In October 2017, CPA Ontario awarded Fellow recognition to Jay Harris of Harris & Partners Inc. First obtaining his CA designation in 1984, Jay has helped grow the company from three offices to its current eleven, serving Kitchener, Oshawa, Markham, and more locations across Southern Ontario.

Today’s credit-focused culture has made it almost the norm to owe money on a regular basis. Common thinking is that there is not much

cause for concern if you are making your payments each month. The trouble lies in falling behind on the money you owe to the point that it accumulates beyond being affordable and you become trampled by your debt.

If you find yourself missing several payments in a row—whether on your mortgage, car loan, personal loan, or credit card—it is
important to speak with a Licensed Insolvency Trustee (a “LIT”). Doing so will help you to choose a viable debt solution that suits your personal situation.

Debts that at first appear manageable can creep up slowly and steadily before you realize you are in over your head.

Many changes to Ontario’s labour and employment laws have recently been announced by Kathleen Wynne’s Liberal government.

According to the Canadian Real Estate Association, the average house price in Ontario in 2016 was $709,825, with an average mortgage payment of $2,927. The required income to buy an “average” 2016 home in Toronto was $128,746.

The Office of the Superintendent of Financial Institutions (OSFI) recently announced that the rules of the Bank Act will now apply to all non-bank financial service providers, including credit unions and unregulated financial service providers.

The Toronto Star reports that a Richmond Hill real estate brokerage has been fined $250,000 for mishandling its trust accounts.

We have arguably never lived in a more competitive society when it comes to landing well-paying jobs. Nor has the amount of education and experience required for some of these jobs ever been so demanding. A major component of this phenomenon is constant technological improvements and the rise of the tech sector generally.

Have a mortgage? If so, you may be affected by the Bank of Canada’s recently announced raise in lending rates.

The Miami Herald reports that Miami Marlins pitcher Livan Hernandez has filed for bankruptcy.

Simply paying exacerbated rates to have a decent home has come to interfere with Canadians’ ability to cover other basic costs of living. In addition to not even allowing any wiggle room for expenses anywhere beyond the scope of necessities, it can seem nearly impossible to avoid debt and then, more certainly, to pay off that debt over time.

Everyone should be aware by now of the huge increase in demand in Ontario’s (and particularly, Toronto’s) housing market over the years, and particularly in the past year.

Average household debt in our country from coast to coast is growing significantly. Getting a loan has become the norm for most Canadians, and while it helps the economy, we have arguably begun to borrow at the risk of our own financial stability. 

If you are like most others living in Ontario, you have probably groaned to your neighbour or friend about your hydro bill on multiple occasions. If you live in even a modest-sized home, you may be facing hydro bills in the range of $150-$300 per month, amounting to thousands of dollars over the course of the year.

Trustees in bankruptcy/bankruptcy trustees across Ontario and Canada recently had their name changed. They began being legally referred to as Licensed Insolvency Trustees (“LITs”) instead. While the change may seem insignificant to some, the implications have greater depth. The following questions most plaguing consumers were compiled to help explain the reasoning better.

Credit bureaus TransUnion and Equifax have recently announced that they will be implementing new methodologies in assessing credit score, to be implemented later this year.

Whether baby boomers are better off than their millennial children is a popular topic of discussion as of late. From wages that have not adequately risen with inflation, to housing prices having risen drastically in urban areas, many make the argument that millennials find it harder to get ahead.

Canadians are currently facing a juxtaposition of a healthy economy and booming real estate market alongside an increase of national household debt. While some may wonder how this is possible, the connection is clear: many residents are simply borrowing too much and others are perhaps simply struggling to keep up with Joneses.

Along with an ever-changing economy comes changing trends in consumer behaviour. The consensus seems to be that many are struggling financially in the modern economy, given rising housing costs, stagnant wages, and other concerns. However, it is not always entirely clear how this impacts the average consumer’s habits — and their tendency to rely on credit cards.

