Check out our New Office in Waterdown, Ontario for Debt Help in the Hamilton, Ontario Area

Waterdown Staff - Sonya StrandGOT DEBT?
Do you have personal tax debt?
You may be able to settle your debt by filing a proposal with a licensed trustee. The advantages of filing a proposal under The Bankruptcy and Insolvency Act are:

• All interest and penalties stop once the proposal is filed.
• Garnishments and other actions by CRA will also stop once the proposal is filed.
• CRA will often accept less than the total amount due.

Call Sonya Strand for a free consultation today!

905.690.9999 • 50 Dundas Street East, Unit 102,Waterdown, ON
www.paddonyorke.com • sstrand@paddonyorke.com

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New Office Open in Waterdown, Ontario for Bankruptcy and Consumer Proposals

John Delo - Trustee and Sonya Strand - BA, CIRP

Paddon + Yorke Inc. is committed to providing residents with solutions to their financial problems by delivering quality service and professional and practical advice, doing so with your best interests in mind.  That’s because care and compassion are the building blocks of the business, which now boasts an office in Waterdown.  

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Bankruptcy in Ontario: It’s More than Just about Money, It’s about Honesty Too

The foundation and anchor of your Ontario bankruptcy case is primarily built on your honesty. At nearly every step of the proceedings, you’ll be required to sign certain statements or documents under oath. You’ll even need to sign your bankruptcy statement of affairs saying that the information it contains is true and accurate. As you fill out and affix your signature on legal forms, as well as answer the questions of bankruptcy estate administrators, you should keep in mind that being truthful means less trouble.

Honesty in dealing with your State of Affairs.

If you intentionally provide your Trustee with false information, it would make the entire bankruptcy process dishonest, and could potentially lead to the refusal of the Court to issue a discharge from your debts; or worse, you may be charged with committing a bankruptcy offence.

One example of dishonesty with a Trustee is not being forthright about certain assets to keep the Trustee from taking action against them. Your Trustee can only fill out the bankruptcy statements of disclosure with the information you provide, so avoid concealing assets at all costs.

Honesty in dealing with your Trustee.

Discussing your debt honestly with a Trustee can be really helpful and therapeutic. It’ll help shed your anxiety and worries to some extent. Also, being honest is the only way a Trustee can create realistic options for you to deal with your debt. With the guidance of a Trustee, you may even learn that filing or declaring bankruptcy in Ontario isn’t your best option as there are other alternatives, such as debt consolidation and the filing of a consumer proposal.

Of course, when restructuring your debt with the help of a Trustee, see to it that you give all the documents and information that are asked for. Withholding relevant facts and making false entries in your statement of affairs will only hurt your situation in the long run.

If you lie to your Trustee once and it gets you in hot water, you can be sure that you’ll eventually have a hard time finding a financial or legal expert who would be willing to work with you after that. When you consult with a bankruptcy Trustee like the ones from Paddon + Yorke Inc., you’ll realize that they only have your best interests at heart. Repay their dedication and spare yourself from further trouble by being completely honest and trustworthy.

No Denial of Services Even When Filing Bankruptcy in Ontario

Can government deny services to an indebted person after his proper filing for bankruptcy in Ontario? An Ontario judge says “no.”

This was the focus of an Ontario Superior Court hearing in April between the Ministry of Finance and the Superintendent of Insurance for Ontario with defendant Sandra Clarke. While the Ontario government has the right to impose payment of debts, Justice Robert Goldstein rules the Ministry’s act of refusal as a violation of the fresh-start principle upheld by the Bankruptcy and Insolvency Act (BIA).

Payment Advances

Clarke was sued for a Toronto car accident in 1989 that left her passenger injured. The Motor Vehicle Accident Claims Fund sought to collect $55,000 in damages since Clarke couldn’t pay the plaintiff at the time. While paying the Fund the agreed upon sum of $50 a month, she made a consumer proposal in 2009 that regulates debts under $250,000 for a monthly payment amount of, in Clarke’s case, $400.

However, Clarke was an uninsured motorist. Under Section 10 of the Motor Vehicle Accident Claims Act, uninsured motorists whose obligations were paid from the Fund would have their licenses suspended until these arrears are met. This is where the issue boils down.

