Douglas Hoyes, Consumer Proposal Administrator, Bankruptcy Trustee

We’ve all heard the ads: “Government program will reduce your debts!  Call now! Operators are standing by!”

Most of us have also received phone calls from telemarketers (they always call when you are eating dinner) promising to settle your debts if you “Act Now!”

Who are these debt consultants, and why can they afford to advertise heavily, and hire telemarketers?

The answer is that many of these debt consultants aren’t anybody at all.  They don’t have any professional qualifications, and in many cases they don’t even have offices in Canada.  They work out of call centers in the U.S., and they take your money and often don’t do anything at all.  (It’s easy to have lots of money to spend on advertising if you never incur any costs to actually provide a service).

Believe it or not, many of them are nothing more than a referral service for bankruptcy trustees!  They charge you a huge fee, and then refer you to a trustee!

I’ve written extensively on this subject many times before.  Last year I wrote about some specific cases in my article on Debt Management and Debt Settlement Plans: Scams, or a Good Alternative to Bankruptcy in Canada?

Two weeks ago I reported on the results of my investigation into Cambridge Life Solutions, one of the big advertisers on radio.  (When you read the article you will see that this is a classic example of a company from the U.S. making phone calls from their U.S. call center to unsuspecting Canadians).

So why do these debt consultants exist?  They exist because most people with debt problems have never had debt problems before, so they don’t know who to turn to for help.  You don’t want to talk to a bankruptcy trustee, because you’ve heard that bankruptcy trustees in Canada work for the creditors, right?  (It’s not true, but that’s what debt consultants want you to believe).  So, when you have a problem, you call the company that advertises the most.

Debt consultants do not require a government license, or any formal training, so anyone can call themselves a “debt consultant”.  (You can read the Doug Hoyes biography for details on my professional qualifications and experience).  That makes it easy for anyone to set up shop and start taking your money.

Debt consultants often charge huge up front fees.  It’s not unusual to pay hundreds, even thousands of dollars to them before they even pick up the phone to contact your creditors to see if a deal is possible.  (At Hoyes Michalos you don’t start paying until your consumer proposal is filed with the government, and a legal “stay of proceedings” is in place, preventing your unsecured creditors from taking you to court and garnisheeing your wages).

Finally, as noted above, a licensed bankruptcy trustee and consumer proposal administrator like the professionals at Hoyes Michalos provide legal protection from your creditors.

Debt consultants don’t.

I have no objection to companies helping people deal with their debts.  I do object to unregulated companies with no professional qualifications using telemarketers to entice unsuspecting people into parting with thousands of dollars for nothing.

My advice? Do your research.

Before you hire anyone to help you solve your debt problems check them out on line, then arrange a personal, in person meeting.  At Hoyes Michalos we are happy to talk to you over the phone to answer your questions, or give you some ideas with our free, on-line evaluation, but all the technology in the world is no substitute for a personal meeting, so before you sign any paperwork with us, and before you pay us any money, we will meet with you in person to review your options and help you make a plan that’s right for you.

Do your research; the decision is up to you.

Tabi, a ladies’ clothing store with 78 stores across Canada, in business for 30 years, is now being liquidated by a bankruptcy trustee. Customers trying to redeem their gift cards are being told that they are not being honoured during the liquidation. In effect, these gift cards are now essentially worthless.

Benny Mendlowitz, Bankruptcy Trustee

This is not illegal. Gift card holders are just another creditor of the company. They have to stand in line and wait to see if the liquidation results in them getting paid any portion of their claim.

Gift cards are easy; way too easy; both on the giving and receiving end. For holidays, or birthdays, the easy out is a gift card. Not much sentimental value, but easy. Also, when you receive them, they are too easy to lose or forget about them entirely.

While this is unfortunate, here is my advice:

If you can’t think of a gift to buy, give cash. People who get cash will then be able to buy what they want, when they want, wherever they want. And they won’t lose it. When’s the last time you misplaced a $50 bill?

