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: 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: February 13, 2017

In this video, Richard Killen, Licensed Insolvency Trustee in bankruptcy in Toronto talks about buying Christmas gifts on credit cards.

It is important to remember that credit card bills don’t take a Christmas holiday. Christmas brings out the “giving” in us, especially when we have children or grandchildren. There is nothing wrong with giving, but remember, the piper will always have to be paid.

Licensed Insolvency Trustees tend to be very busy in January when the credit card bills come in. Don’t let yourself fall into that trap.

Should you find yourself in debt and your monthly bills exceed your monthly income, maybe it is time to have a conversation with Richard or one of the other trustees in bankruptcy. Call us at (416) 285-9511

Posted On: November 13, 2015

Financial freedom – that’s what everyone aims to attain at some point in life. We all dream of “getting there” financially, to live the rest of our life without financial fear or worry, a life where we don’t merely work to pay the bills and not have enough left over, but actually want our hard work to pay off in the sense that we can meet all our debts, have enough in savings or investments to secure us during our golden years and then still have some more available to spend, to take pleasure in and enjoy life with.

Is financial freedom a reachable dream? It is quite reachable, but it takes some specific goal setting and realistic financial planning.

These key points, adapted from Robert Kiyosaki’s Rich Dad Poor Dad, can help you align your money goals in the direction where you are able to secure your financial future easily.

Budgeting is basic

A budget can provide a solid structure for all of your financial activities. It will help you monitor income and expenses for a specific period, so you can see how much money is coming in, how much is available to use, where you’re overspending and where you can make cutbacks. It gives you a concrete plan to prioritize where your money should go and to live within its limitations.

Manage spending

About one in five Canadians acknowledge that it’s their bad spending habits that have brought about their financial hardships. You can make enough money, even more than enough money, and you can have the most sophisticated budget in the world, but if you don’t break off little every day spending habits that allow money to leak out of your wallet, you’ll never be able to straighten out your financial situation.

If you get in the habit of tracking your expenses and consistently keep to your budget, you will learn to recognize these bad spending patterns. To undo them, start forming new habits that can help you manage your money properly — try looking for ways to increase your income, educate yourself to manage your expenses carefully, start a plan to pay off your debts and learn saving habits.

Learn to save

If spending money is very easy for you to do, then you’ll have to reverse that and make saving money second nature to you instead. Saving habits won’t form overnight, so be patient and stay committed. A good budget will incorporate a savings plan — save for an emergency fund, save for retirement, save for college tuition, etc. One of the best ways to save money is to put it away in a separate account so that, one, it’s out of your reach and you can’t spend it easily, and two, you can see how your money is growing. Once the amount reaches a certain level you’re comfortable with, learn ways to invest it so that it can keep growing.

Get rid of debt

Planning for your financial future includes examining your debt status. If you have a debt problem, bring it under control right away. Ignoring it will only compound the debt – and the stress you’ll be feeling. Don’t hesitate to get financial debt counselling assistance from accredited credit counselors who can work with your creditors and make arrangements to pay smaller monthly payments. You may feel overwhelmed and helpless, but you’ll find that you actually have many options available to help control the bleeding, including filing for a consumer proposal or declaring bankruptcy. Set up a meeting with an accredited trustee to discuss your financial circumstances and find out what debt relief option is the right choice for you.

Debt can deprive you not only of financial security, but of your dreams, hopes and goals in life, so make it a life goal to live debt free.

Gain financial knowledge

As Benjamin Franklin says, “An investment in knowledge pays the best interest.” You don’t necessarily have to be academically educated on finance, just do the necessary research and planning to help you make well-informed money and investment decisions and to keep you up to date on current financial matters.

These five key steps will guide you to set a realistic financial plan that’s devoid of guesswork, misinformation and wishful thinking. Once you have a solid financial plan to measure by you can become singularly focused on how you can make your money work for you so you won’t have the pressures of making a living hanging over your head and you can finally be financially free to do what you really want in life.