Court Decision

Despite the Ministry’s arguments, Goldstein made it clear that the provincial government has no right to suspend a person’s privileges due to unpaid debts. The suspension action considered by the Ministry violates federal bankruptcy laws, which are designed to help bankrupt people start over.

Goldstein’s decision, Yamri Tadesse of the Law Times reported, was contrary to a relatively similar case in 2011 between Matthew Moore and the 407 ETR. Having accrued $35,000 in unpaid toll debts, Moore filed and received an absolute discharge. However, the ETR stood by the argument that debts must be paid in full before plate renewal. The court favored the ETR. The difference, Goldstein argued, is that Clarke was paying something to the Fund, whereas Moore had not paid anything to the ETR. In this case, Clarke’s $50 monthly payment prior to bankruptcy helped.

Law experts believe Clarke’s case has sent shudders down the spine of the licensing scheme that has been in effect for more than 70 years. If you can approve a monthly payment schedule for your debts, the government may be less likely to deny you of services and privileges. Ontario debt settlement from Paddon + Yorke, licensed bankruptcy trustees and consumer proposal administrators, will also be of great help.

Defensive Bankruptcy in Ontario: On Easing Debt

According to the Office of the Superintendent of Bankruptcy in Canada, a total of 23,236 consumers in Ontario filed for bankruptcy in 2012. To put things in perspective, this means that almost a third of the nation’s 71,495 bankruptcy cases filed by consumers last year were from Canada’s most populous province.

Unresolved debt problems can make it hard to make ends meet and keep up with one’s monthly payment obligations. Such a situation likely won’t sit well with creditors. As such, a lot of folks opt to file for bankruptcy in Ontario with guidance from trustees like Paddon + Yorke Inc. to move forward.

Filing for bankruptcy begins with seeking a trustee licensed by the federal government. Some trustees will offer free consultations to assess whether or not bankruptcy is the right solution for specific clients. Once the trustees have confirmed the client’s eligibility to declare bankruptcy, they will ask the debtor to sign legal documents which voluntarily assigns them into bankruptcy.

During this time, the debtor will have to turn his remaining assets over to the trustees, who will then decide how the collected assets are to be realized and distributed among each of the creditors. This doesn’t mean that debtors will be left with completely nothing; as the law provides for these debtors to keep possessions that don’t exceed a particular value through provincial exemptions. Things like household furniture, clothes, and even modestly-priced cars are thus exempted.

Contrary to popular belief, personal bankruptcy in Ontario will not completely erase one’s debt woes. Certain secured debts, like mortgages, alimony, car loans, and even student loan debts will not be cleared even after successfully filing for bankruptcy. As an alternative, those who wish to avoid the bankruptcy route may want to try other options such as filing a consumer proposal that lets the debtor work out more affordable payment terms through a settlement, subject to approval by creditors.

Ontario’s high number of bankruptcies should serve as a fair warning that heavy indebtedness can afflict anyone. While there should be no shame in filing for bankruptcy, every consumer must nevertheless learn how to handle their finances responsibly. Those who find themselves in a tight financial corner may want to seek the advice of reputable trustees like Paddon + Yorke Inc. before forging ahead with any debt solution.

Weighing Your Options: Ontario Debt Consolidation vs. Debt Settlement

Debt is a huge problem for a number of Canadians. Equally damaging is choosing the wrong method to manage debt you can’t pay on your own. While both debt consolidation and debt settlement offer a way to reduce or settle these obligations, each option may affect your credit score and future financial opportunities.

Debt consolidation

When you enter an Ontario debt consolidation program with a bank or financial institution, they will loan you the money to pay off all of your debts and then you would pay off the new loan over time, often at a negotiated lower interest rate. However, the bank usually secures this new loan against your assets such as your home or car. When the consolidation loan is finalized, you make a single lower monthly payment to the consolidation company to pay off the new loan.

The main advantage of debt consolidation is that you may be able to eliminate your debt within five years or even less without suffering too much deprivation. Your bank or financial institution will also manage any paperwork, closing of accounts, and handling fees, relieving you of the inconvenience. Keep in mind though, that because your consolidation loan is secured against your assets, you could lose these assets by defaulting on your payments. In the meantime, it’s best to avoid making any new loans that can start the whole debt cycle again.

