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WHAT IS A TRADE CREDITOR IN ACCOUNTING - YouTube
Channel: Ira Smith
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consultant the second mortgagee group of
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VC I was put together by a promoter it
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turns out that promoter had other
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properties that they financed by way of
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the second mortgage the same way my firm
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was not involved in those other
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properties however it appears the same
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business consultant was involved in at
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least one other property it also appears
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that the business consultant experienced
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the same problem in that other property
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that he did in VC I know cash to be paid
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from in fact as it turns out he didn't
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even have a retainer to act on behalf of
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the second mortgage investors in those
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other properties that didn't stop him
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from trying to work that property and
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chase his VCI dollars the court case
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that issue was decided in the court case
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the superintendent of financial services
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V textbook student Suites 525 princess
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Street trustee corporation 20:18 ons C
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7392 Kenley the consultants primary
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claim is against the investors committee
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he asserts to be entitled to costs for
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solutions that he executed for the board
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he claimed against the investors
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committee that because of the work he
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did in advising them his charges need to
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be safeguarded by a court-ordered charge
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against the properties he claims that
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his a bankruptcy expert that is solution
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for the advantage of the stakeholders
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therefore he ought to be paid as charges
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in advance of any kind of distributions
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to secured creditors he also said that
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his job also helped the lenders in their
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recuperation of the funds owing to them
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he did not provide the court with any
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case law to support his position rather
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he was relying on the inherent
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jurisdiction of the court to order such
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security the analysis of course there
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was not a written agreement between the
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consultant and the investors committee
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signed by both parties the judge stated
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that the legislation is well settled
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that in identifying whether the parties
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had a binding agreement the court will
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take into consideration whether they
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reached agreement on every one of the
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material terms one term that can be
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material is whether an arrangement
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requires to be in writing or whether an
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oral contract will be enough as it turns
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out there were several drafts of the
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consultants engagement letter discussed
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with the chair of the investors
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committee however the investors
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committee found the engagement letter to
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be too vague they told the consultant
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this and asked him to
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a more detailed engagement letter of the
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activities he would undertake the time
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estimate for each phase of his work and
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what his hourly rate would be for those
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services the consultant did not provide
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a more formal engagement letter and as a
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result one was never signed rather the
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court found that the consultant
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continued working at the same time he
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was exchanging emails with the investors
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committee the committee learned that at
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this same time the consultant was trying
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to strike a deal with the second
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mortgagee stakeholder in my VC I file
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now the investors committee felt that
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the consultant may have a conflict and
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did not seek an engagement letter to
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sign at the same time the consultant
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advised the investors committee that his
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retainer was subject to their legal
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counsel obtaining a court-ordered charge
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for his fee and costs ahead of any
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distribution to be paid to the second
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mortgage investors this email turned out
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to be the downfall of the consultant in
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this court case the court found that by
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this email the consultant knew that he
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did not have that priority yet was
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continuing his work no court application
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was ever made to obtain that
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court-ordered charge the consultant
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tried advancing all sorts of other
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arguments as to why he should now be
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granted the priority claim but none were
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persuasive or even correct the judge
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ruled against the consultant so not only
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did the consultant not get paid for his
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work he also had costs awarded against
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him for losing this court battle
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so what is it that you should not do
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what you should not do is not start
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working if you do not have a proper
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written retainer to provide the
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consulting services even if you have the
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properly written retainer know how you
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are going to be paid and that the party
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you are contracting with has the ability
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to pay this is especially true in an
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insolvency situation in a receivership
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or bankruptcy administration there are
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many claimants against the assets many
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times the creditor claims are competing
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so anyone wishing to provide goods or
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services to a stakeholder in an
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insolvency administration better make
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sure there is a clear contract and know
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who is going to be actually paying this
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consultant found out the hard way that a
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court is not going to protect you for
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your mistakes later on no matter how
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reasonably you believe it is what is a
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creditor is your business and financial
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distress because you cannot collect your
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Billings do you not have adequate funds
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to pay your creditors as their bills to
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you come to if so call the IRS Smith
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team today we have decades and
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generations of experience assisting
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people looking for financial
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restructuring a debt settlement plan and
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to avoid bankruptcy as licensed
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insolvency trustee formerly called a
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bankruptcy trustee we are the only
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professionals accredited acknowledged
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and supervised by the federal government
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to provide insolvency advice and to
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implement approaches to help you remain
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out of personal bankruptcy while
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eliminating your debts a consumer
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proposal is a government approved debt
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settlement plan to do that we will help
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you decide on what is best for you
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between a consumer proposal versus
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bankruptcy call the IRA Smith team today
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so you can eliminate the stress anxiety
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and pain from your life that your
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financial problems have caused with the
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one-of-a-kind roadmap we developed just
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for you we will immediately return you
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right into a healthy and balanced
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problem-free life you can have a no cost
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analysis so we can help you fix your
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troubles call the IRA Smith team today
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this will allow you to go back to a new
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healthy and balanced life starting over
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starting now I hope you enjoyed the
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video the IRA Smith team is available to
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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
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for more information on a no-cost basis
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please visit our website or call us our
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website and telephone details are coming
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right up now
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