If you have to give a gift card, buy them from a reliable retailer. That is not to say that Store A or Store B can’t go out of business, but they are more likely to be open in a few months than Fred ’s Stereo, TV, and Skateboard Emporium.

When you receive a gift card, spend it. Don’t hang on to it. If it’s still in your wallet three weeks from now, you will likely forget about it, and the longer you wait the greater the chances that the store may not be in business when it comes time to redeem your gift card.

I don’t know about you, but the after Christmas let-down can be pretty hard. I love the anticipation of Christmas – decorating the tree, seeing the children in my family shudder with excitement and scream with delight as the day grows nearer, getting together with family and laughing so hard that our jaws hurt the next day. Then, in a seeming instant, it is all over. Everybody goes home, the tree is tucked away for another year, work routines normalize and all that is left is dealing with winter.

Some people love winter – I don’t so much. I drive a lot for work, so I am always worried about the weather. I am not much for outdoor sports; aside from walking my dog, I pretty much avoid the outdoors. It is too cold, and just simply too much work. I hate shoveling the drive. Well, I think you are getting the picture. For some of us, winter is just not that much fun. It is easy to cocoon ourselves until Spring and that can leave us feeling pretty blah.

Just like winter, finances can leave us feeling a little cold, blue and blah. Just like winter, when dealing with debt, it sometimes just seems easier to pull the covers over our heads and wait for Spring. This is one strategy, but it is probably not the most healthy approach. Here are some alternatives to consider:

1.) Find the strength to take stock of your debt: how much do you owe? Are you behind in any payments? What would you have to do in order to get back on track? Use a debt options calculator to see what it would cost to get out of debt. Here is a credit card calculator that is a great tool to help you figure out what it would take to become debt free on your own

2.) If after taking stock, you determine that managing on your own is not a realistic option, make an appointment with your financial advisor or your bank manager – is there something that they can suggest that can help you to get your finances under control? Would you qualify for a debt consolidation loan?

3.) In some cases, banks and financial advisors can help, in other cases they can’t – if they can’t, there is another professional that I would encourage you to see – a Credit Counsellor – credit counsellors can be a very helpful and objective set of eyes – they may be able to suggest some changes that you can make to your monthly budget that can be effective in helping you deal more effectively with the debt. In other cases, they may be able to negotiate with your creditors – this is called a Debt Management Plan.

4.) Sometimes there is really only one professional who can give you the help you need to get rid of the blahs of debt – this is a Trustee in Bankruptcy – for many people, the realization that they may need to file bankruptcy in Ontario makes them feel even more blah, but this is most often because they don’t really understand how Trustees help. Lots of people make assumptions that they will lose everything and that bankruptcy is the only alternative. While talking to a Trustee can certainly be a difficult thing to do, in most cases the clients who do, are glad they did. Why? Because a Trustee can help them beat the Blahs of Debt. Whether through filing bankruptcy or a consumer proposal, the debt gets effectively dealt with. Most people tell us that by simply talking to us, they feel a weight lifted from their shoulders and their blahs turn into hope for the future.

Although dealing with the Blahs of Debt is similar to dealing with the Blahs of Winter, there is one very big difference. We can’t do anything about Winter – it’s here. But you can do something about your debt. We’d be pleased to help you understand what all of your options are. Give us a call at 310-PLAN, or send us an e-mail – let us help you put the blahs of debt behind you.

My name is Janette Martin and I am an estate manager working with Trustee Benny Mendlowitz here in the Hoyes Michalos & Associates Inc. North York office.

There are many misconceptions about what happens to a person when they file for bankruptcy in Ontario.  Some people think they are not allowed to work (not true), some people think that their family will become responsible for their debts (not true, unless they have co-signed for you), and some people think that either their creditors or the trustee will come to their house to take away their belongings and sell them to pay their debts.

When you file for bankruptcy, as your trustee, we have many responsibilities.  One of our responsibilities is to determine what assets you own and what their value is.  There are several  laws that protect your assets from seizure.  If an asset is not protected by law, then we must sell that asset and we will eventually distribute the money received from the sale to your creditors.

