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
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
04
APR
2024
Debts That Can Be Included In A Consumer Proposal
A Consumer Proposal is a formal agreement between an individual and their creditors, facilitated by a Licensed Insolvency Trustee. Many Canadians turn to a Consumer Proposal when their debt becomes unmanageable, and it can be a great tool for getting back on track so you can focus on the f
09
FEB
2024
5 Reasons To Use A Consumer Proposal To Consolidate Your Debt
Canadians are more in debt than ever, and, with the increasing challenges most households face just covering their mounting expenses, many are finding they can no longer manage their debt effectively without a comprehensive plan.
Individuals seeking a structured and effective approach t
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
12
DEC
2023
Canadian Government Announces Concerns About Debt Advisors
On December 7, 2023, the Office of the Superintendent of Bankruptcy (OSB) issued a position paper (the “Paper”) titled The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System. In the Paper, the OSB highlights several concerns regarding debt consultants and
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
03
NOV
2023
The Advantages And Disadvantages Of A Consumer Proposal
A Consumer Proposal is a formal debt settlement arrangement that allows individuals to negotiate new repayment terms with their creditors. There are several benefits to a Consumer Proposal, but there are also some drawbacks to consider. As a Licensed Insolvency Trustee (LIT), we regularly
11
AUG
2023
Don't Trust ChatGPT For Advice About Consumer Proposals
As a Licensed Insolvency Trustee (LIT), it's safe to say I know a lot about Consumer Proposals, as LITs are the only people that can administer a Consumer Proposal. But most people looking for a way to settle their debt are starting out with very little knowledge on this subject. In th
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
07
APR
2023
How A Consumer Proposal Is Like A Consolidation Loan… And How It Is Different
When people are looking for options to deal with their overwhelming debt, they get introduced to a whole new world of information that can be overwhelming at first. Many people who should consider a Consumer Proposal are not aware of this option, and instead they start out looking for a co
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
03
MAR
2023
The Top 5 Pros and Cons of a Consumer Proposal
A Consumer Proposal is a formal insolvency filing which is similar to a consolidation loan in that it brings all of your debt under one payment and allows more time to pay, but it can also include a (sometimes significant) discount on the amount of the debt you have to pay. It can be a lif
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
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.
04
SEP
2021
How much does a Consumer Proposal cost?
A Consumer Proposal is an agreement you make with your creditors to allow you more time to pay your debt, and often allows you to pay only a fraction of that debt while the rest is forgiven. For some, this sounds too good to be true.
It’s not.
But there are some things you&rsqu
12
AUG
2021
What happens when I make a Consumer Proposal? Will it destroy my credit?
A Consumer Proposal is an agreement you make with your creditors to allow you more time to pay your debt, and often allows you to pay only a fraction of that debt while the rest is forgiven. For some, this sounds too good to be true.
It’s not.
But there are some things you&rsqu
05
AUG
2021
What happens when I make a Consumer Proposal? Will I lose my home?
A Consumer Proposal is an agreement you make with your creditors to allow you more time to pay your debt, and often also allows you to pay only a fraction of that debt while the rest is forgiven. For some, this sounds too good to be true.
It’s not.
But there are some things you
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
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
28
APR
2021
Everything You Need to Know About Debt Settlement
There may come a time when a person realizes they owe more debt than they can afford to pay back. In this case, they may look to settle their debt, meaning they make a deal to pay creditors less than what is owed. There are a number of reasons creditors might agree to this, including:
22
APR
2021
Consolidation Loans: the Good, the Bad, and the Ugly
When a person needs to deal with debt that is becoming unmanageable, they often think of a debt consolidation loan. Although most people are familiar with the term, you might not be familiar with exactly what it entails. Depending on your situation, a debt consolidation loan might be a goo
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
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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