Although job loss can feel like a devastating experience, it is important not to let this setback discourage you from moving on and continuing to strive for success. For starters, it is a good time to assess your career path and consider both your current and future goals. You may also take the time to decide whether you want to stay in the same industry or use this opportunity to explore another passion.

Housing is a major cost of living expense and, whether you are renting or owning, housing in Ontario is particularly costly compared to the rest of Canada except B.C. Average rent in Ontario for an apartment is currently $840 for a bachelor, $972 for 1 bedroom, $1,121 for 2 bedrooms, and $1,371 for 3+ bedrooms. The average Ontario house price is $518,000, up 13.9% from the previous year, and many homeowners would struggle if their mortgage payments grew.

It is common to consider downsizing as a plan that suits your long-term needs. If you are approaching retirement or already in retirement, the question of downsizing may be something you have considered. If you are experiencing financial stress, downsizing may help you to meet your expenses more comfortably. If you having financial difficulties, a Toronto licensed insolvency trustee at Harris & Partners Inc. is available to help you consider your options.

While post-secondary students often aren’t certain about the career path they want to take, many know they want to attend a particular college or university and that a Canada Student Loan can help fund their education. Being accepted for admission into a program of choice isn’t easy but getting a Canada Student Loan the first time is through the Ontario Student Assistance Program (OSAP). The general requirements for eligibility entail being a Canadian citizen, a permanent resident of Canada or designated as a protected person, meeting the full-time or part-time enrolment requirements at an approved school, demonstrating financial need and passing a credit check if you are 22 or older. Getting a student loan the first time easily makes higher education accessible. The question is how to manage the repayment costs. Various suggestions are provided here.

There was once a couple who made a lot of combined income. Both the husband and wife were doctors, and with such a large income all their financial concerns should have been over.

Do you hyperventilate when you open your mailbox and find bills? Is your bank statement something you dread looking at? Are your finances spinning out of control? Due to habits and lifestyles, it’s often quite difficult to acknowledge or escape the dark cloud of debt.

Mortgages, investment loans, and student loans are viewed by many as “good debt.” These debts have historically had positive returns associated with them, as they build your wealth, which then helps to improve your lifestyle. There is never a guarantee, however, that history repeats itself. There are many pitfalls with these debts that we commonly overlook because of the prospect of favourable returns. This was The Globe and Mail’s finding on May 10, 2015, in “There’s No Such Thing As Good Debt.”

After many years of tackling high-deficit spending, federal and provincial governments are dealing with hundreds of billions of accumulated government debt. Since the 2008 recession, the national debt has increased $150 billion and the provinces added a further $217 billion, reported in the Globe and Mail on May 12, 2015.

Living with debt can become a way of life—if you’re not careful.

Think of debt like a hurricane. At first, you know you’re in trouble, and you try to weather the storm, doing whatever necessary to survive. When you go numb to the effects of debt, it’s like walking into the eye of the storm. Everything is calm, and you think you’re okay. But in reality, you’re right in the thick of it, and more trouble is coming.

In Canada, most young people are not getting the financial literacy training they need. They are ill-equipped to make their way in the modern financial world. Yet, everyone needs to learn how to make effective decisions about money most places they go and on a daily basis. Throughout life, we all need to learn how to earn, save, invest, spend, borrow, give, lend and generally manage money. Learning economic principles will help our youth make better personal financial decisions and help them as citizens understand and make better choices about critical issues facing the nation.

For many consumers, deciding whether to lease or finance a vehicle depends on a number of personal and financial factors. Both methods enable you to acquire a vehicle for a period, with car leasing requiring less payment upfront. Leasing allows you to use the vehicle for a contracted period of time in accordance with certain stipulations, while financing allows you to put payments towards the principal of the vehicle, in order to ultimately own it. Lease payments are often significantly lower per month than financing payments, but you should be extremely cautious about the long-term effects of a lease before deciding to sign the contract.

Most Canadian high school students are unaware how to manage their money and finances. This is concerning given that the collective amount of debt in Canada is already over $1.5 trillion. Parents are often unable to set good examples, as demonstrated by growing consumer debt across the country, and they are also not teaching teens financial skills that will benefit them as they become more independent.

