Posted on Saturday, August 26, 2006Consumer Proposals - What Do They Cost? Will it Hurt My Credit Rating?Today I appeared as a guest on Ask the Experts on 570 News in Kitchener. On the show we discussed consumer proposals. (You can hear the show on our consumer proposal radio page).One of the callers asked the two most common questions we get about consumer proposals. First, he asked "what does it cost to file a consumer proposal?" I answered by telling him that the cost of a consumer proposal depends on your income, your assets, the size of your family, and your debts. For a consumer proposal to be accepted by your creditors it must offer them more than they would receive in a bankruptcy. For a consumer proposal to make sense for you the monthly payments must be reasonable, so we will often extend the payments for up to five years. I advised the caller to contact his nearest office at 310-PLAN so that we could meet with him to give him an estimate of the cost for him in his situation. I also commented that the fees that Hoyes Michalos charges in a proposal are set by the federal government; all proposal administrators receive the same fee from a proposal. At our first meeting we will explain the costs in detail. Second, regarding how a consumer proposal impacts on your credit report, I advised him that according to Equifax, the largest credit reporting agency in Canada, a proposal remains on your credit report for three years after the proposal is completed. However, your ability to borrow again depends not only on your credit report buy also on your ability to save money for a down payment or security deposit, so the best way to rebuild your credit is to save money. Consumer proposals are a great option for many residents of Ontario who have more debt than they can handle, but don't want to go bankrupt, so for more information on consumer proposals contact your nearest Hoyes Michalos office at 310-PLAN, or e-mail us a question, and let's get started. Posted by J. Douglas Hoyes, CA, Trustee @ 7:49 PM
Posted on Thursday, August 10, 2006Recent credit card charges and bankruptcyI met with someone last year and after reviewing her situation she decided it was best if she filed for bankruptcy. Her credit card bills at that time were $15,000. However, after meeting with me she continued to charge items to her credit card. A month later she came back to file for bankruptcy and her credit card bills had increased $1,000 in recent charges. Using your credit card after you know you are in financial difficulty can cause problems when you try to get your discharge. In this case, the court required the debtor to repay the money she charged to her credit card after she knew she was in financial trouble.If you need a plan to deal with your financial problems, call us to review your financial situation. Posted by Rebecca Martyn, CGA, CIRP, Trustee @ 9:03 PM
What is an asset?Many times when I meet with clients they say they have no assets when I ask if they have any. I usually realize they don't understand the question because they are wearing clothes and even though they may not be fancy, that is an asset.The simple answer to my question is that an asset is anything you own. The more detailed answer is: - your clothes and personal effects such as jewellery and glasses - household furniture and effects including everything such as linens, china, cameras, pictures - not just the big items you automatically think of - vehicles of any sort - yes, even that snowmobile that doesn't run and is sitting in your yard - recreational items - investments - this includes RSPs, life insurance policies, pensions, mutual funds - houses and cottages or any type of land - lawsuits. As you can see, the list could go on indefinitely. It is important that you disclose all your assets to the trustee, so if you are not sure mention the item. The trustee will be able to advise what will happen to the item. Will it be exempt from seizure by the trustee? Is it secured to a creditor or are you making payments to someone in order to keep the item (is it listed as security on a loan document)? These are just a few of the questions that the trustee needs answered to each of your assets and if you do not disclose the asset, it could affect the process of your bankruptcy. Knowing how your assets are affected at the start of a bankruptcy is much easier to deal with than having a surprise later in the process that cannot be fixed. And of course if they can be protected by filing a consumer proposal, that would be even better. Call us at 310-PLAN in order to discuss your financial situation and know how your assets would be dealt with in a personal bankruptcy. Posted by Norma Yau, Trustee @ 2:29 PM
Posted on Monday, August 07, 2006What happens if I call a Trustee in Bankruptcy?I spoke to a client this past week who was worried that if she called us, she would have to file bankruptcy. Calling a Trustee in Bankruptcy is no different than calling any other professional and asking for help. The decision to file bankruptcy or a consumer proposal is your decision. The job of a Trustee in Bankruptcy is to insure that you are empowered with the information you need in order to make the decision that is best for you. So, what will happen if you call Hoyes Michalos & Associates? First, you will speak to one of our professionals who will answer the questions you have about your financial situation. If YOU decide that you want more information, a free consultation can be arranged. It's as simple as that. There is no obligation.The Hoyes Michalos & Associates team is committed to educating you about your options. If you are struggling with the stress of debt, and need some information about your options, please call us at 310-PLAN, or e-mail us a question. Posted by Susan Jung, MBA @ 11:41 PM
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