by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
Іnsоlvеnсу іs thе іnаbіlіtу оf а busіnеss tо dіsсhаrgе аll оf іts dеbts іn full аs thеу аrе duе fоr рауmеnt. Іt іs а сrіtісаl соndіtіоn thаt соmраnу dіrесtоrs must еnsurе dоеs nоt оссur іf thе busіnеss іs tо survіvе аnd ореrаtе lеgаllу. Соmраnу dіrесtоrs must еnsurе thаt thе busіnеss dоеs nоt trаdе whіlе іnsоlvеnt. Тhеу wіll bе hеld lіаblе fоr іnsоlvеnt trаdіng аnd сіvіl оr сrіmіnаl реnаltіеs mау аррlу. Іf уоur busіnеss іs ехреrіеnсіng саsh flоw рrоblеms аnd уоu susресt уоur соmраnу іs аррrоасhіng іnsоlvеnсу, іt іs сrіtісаl уоu tаkе іmmеdіаtе асtіоn аnd sееk рrоfеssіоnаl fіnаnсіаl аssіstаnсе.Іf уоu аrе ехреrіеnсіng аnу оf thеsе sіtuаtіоns іn уоur busіnеss, gеt рrоfеssіоnаl turnаrоund аdvісе аnd sоlutіоns аs sооn аs роssіblе. Dо nоt sіt аnd wаіt fоr thіngs tо іmрrоvе bесаusе thе sіtuаtіоn wіll nоt bе rеsоlvеd оn іts оwn.
YОU АRЕ UNАBLЕ TО РАУ УОUR TАХЕS.
А busіnеss ехреrіеnсіng fіnаnсіаl dіstrеss wіll оftеn fоrеgо tах рауmеnts tо еnsurе thаt thеу hаvе еnоugh саsh tо рау еmрlоуее wаgеs аnd urgеnt сrеdіtоr аnd suррlіеr dеmаnds. Whіlе thіs mау sееm lіkе аn еffесtіvе wау tо utіlіsе саsh rеsеrvеs, fоrеgоіng рауmеnts tо thе tах оffісе wіll аdd реnаltіеs аnd іntеrеst tо уоur tах lіаbіlіtіеs. Веfоrе уоu knоw іt, уоu wіll hаvе іnсurrеd а lаrgе аmоunt оf dеbt tо thе АТО whісh уоu mау hаvе а mоrе dіffісult tіmе tо рау оff.
YОU АRЕ USІNG FUNDS FОR ЕMРLОУЕЕ SUРЕRАNNUАTІОN.
Ѕuреrаnnuаtіоn соntrіbutіоns аrе rеmіttеd quаrtеrlу аnd shоuld bе раіd wіthіn thе mоnth аftеr еасh quаrtеr. Іf thе funds аrе nоt rеmіttеd іn thе rеquіrеd tіmе, thеsе аmоunts wіll bе соnsіdеrеd аs dеbt undеr thе Ѕuреrаnnuаtіоn Guаrаntее Асt. Тhіs dеbt duе wіll аlsо bе subјесt tо реnаltіеs аnd іntеrеst.
YОU АRЕ ЕХРЕRІЕNСІNG ОNGОІNG LОSSЕS АND РООR САSH FLОW.
Вusіnеssеs wіth соntіnuіng lоssеs shоuld соnsіdеr sеllіng іdlе оr nоn-реrfоrmіng аssеts tо hеlр gеnеrаtе sоmе іnсоmе fоr thе соmраnу. Аlsо, trу tо dеtеrmіnе hоw уоu саn rеduсе оvеrhеаd аnd еmрlоуее соsts аs thіs mау hеlр rеduсе соmраnу sреndіng.
YОU АRЕ UNАBLЕ TО РАУ СRЕDІTОRS ОN SЕT TЕRMS.
Whеn уоu аrе unаblе tо рау сrеdіtоrs оr suррlіеrs оn thе аgrееd tеrms, thеn thеу mау stаrt dеmаndіng саsh uроn dеlіvеrу оf thе suррlіеs tо mаkе surе thаt thеу gеt раіd. Yоur іnаbіlіtу tо оbtаіn сrеdіt frоm suррlіеrs wіll hаvе аn іmрасt оn уоur аlrеаdу unstаblе саsh flоw. Yоu mау аlsо ехреrіеnсе соmрlаіnts оr quеrіеs frоm уоur suррlіеrs аnd thеу mау рlасе trаnsасtіоns wіth уоu оn ‘sресіаl аrrаngеmеnts’.
YОU АRЕ RЕСЕІVІNG DЕMАNDS АND LЕGАL NОTІСЕS FRОM СRЕDІTОRS.