Debt settlement

When you enter into a debt settlement program such as a consumer proposal with a licensed administrator, a portion of your debt is relieved by your creditors. This type of debt solution may give you immediate comfort from your financial woes and make your monthly payments easier to manage. It can also enable you to start improving your credit score after you have successfully completed the program.

One thing you have to keep in mind when you go into debt settlement: your credit score may be negatively affected while you’re in the program. Of course, you can still improve your credit rating, but it may take a few years. Typically the fact of the settlement through a consumer proposal stays on your credit report with the credit reporting agencies for a period of three years from the date you finish the settlement plan, which could last up to five years. The good thing is, once your debts are settled, you can start rebuilding your credit immediately.

The fact is, none of the available debt solutions are completely free of any disadvantages. Talk to Ontario bankruptcy trustees and consumer proposal administrators like Paddon + Yorke Inc. to help you choose the best solution for your situation, and start solving your debt problem.

Why a Consumer Proposal in Ontario is a Better Bet vs. Bankruptcy

In Ontario, Canada, declaring bankruptcy is only encouraged until all settlement solutions have been exhausted. A consumer proposal in Ontario is shaping up to be one of the wiser pre-bankruptcy alternatives, primarily because of the following reasons.

Debtors can negotiate

Under Canada’s Bankruptcy and Insolvency Act, people who owe a substantial amount of money can sit down with creditors and arrange for a modified payment scheme. Such opportunity gives debtors the chance to strike an agreement beneficial to them. For example, they can negotiate for an extended debt settlement period or offer to pay the debt balance at a discount.
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Debt Consolidation in Ontario: Paying Off Debts under One Account and Alternatives

It’s difficult to find a person who can say that he or she has never accrued any form of debt in their life. Debts can be accumulated in many ways – swiping a credit card, taking out a mortgage, or even financing the payments on a new car are just a few of the prominent examples. Naturally, debtors have an obligation to pay back everything.

Sadly, it’s rather common that those who have accumulated a large amount of debt don’t have enough money to repay everything when the time comes. In extreme cases, debtors may try to go on the run to avoid any creditors. This can lead to a slew of even worse problems, which is why the best (and often the hardest) solution is to pay up. It may be time to seek help from an Ontario debt consolidation service such as Paddon + Yorke Inc. if you find yourself buried under a mountain of debt.

Paddon + Yorke Inc. offers a service in line with debt consolidation but without the need to borrow funds to pay off all of your combined debt. The option, which is an alternative to declaring bankruptcy, is actually called a consumer proposal. It simply is a contract to settle 100% of your debt by paying all or a partial amount of the total amount owed over a period of not more than five years. An administrator from Paddon + Yorke will prepare a proposal to your creditors which provides a number of benefits including stopping the interest at the date of filing the proposal and stopping any further collection proceedings such as wage garnishments or asset seizures. If you have some extra income available then you can use these funds to make a monthly payment to Paddon + Yorke to potentially only pay back 20 to 40 per cent of your overall debt.

Traditional debt consolidation is simply the process of taking out a new loan with a bank or lending instituation to combine all debts into one account where the payments will be made. Debtors often prefer this option because of the convenience factor. However, since paying off debts is a massive undertaking in itself, you can consult a debt consolidation expert to provide you with advice on the most workable payment solutions.

When you are ready to undergo debt consolidation, look for a lender that can offer a special loan at a lower interest rate. The debt consolidation specialist can do a thorough evaluation of your situation and determine whether the debts with varying interest rates could be combined into a single debt with a lower interest rate. Usually, the banks require security in order for consolidation loans to be approved.

Alternatively, companies such as Paddon + Yorke Inc. can help you draft a workable Ontario consumer proposal, which is an alternative to traditional debt consolidation and bankruptcy, if your combined debts do not amount to more than $250,000 and you’d rather not file for bankruptcy. As described earlier, consumer proposals are special payment strategies that allow a debtor to pay off his or her arrears in a lump sum or in a series of payments over a maximum period of five years. During this period, the creditors will be ordered to keep their distance from the debtor as the latter settles accounts.

It is never too late to settle debts, even when the situation seems hopeless. Doing so with the assistance of debt settlement experts will help prevent the problem from escalating to an even more serious predicament.

