|
|
|
|
Insolvency Update: February 2018
|
|
Take Control of Your Debt
Christmas is over, you’re back to work and the bills start coming in. You realize that you overspent during the holiday season and now the debt is overwhelming. Minimum payments will keep the calls from coming but, you realize that you’re treading water.
Debt stress can lead to other issues relating to health, relationship and employment to say the least. But when you have reached the point where you can no longer pay your bills, it is overwhelming. Is it time to panic or deal with your debt head on?
The Bank of Canada has repeatedly stated that one of its top concerns is the high level of Canadian household debt. Notwithstanding those concerns, the level of household debt continues to rise, hitting 171.1 per cent of disposable income in the third quarter of 2017. This means that the average household owes $171 for every $100 of income.
You need a solution to deal with all of your creditors to become debt free and make a fresh start.
We've got some tips that can help you take control of your debt and build towards a sound financial future to avoid having your debts get out of control.
|
|
|
Our Surrey Office Has Moved
Effective February 1, 2018, the Surrey office of Boale, Wood and Company Ltd has moved to: 250 – 15117 101 Avenue, Surrey, BC. V3R 8P7.
Our phone and fax numbers will remain the same.
Our Surrey office is open from 8:30 to 5:00 pm, Monday through Friday. Free parking is available. Please use Reserved stall #6 or any of the visitor parking spots.
Boale, Wood & Company Ltd. service offerings include acting as Judicial Trustee or Administrator of estates of deceased individuals. Usually these appointments arise where there is no Last Will and Testament or where there are disputes among the beneficiaries.
As Licensed Insolvency Trustees, we have the expertise to deal with assets, claims and other issues that arise in estates of this nature.
Our estate services include:
- The realization of estate assets;
- Honouring the requirement for any legacy payments described in the will;
- Identifying items/assets that have been willed to specific individuals and distributing them to the named beneficiaries;
- Evaluating and paying proven debts of the estate;
- Filing income tax returns relating to the estate, paying tax liabilities, if any, and applying for income tax clearance certificates;
- Making interim distributions, where appropriate, to beneficiaries;
- Reporting to the beneficiaries on the administration of the estate;
- Dealing with legal claims against the estate including claims under the Wills Variation provisions under the Wills, Estates & Succession Act; and
- Making a final distribution of the funds in the estate to the beneficiaries; and
- Passing accounts of the trust as may be required by the Court.
For additional information please contact:
John McEown: jmceown@boalewood.ca
David Wood: dwood@boalewood.ca
Boale, Wood & Company Ltd.
(604) 605-3335
|
|
Do I Need a Lawyer if I am in debt?
Debt is stressful. If you are stressed because of your debt, and your income doesn’t meet living expenses and the required minimum payments, you need a plan to get your finances in order.
You may receive harassing phone calls and letters from collection agencies. You may start receiving collection/demand letters from lawyers threatening or even initiating court action which can lead to wage garnishments, seizure of assets or liens against your property. Your first instinct is to call a lawyer. However, is this the right call?
If your goal is to achieve relief from debt stress, prevent further collections actions against you and make a fresh start, a lawyer will likely not be necessary in most cases. You need to contact a Licensed Insolvency Trustee (“LIT”).
|
|
Insolvency and Taxes, the Real Facts
A common misconception – Income taxes are not included in a proposal or a bankruptcy. False! Income taxes and almost all other debts are included in a bankruptcy or a proposal, including any debt one might owe to the tax department as a result of being a director of a corporation.
Sometimes, despite their best efforts at financial management, Canadians get to a point where they simply can’t pay their debts as they become due. Whether due to inability to pay taxes, problems with a business, loss of employment, unexpected financial obligations or other unplanned factors, they become insolvent.
They need to seek the advice of a Licensed Insolvency Trustee, who can inform them about their options.
|
|
|
Latest Insolvency Stats for BC and Canada
Consumer insolvencies in BC increased in November 2017 by 14.7 percent from October 2017. Consumer proposals increased 11.7 percent while bankruptcies decreased 19.7 percent.
The proportion of proposals in consumer insolvencies in BC accounted for 60.32 percent during November 2017 while they accounted for 55.22 percent for all insolvencies across Canada for the same period.
Consumer insolvencies in BC for the 12-month period ending November, 2017, decreased by 0.9 percent compared with the 12-month period ending November, 2016. Consumer bankruptcies decreased by 1.7 percent, while consumer proposals decreased by 0.4 percent. Consumer insolvencies in all of Canada are down by 1.3 percent over the same period last year. BC accounted for 8.24 percent of all insolvencies in Canada in November 2017.
The proportion of proposals in consumer insolvencies in BC was 60.32 percent during the 12-month period ending November, 2017, slightly up from 60.0 percent during the 12-month period ending November 2016. It indicates the popularity of consumer proposals as a way for consumers to deal with their debt and with dealing with a Licensed Insolvency Trustee over other unregulated service providers.
While insolvencies across Canada are down overall by 1.7 percent, bankruptcies are down 11.8 percent but proposals are up by 9.2 percent.
The insolvency statistics indicate the increasing benefits of the protections provided to consumers under the Bankruptcy and Insolvency Act over other non-legislated options, whether that is a consumer proposal or a bankruptcy. It also indicates that consumers are seeing the benefits of seeking the professional advice of a Licensed Insolvency Trustee rather than those of other non regulated service providers.
If you would like to know exact details of how a consumer proposal or a bankruptcy would benefit you in dealing with debt, call us at (604) 605-3335 to schedule a free consultation.
Call us. It’s not too late.
For a closer look at our graphs, and the all-Canada stats, see this page on our website.
|
|
Survey: Half of Workers say Financial Stress Impacts Work Performance.
Canadian Big Banks Move to Match Rate Hike
BC consumers fearful of ability to pay bills if interest rates rise.
|
|
About Our Newsletter
Our newsletter is aimed to inform the reader on various matters. If you find an article that you would like to share with someone you know, please feel free to share our newsletter with anyone you want. If they wish to sign up for our newsletter, its easy. Just visit our website on the newsletter page at http://www.boalewood.ca/resources/newsletter/
This newsletter is designed to inform readers of various matters relating to insolvency. The comments provided are, of necessity, brief and should not be relied upon as legal advice. We encourage you to contact us for advice in the context of a particular situation.
Should you have any questions relating to this topic or any other insolvency matter that you may have, please contact David Wood, Lisa Breault, Stephen Boale or John McEown at:
Telephone: (604) 605-3335
Fax: (604) 605-3359
Email:
David Wood: dwood@boalewood.ca
Lisa Breault: lbreault@boalewood.ca
Stephen Boale: sboale@boalewood.ca
John McEown: jmceown@boalewood.ca
|
|
|
|
|
We realize that you’re looking for people you can trust to be discreet, professional, and give you the right advice.
We provide creative and practical insolvency advice to both individuals and companies facing financial difficulty.
We offer a full range of insolvency services to individuals such as consumer proposals to your creditors, financial counseling and bankruptcies.
We also offer a complete range of business services including formal restructurings, informal workouts, proposals to creditors, receiverships and bankruptcies.
Contact us for a free initial consultation.
|
|
|
|
|
|
|
|
|
|
|
