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PRESS RELEASE — February 11, 2002 Par-O-Law Celebrates Successful Year of Growth and Excellence William (Bill) Lutton, President and Chief Executive Officer for Par-O-Law Canada Inc told an enthusiastic audience at its annual convention on Saturday, that the need for their services was more crucial now than at any other time in history. He said that due to massive layoffs from corporate downsizing and plant closures Canada could be facing an unprecedented rise in the number of Bankruptcy filings this year. Consumer Proposals, and Mortgage Foreclosures will also increase. He said that according to Canada Mortgage and Housing Corporation (CMHC) there are 140,000 foreclosures on homes each year in Canada. It was reported in July of last year that Bankruptcy filings had increased by 7 percent over that of the previous year and that was well before the September 11th tragedy at the World Trade Centre. We have seen the immediate negative affect on the airline and tourist industries but the ripple effect could be every bit as devastating he said. Mr. Lutton said the company's goal now was to educate the public, once and for all, that when they are experiencing financial difficulties, or believe they should see a bankruptcy trustee, that they have a right, and a duty to themselves, to review their options with a Professional Bankruptcy Consultant first. He further stated that Bankruptcies - Trustees advertising was an affront to society as it gives the public the impression that trustees represent the debtors. Not enough people know that a trustee is an Officer of the Federal Court and that their first duty is to the Court and secondly to the creditors. Trustees do not represent the interests of debtors. Mr. Lutton said he is aghast that so many people leave a trustee's office thinking they have just retained the services of their very own personal representative. That perception is entirely false he said. Par-O-Law Canada's agents that deliver the company's unique Financial Default Management™ services across Ontario, were visibly upset to hear how the corporate giant Bell Actimedia Yellow Pages had arbitrarily pulled Par-O-Law's advertising from their directory. They barred us from the Bankruptcies-Trustees heading, he said, which would be fine if they had provided another heading for us under Bankruptcies - Consultants. Mr. Lutton said this was done despite the fact all accounts were always paid to Bell Actimedia when due or earlier. He said that Bell Actimedia had told him that they had been put under pressure by Trustees who had threatened to pull their advertising if Par-O-Law Canada was not removed from the heading. On a brighter note Mr. Lutton indicated that Par-O-Law's two half page adverts in Telus Yellow Pages, (Bell Actimedia's major competitor), were having a more than favourable response by the public, and that the adverts were under Bankruptcies - Trustees and Paralegals headings. With respect to Not-For-Profit Credit Counselling services Mr. Lutton said that these services require more transparency. A number of these agencies receive between 20 to 40 percent of the debtors' agreed monthly payments as a kick back from the creditors. If the public were more aware of that fact they would understand clearly where that agency's loyalties really lay. Now there is a new and more dangerous problem for the public to contend with, and that is the appearance of numerous so-called "Insolvency and Credit and Debt Management Consultants". Some of these nasty little parasites fill out the trustee's forms and turn the debtor over to a trustee as a referral while extracting a few hundred dollars from the hard-pressed debtor in the process, he said. He went on to say that he was informed that one Toronto trustee was paying the advertising account for one such consultant. Mr. Lutton did not give out the name of the informant. Mr. Lutton said that as Professional Paralegals, we also have a moral obligation to warn the public that they should be asking the agency of their choice, to show them a copy of that agencies Errors and Omission Insurance. (This Insurance provides compensation to the public if an error or mistake occurred on their file due to that agency's mistake. This type of insurance is mandatory for all lawyers, and paralegals who maintain good standing in a credible paralegal society must also be covered). He went on to say the public should not be afraid to ask the agency whether or not they are a member in good standing with one of the several societies set up for the purpose of policing these agents. Mr. Lutton reminded the group that membership in either the Paralegal Society of Ontario or the Paralegal Society of Canada was mandatory in his organization, and that a copy of their yearly renewal of their Errors and Omissions Insurance Certificate was always to be forwarded to Head Office each anniversary without fail. Don't get me wrong. Mr. Lutton said, "We are not bashing trustees here. Trustees for the most part are hard working, hand picked Officers of the Court with compassion for the honest debtor in distress. Trustees have a very difficult path to walk. On the one hand they want to relieve the stress and burden of the debtor while on the other hand they cannot advise the debtor as to how to retain any of their assets if they file bankruptcy, or become insolvent. I would hate to be in their position, and I don't think I have ever met any trustee who is not disturbed by this dilemma, he said." This is why so many trustees have no hesitation to be the administrators on our client's files if that particular duty is required. It allows the trustee to perform their duties knowing that the debtor has already received financial guidance and is aware of their options or alternatives. With Par-O-Law representing the debtor the trustee is free to represent the creditor as provided for in the Bankruptcy and Insolvency Act. The law bars trustees from giving advice about certain options or alternatives which may benefit the honest debtor, therefore without our representation the financial penalty to the debtor may be much greater. The conference was held at the Holiday Inn, Oshawa, and considered by one and all to be a resounding success. Mr. Lutton is the founder as well as CEO of Par-O-Law Canada and expressed his delight with the company's ability to hand out Share Certificates to everyone in the corporation including administrative and support staff as a token of his thanks for their loyalty and professionalism. A very special thanks went to Robert Hotrum of Kingston for his years of support and friendship with the founder and chief , and also to Wendy Marshall a Senior Consultant with the firm at their head office in Oshawa. An undisclosed number of shares went to each. Mr. Lutton was presented with a congratulatory plaque by Wendy Marshall, on behalf of all the staff. Ian Lagden from the Hamilton district thanked Mr. Lutton on behalf of all the company's Service Provider Agents for his vision and leadership in making Par-O-Law Canada the industry leader for Financial Default Management™ Services; Debt Restructuring Services, and Bankruptcy and Insolvency Consultant Services. Par-O-Law Canada's head office is located at Bagot House, 9 Bagot Street, Oshawa, Ontario and the company's Service Providers arrived from numerous Cities across Ontario. I would be pleased to be interviewed in detail about this company and the valuable list of services it provides to Canadian families. This is a DIFFERENT APPROACH to insolvency. We have pioneered the process of Financial Default Management™ techniques and a PATENT is pending on the title. I have attached our Corporate Position Paper for the year 2001 for your perusal. To arrange an interview, please call: William (Bill) Lutton, |
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