Posted on Friday, July 28, 2006Types of CreditorsWhen someone is experiencing financial difficulty, it is important that they understand the different types of creditors they have in order for them to properly assess the various options that are available to them to solve their problem. The purpose of this entry is to provide basic information relating to the various types of creditors a person may have.A "creditor" is a person or company that you (a debtor) owe money to. There are two major classes of creditors - secured and unsecured. Each of these classes is made up of a number of subclasses. A secured creditor is a person or company that holds a right or claim against the debtor's property - this can be referred to as a mortgage, hypothec, pledge, charge, or lien on the property. It is important to understand that by their very nature, they may have a right to the items listed as their security. There are a number of different ways to register security in Ontario, including, but not limited to, the Land Registry for real property such as a house, the Personal Property Security Act (PPSA) for personal property such as vehicles and household goods, and Repair and Storage Lien Act (RSLA) for personal items that have been repaired, such as vehicles, or placed in storage. Unsecured creditors may be able to register an execution or judgment against an asset, but usually these registration can be removed once the debtor has been discharged from personal bankruptcy or upon completion of their consumer proposal. An unsecured creditor is a person or company that does not have a direct claim on the debtor's property. There are 3 types of unsecured creditors defined by the Bankruptcy & Insolvency Act - preferred, deferred, and ordinary. Most unsecured creditors fall into the ordinary subgroup. Deferred creditors are persons or companies that are not entitled to receive any money from a trustee administering a personal bankruptcy or consumer proposal until all of the other creditors have been paid in full. Family members and other related parties often are classified as deferred creditors. A preferred creditor is one that has a claim or a partial claim that is entitled to receive a dividend before any of the other unsecured creditors in a personal bankruptcy or a consumer proposal. Some examples of preferred claims are employee wages, traveling salespersons expense accounts and court order support agreements. If a debt does not fall into the deferred or preferred subclasses then it is deemed to be an ordinary unsecured creditor. These debts include things like credit cards, bank loans, income taxes, etc. To discuss your personal situation in greater detail or if you have any questions about this topic, please contact Hoyes, Michalos & Associates Inc. at 310-PLAN or via e-mail. Posted by Scott Schaefer, CA @ 1:39 PM
Posted on Monday, July 17, 2006Am I in Trouble?Am I in trouble?I recently met with a client in our Kitchener office. When we sat down, she advised me that the principle reason for her visit was that she wanted to get a new car and no one would loan her the money. After a few minutes of conversation a picture of her finances began to emerge. She owed $15,000 in credit card debt, had a loan for $15,000 secured to her current car (which is only worth $5,000), and she owed the government about $8,000 for income taxes because last year she cashed out her RRSPs. Every month she spends 70 % of her income just to service her debts! On top of all that, she was spending $500 a month just to put gas in her old clunker. Together we considered her options. She really did not want to file bankruptcy, but knew she had to do something. She decided that she should surrender her gas guzzler, leasing a new more efficient car and then file a consumer proposal to deal with her debts. In this client's case, she really did not realize the position she was in until we sat down and looked at it. She started out wanting to take on more debt to try to solve her problem, by the end we had a plan to deal with her money problems, get that new car and get her debt free without filing bankruptcy!! If you think you are in trouble and are looking for options call us at 310-PLAN and speak to a trustee today. We can help, even if you don't need to go bankrupt. Posted by Brian McIlmoyle @ 3:14 PM
Posted on Friday, July 14, 2006Your Summer Survival Plan - A Radio Series on Dealing with Debt in OntarioIt may be the last thing you want to think about on a sunny summer day, but just because you are on vacation doesn't means your bills are going to go away.At Hoyes, Michalos & Associates we meet with people every day that for one reason or another find themselves unable to deal with their debts. We've got toll free phone numbers, websites, and even this blog - all designed to provide you with enough information to determine whether or not you need help sorting things out. We know that it can be difficult to make that first call so for the next few weeks we will be appearing live on Ask the Experts, a radio program on AM570 News, on six different Saturdays at noon. The shows will deal with various topics - all focused on providing you with the information you need to decide whether or not it's time to get some help. This week, I will be appearing live at noon to talk about dealing with collection agents and bill collectors. We've done shows on this topic before, and we've heard the horror stories: the collection agent that calls 10 times a day; the fellow that spends 20 minutes telling your kids what a bad person you are; the woman that tells you to go out and sell your couch or TV in order to make a payment; we've heard them all. On this show we will offer some strategies for dealing with collection agents. Other topics include dealing with your home if you're in financial trouble, how to deal with the tax man, credit cards, general questions and then finally a show dedicated to consumer proposals - the best kept secret for dealing with debt problems in Canada. Here's a copy of our schedule. If you have questions that you would like answered, or if you want to share a story with our listeners please give us a call - if you're too shy for the radio you can e-mail us a question or give us a call during the week at 310-PLAN (no area code required). Thanks for taking the time to listen - we look forward to hearing from you. Posted by Ted Michalos, CA trustee @ 4:06 PM
Posted on Monday, July 03, 2006Financial Crisis: Help is at HandI have received dozens of emails and messages lately from people who are at their wits end; these messages have prompted me to post this.The phone calls from bill collectors are endless. Lawsuits and garnishments are in the works. Minimum payments can't even be met. These people are in financial crisis, and they are not going to be able to solve their problems on their own. They need help. If your tooth hurts, you go to the dentist. If your car breaks down, you take it to a mechanic. And if your finances are in a mess, you should see a professional. At Hoyes, Michalos, we have helped thousands of clients with their financial problems. We have the expertise to evaluate any type of personal financial situation, and offer a solution to the problem. You may simply need help with budgeting; maybe a debt consolidation loan works for you. If you have the income and cash flow, you may be a candidate for a consumer proposal . Maybe there is no option other than bankruptcy . So, if you need help, contact one of our professionals ; give us a call at 310-PLAN. We can schedule a no charge consultation for you. We will evaluate your situation and recommend a plan that's right for you. If there is a solution to your financial crisis, I am confident that we can find it. The choice is yours. Posted by Benny Mendlowitz, CA CIRP, Trustee @ 8:43 AM
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