rocks around their waists and jumping into a sea of debt. If this sounds familiar, it may be time for some financial debt counselling in Toronto.

According to a report recently released by Statistics Canada, Changes in debt and assets of Canadian families, 1999 to 2012,” more than a third, of families had a debt-to-income ratio above 2.0 in 2012. In other words, their level of debt was at least twice that of their annual after-tax income. In 1999, that share was 23%.

Such high levels of debt leave many families at the mercy of shifting economic tides, which may include sudden loss of employment, illness or the skyrocketing cost of borrowing.

According to the Globe and Mail, “The Statscan paper come as Canada’s debt-to-income ratio has risen further, hitting a record 163.3% n the fourth quarter of last year. The central bank has long cited household debt as a key risk to the economy, though it cut interest rates in January to counter another threat: lower oil prices.”

This Statscan paper looks at changes in debt, assets and net worth among Canadian families with debt from 1999 to 2012, using selected family characteristics. It also examines the extent to which two key ratios of indebtedness, the debt-to-income ratio and the debt-to-asset ratio, varied over the period.

Among the paper’s highlights:

  • In 2012, the percentage of Canadian families with debt was 71%, up from 67% in 1999. The median debt held by these families was $60,100, up from $36,700 in 1999 (in 2012 constant dollars).
  • Between 1999 and 2012, median debt and median assets increased for most types of families, but not equally for all categories of families. Median debt, for instance, increased faster among those in the 35-to-44 age group, among couples with children under 18, and among mortgagees.
  • Between 1999 and 2012, the median debt-to-income ratio rose from 0.78 to 1.10, while the median debt-to-asset ratio remained stable, at around 0.25. Families in the 35-to-44 age group witnessed significant increases in both their debt-to-income and debt-to-asset ratios.
  • In 2012, 35% of Canadian families had a debt-to-income ratio above 2.0—meaning that their debt was at least twice the level of their annual after-tax income. This compared with 23% of Canadian families in 1999.
  • In 2012, 14% of families had consumer debt (i.e., debt other than mortgage debt) that was larger than their annual after-tax family income. In comparison, 8% were facing the same situation in 1999.

If you find yourself in a sink-or-swim position with your family debt load, come into Richard Killen & Associates for a free consultation. A debt consultant will outline your options and their consequences, so you can start swimming in the right direction.

Are You in Debt Denial?

Paisley Abbey gargoyle 4Are we just fooling ourselves.? Sure you’re carrying a balance month to month on your credit card, have car payment and a substantial mortgage on your house. But this is normal, right?

No, not necessarily. There’s a good chance you’re fooling yourself. While carrying a balance on your credit card may be par for the course these days, consumer credit rate site RateSupermarket did a poll of 6,000 Canadians and discovered that “27.5% of respondents [were] wrong in how they perceive their debt, with 22% mistakenly believing they owe less than the national average.”

According to RateSupermarket editor Penelope Graham, “Canadians want to believe their credit habits are sustainable and responsible. However, 42% of those who believe their debt is on par with the average are actually carrying more than the norm.”

The flip side of this is that 35.4% of people polled believed they had too much debt when it was actually lower than their peers.

An infographic put together by RateSupermarket points out that the average credit card debt in Canada is $2,627 and that 46% of people who believe they have normal credit card debt have balances exceeding $8,000.

Apparently it’t time for many of us to take a reality check. To overcome debt denial, it’s time to look at your real numbers in black and white. Check your credit card statements, loan papers and bills in arrears and put down on paper how much you owe whom.

You’ll be surprised. Many of us underestimate the size of our debt. Then prioritize your debts by size and urgency and start paying them off.

If you find that the size of your debt has become overwhelming, you may need some sound advice. Come in to a free first meeting at Richard Killen & Associates. We will assess your situation and give you your options.

You’ll know exactly where you stand and what you can do about it. There will be no need to fool yourself.




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    About Richard Killen & Associates


    Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.


    Serving the GTA for 25 years