Krieger & Company

Surplus Income Limits For 2021

Michael Krieger — Tue, 23 Mar 2021 15:35:21 +0000

The Superintendent of Bankruptcy has just amended the 2021 surplus income directive 11R2-2021. The directive sets the calculations and surplus income limits for 2021, determining what a bankrupt must pay in surplus income.

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Consumer Rights in Ontario under the Consumer Protection Act

Michael Krieger — Fri, 08 May 2020 15:46:31 +0000

The Ministry of Consumer Services and Consumer Protection Ontario have helped create this guide for you to know your consumer rights in Ontario for many typical financial transactions. From gift cards, payday lending, identity theft, collection agencies, home repair, motor vehicle repair, and more the Consumer Protection Act provides you with many basic rights to ensure a safe transaction and offer recourse for common problems. Your consumer rights in Ontario include: a cooling off period for certain contracts including credit repair agreements and loan broker agreements a requirement for clear and comprehensible contracts timely remedies to return your money after a contract is cancelled no obligation to pay for goods you didn’t want a written contract required for an agreement when services are performed in the future a full disclosure of credit terms including a rate expressed annually truthful explanation of all costs associated with the contract no false or misleading representations a restriction on repossession of goods if you have paid over two-thirds of the contract an ability to cancel if the goods aren’t delivered within 30 days written estimates and a limitation on what you have to pay if the supplier exceeds that amount UPDATE: The Consumer Protection Act, 2002 has been amended by the Putting Consumers First Act in 2017 to provide additional consumer rights in Ontario by prohibiting suppliers from soliciting or entering into unsolicited contracts for prescribed goods and services at consumers’ homes. Contracts that are formed contrary to these provisions would be void, and consumers would be able to keep any goods and services provided without any obligations. Review the full Consumer Rights in Ontario guide at this free download.

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COVID19 Order Provides Payment Extension For Consumer Proposals

Michael Krieger — Mon, 27 Apr 2020 22:30:13 +0000

A court order was issued by the Ontario Superior Court of Justice on Monday, April 27, 2020, based on a motion filed by the Attorney General of Canada on behalf of the Superintendent of Bankruptcy. This order provides Ontarians who have filed for insolvency with greater flexibility to meet their obligations during this time of economic uncertainty by offering a payment extension. This includes allowing consumer proposal debtors to miss an additional three consumer proposal payments between March 13, 2020, and December 31, 2020, before the Administrator declares the consumer proposal to be in default, as well as extensions of certain operational deadlines. For those outside of Ontario, applications for similar relief are being scheduled to be heard in other provinces and territories on or before April 30, 2020. Of particular significance, the order provides that “an Active Consumer Proposal shall not be deemed annulled pursuant to section 66.31 of the [Bankruptcy and Insolvency Act] unless the consumer debtor is in default of, in the case when payments under the Active Consumer Proposal are to be made monthly or more frequently, the day on which the consumer debtor is in default for an amount that is equal to or more than the amount of three payments plus an additional amount equivalent to up to three payments for defaults that occurred during the period of March 13, 2020, to December 31, 2020“. This provides individuals in a consumer proposal an additional three months extension should difficult times limit their ability to make payments in a consumer proposal. We encourage those in consumer proposals to continue making payments if they are working and able to make those payments. Doing so will still provide a certificate of full performance sooner, improve credit faster, and may reserve these this provision should an unexpected circumstance occur in the future to limit payments. Full copies of the Ontario Orders are provided below: The Order dated April 27 2020 providing an extension of time for making consumer proposal payments or division I proposal payments. The Endorsement dated April 27 2020 accompanying the Order.

