Blog
Disclaimer: These publications provide general information and should be seen as broad guidance only. The information contained herein cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon this information without obtaining specific professional advice relating to your particular circumstances. Charla Smith & Company Ltd. does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in these publications or for any decisions based on them.
10
OCT
2024
4 Things To Consider Before You Call A Licensed Insolvency Trustee
For those looking for help dealing with overwhelming debt, it can be hard to know where to turn.
A meeting with a Licensed Insolvency Trustee (LIT) is a necessity if you are planning to file a bankruptcy or a Consumer Proposal, as only an LIT is authorized to provide those options. Even
16
AUG
2024
Government Issues Notice To Creditors In Insolvencies
Licensed Insolvency Trustees like Charla Smith & Company are a critical part of the insolvency system in Canada, as one cannot make an insolvency filing without engaging a Licensed Insolvency Trustee. Another crucial player is the Office of the Superintendent of Bankruptcy (OSB), which is
18
JUL
2024
How Debt Relief Works: An Insolvent Estate Case Study
Imagine going your whole life avoiding bankruptcy, only to have your estate go bankrupt after you pass away.
It can happen, and when it does it’s a good thing, because it means that your financial situation gets resolved without your loved ones having to deal with your financial p
18
JUN
2024
How debt relief works: A retirement case study
It was recently Seniors’ Week in Alberta.
One thing that most of the individuals we help have in common is that they never thought an insolvency filing would be something they’d ever need or consider. This is particularly true of seniors who have gone their whole lives witho
24
APR
2024
What You Can Keep In Bankruptcy In Alberta
When an individual declares bankruptcy in Canada, generally speaking they surrender control of their assets to a Licensed Insolvency Trustee, who then distributes the proceeds to creditors. In exchange, the individual receives a discharge from all or most of their debts, allowing them to m
30
JAN
2024
Who Does A Licensed Insolvency Trustee Work For?
If you’re looking for help with problem debt, a Licensed Insolvency Trustee (LIT) is the best source for advice, as they have undergone rigorous training and examinations to get their license and they are subject to ongoing professional development requirements, a code of ethics
02
JAN
2024
Does A Failed Business Have To Go Bankrupt?
When a corporation fails and is left with debt that it can’t pay, the first thought for the owners is usually bankruptcy.
However, not all insolvent corporations go through a formal bankruptcy process. Bankruptcy is just one of several options to consider.
The best option depen
03
NOV
2023
Onward And Upward: Financial Counselling For Insolvent Individuals
When an individual makes a bankruptcy or Consumer Proposal filing, they’re required to undergo two financial counselling sessions. These sessions provide debtors with valuable resources, education, and support to make informed decisions about their financial future. When provide
03
NOV
2023
How The Canada Revenue Agency Is Different From Other Creditors
In some ways, the Canada Revenue Agency (CRA) is just like other creditors:
most debt owed to the CRA can be eliminated by filing a bankruptcy;
they are often an unsecured creditor, ranking equally with others in the distribution of funds from an estate;
when voting on a proposal
07
SEP
2023
How Do I Declare Bankruptcy?
One of my favorite tv show scenes is the bankruptcy declaration scene from The Office. If you don’t know the scene, Michael Scott (arguably the main character of The Office) falls into some financial difficulties and decides that he needs to declare bankruptcy… by walking
02
AUG
2023
Don't Trust ChatGPT For Advice About Bankruptcy
As a Licensed Insolvency Trustee, it's safe to say I know a lot about bankruptcy. But most people considering bankruptcy are starting out with very little knowledge on the subject. A new tool, ChatGPT, has come out that can be very useful for providing information on a topic, so it wou
14
JUL
2023
Will I Lose My Home If I File A Bankruptcy?
Misconceptions about bankruptcy are very common, especially when it comes to what happens to your home. If you want accurate information you should consult a Licensed Insolvency Trustee (formerly known as a Bankruptcy Trustee). They’re the only ones licensed to provide bankruptcy ser
16
JUN
2023
How Bankruptcy Can Help You Achieve Financial Well-Being
What comes to mind when you think about financial well-being? Perhaps budgeting or net worth… maybe retirement savings. Probably not bankruptcy.
When people approach a Licensed Insolvency Trustee (sometimes referred to as a Bankruptcy Trustee) to discuss their options, they&rsquo
18
MAY
2023
Why You Shouldn’t Write Off Bankruptcy As An Option
Most people shudder at the thought of filing bankruptcy. And that’s fair.
Bankruptcy is a big step that should only be taken when all other options won’t work.