Whеn сrеdіtоrs stаrt sеndіng fіnаl nоtісеs аnd lеgаl dеmаnds оr іssuіng јudgеmеnts аnd wаrrаnts аgаіnst уоur busіnеss, іt mау оnlу bе а mаttеr оf tіmе bеfоrе wіndіng uр рrосееdіngs bеgіn.
Іf уоur busіnеss іs аt rіsk оf іnsоlvеnсу, thеrе аrе орtіоns соmраnу dіrесtоrs саn сhооsе frоm tо sаvе thе соmраnу. Тhеіr орtіоns mау іnсludе rеfіnаnсіng, rеstruсturіng thе busіnеss оr арроіntіng аn ехtеrnаl аdmіnіstrаtоr. Аnоthеr mеаns tо sаvе уоur busіnеss іs tо sееk thе hеlр оf а рrоfеssіоnаl аnd сеrtіfіеd turnаrоund sресіаlіst аs thеу саn hеlр уоu nеgоtіаtе wіth thе АТО аnd оthеr сrеdіtоrs. Тhеу саn аlsо рrоvіdе уоu wіth busіnеss rесоvеrу sоlutіоns thаt mау lеаd tо а suссеssful turnаrоund fоr уоur соmраnу.
by Ajay oberoi | Bankruptcy, Credit Counseling, Debt Management
The break-up of a marriage or common-law relationship has certain financial ramifications for both parties, including the splitting of assets and the creation of equalization payments (support).
However, both can be financially draining on one partner (and sometimes both) and could lead to bankruptcy.
So, what happens if one of the “exes” does file for bankruptcy as a result of financial hardship following the breakdown of the relationship?
Bankruptcy basically results in the liquidation of property (houses, cars, RRSPs, etc.) in order to pay off a portion of the outstanding debt (mortgages, loans, credit cards, taxes owing, etc.).
In the event of a bankruptcy following a divorce, the equalization payment also becomes an outstanding debt and the spouse being “supported” will have to settle for a reduced payment according to the bankruptcy payment agreement. However, spousal support does get preferred status in the bankruptcy’s payment distribution schedule, meaning it takes priority over other creditors such as credit cards and the amount outstanding is still payable after the claimant is discharged from bankruptcy.
So, in a nutshell, say John is supposed to pay Jane $1,000 a month for support and owes her $15,000 in back support. The trustee rules that over the course of his bankruptcy, John will pay back the $12,000 owed in the year prior to bankruptcy in addition to a percentage on the outstanding $3,000, and when he is discharged from bankruptcy, John still has to pay Jane the outstanding balance on the $15,000. Say John pays Jane $13,500 over the course of his bankruptcy; he still owes her $1,500 after he is discharged from bankruptcy. These are just examples for easy calculations and not indicative of actual payment schedules.
Now, the family home throws a wrench into the bankruptcy works. Under Canada’s Bankruptcy and Insolvency Act (“BIA”), the trustee liquidates the claimant’s assets to settle debts, but he can’t very well do that if the spouse with custody over the children is still living in the family home.
There are two solutions: force the sale of the family home in order for the bankruptcy claimant to realize his/her share of the asset’s value, or facilitate the sale of the claimant’s share in the home to the spouse receiving equalization payments. There are difficulties with either solution.
In the case of the former, provincial law may prevent the sale of the home due to the resultant financial hardship created for the child(ren)’s guardian, disruption of the child’s life, the availability of suitable alternative housing in the area of residence, the employability of the supported spouse (especially if he/she is required to stay at home to care for dependents), and even because of the history of the spouse and children in the family home.
Although preferable and perhaps an easier avenue toward asset liquidation, attempting to facilitate a sale between ex-spouses is dependent on the spouse taking possession of the house being able to secure suitable financing to purchase it. Again, that depends on the employability and financial stability of the spouse.
Either way, bankruptcy does make a difficult time more difficult for both parties in the separation but in the end, the bankrupt individual has a fresh start financially, and the supported spouse receives regular support payments (as opposed to the deadbeat’s “not at all”). In case if you want any help regarding debts call 416 650 1100 or visit www.gtacredit.com
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
People gotta eat, right? And many probably don’t realize how much they spend on groceries because you don’t always think about your spending when it comes to the staples of life. There are things that you can do to lower your monthly grocery bill, though, so it doesn’t break your budget.
First of all, make a list and withdraw the cash with which to buy the groceries. You are more likely to spend less when you’re paying with the cash you have in hand than when you whip out a card and pay “whatever it costs.” Take along a calculator (every new Smartphone has a calculator app, so you always have one with you) and tally up as you go to make sure you stay on budget.