The rules regarding exempt assets change periodically, so it is best to consult with a Hoyes Michalos team member to discuss your specific situation, but here’s a simple overview:

The Execution Act of Ontario exempts a person’s basic belongings. These Ontario bankruptcy exemptions mean that if you go bankrupt in Ontario, the following assets are exempt from seizure by your trustee.

• $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);
• A motor vehicle (cars, trucks, etc.) worth up to $5,650, provided there are no liens against it;
• $11,300 worth of furnishings;
• $11,300 worth of tools of the trade (equipment that you use to earn a living).

So, if you go bankrupt in Ontario, you won’t lose your basic personal possessions, and inexpensive car, and your household furnishings, up to the “garage sale value” limits noted above.

While this list covers the basics, there are other assets that we commonly see, such as life insurance, RRSP’s, automobiles and real estate.

If your life insurance is term insurance, there is no cash value to it, therefore your trustee will not take it.  If your life insurance is whole life, it will at some point have a cash surrender value.  Depending on whom the beneficiary of the policy is, the Insurance Act of Ontario may protect the cash surrender value.  Also, if you have an RRSP with a life insurance company it may be protected depending on who the beneficiary is.

If your RRSP is with an institution other than a life insurance company and you have not made any contributions to it within the 12 months  before you file bankruptcy, the RRSP would be exempt.  Your trustee will only take the contributions made within the 12 months before your date of bankruptcy.

If you own a car or a house, your trustee will calculate the equity in that asset by first determining it’s fair market value and then subtracting the amount of the loan secured against the asset.  In Ontario, the equity in your car is exempt to an amount set under The Executions Act of Ontario, but unfortunately there is no exemption for equity in a home in Ontario.

You will also lose your tax refund if you file bankruptcy.

If you have avoided seeking help because you are worried about what you will lose, you can see that filing for bankruptcy has very little impact on most people.   If you have an asset that you want to keep that you would otherwise lose in a bankruptcy there are other options you can consider. A consumer proposal is a good alternative to bankruptcy, and you don’t have to worry about losing your assets.

Filing a consumer proposal is equivalent to making a deal with your creditors.  You can offer your creditors a monthly payment over a period of years in exchange for being able to keep your assets.  You are in a way “buying back” your assets from your creditors, so the amount that you offer them in your proposal must be equivalent to the realizable value of the asset.

Sound complicated? Not sure if a consumer proposal or bankruptcy is the right solution for you? If you are having a difficult time keeping up with your payments to your creditors, you can visit our website for a free on-line review of your situation, or call Hoyes Michalos at 310-PLAN (that’s 310-7526, no area code required, and that number works for all of our Ontario offices), or e-mail us today to arrange for a free initial consultation.

If we first understand why a creditor issues a garnishee and how they go about it, then we can understand how to deal with a garnishee. A creditor (like a bank or credit card company) goes to court to get a garnishee because they have not been paid, they have been ignored, or you cannot arrange a satisfactory repayment arrangement with them. For banks, credit cards and the like, issuing a garnishee is a last step because they are required to go to court, get a judgment and have the garnishee issued. The Ontario Wages Act usually keeps the rate of the garnishment to twenty per cent.

The best way to stop a bank or collection agency from garnisheeing your income is to be proactive. That means talking to the creditor prior to them getting to the point where they have no other choice but to put a wage garnishment into play. Often creditors take action because they do not know about what’s going on in your life, except the fact that they are not being paid. They do not know about the layoff, or the sickness or the other circumstances that make paying the creditor impossible. If your circumstances change, contact your creditors and tell them; do not wait for them to call you after the account has become delinquent. The sooner you call, the more time you will have to work with your creditors.

If you haven’t communicated with your creditors, they will notify you that they are taking you to court to get a judgment against you. There is the name of a law firm and phone number on the legal documents. Before things get worse, call and see if you can still work out a payment arrangement. If so, there will be no garnishee. If not, your creditors will get judgment against you and collect on this judgment by way of a garnishment.

Once a garnishment starts, other than paying it in full, there are only two ways to stop the garnishment: file a consumer proposal or file bankruptcy, both of which must be filed by a licensed trustee (such as our team here at Hoyes Michalos).