Most people who reach out for help with overwhelming debt would prefer to avoid bankruptcy. That’s why Con
09
MAY
2023
Is Bankruptcy Always Worse For Your Credit Than A Consumer Proposal?
One of the main things people worry about when considering bankruptcy is what it will do to their credit rating. This is a legitimate concern, as bankruptcy gets reported as a negative item on your credit report. The effect on a person’s ability to obtain credit is something we alway
14
APR
2023
How Does Bankruptcy Affect Your Spouse?
How will my bankruptcy impact my spouse? This a frequently asked question when an individual is exploring options for dealing with their overwhelming debt.
The short answer is that there is no direct impact on a spouse of a person who declares bankruptcy. It doesn’t show up on the
23
MAR
2023
What Is The Difference Between A Bankruptcy Trustee And A Licensed Insolvency Trustee?
If you’re Canadian and have been doing your research about debt relief options, such as bankruptcy or a Consumer Proposal, you may have heard the term “Bankruptcy Trustee” and the term “Licensed Insolvency Trustee” and wondered what the difference between thes
21
MAR
2023
Signs You May Need To Consider Bankruptcy
The first word that comes to mind for most people when they realize they can’t pay back their debt is “bankruptcy”. But how do you know when bankruptcy is the right option for you?
As a Licensed Insolvency Trustee, one of the most common things we hear from people who
01
MAR
2023
The Top 5 Pros and Cons of Bankruptcy
Bankruptcy is a legal process intended to help people who are unable to pay their debt, and it can be a valuable tool for individuals facing financial hardship, particularly when they have overwhelming debt. However, like any major financial decision, bankruptcy has pros and cons that must
27
FEB
2023
What To Do If You've Defaulted On Your Debt
If you’ve recently defaulted on a debt payment, or are on the verge of default (meaning you failed to make a payment when it was due), you’re not alone. Times are difficult for a lot of Canadian households. On February 14, 2023, a research firm, Maru Public Opinion, released it
07
DEC
2022
Can't Pay Back Your CEBA Loan? You're Not Alone
As a Licensed Insolvency Trustee, we’re unfortunately seeing an influx of small business owners who are overwhelmed by their debt and have come to accept that they’re unable to keep their struggling businesses alive. Some of these businesses were already struggling before the p
20
OCT
2022
The Keys to a Financial Fresh Start
In Canada, we have laws allowing an individual to make a proposal to settle their debt with creditors, or to assign themselves into bankruptcy. These laws are referred to as insolvency laws, and the federal government, which is responsible for insolvency laws in Canada, makes it clear
20
SEP
2022
What I wish people knew about bankruptcy | It’s not as uncommon as you think
Everyone has heard of bankruptcy. But, as with anything a person may not have personally experienced, it's easy to develop false assumptions about it based on tidbits of information heard in the news or from other people. Unless someone has gotten up-close-and-personal with bankruptcy,
15
JUL
2022
How Debt Problems Can Affect Your Health
One of the hardest things about being a Licensed Insolvency Trustee (LIT) is seeing people wait too long to get help with their debt. Unfortunately, most people either don’t know about the assistance an LIT can provide, or they avoid reaching out due to embarrassment about their situ
10
JUN
2022
How debt relief works: A low income case study
There’s one thing that most of the individuals we help have in common: they never thought an insolvency filing would be something they’d ever need or consider. So when their debt initially became overwhelming they typically knew nothing about debt relief. This often means they
19
APR
2022
Major changes made to a form required to make an insolvency filing
Okay, I know that title sounds boring, but I promise we wouldn’t write about this unless the changes had interesting consequences…
The government department in charge of overseeing bankruptcies in Canada quietly made some changes recently to a form that has to be filled out
11
APR
2022
My small business needs to go bankrupt… where do I start?
Small businesses have been through a particularly tough time lately, and even businesses that were doing very well previously have run into problems through no fault of their owners and managers, who have worked hard to keep things going for longer than they ever expected they'd have t
09
MAR
2022
Guest Blog: CRA Collection Is Back in Action. What You Need to Know
Tax debt is a hot topic these days, with Canada Revenue Agency (CRA) resuming its collection actions in full force after a 2-year break due to the pandemic. So, we’ve collaborated with Trevor Cawston, of Cawston and Associates, to summarize what you need to know about debt owing to C
10
FEB
2022
How debt relief works: A tax debt case study
There’s one thing that most of the individuals we help have in common: they never thought an insolvency filing would be something they’d ever need or consider. So when their debt initially became overwhelming they typically knew nothing about debt relief. This often means they
20
JAN
2022
How debt relief works: A business owner case study
A lot of people have the misconception that individuals who make an insolvency filing lack a moral desire to pay their debts and happily use an insolvency filing to “game the system” and leave their creditors in the lurch. In most cases, nothing could be farther from the truth.