And don’t shop when you’re hungry. Those items you don’t really need look awfully good when your stomach is rumbling for them.
One of the best strategies is to buy what you need when you intend to use it, not doing a big shop when you have lots of money (on payday, for example) and then hoping what you bought lasts for the next two weeks because there’s bound to be wastage.
Think about this: food is one of the few things on which you spend money, that you are prepared to throw away — not all of it, but some of it — and we don’t really think much about it. For example, we cook up gallons of pasta and load up plates, and quite often we don’t eat everything that’s served, with the scraps going into the garbage or the bigger portions set aside as leftovers that don’t often get consumed before their fridge life expires.
Meats are often sold by weight, so you’re not saving by buying in bulk unless you find a drastically reduced price. But if you don’t have the means to freeze meats (preferably individually wrapped, so you can defrost what you need later, rather than defrosting the entire package), don’t buy in bulk.
When it comes to fresh items such as produce, buy what you want to consume right away (or within a couple of days). There isn’t a lot of discount on produce for buying in bulk, and it doesn’t store exceptionally well, so you’re best to buy it as you use it.
If you want the convenience of having your vegetable of choice to complement a meal, buy frozen vegetables, and cook what you need when you need it. Also, look at options in portion sizes. Broccoli crowns, for example, usually allow you to consume everything you buy, whereas broccoli stalks likely result in considerable wastage if you only consume the crowns. Also, mini-cucumbers allow you to use what you want as you go along, rather than cut up half an English Cuke and hoping you can finish the rest before it goes off.
And since many of today’s stores match prices, don’t drive around to save a couple of pennies on a product you want. And use coupons. Coupons are big savers on items you’re going to buy anyway and if you find a deal on something and the coupon applies to all quantities, you could save a bundle on bulk buys. You may also be able to combine price matching with in-store coupons for extra savings.
Finally, be aware that you’re going to pay extra for convenience. Think about those single-serving coffee makers. You can spend $6 for a box of cups that will allow you to make 12 cups. However, you can buy a reusable cup for $3 and fill it up with your favorite ground coffee for about the same price, and enjoy exponentially more cups of coffee for your expenditure.
Finally, remember that nutritious eating is better controlled by you than somebody at a big corporation, which may put in ingredients in their food you may not want in yours. Stay in control of the food you prepare and that will likely also keep you in control of your food budget. In case if you want any help regarding debts to call 416 650 5400 or visit www.gtacredit.com
by Ajay oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
We all belong to a generation of people that works hard to get going with life in terms of money. The economy does not come easy on us anymore. On top of that, being young has its own perks and downsides in this regard. We have our own sets of needs, wants, and desires. The new model of the Hoover board in town, that new sushi bar that just opened in your locale, birthday gifts for your loved ones, and what not – there’s a lot we have to take care of. After all, we all are working so we can have a comfortable life. However, living in times as unpredictable as today’s, we can never be too sure. Whenever people hear the word “saving”, they immediately think that they are being asked to give up on their wants and start cutting back. That is not entirely true.
Saving has become important because it acts as a cushion in a hard time. It takes away all your anxiety when you are busy spending on your favorite pair of shoes or stocking up on those neon-colored socks. Saving does not mean cutting back; it only means that you do things a little differently, and spend a little differently. It is all about perspective. To make sure you don’t see saving as a financial constraint, here are some tips that will make it easier for you to save more and spend in a better way in the long run.
- Start by taking your own lunch from home at work, so it saves you the extra expenditure on meals every day. Start doing your laundry at home instead of giving a pile of clothes to the washer every week. Put that washing machine to serve the purpose it is made for. It will save you the cost of weekly laundry. The point is, start eliminating extra expenses by seeking alternative, cost-effective methods to get them done.
- Do not stack up against your debts. Pay them off as soon as you can. Pay off all your fines, tickets, bills, and loan payments. All these expenses will only accumulate interest over them if kept on hold for long. These expenses are easy to brush off, it is human nature to delay what they do not want to deal with. However, paying them right on time will leave you with more cash to use, once this liability is done with.
- Whenever you get your paycheck, it gets more tempting for you to go and spend it on all the things you have been wanting for the entire month. Don’t do that. Make a commitment to yourself to make only one or maximum two big buys from each paycheck. This is because you cannot be sure what expenses you might have to incur later. This is why you must have some amount saved in your account and not spend it entirely on your wish list.
- Open a savings account. It is always a better option than putting all your money under the mattress. It allows you to save your money while giving you an extra amount over it every month. Who does not like extra? This way your money will not be spent on useless gains, and you will always have something in your bank accounts for your rainy days.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
Credit card companies and banks look at your credit score while making the decision to lend you money. Your credit score reflects your ability to return credits. It is a number that depicts the likelihood of you repaying money without struggling.
