Posted On: November 7, 2017

In this video, Lucy Zilio talks with Richard Killen on Richard Killen & Associated 25th Anniversary.

Richard, a Licensed Insolvency Trustee (LIT) talks about more and more people with debt challenges choose a consumer proposal over bankruptcy in Toronto. Watch the video for more information.

Posted On: October 27, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in Bankruptcy in Toronto talks about, What Happens To My Debts If I Go Bankrupt.

People sometimes ask me what is really happening with regards to my debts if I go bankrupt or if I do a consumer proposal? The first thing that happens with regards to your debt, when a person does a bankruptcy or proposal, the first thing that happens is a Stay Of Proceedings goes into effect. It’s kind of like a wall that goes up and separates them from their debts, from their creditors. This Stay Of Proceedings prevents the creditors from being able to continue to pursue them for the money. So, the first thing that happens is that you get this relief from the creditors who you are delinquent with. But eventually, when you go bankrupt or do a proposal, you are essentially trying to get to debt free land. And, when you get your discharge from the bankruptcy, or when you get the certificate at the end of the proposal, to show that you have paid the proposal in full, essentially you have reached debt-free land. So, what happens at the end is, basically, you are no longer responsible for all the debts you had on the date you went bankrupt. Now there is an exception to that, that exception, of course, is a secured creditor. A secured creditor, if you own a home or a car, and you want to keep the car, then you are going to have to keep paying that creditor throughout the bankruptcy or proposal in order to retain the asset.

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

Posted On: July 29, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto talks about, How long a Bankruptcy lasts.

There tends to be some general misunderstanding about how long a bankruptcy lasts. People hear things about this 7 years business, not being able to obtain credit, and things like that. But, essentially a bankruptcy is a legal process, it has a beginning and it has an end. It begins when you file for bankruptcy. It ends when you are discharged from the bankruptcy and therefore from your debts. So, how long will it last? Well, for the majority of people who have gone bankrupt, it’s their first and hopefully only bankruptcy, they are eligible for the discharge to take place in nine months. If they earn above a certain pre-set amount, an amount the Government sets for your monthly income, then if you earn more than that, bankruptcy might be extended by 12 months, from 9 to 21 months. If you have been bankrupt once before, you are going to be eligible to be discharged automatically in 24 months, not nine. And if you earn again, above that amount, then you will get the 12 months tacked onto that too, so you will end up being bankrupt for 36 months. So, generally speaking, a person goes bankrupt, they are bankrupt either 9 or 24, or 21 or 36 depending on the circumstances. Now, there are other factors that come into play, that could extend the bankruptcy, it would result in a person having to go to court to get their discharge and all that. Now, those are the kinds of things a Trustee needs to explain to you. And there are so many different variables.

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

Posted On: June 26, 2017

In this video, Richard Killen, a Licensed Insolvency Trustee in Bankruptcy Scarborough talks about whether a Payday loan is worth considering.

I guess one can say that going into debt, any kind of debt, is hardly ever a good idea. Usually, the cost of the debt outweighs whatever benefits you may get from borrowing the money. However, sometimes debts make a good case for making some worthwhile. For instance, is a mortgage worthwhile? Because you borrow a large amount of money for buying a house, you are going to pay back that money with interest but the house will appreciate in value. And over time that appreciation more than outweighs the cost of the debt. Maybe that kind of debt is a good idea.

Ultimately, it always boils down to whether the cost too much and how much is the cost? Now there is going to be interest on any loan and that is what you must consider. Now, unfortunately, Payday loans are on the high end of all interest calculations so one can say that it is tough to say if a Payday loan is worth it.

If a Payday loan is a part of your coping with bills, you should consider having a consultation with one of our trustees. It may be the most stress relieving call you make this year.

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 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

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 12, 2017

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.

Posted On: October 21, 2016

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.

Posted On: February 3, 2016

The 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!