28
JUL
2021
What I Wish People Understood About Bankruptcy | Does it make you a bad person?
Everyone has heard of bankruptcy. But, as with anything a person may not have personally experienced, it's easy to develop false assumptions about it.
Unless someone has gotten up-close-and-personal with bankruptcy, there are some things they probably don’t know – things
29
JUN
2021
Do You Need to Hire a Debt Consultant?
Settling your debt for less than you owe is sometimes necessary when your debt has become unmanageable and you have no way of paying it off in the foreseeable future. There are a number of options available to legally reduce the amount you have to pay.
In a previous blog post, we discus
17
JUN
2021
What is a Licensed Insolvency Trustee?
You may have heard the term Licensed Insolvency Trustee and wondered what it means. I am a Licensed Insolvency Trustee, so let me explain.
Licensed Insolvency Trustee (or “LIT”) is the formal designation for a professional who has been certified to provide services under the
02
JUN
2021
Guest blog - Did you know… the worse your credit score is, the faster it can jump up?
Richard Moxley is the author of the best-selling book The Credit Game: Rules Every Canadian Must Know to Win, a highly informative and entertaining guide to having good credit.
Richard has been spreading the word about the rules for good credit issue through television interviews, prese
24
MAY
2021
What I Wish People Understood About Bankruptcy | Will it destroy my credit?
Everyone has heard of bankruptcy. But, as with anything a person may not have personally experienced, it’s easy to develop false assumptions about it based on tidbits of information heard in the news or from people you know.
Unless a person has gotten up-close-and-personal with ba
11
MAY
2021
What I Wish People Understood About Bankruptcy | Do you lose all of your assets in a bankruptcy?
Everyone has heard of bankruptcy. But, as with anything a person may not have personally experienced, it’s easy to develop false assumptions about it based on tidbits of information heard in the news or from people you know. Unless a person has gotten up-close-and-personal with bankr
04
MAY
2021
So You Owe Taxes This Year...
This time of year, a lot of people look forward to receiving a tax refund. For those living on a low income, a tax refund can be highly anticipated as a way to catch up on bills or pay for something they’ve been holding off on, such as a car repair or dental work. Unfortunately, this
17
MAR
2021
Read This Before Cashing Out Your RRSPs To Pay Debt
An RRSP (Registered Retirement Savings Plan) is a retirement savings vehicle, and a critical part of many peoples’ retirement plans. However, when you have RRSP savings but face an immediate cash crunch, it can be tempting to cash in RRSPs prior to retirement.
Cashing in RRSPs to
25
FEB
2021
Getting Back On Track: How Not To Stay An Undischarged Bankrupt
Contrary to what you might’ve heard, when someone makes a bankruptcy filing they’re not immediately released from their debts. It’s only at the end of the process, when the individual receives their “discharge” from the bankruptcy that the remaining debt is er
12
JAN
2021
5 Signs You're Already in the Financial Sweatbox
The “sweatbox” is a situation that often occurs prior to an individual making an assignment in bankruptcy. For those with debts they can’t pay, the sweatbox is all about suffering. Often, the suffering lasts for a long period of time before the individual eventually reali
12
JAN
2021
What is the “sweatbox” and why should you avoid it?
The term “sweatbox” was coined by researchers1 working on a study about people who file bankruptcy to describe the situation that often occurs prior to their insolvency filing. During a person’s time in the sweatbox, they know or suspect they can’t afford to pay the
CHARLA SMITH & COMPANY LTD.
Let us help you get relief from the burden caused by your debt. As a Licensed Insolvency Trustee, Charla Smith & Company are highly trained and experienced in debt relief solutions, and we take great pride in identifying the option that's the best fit for your unique situation. From advice on talking to your creditors to consumer proposals to bankruptcy and everything in between, we’re here to answer questions, guide and advise you so you can take back control of your financial situation. Serving Southern Alberta.
YOUR TRUSTED CHOICE FOR DEBT RELIEF
With our experience and our caring approach, we will help you find the best option for debt relief based on your unique situation - from advice on talking to your creditors to a consumer proposal or bankruptcy, and everything in between. We are here to lift the burden caused by overwhelming debt.
Contact us today at 1-403-899-3890 for a FREE, no-commitment meeting, and let us guide you to regaining your financial footing.
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