Posted On: July 21, 2017

People often wonder about their chances of getting a mortgage after a consumer proposal in Ontario. In the video above, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about “Would Services of a Trustee Prevent Me From Getting a Mortgage after a consumer proposal”.

One of the big ambitions of most people, especially for the family is to ultimately buy a house. People who have debt problems come to see a Trustee and end up do a bankruptcy or perhaps a consumer proposal, are going to be concerned whether this bankruptcy or consumer proposal is going to somehow prevent them from being able to obtain a mortgage at a later date.

The only way that we can really answer this is, nobody can really predict the future, there is a lot of factors that go into why a person can get a mortgage, and why they cannot. Bankruptcy and proposals on your record are just one factor, and also time. The bottom line is, it is impossible to really predict it, but generally speaking, after you have done a bankruptcy or proposal, and have solved all your credit problems, and some time has gone on, most people can and have the other ingredients properly arranged, they can get the mortgage.

An interesting aspect of it though is the mortgage renewal, people are highly concerned that they may lose their house when the renewal time comes. And what we found, I’m not an expert on this practice, but what we found is that renewals, I guess they are automatic, generally they are almost computer generated, and so very few people have this kind of problem renewing their mortgage.

What is a consumer proposal?

It is an option for debt relief which enables you to pay a portion of your debt by developing a “proposal”. You can also extend your payment term for up to five years or less. Once the creditors agree to the settlement, you can make your payments through your Licensed Insolvency Trustee. How will you know that this is the right solution to get out of your debt problem? You can have a thorough discussion with your trustee about your financial situation. Moreover, before making a decision, each of the options and alternatives will be explained to you. Upon making the decision, your licensed insolvency trustee will administer the proposal.

Consumer Proposal Mortgage Vs Bankruptcy

As opposed to bankruptcy, consumer proposals enable debtors to keep their assets such as a home. As long as you are keeping up with the payment and you are showing that you have become financially responsible, you can continue or renew your mortgage, even though a proposal will affect your credit score. In most instances, you can continue your mortgage with your current lender or bank. However, this might not be the case if you choose to switch lenders because your credit score will be taken into consideration.

Getting A Mortgage after Consumer Proposal In Ontario

Getting a mortgage after a consumer proposal is also possible if you have a stable income and you can provide a certain percentage of down payments.

This particular debt relief option enables you to save up because of the lowered monthly payment terms. Moreover, you will be advised by your Licensed Insolvency Trustee on how to manage your finances better and guide you on how to develop an effective budget plan. Always remember to fulfill your end of the proposal by avoiding late payments and paying the required amount every month as this will reflect on your credit record. In this case, your credit score will improve over time after filing the consumer proposal. Going through this will be difficult and needs an extra amount of time and effort but it will all be worth it in the end. After the consumer proposal, you will become eligible for a new mortgage or to purchase the home that you and your family have always been dreaming about.

The process will become easier and less stressful if you seek the services of a well-experienced Licensed Insolvency Trustee. By scheduling a free consultation, you will have a better understanding of getting a mortgage after a consumer proposal in Ontario.

Posted On: July 14, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Ontario talks about if the boss can find out about the bankruptcy.

The only time that a person’s employer is officially told, that they have gone bankrupt or that they have done a consumer proposal, if they have been sued and garnished by somebody, and your employer is having to deduct money from your pay to send to the court because of the garnishee. The person going bankrupt is basically going bankrupt or doing a consumer proposal, that’s one of the big thing that they are trying to stop that garnishee. A bankruptcy and consumer proposal will do that but isn’t going to stop if we don’t tell the employer to stop it. Yes, the employer would get notified in that case. The other thing I can think of is offhand, and where we would have this kind of contact with an employer, is if we had to contact an employer to find out some information that is of important to the creditors. Like for instance, say you have a profit sharing plan at work, and your employer is the only one who has the details of it, the profit sharing might be money that belongs to the creditors in a bankruptcy, you see the trustee has to verify this information. Now, there are different ways of verifying it, we might be able to verify it by having you get the information and providing it to us so there is no direct contact with your employer. We prefer to do it that way as long as we can get the facts. Generally speaking, an employer is not, I can’t even remember the last time that we contacted an employer when there was no garnishee involved.

If you are uneasy about your bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about consumer proposal and debt problems.

Posted On: July 7, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Ontario talks about if your job is affected by a bankruptcy.

Generally speaking, a person’s employment is not affected by a bankruptcy and not affected negatively by a bankruptcy. In fact, in may be affected positively by a bankruptcy. This is because you might be able to focus a lot more on your job if you don’t have to worry about your debts. However, in terms of any legal effects of a bankruptcy or proposal, there are some professions where it is effected, chartered accountants, for instance, lawyers, people who operate trust accounts like real estate brokers, things like that. There would be some negative affect of going bankrupt for people in those positions. But, for the vast majority of us, nope, the main effect is often positive. So, to answer the question, don’t be afraid of your job being affected negatively by either a bankruptcy or consumer proposal.