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COVID-19: We’re Here To Help With Changes To Our Debt Solutions During COVID-19

Michael Krieger — Thu, 26 Mar 2020 19:55:48 +0000

COVID-19 (Coronavirus) is having powerful impacts on our way of life and our wallets. From increased expenses in obtaining essential supplies, income loss or reduction due to reduced hours and shortages of work, or priorities being focused on supporting family and friends through this difficult time- the economic impacts are significant and will be long lasting. You’re not alone and Krieger & Company continues to support honest Canadian individuals and businesses trying to navigate through this difficult time. As an essential service, we are fully operational remotely and can handle your financial needs without the need to leave your home. We are focused on relieving the stress your financial obligations bring during this difficult time. That said, nothing is more important than the health and safety of our clients and colleagues. Note: PSTN (Public-Switched Telephone Networks) are particularly congested right now. If you struggle to reach us by telephone, please ensure you are trying our local number 905-508-8088. Alternately, please reach out to us via e-mail at hello@krieger.ca or via our contact form and we will call you back right away. What we are doing for COVID-19: New Clients – As always, our assessment of your financial situation and advice is provided only by a licensed insolvency trustee. Potential clients who reach out to us via telephone and e-mail will have an initial assessment booked via videoconference, rather than an in-person meeting. Government changes due to COVID-19 have allowed our assessment of your financial situation to take place via videoconference. You may be asked to provide some information ahead of the meeting to streamline the process. We are still here to help those who are struggling with their debt through the filing of consumer proposals and bankruptcy. Additional Counselling – We have been providing additional counselling sessions, free of charge, to help our clients adjust their personal budgets to their changing circumstances while maintaining proposal payments and other obligations. Counselling Sessions – Counselling sessions are essential in navigating this time when your budget may be stressed, as well as to build your credit during a proposal or bankruptcy process. We don’t need to be together in person to have productive conversations. Our counselling sessions will be held via videoconference with a licensed insolvency trustee or licensed insolvency counsellor. Counselling completion forms and worksheets will be prepared during the session and sent to you for electronic signature. Meetings of Creditors – The Office of the Superintendent of Bankruptcy has updated their directive to encourage a chair of a meeting of creditors to encourage electronic communication in […]

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How long does a consumer proposal stay on a credit report? (Updated)

Michael Krieger — Thu, 10 Oct 2019 18:53:59 +0000

Both Equifax and TransUnion have shortened the time that consumer proposals remain on a credit report and impact a credit score. A consumer proposal will continue to appear for three years after a consumer proposal is fully performed. It will now also be limited to a maximum of six years after the consumer proposal was originally filed. This means that a consumer debtor taking the full five-possible-years to complete their consumer proposal will see the consumer proposal for only one additional year. This comes as welcome news for Canadians trying to find relief from their debts using a consumer proposal, a government-endorsed arrangement with their creditors. A fresh start, free from debt, is now available even sooner with less impact on their credit. How long will Equifax show a consumer proposal? A registered consumer proposal is a legal agreement set up between you and your creditors, in which they agree to allow you to pay off a percentage of your debt. A consumer proposal will be removed from your Equifax credit report 3 years after you’ve paid off all the debts according to the proposal, or 6 years from the date it was filed, whichever comes first. Equifax Education How long will Transunion show a consumer proposal? The consumer proposal and all accounts reported as satisfied through the proposal will be removed from your file three (3) years from the date you satisfied the proposal or (6) years after the date you defaulted on the account, whichever date comes first. Transunion FAQ What does this mean for me? As a result of this change, there is little benefit in completing a consumer proposal in the final two years, at least as it relates to a credit score. Previously, any acceleration of consumer proposal payments would reduce the time the proposal shows on your credit. This is no longer the case. After the maximum of six years, debt included in a consumer proposal and the historical record of the proposal being filed, is purged from the credit bureau. Once purged, it no longer impacts the credit score. Older information, such as a past proposal or collection activity, has always carried less weight the older it becomes. Something taking place six years ago, while appearing on the report, had only a minor impact on a credit score. Payment history in the past few months or years had a more significant weight on a credit score. This change is for creditors- such as landlords and mortgage companies- who often fail to understand the consumer proposal process. Removing this […]

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