Recovering wages

My former employer has gone out of business or gone bankrupt.  How do I get my wages back?

There are a number of things you can do.  If your former employer is not bankrupt or subject to an insolvency proceeding, then you should contact the local office of the provincial Employment Standards Branch.  They will investigate your claim.

If your former employer is bankrupt or subject to an insolvency proceeding, then you need to contact the Trustee/Receiver and make a claim.  You will also need to make a claim with the Wage Earner Protection Program through Service Canada.   This program entitles you up to a maximum amount of $3,531 in wages, vacation and severance pay.   Information regarding this program and how former employees can make a claim can be found here. .

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An Insolvency Consultant Can Provide You Tips And Techniques To Avoid Bankruptcy

It is not uncommon for people to find that they need to live from one paycheck to the next and often it means that they are so strapped for cash as to not have enough money to live a normal life. One possible solution is consolidating debts though often even this alternative to bankruptcy can be refused by creditors which mean you need to find some other surefire means of avoiding bankruptcy.

Credit Counseling

You need to get in touch with an insolvency consultant who will provide you with the required credit counseling with regard to your poor finances and also give you much needed advice on management of debts in the process of avoiding bankruptcy. The vast majority of people that come to an insolvency consultant will need an honest opinion about how to overcome their debt ridden situation and how to tackle the problem without needing to file bankruptcy,

There could be a number of different reasons why people find them involved in debt problems such as being unemployed, losing their job, and being ill and even having a breakdown in relationships or a marital breakup or even credit card debt. The best person to consult for all of these problems and more would no doubt is the insolvency consultant who can provide the right tips and show you the techniques to use that can teach you how to reduce your debts and thus be able to live life freely once more.

There are problems associated with being in debt and these include having poor health and the family may be adversely affected while the future would look very bleak as well. Thus, you need a professional who will help you out and there is perhaps no better person than an insolvency consultant who will take away the stress and help you manage your debts and who will also make initial assessments and outline the course of action that you should take.

All that is often required to avert bankruptcy is knowing how to manage your debt in an organized manner and that is where the insolvency consultant helps out who will discuss the pros as well as cons of each solution for managing your debt and also will provide proper counseling with regard to debt relief so as to help you make a decision that fits your needs.

The insolvency consultant would also advise you to contact creditors to explain your position, make you aware of credit counseling services, help you with consolidating your loans, and teach you about home equity loans and maybe even make an informal proposal and lead you away from filing bankruptcy, which in fact, should be the last alternative.

If you need an insolvency consultant see the professionals at Boale, Wood and Company.

Find Out How To Get Your Bankruptcy in Canada Needs Fixed

There are certain aspects to bankruptcy in Canada that you must be conversant with such as the minimum requirements to file bankruptcy in Canada. In this regard you should know that a person must at least be in debt to the tune of at least one thousand dollars and has achieved the minimum age of eighteen and is unable to pay off the debts incurred once they become due. Furthermore, bankruptcy in Canada means that a person filing for bankruptcy cannot choose which debts he or she can include.

All Debts Are Included

Bankruptcy in Canada means that all of the debts need to be included in the bankruptcy though some debts can even survive the bankruptcy and a good example of such debts is child support payment. However, it does not mean that you will lose everything when you file bankruptcy in Canada because in places in Canada, there are certain items that are not included such as your personal effects and also motor vehicles that are not valued at more than five thousand six hundred and fifty dollars, and also household goods valued up to eleven thousand three hundred dollars and tools of trade for a similar amount.

A good bankruptcy in Canada firm that would be able to handle your bankruptcy needs is Boale, Wood and Company that are leading accounting and financial services company where you can get the most professional advice and services in British Columbia. You can expect to get the entire range of services and have the bankruptcy consultants work with you every step of the way to help you out of your financial woes.

The company has experts on its rolls that have the necessary skills and experience and who will understand all of your needs, be in tune with your aspirations and who will pay regular attention as well as provide adequate support and who will also give advice that is commercially realistic while also being speedy and also technically sound.

So, if you are looking for cautious analysis including financial advise or help with tax planning, or in-depth analysis of all your needs, then you should choose this bankruptcy in Canada firm for further assistance.

While, if you are looking for the top bankruptcy consultant in Vancouver you should check out Boale, Wood and Company Ltd. who will help you with finding alternatives to bankruptcy should that be possible and though you may have plucked up the courage to admit you are in need of professional advice, you should still make an effort to source the best bankruptcy consultants to lead you out of your predicament and Boale, Wood and Company is a good choice in this regard if you happen to be Vancouver.

Tenant Insolvency: Liquidation Sales

A lease agreement may contain a clause that prohibits on-site liquidation, or bankruptcy sales.

Many landlords believe that on-site sales will cause disruption to the other tenants and fear that the sales will be conducted in an offensive manner.

Landlords will often consent to on-site sales if they are provided with an overview of the sales and marketing process in advance and are assured that the Trustee will conduct the sale in a professional manner.