If you have debt problems and are concerned about how it may affect your job, I encourage you to call our office and talk to a trustee.

Posted On: June 1, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto answers the question most homeowners ask, which is “Will I lose my home if I go bankrupt or do a consumer proposal?”

Because you may have debt problems, you may be concerned with losing your home and most people figure that “if they go bankrupt they are never going to keep their house.”  And for most people, that is a very traumatic thought, however, it can be avoided.

I found that over the last 10 years, very few people who own a home with equity have to lose the home if they don’t want to. They can find a way to keep it. The only way to keep it is to deal with the matter of equity. The trustee is responsible for obtaining the equity from the property in order to pass the money along to the unsecured creditors. They have the right to their money.

Therefore, if a person or family wants to keep their home, they’re going to need to arrange for financing or to pay the creditors. Of course, it depends on how much equity there is in the home. If you really want to keep your home, generally you can. You can keep it whether it’s a bankruptcy or proposal. In fact, if it’s a consumer proposal your home equity is not up for grabs. This really only applies to a homeowner declaring personal bankruptcy.

If you are a homeowner and considering a debt solution, I encourage you to call our office. Why lose sleep wondering what will happen. Your initial meeting is free, and in that meeting, we will explain all of your options so you may make an educated decision on the best option to obtain debt relief.

Posted On: April 28, 2017

In this video, Licensed Insolvency Trustee in the GTA area, Richard Killen, talks about the facts and misconceptions when it comes to losing assets in a bankruptcy procedure. Typically, people are scared to lose their important belongings should they undergo bankruptcy in Toronto. In this video, Richard goes on to clarify that in the most common cases, this is simply not the case.

Here are a few key takeaways from Richard’s informative clip:

1. There is a great urban myth about losing assets when you go bankrupt.
2. Most people can keep whatever they want to keep as long as the creditor’s rights are respected, so you may have to pay to keep it.
3. Basics such as furniture, personal effect, tools of your trade and one vehicle (as long as it isn’t worth too much) are generally never lost.

Should you still feel uneasy about your debt and losing your assets, it’s definitely worth it to give a Licensed Insolvency Trustee a call or a visit so that they can give you all the information you will need to make this important decision and also to alleviate any worry and stress you may have.

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 bankruptcy Scarborough and have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511

Posted On: April 21, 2017

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

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In this video, Licensed Insolvency Trustee in bankruptcy in Toronto, Richard Killen, talks about what you can and should do when you receive a letter from creditors after bankruptcy.

Here’s a few things to keep in mind should this happen to you:

1.  It sometimes happens that after a bankruptcy is finished and you have been discharged you receive a collection letter from one of the creditors. It usually means their computer hasn’t been re-programmed.
2. However, there are a few creditors who might not be completely expunged by your discharge, so such letters should not be ignored.
3. If you had such a creditor the trustee would most likely have explained all this to you at the beginning. The most common one is student loan.
4. The smart thing is to call your trustee and ask.

If  you are uncertain or starting to worry that you still have existing debt, the best course of action to take is to call your trustee. If you get a letter from a creditor, even if you’ve been discharged, it doesn’t matter, just remember to call a trustee. You will be glad you made the call.

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

Posted On: April 7, 2017

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.

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.

Posted On: March 13, 2017

In this video, Richard Killen, Licensed Insolvency Trustee based in Toronto, Scarborough, and 8 other debt relief locations in Ontario talks about what happens if your employer declares bankruptcy.

If you find yourself out of work because your employer has gone bankrupt the first thing you need to do is contact the Licensed Insolvency Trustee handling the bankruptcy. Among other things you can file a claim with the trustee to ensure that you obtain your proper documentation and if he/she has the funds, you can receive your share.

The trustee can also direct you to the appropriate government agencies set up to handle funds set aside to help people in such situations. However, you must register with them.

Should you find yourself in financial difficulties due to your job loss and you are drowning in debt, consider having a conversation with Richard or one of the other Licenced Insolvency Trustees. You will be glad you made the call.

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

Posted On: October 10, 2016

It almost sounds funny, doesn’t it? Bankruptcy Counselors Toronto – somebody who counsels people, presumably in Toronto, on how to go bankrupt? Perhaps the term is misleading? I think so. Real Bankruptcy Counselors, in Toronto or elsewhere, don’t counsel people to go bankrupt. In fact a Bankruptcy Counselor would probably spend more time trying to figure out how the person seeking advice could stay out of bankruptcy rather than go in it.

The term Bankruptcy Counselor itself is probably incorrect, at least in terms of the title itself. There are no Bankruptcy Counselors in that sense. What we do have are Licensed Insolvency Trustees in bankruptcy, such as Richard Killen & Associates Ltd., who are Federally licensed to administer the legal process called bankruptcy, along with other processes under the Bankruptcy and Insolvency Act called proposals and Consumer Proposals.

