Posted on Thursday, September 29, 2005How Do I Know If I am in Financial Trouble?For most people, financial problems start gradually, and get progressively worse, until you deal with them. Here are some warning signs that indicate you may be having financial problems:Carrying a balance your credit cards is a sign of potential financial problems. Are your cards at or near their limit? Are only making minimum payments each month, such that you seem to never be getting ahead of the debt? Do you use one card to pay another? This vicious debt cycle is an obvious sign of financial trouble. Another sign of financial problems are collection agent calls. Are collection agencies calling you regarding your debts and threatening to garnish your wages if they do not get payment? They seem to call at all times of the day and night. They even try to call family and friends. You can't enjoy a night at home because the calls never stop. Are they also calling you at work? This can mean a discussion with the boss about the number of personal calls you are getting. Now your debts are affecting not only your personal life but work and it seems like everyone knows. Are you no longer using your bank account to deposit your paycheques because you are afraid the funds will be seized by a creditor to pay your debts? In many cases this results in you using cash advance places and they are taking a portion of the cheque, leaving less income to pay your rent, food and other living expenses, and then you don't have the money to pay your debts. If one of these signs reminds you of your financial situation, you have options regarding your debts. It won't get better. You need a plan. The stress is affecting you and your family. Contact us today, and let's get started on a plan to deal with your debts. Posted by Sandra Sykora, Trustee @ 3:06 PM
Posted on Friday, September 23, 2005Getting the Most From Your First Meeting with the TrusteeAt Hoyes Michalos, we provide a free initial consultation to discuss your options for dealing with your debts. Here's my advice for getting the most out of our first meeting.First, have a goal in mind. What do you want to accomplish at our first meeting? Do you want to discuss general options for dealing with your debt? Or have you already decided that you need to file a consumer proposal or go bankrupt, and you would like to spend some time discussing those options in more detail. Second, prepare a list of everyone you owe money to, with names and amounts owing. Also, prepare a simple monthly budget (what you make and what you spend each month). It will be easier for us to explain your options if we understand as much as possible about your unique situation. Third, read some of the pages on our www.hoyes.com web site that talk about what you are interested in. Doing a few minutes of research in advance may help you ask more detailed questions. Finally, write your questions down before our meeting, so that you don't forget any of them. To set up a meeting with one of our advisors, please contact us today; with these tips, you will get the most out of our first meeting. Posted by J. Douglas Hoyes, CA, Trustee @ 12:04 PM
Posted on Thursday, September 15, 2005Tax DebtsIncome taxes affect everyone and for some, the annual income tax return results in a debt that, combined with other financial obligations, becomes insurmountable. The Canada Revenue Agency (CRA or formally Revenue Canada) has the ability to force collections of tax related debts - including garnishments and bank account and investment seizure. They may even register a lien on a residential home.The Income Tax Act does not provide CRA with the power to directly negotiate the amount a taxpayer must repay, so informal settlement offers and even debt management plans are generally not effective in dealing with tax related debts. At Hoyes, Michalos & Associates Inc. we are able to use The Bankruptcy and Insolvency Act (BIA) to help individuals deal directly with tax related debts and obtain a financial fresh start. These options include a proposal to creditors or an assignment in bankruptcy . As Hoyes, Michalos & Associates Inc. operates in various cities, we are continuously working with the various CRA offices to ensure that we are aware of their policies and practices in order that we may provide insight to debtors' options when CRA is a creditor. To discuss your situation and options in detail, please e-mail us or call us at 310-PLAN. Posted by Scott Schaefer, CA @ 4:29 PM
Posted on Wednesday, September 07, 2005CRA Liens (Canada Revenue Agency formerly known as Revenue Canada)In all of our offices throughout Ontario we encounter debtors who owe money to the Canada Revenue Agency ("CRA"), formerly called Revenue Canada. If a significant amount of money is owed to CRA for an extended period of time, CRA may put a lien on your home to secure their debt.CRA will not register the lien until they have tried other collection methods and failed. A lien has the same effect as a mortgage. It is a charge registered against your house. How can you get the lien removed? You have three choices. First, you can negotiate repayment arrangements with CRA. Once the debt is repaid, they will remove the lien. Second, you can sell the house. After the mortgage is paid, the remaining funds will go towards the lien. Third, you could file a proposal. Since the lien is secured by the house, the proposal must contain a specific term stating that the lien will be removed by CRA upon the completion of the proposal, and CRA must agree to the proposal. In practice, this may be difficult depending on the amount of money involved. Unfortunately, filing bankruptcy will not remove the lien, just as filing bankruptcy in Ontario does not remove a mortgage on a house. There are many issues to consider when dealing with Revenue Canada liens, so if you owe money to CRA, please contact us to review your situation and develop a plan to deal with these debts. Posted by Rebecca Martyn, CGA, CIRP, Trustee @ 4:30 PM
|