After rent, groceries, gasoline, and a quick trip to the movies, you discover that you have little more than nothing in your bank account. You need a little extra cash, but you have a lot of extra stuff, so the solution’s simple. You need to hold a garage sale.

For people with budget constraints, a full-blown vacation is probably out of reach. Luckily, Toronto residents have the option to take shorter vacations on weekends and day trips. Use these vacation ideas below to relieve the drudgery of everyday life without breaking the bank.

Any savvy corporation wants to make more money than it spends. However, the reality is that the business world is extremely competitive, profit margins in almost every traditional business are at an all-time low and it’s an ongoing struggle to keep corporate expenses under control.

Few drivers review their automobile insurance policy annually to ensure they are getting a competitive rate. It takes some extra time, but reading up on insurance and getting a competitive quote at renewal time may help you save money easily. Some ideas are outlined here to help you save money on car insurance.

Many people use a debit card when they pay for goods and services. Introduced in Canada in 1994, debit has already surpassed cash as the preferred payment method. A debit card is linked to your bank account through the Interac system and used like currency. Debit is accepted by many merchants because the processing fee associated with the Interac system is lower than that of credit cards.

Choosing a future career is the first major decision most Canadians face when they reach early adulthood. Like most students, if you are pursuing your studies you may require some financial assistance, even if you plan to work while in school. The increasing costs of education and the study demands of your program can make it difficult to balance your studies while working. While you may be able to obtain a scholarship or bursary, working during your degree or diploma is often the only way to fund your way to graduation. Your funding strategy should address your personal financial situation, possible family assistance, scholarship programs, and government assistance programs for education.

While bankruptcy and consumer proposals can release you from the pressure and worry of creditors and debt, your journey is not over. Now that your papers are filed, you need to start rebuilding your credit. While your first bankruptcy will remain on your credit report for seven years, and a consumer proposal for three, there are many things you can do in the meantime.

Credit cards are a very popular and useful payment method in Canada but they can also lead you down the path of debt. Credit cards have been heavily advertised and marketed in Canada since being introduced in 1950 and it was not until 1970 that mass mailings or unsolicited credit cards were outlawed and replaced with mailings for credit applications. Now, anyone can apply for a credit card or a store credit card but approval depends on your credit history.

There are a few different options for paying for goods and services in Canada. Many of us wonder whether it is best to pay with credit, debit, or cash. The payment option you choose will depend on your preferences and your financial situation, including whether you are struggling with debt. At Harris & Partners Inc., Trustee in Bankruptcy in Toronto, Ontario, and surrounding areas, we bring you the options, benefits, and drawbacks, all discussed here.

After you’ve reworked your budget, cut back on unnecessary expenses, and done everything else you can to bring your personal finances under control, sometimes your only option is to take more extreme measures. Getting out of debt is difficult, but when you’re down to the wire it can be hard to know if filing for bankruptcy or debt consolidation is the right path for you. There also may be other alternatives which can only be understood through an appointment with a federally licensed trustee in bankruptcy.

Success in the National Football League is no protection from the risk of bankruptcy. A new working paper released by the U.S. National Bureau of Economic Research found that nearly 16 percent of NFL players drafted between 1996 and 2003 were bankrupt within 12 years of retirement. Initial bankruptcy filings tended to occur soon after players retired from the NFL and continued spending at a substantial rate through the first dozen years of retirement. The study also showed that bankruptcy rates are not affected by a player’s total earnings or career length.

Debts can be overwhelming and can leave you feeling like there’s nothing left to do. While declaring bankruptcy should not be your first solution out of debt, it is a way to help you financially. Before you decide that this is the answer to your problems, make sure you understand the mistakes and misconceptions about filing for bankruptcy.

No one wants to declare bankruptcy. Bankruptcy means a huge hit to your credit score, and you risk losing vital assets such as your house. Before you begin the process of filing for bankruptcy, consider whether or not you are eligible to submit a consumer proposal.