Until Covid-19 shutdowns are a thing of the past, this is going to be the day to day story…https://www.blogto.com/eat_drink/2020/04/prohibition-gastrohouse-shuts-down-toronto/
Another big retailer to add to the list of retainers that has gone under in the last couple of years…Covid-19 didn’t help, but was not the cause…https://www.reuters.com/article/us-neimanmarcus-bankruptcy-exclusive/exclusive-neiman-marcus-to-file-for-bankruptcy-as-soon-as-this-week-sources-idUSKBN2210CW
There has been a lot of news about the banks providing interest payment deferrals on mortgages…but if you can afford to pay one thing I suggest you pay your mortgage, otherwise you are going to pay for it later…see attached…https://www-cbc-ca.cdn.ampproject.org/c/s/www.cbc.ca/amp/1.5529399
I haven’t written on here in a while, but it’s important that we are all communicating during this crazy time. The COVID-19 crisis has caused us all to social isolate, and that means different things to different people. I know a lot of people have lost their jobs, even if its temporary, and been forced to apply for Employment Insurance (or other government assistances).
The Courts are hearing a very small amount of matters, and I will try to write more on here and keep everyone updated. In the meantime, if I can help with anything please let me know. There is still lots we can do. Notice from the Superior Court of Justice
Hopefully this social isolation is over soon.
Stay healthy, and safe.
A lady saved money and was able to regain her financial freedom…https://globalnews-ca.cdn.ampproject.org/c/s/globalnews.ca/news/3975675/credit-card-debt-tips/amp/
Re Tanchak (2014), 2014 SKQB 151
Mr.Tanchak applied to be discharged from bankruptcy in 2005. He was opposed by his Trustee. He declared assets of $2,800.00 and unsecured debt of $34,717.50. Nine years later, he applied to be discharged again. When he declared, he omitted to declare to the trustee that previous to declaring bankruptcy, only days before, he had entered into an agreement to sell his shares in a company and direct the proceeds to his father. No creditor or the trustee pursued the father, but the Trustee submitted that the integrity of the system was challenged by this. The registar agreed with the Trustee, and identified that the bankrupt had failed in his duty to disclose all property disposed of, and to account for any losses of assets. The court ruled that because of this, the court didn’t have the authority to grant an absolute discharge even though it had been 9 years. The court agreed that he would be discharged by paying $3,600 in monthly payments of $150.
A couple of quick case notes which I thought would be interesting to Trustees and Debtors alike…
Avery’s Trucking Inc. (Re), 2013 NSSC 302
A Trustee in this case acting in its capacity as receiver, sought to enforce its fees in priority to those of not only the unsecured creditors, but also all the creditors including the secured creditors and the crown trusts. The court did a thorough review of when it is acceptable for the Trustee to do so, including citing a couple of Ontario Superior Court actions. However, the court decided that the funds had to be released to the secured creditors, not subject to the trustee’s remuneration. There was no creditor resolution, no direction from the secured creditors to the Trustee to act in a certain manner (such as maintaining heat, collecting rent etc.). It also specifically mentions that the secured creditors property is not considered property of the bankrupt, and therefore would not be subject unless there were specific circumstances.
Witiluk v Gosselin 2013 Canlii 44808 (ON SC)
This is a case in which a person loaned money to another. While the facts aren’t that important, the judge in this case reviewed the requirements for Fraudulent Transactions under the 178(1)(e) of the Bankruptcy and Insolvency Act. The idea behind it being “false pretences” and “fraudulent misrepresentation” are virtually the same, and that each rests, on deceit. There are four required elements 1.) the bankrupt made a representation 2.) the representation was false 3.) the representation was made knowingly, without belief in its truth, or recklessly indifferent to whether it was false 4.) the creditor relied upon the representation in turning over property. It must also be done at the time of the bankruptcy, or before, not after the client had declared bankruptcy. The onus is on the person that was defrauded.
I recently had an issue in which I went to check my credit score to apply for a mortgage. When I saw my credit score, it said that I had purchased a motorcycle about a year earlier, and I was making payments on it. Knowing that my girlfriend would kill me if I did that, and that I lived in Australia while I apparently bought this bike, I was a bit shocked. Luckily for me, the bike was bought by a family member, and the payments were being made, I was only mad that it was inaccurate. It could have been a lot worse.
Imagine it was a negative report – A credit card company reported that I don’t pay my bills- or something else. There are lots of reasons why these types of things can happen, but the problem is that they do.
Small Claims Court is a great place to make up for this type of problem. If you were denied a loan, or you have taken a loan on a high interest rate simply because there was an inaccurate credit report, then you may have a very good case against the credit bureaus.
Small Claims Court judges will give out punitive damages to plaintiffs who have been effected by these giants credit bureaus. They are responsible, the power imbalance is huge!
Check out this article about a man who was effected by this:
Equifax and Transunion offer credit checks through the mail for free, and over the internet for a small fee. You’ll find their links on my website.
If you have this problem, please contact me. I would be happy to discuss how I can help.