Failing the agreement of the landlord, it may be necessary to obtain the consent of the Court to conduct an on-site sale. Courts have found in favour of Trustees and permitted liquidation or bankruptcy sales.

Tenant Insolvency: Landlord’s Claim

The BIA provides landlords with a preferred claim for arrears of rent in the three months immediately preceding the date of bankruptcy and a claim for accelerated rent for the three months following the date of bankruptcy.

The claim for accelerated rent is only permitted if the lease agreement provides for such a claim. The landlord’s claim is reduced by two factors:

  1. It may not exceed the realization from the property on the premises;
  2. Any payment made by the Bankruptcy Trustee for occupation rent will be set-off against the accelerated rent portion of the claim.

Tenant Insolvency: What is Rent

The Trustee is obligated to pay “rent” only.

The lease agreement should be read carefully to determine what is included in the calculation of rent. Often additional items, such as common area costs, insurance, property taxes, GST, etc. are defined as rent or additional rent. In this case, the Bankruptcy Trustee is obligated to pay these additional costs.

Tenant Insolvency: Priority over Bailiff

Commercial tenants who are behind in their rent payments are subject to having the landlord seize their inventory or other chattels. The landlord will appoint a bailiff to seize, or distrain against, the assets on the landlord’s behalf. The bailiff is required to inventory the assets and have the assets appraised. After five days the inventory or other chattels can be sold.

All assets can be sold except property belonging to third parties and inventory subject to security granted under the Bank Act or a Purchase Money Security Interest. Normally, the bailiff takes his fees and pays the balance of the funds to the landlord on account of rent.

Any property under seizure for rent at the time a stay of proceedings is imposed by the BIA must be turned over to the Trustee. As previously stated, the costs of distress rank as a first charge against the property. If the bailiff has sold the property and the sale proceeds have yet to be turned over to the landlord, the proceeds must also be paid to the Trustee, less the costs of distress.

Landlord Insolvency: Using a Bailiff

When a landlord is considering distraining or terminating a tenant’s occupancy, he is likely to use the services of a bailiff. The distress against or termination of a lease are covered by the CTA and the Rent Distress Act. The three most frequent distress methods carried out by bailiffs are:

Walk in Seizure

The bailiff attends the premises and negotiates a repayment schedule with the tenant. Once repayment arrangements have been made the bailiff places all goods on the premises under seizure by completing a physical inventory with the tenant. The tenant is then expected to sign a Bailiee’s undertaking stating that all goods are under seizure and that no chattels will be removed. In the event the tenant defaults on the payment arrangement, the bailiff is at liberty to sell the chattels upon expiry of a five day period.

Lock Change

This action will be taken when there is risk that the chattels will be removed from the premises by employees or other creditors. This is done with the tenant’s consent and affords the tenant sufficient time to arrange for payment of the rent arrears without incurring removal costs. If the tenant fails to pay the rent arrears, the goods can be sold from the premises. The tenant must consent to this and be provided with full access to the premises during the period; otherwise it may be construed as termination of the lease.

Removal of Chattels

This action is taken when no agreement can be reached between the tenant and the landlord for payment of the rent arrears. This is the most expensive method of realization. When using a bailiff be certain that the bailiff’s actions do not expose you to unnecessary liability.

For additional information, please contact us.

Tenant Insolvency: What Happens When the Wrong Goods are Sold?

Occasionally we do not receive any assistance from the debtor in determining which assets, if any, do not belong to them. The BIA allows for a person who claims any property in the possession of the Trustee to file a proof of claim. The form of “property claim” is provided for in the BIA and must be supported by an affidavit. When no property claims have been submitted, the Trustee may dispose of all assets on the premises.

If it is subsequently discovered that property that was not property of the bankrupt, was sold without notice to the trustee, the trustee’s liability is limited to the amount realized from the sale of the property.

Tenant Insolvency: Proposals

Upon filing a proposal, or between the date of the filing of a Notice of Intention to File a Proposal and the filing of the proposal, a commercial tenant may disclaim a lease. The tenant must give the landlord thirty days notice of its intention to disclaim the lease. The form of notice is provided for in the BIA. The tenant is not obligated to negotiate the disclaimer with the landlord in advance.

Upon receiving the notice from the tenant, the landlord has fifteen days to apply to Court for a declaration that the tenant’s disclaimer is invalid. If the landlord applies for such a declaration, the tenant must prove to the Court that it is not able to file a viable proposal without the ability to disclaim the lease. The onus of proof is on the tenant. If the tenant fails to satisfy the Court, its disclaimer will be declared invalid.

If the tenant is successful, the lease is terminated and the landlord will have no claim for accelerated rent. However, the proposal must allow the landlord to file a claim as an unsecured creditor for its actual losses or for the lesser of:

  • The rent provided for in the lease for the first year following the date the disclaimer becomes effective, and fifteen per cent of the rent for the remainder of the term of the lease after that year, or
  • Three years rent.