But a Trustee (it’s quite a mouthful to keep saying Licensed Insolvency Trustee when you are writing an article) is uniquely placed to talk to a person in debt trouble about bankruptcy, or a consumer proposal, as an option to deal with their debt problems. The Trustee can explain in detail how they work, how they might apply to that person’s situation, what the short term, medium term and long term practical advantages and disadvantages are. What effect they may have on all kinds of practical situations such as employment, bonding, mortgage renewals, and so forth. There are so many questions and so many areas of concern that people have when they are trying to solve their debt problems.

Let’s face it. Nobody actually wants to go bankrupt and making a consumer proposal is not much higher on a person’s to do list, is it? And let’s face something else. Though nobody wants debt trouble, it does happen. In today’s world of relatively easy access to consumer credit such as credit cards and lines of credit, not to mention mortgages and car loans, is it any wonder people get into debt trouble. This is not to say that we are not responsible for our actions, but not everyone can live every moment of their life within the proper bounds of prudence and coldly logical decision-making. Being human emotions come into play and do make some financial decisions without properly thinking it through. Later if something bad happens, like losing a job or coming down with an injury or an illness, what is a person supposed to do?

The answer, of course, is to do the best they can. That’s what most people do.- the best they can. But, if things go from bad to worse, there will come a time when the best they can is no longer good enough for their creditors, who simply want to get paid. When it gets to that point, there are not that many options available. In fact, depending on the severity of the trouble (How far behind you are with your payments? Are creditors threatening legal action?) there may only be one way that the person can maintain some control over his or her situation: use the Bankruptcy and Insolvency Act.

But using the solutions provided by a federal law is not something you should go into on a wing and a prayer. A little information might be in order and this information will have to come from someone who knows all sides of it. That is what the Licensed Insolvency Trustee (I used the whole title here so I could explain it) is supposed to be – the go to guy. Let’s look at what the title means and how it might relate to the term Bankruptcy Counselors Toronto.

“Licensed” simply refers to the fact that the Federal government, through the agency of the Office of the Superintendent of Bankruptcy, is mandated by law to oversee the administration of each and every bankruptcy and proposal filed in Canada. The law though says that a Trustee must be appointed to actually do the administration of each bankruptcy or proposal. So, the OSB determines who is qualified to be a Trustee through a series of investigation and heavy-duty testing and then licences those people it deems qualified to handle the job. That’s when they issue a licence.

“Insolvency” refers to the fact that this Trustee’s licence is specifically intended to relate to matters covered by the Bankruptcy and Insolvency Act. Let’s face it, the term trustee is used far and wide. For instance there are school trustees, who I am sure would not want to be confused with Insolvency Trustees. So the word Insolvency is stuck right in the middle to make it clear that these individuals are qualified specifically in that area and that they have been tested as to their ability to provide that service.

“Trustee” has a very broad meaning. The dictionary says a Trustee is a person given powers of administration over property and is legally bound to administer it solely for the purposes specified, in this case by the Bankruptcy and Insolvency Act. So in English that would appear to mean that a Trustee is responsible to administer the bankruptcy (and proposal) process for the purposes intended. Though that might cover a lot of ground, advising people about Bankruptcy or Proposals would certainly fall within that sphere.

All of which brings us back to the term Bankruptcy Counselor Toronto. If you are in debt trouble, facing a financial crisis, and you realize the fact, what can you do about it?

The first thing I think any rational person would do is get information, maybe advice. You can ask relatives and friends, but other than getting a little moral support, that may not prove too helpful. You can always consult a professional person such as a lawyer or an accountant. Either of these can be a good move, but may not be enough. An accountant generally deals in financial situations that have not yet gone off the rails, so to speak. He can recognize the negative reality of your situation, but may not know enough of the details of the options available to design a specific plan to get you out of trouble. Of course that depends on how bad the situation has become.

A lawyer is usually there to give a different kind of advice. In fact, unless you consult a lawyer specializing in insolvency matters there will likely be a practical limit to what a solicitor can do to help, again depending on how far things have deteriorated.

A financial consultant is likely to be a bit like an accountant in that he’s used to dealing with solvent situations and will not have a fluency with the practical and administrative details of the options available to you if your situation has become insolvent.

So we come back to the Licensed Insolvency Trustee as the only truly qualified Bankruptcy Counselor Toronto, or any other place.

If you need advice about what to do now that you have, or are about to fall behind with your credit card and other debt payments and want to retain some kind of control over your situation, the Licensed Insolvency Trustee is the go to guy. As a Bankruptcy Counselor Toronto, or elsewhere, the Trustee will not be your advocate like a lawyer would, but at Richard Killen & associates Ltd. we provide financial debt counselling services where in we will analyze your situation and explain it to you in understandable terms so that you can know what will be the best option for you to take to resolve the problem in a dignified and responsible manner. Is there a better way to take care of a problem?