Filing for Bankruptcy in Ontario: Discharging Student Loan Debts

Ontario is home to a number of institutions of higher learning, like the University of Toronto. While knowledge is power, and studying in a university is one way of acquiring it, not everyone has the resources to pay the necessary tuition fees. Education may be a right, but with the rising cost of tuition fees, it has also become a privilege.

Fortunately, there are various local and national student loan programs that enable qualified students to enroll. However, any loan must eventually be paid—and that can sometimes become a burden. In such instances, properly filing for bankruptcy in Ontario may be the only way to discharge student loan debts, and companies like Paddon + Yorke Inc. can provide help.

A student’s life is not always a bed of roses, especially if one has to work to support one’s education. Although an approved student loan can seem like manna from heaven, circumstances arise that can affect your debt payments. Some unforeseen financial difficulties may arise, and this may prevent you from settling your unpaid student loan.

However, filing for bankruptcy is not your only recourse, as financial help in Ontario is available for students with loan problems. This comes in the form of a Repayment Assistance Plan to make it easier for borrowers to pay back only what they can afford. You are qualified to receive this assistance if you’re a resident of Canada, or if you or your spouse (or common-law partner) is a member of the Armed Forces stationed abroad. Participants of an international internship program are also eligible.

If the Repayment Assistance Plan is still not enough to settle your student loan debts, you may have to resort to filing for bankruptcy. The good news is that under Canadian law, if you declare bankruptcy seven or more years after the date that you stopped being a full-time or part-time student, all your debts—including your student loan debts—will be eligible for discharge. However, the date when you ceased to be a student is determined by local legislation.

Moreover, you can even reduce the period to be released from your obligations under the “hardship provision” of the law based on certain conditions. Being unable to pay your student loan is not really the end of the road. Companies like Paddon + Yorke Inc. can provide solutions to all your loan problems.

Things to Keep in Mind Before Declaring Bankruptcy in Ontario

It’s easy to understand why anyone would want to set up a business or live in Ontario, North America’s seventh biggest economy. This province possesses much of what makes Canada beautiful, like the Niagara and Kakabeka Falls, not to mention the rich cultural diversity. Just like anywhere else, however, businesses and individuals may run into some difficulties and consequently see the need to file for bankruptcy.
Reliable bankruptcy trustees like Paddon and Yorke, Inc. can guide their clients through the whole process of filing for bankruptcy in Ontario. If you’ve already filed for bankruptcy, keep in mind that you’ve still got to deal with the issue of rebuilding your credit score. To steer clear of future financial troubles, you’ll need to follow certain steps or else say goodbye to life in the Heartland Province for good.

Monitor Your Credit Report

Keep a handle on your current financial situation to recover your bearings. Your credit report can give you a pretty good idea of what exactly went wrong along the way. Study the report cautiously and be sure to file a dispute in case you notice any inaccuracies. There are two credit reporting agencies in Ontario, namely Equifax Canada (www.equifax.ca) and TransUnion (www.transunion.ca).

Keep Your Accounts Open

Closing your accounts after paying off all your debts will not only reduce your credit score but will also handicap you from getting additional credit in the future. Keep your credit score high by demonstrating consistently good debt repayment behavior. With an exceptional credit score, you can qualify for lower interest rates and consequently find it easier to pay off future debts.

Borrow, But Be Careful

It might sound improbable, but applying for loans can also help improve your credit score. The trick is to find the best deal you can afford given your current financial status. That way, despite declaring bankruptcy, you can show your lenders that you’ve got what it takes to bounce back. Incurring small amounts of credit and paying them off in a timely manner will go a long way to re-establishing credit.

Bankruptcy: Not the Only Option

Personal bankruptcy in Ontario Canada has decreased by nearly 23 percent in 2011, a possible indication that a lot more people have learned to handle their debt problems through other means. Study your credit profile and expenditures carefully, and consider other solutions. For example, if your aggregate debts do not exceed $250,000, you can make a consumer proposal to your creditors (a formal settlement option) that lets you negotiate for debt reduction and extended payment terms while reducing the impact on your credit score.

  • Thank you so much for being compassionate and understanding during our meeting. I appreciate you treating me with a sense of dignity at a time when it is hard to feel good about myself. — George