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TRUSTEE ACT ONTARIO BY A TORONTO BANKRUPTCY TRUSTEE - YouTube
Channel: Ira Smith
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I want to highlight a provincial statute
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that is also important for the
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administration of a deceased estate the
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trustee act RSO 1990
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C T dot 23 trustee act Ontario this blog
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continues my blog series to show how it
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would be appropriate to appoint a
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licensed insolvency trustee lit or
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bankruptcy trustee formerly known as a
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bankruptcy trustee as the estate trustee
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formerly called an executor or executrix
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of a solvent deceased estate as always
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since we are not lawyers and I am by no
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means providing in this and upcoming
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Brandan's blogs advice on wills or
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estate planning matters for that you
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must consult your lawyer trustee act
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Ontario things an estate trustee must be
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aware of
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there are various sections of the
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trustee act Ontario that affects the
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duties and responsibilities of an estate
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trustee in administering a deceased
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estate all the concepts are very
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familiar to a lit power of court to
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appoint new trustees section 5 1 of this
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trustee act Ontario gives the Ontario
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Superior Court of Justice the authority
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to make an order for the appointment of
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a new trustee this is the same court
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that we attend for court-appointed
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receivership and bankruptcy matters so
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allit is very familiar with the workings
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and requirements of this court who may
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apply for appointment of new trustee or
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vesting order section 16 1 of this
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provincial statute says that anyone who
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has a beneficial interest in the
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property of the trust can apply for the
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appointment of a new trustee this is
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very similar to how a court-appointed
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receiver is appointed although it is
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normally a secured creditor who makes
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the application in theory it could be
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any party that has an interest section
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101 1 of the Ontario courts of Justice
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Act states that a receivership order may
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be made where it appears to a judge of
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the court to be just or convenient to do
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so it is the just inconvenient Clause
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that was relied upon by the judge when
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we were appointed receiver and manager
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of the assets properties and
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undertakings of the Suites at one King
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West's condo straight a hotel back in
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August 2007 for this reason as a lid we
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are very familiar with this aspect of
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appointing a trustee power and
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discretion of trustee for sale
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section 17 of the trustee Act Ontario
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provides the trustee with the authority
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to sell but subject to the requirements
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of the estates Administration Act a lint
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either in a receivership or bankruptcy
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is extremely acquainted and experienced
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in the sale of real and personal
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property the lit likewise makes certain
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that the creditors are paid in the
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correct order of priority sales by
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trustees not impeachable on certain
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grounds section 18 1 deals with a
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certain aspect of the sale of property
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by a trustee it states that unless it is
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proven that there was an inadequate
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sales price a sale made by a trustee
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cannot be impeached by any beneficiary
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claiming that the conditions of the sale
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led to a depressed sales environment in
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other words any beneficiary wanting to
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try to impeach a sale must prove that
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the process used by the trustee resulted
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in a sales price at less than fair
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market value similarly in a court
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appointed receiver ship or bankruptcy
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the receiver or trustee must be able to
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prove that both the conditions of the
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sales process and the sales price
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achieved was appropriate for the types
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of assets in the circumstances the
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leading cases the Ontario Court of
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Appeal decision in Royal Bank of Canada
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V sound air corporation 1991 can lead
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2727 on CA the process a receiver or
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trustee must follow is known as the
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sound air principles this is the test
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used when deciding whether a receiver or
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trustee applying for court approval of a
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sales process and the authority to sell
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assets has acted properly the court must
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determine whether the receiver or
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trustee has made a sufficient effort to
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get the best price and has not acted
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improvidently consider the interests of
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all parties devised a fair process that
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has integrity by which offers were
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obtained and introduced an element of
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unfairness in the working out of the
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process therefore I submit that a lid is
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very experienced in devising a sales
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process and selling assets in a manner
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that is fair to all stakeholders or
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beneficiaries to attempt to maximize
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sales proceeds trust funds and investing
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section 26 of the Act deals with the
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whole area the requirement for a trustee
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to maintain trust accounts and to invest
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trust property in a manner that will
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maximize the return while not putting
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the capital at risk to swings and
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investment pricing inflation or income
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tax the lid is very familiar in
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experienced in the area of trust
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accounts and the investing of trust
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funds section 25 of the bankruptcy and
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insolvency act Canada BIA deals with the
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requirement of a trustee to establish
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trust accounts also the superintendent
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of bankruptcy directive no 5 r5 deals
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with estate funds and banking the
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superintendent also monitors the banking
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of trust funds by all lits across Canada
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therefore a lit is very knowledgeable
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and experienced in the banking investing
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in protection of trust funds security by
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the person appointed if letters of
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administration were granted under the
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estates act RSO 1990 C II dot 21 section
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37 2 of the provincial legislation
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requires every trustee to post security
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I discussed in my blog estates act
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Ontario Toronto bankruptcy trustee
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reveals hidden secret the experience of
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a lid in the posting of security by way
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of an insurance company bond actions for
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torts section 38 1 of the provincial
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statute gives authority to an estate
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trustee of a deceased person to maintain
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an action for all torts and injuries to
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the deceased person or his or her
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property except in cases of libel and
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slander any recovery forms part of the
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deceased personal estate
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section 38 3 provides for a limitation
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on such actions the action cannot be
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brought after the expiration of two
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years from the date of death as a lid
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this is a familiar concept to us when a
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person or company is insolvent and has a
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chosen action against one or more
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parties such action can be started or
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continued by a receiver or bankruptcy
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trustee in fact in a bankruptcy the
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action actually vests in the trustee the
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receiver or trustee has to make sure
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that they have a legal opinion on the
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likelihood of success the receiver or
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trustee also has to make sure that they
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can afford to fund the litigation
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without reducing the value of the assets
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under administration this includes the
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issue of costs that the action proves
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unsuccessful distribution of assets
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under trust deeds for benefit of
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creditors or of the assets of the
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intesting
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section 53 1 of the Act lays out the
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requirements of a trustee to make a
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distribution for the general benefit of
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creditors as I have described in
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previous blogs section 135 of the BIA
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deals with the admission and
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disallowance of proofs of claim and
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proofs of security a lid is an expert at
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sorting out creditor claims and could
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certainly do so under the trustee Act
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also trustee act Ontario summary I hope
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that this blog reveals to you how the
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provisions of this provincial statute
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detailing the duties of a trustee or
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estate trustee tracts really close to
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howl it performs in either a
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court-appointed receivership or
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bankruptcy administration I hope you
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enjoyed the video the IRA Smith team is
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available to help you at any time
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we offer sound advice and a solid plan
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for starting over starting now so that
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you'll be well on your way to a
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debt-free life in no time for more
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information on a no cost basis please
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visit our website or call us our website
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and telephone details are coming right
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up now
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Oh
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you
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you
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