Posted On: June 6, 2015

There 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.

Posted On: April 22, 2015

People come up with a lot of reasons to avoid financial debt counselling in Toronto and not to plan for their financial future. They’re too young, too old, too broke and so on. But the truth is, financial planning, and the services of financial planner, can help you make a game plan so you can get where you want to go, whether it’s retirement with an adequate income or making a major purchase, such as a house or a car.

So here are four myths about financial planning debunked

Myth 1. Financial planning is only for the rich

Many people believe that only the affluent need the services of a financial planner. Not so. If your savings are small and you’re not really keeping track of where your money is going, all the more reason to get a plan in place. A financial planner can help you set a budget and let you know what tax breaks you can get through financial products such as RRSPs. And while there are financial planners who specialize in wealthy clients, many others provide reasonably priced services to people of modest means.

Myth 2. A financial planner will only give investment advice

Choosing the right investments is only part of the bigger financial picture. A good planner or adviser will take into account varied aspects that include taxes, insurance, retirement planning, creating a budget, estate planning, liquidity requirements and other life goals.  And if you have conflicting financial goals, they will help you to understand each one’s pros and cons so you can prioritize.

Myth 3: You’re too young to start planning

Yes, you may not have much money, or even a career, at this stage, and feel that financial planning is something you can do down the endless road that stretches out before you. But starting to plan now will allow you to develop good habits that will serve you well as your career takes off. Small investments made now can take advantage of compound interest rates over many years to grow into something substantial.

Myth 4: All financial planners are created equal.

Not true. Some are well qualified and will work in your best interest; others not so much. So get referrals from friends and family who have used the services of a financial planner before. But also check that the planner has good professional qualifications. For example, do they have the Certified Financial Planner (CFP) designation? If you are going to talk to a planner about using their services, the Financial Planning Standards Council (FPSC) suggests you ask these 10 questions.

Posted On: March 6, 2015

Are 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.

Posted On: February 26, 2015

The last people you want to meet when going through a bankruptcy in Ontario is your creditors, right? You know, the people who have been sending you notices, phoning you non-stop, garnisheeing your wages and generally making your life difficult.

What are the chances you will have to get face to face with people who definitely aren’t part of your fan club? The chances are very small. In our experience at Richard Killen & Associates, fewer than one in 100 personal bankruptcies will require such a meeting. The creditors have the option of requesting  a meeting but rarely exercise this right, especially if yours is a “summary administration” (if your assets in a bankruptcy are valued under $15,000).

That said, there are two situations where a trustee must call a meeting of the creditors: If the Office of the Superintendent of Bankruptcy (OSB) tells the trustee to call one, or if creditors who are owed more than 25% of your total debt request one.

The main purpose of the meeting is to give your creditors a chance to learn all the ins and outs of your financial situation, and to give directions to the trustee on the administration of the estate, if they so choose. The creditors can also review the trustee’s preliminary report, review the OSB’s report, examine the proofs of claims of other creditors, vote on resolutions, perhaps appoint inspectors (to provide the trustee with direction and the authority to take certain actions) and so on.

While creditors can ask you questions about your finances, you don’t have to answer any queries that aren’t related to your financial situation past, present or future. You also have the right to bring a lawyer to the meeting, though this rarely done. The chairman (usually the trustee) keeps things on topic.

But, as we pointed out before, creditors aren’t quick to request meetings in consumer bankruptcies. They can usually find out what they need to know faster and easier by calling the trustee directly or sending him/her an email. Creditor meetings occur automatically in commercial bankruptcies, where the financial issues are often more complex and more creditors are involved.

While a meeting with creditors is nothing to look forward to, a meeting with Richard Killen & Associates will help you reduce your stress levels considerably. At your free consultation we will outline all your options, so you can meet your personal situation head on and take the first steps in getting your financial life back under control.