Lenders check your credit history in order to calculate your credit score in Canada. If your credit score is low, they will see this as a risk for lending you money. Different companies have different criteria to assess the level of risk by looking at your credit score.
There are many things that can damage your credit score in Canada, such as delayed payments of bills, applications for a large number of credit cards, etc.
In case of a low credit score, you should first check the information available in your credit report. That information must be correct. If not, contact the responsible authorities. If the information is correct, the next thing you should be doing is thoroughly and carefully reading the report to assess what factors are causing a decrease in your credit score and how you can improve them.
Here are a few tips that can help you improve your credit score in Canada.
Pay your bills on time
You should always be careful about the time you take to pay your bills. Delayed payments of bills can negatively influence your credit score in Canada. Although your credit report does not have records of the payments of your utility bills such as phone, electricity, and cable, there are some mobile phone companies that may inform the credit-reporting agencies about your late payments, which could negatively affect your credit score.
Clear your debts quickly
You should be looking to pay off your debts as soon as possible. Prolonged and accumulated debts have a bad influence on your credit score in Canada.
Be watchful of your credit card limit
Avoid going overboard with your credit card expenses. Do not cross the credit limit on a credit card, no matter what. Your balance should always be well below the limit of your credit card. Higher balance has more chance of affecting your credit score in Canada.
Prioritize the payments you have to make
Canadian credit reports do not generally include mortgage payments, although they are very important. So, it’s smart if you prioritize clearing your credit card, lease, and loan payments first and on time. This will help you maintain a good credit score in Canada.
Limit your credit applications
You should be careful about the number of applications you make. You must avoid making too many credit applications. Too much inquiry from the potential lenders about your credit can negatively affect your credit score in Canada. However, the credit score is not affected if you have queries regarding your own credit report.
Have a credit history
One of the reasons for one’s low credit score in Canada is the absence of credit history. Make sure that you have a proper record of the debt you owed and the payments you made back. Credit history can be built using a credit card.
Maintaining a good credit score is important and has its benefits. By implementing the above-mentioned tips, you can ensure a better credit score in Canada.
by admin | Bankruptcy, Consumer Proposal
Debt is something that comes with lots of complications and negativity. Still, some people find debt as a way of living. Sometimes, debts can get so excessive that no matter how much you try, you just cannot pay them off, which leaves you with the only option of declaring bankruptcy.
Better financial management throughout your life can make you avoid living off debts. Even if you acquire debts for some important reasons, you need to ensure efficient debt management in order to prevent yourself from bankruptcy.
Bankruptcy can provide total financial relief in some cases, but mostly, bankruptcy can cause some other complications, such as very poor credit score, inability to file for mortgages soon after a bankruptcy discharge, and more. Therefore, you must look to avoid bankruptcy at all costs.
Here are 7 essential tips on avoiding bankruptcy.
1. Sell your assets
Selling your assets is the first thing you should be doing as soon as you see signs of you not being able to make regular debt payments. These assets can be anything – jewelry, furniture, other household items, etc. Sell them and use the money to pay off debts in order to avoid bankruptcy.
2. Pay off high-interest debts first
You need to be smart with your approach towards paying off your debts. Prioritize your debts with respect to the interest rate. Try paying off those debts first that have a higher interest rate, with the money you acquire by selling your assets or some other means. Your debt management knowledge will come into play here.
3. Cut down unnecessary expenses
Take a good look at your monthly household expenses. If you want to avoid bankruptcy, cut down any such expense that you can do without, such as cable TV. Once your financial crisis passes, you can always get back to your original lifestyle.
4. Ask creditors for help
Another thing that you must do in order to avoid bankruptcy is to talk to the creditors, especially credit card companies. Explain your situation to them and ask if they could reduce your monthly debt payments.
5. Look for credit counseling
You can avail of the services of a credit counselor if your efforts of talking to the creditors go in vain. The credit counselor you choose should be a bankruptcy expert and must help you avoid bankruptcy and perform effective debt management.
6. Seek help from family and friends
In times of such a crisis, you can look towards your friends and family for help, even though it is normally a bad idea. Ask them to lend you some money.
7. Try to settle with debt collectors and creditors
The truth is that the lenders will look to get something from you rather than nothing. Negotiate with them and ask to reduce the debt by 40 to 60 percent, which they would not be getting if you go bankrupt. This is an important step if you want to avoid bankruptcy.
The consequences of bankruptcy can be really harmful to your credit score and finances. Once you implement the above-mentioned tips, you should be able to avoid bankruptcy.