Once a private sector creditor (a bank or credit card company) notifies you that they want to get a judgment against you, do not ignore it. When you find out that a payment arrangement is not possible or if you know before that you cannot afford a payment arrangement, call us at 310-PLAN. We will review your situation and work with you to find the best and most affordable solution for you and your family situation.

We will help you make a plan. Often that plan will involve a consumer proposal. A consumer proposal is often the best alternative because the monthly payments you will have to make are usually lower than what would be required in a bankruptcy, and the creditors get a partial payment of the balance. However, if a consumer proposal is not possible because your income is too low, then a bankruptcy may be the only remaining option.

Others may claim that they can have a garnishee released, but if their offer is less than what the garnishee would generate, the likely answer would be no. A Trustee must file either a Consumer Proposal or a Bankruptcy. If these are your only alternatives, contact us and we will help you with your problem.

In this article we have discussed banks and credit card companies. The rules for a Canada Revenue Agency (CRA) garnishment are different, so if you have CRA tax debts, please call us at 310-PLAN today for more information.

Doug Hoyes, Bankruptcy Trustee

So what is the role of your trustee in this process? Will your trustee help you get discharged, or is your trustee working for your creditors?

If you listen to some of the advertisements you hear from many “debt settlement consultant” companies, they will tell you that the trustee works entirely for the creditors, and therefore wants you to pay as much as possible. That’s partially true. At the end of the bankruptcy the money you have paid is distributed to the creditors, and to the trustee in the form of fees. The more you pay, the more the creditors and trustee gets, so on that basis the trustee is working for the creditors. However, that’s only part of the story.

At Hoyes Michalos we take a different approach. We don’t “work” for any particular party. We view our role as a “middle man”, working towards a beneficial outcome for all parties. I often explain our role by saying we are like the referee in a hockey game: we don’t “work” for Team A or Team B; our job is to ensure that all parties understand the rules, and follow them.

So, for example, when you meet with one of our professionals for your no charge initial consultation, we will explain your options (including a consumer proposal and personal bankruptcy in Ontario), and we will explain the benefits, and what will happen if you don’t complete your duties. If you don’t complete your duties, your bankruptcy will not end; it’s as simple as that. That may make it appear that we are working against you, but that’s not the case. There are rules that we all must follow, so we make sure you understand the rules, and follow them.

What if a creditor doesn’t follow the rules? Do we “punish” them? Yes, we do. We don’t work for the creditors, so if they break the rules, we will object and work to correct it. For example, if you file a consumer proposal or bankruptcy and a creditor then attempts to take you to court to garnishee your wages, as soon as we are notified of that action we will apply to court to stop the garnishment. If a creditor doesn’t follow the rules, we have no hesitation in applying to court to enforce the rules.

So who does Hoyes Michalos work for? If you ask a bank or credit card company after we have applied to court to stop them from taking action against you, I can guarantee they won’t say that we are working for them.

Let me give you another example regarding creditor oppositions. A few weeks ago I received a letter, from a Big Bank, advising me that they were opposing the discharge of one of my bankrupts. I’ll call her Jane, although that is not her real name (I don’t disclose personal information of anyone we deal with on this website). Jane’s situation was not unusual. She was unemployed for a period of time, and when she returned to work her debts were more than she could manage, so she decided to declare personal bankruptcy. She had no surplus income, and no assets, and this was her first bankruptcy, so she was eligible to be automatically discharged at the end of nine months. That’s why I was surprised that Big Bank wanted to oppose her discharge.

An opposition to a discharge is common where the creditor believes the bankrupt has committed fraud, or acted in an inappropriate manner. If you buy a $10,000 big screen television on your credit card the day before you declare bankruptcy, there is a very high chance that the credit card company will be opposing your discharge. If your debts increased substantially in the period leading up to bankruptcy, the chances increase that your discharge will be opposed. If this is your third bankruptcy, your discharge will be automatically opposed. If you have high income your discharge could be opposed on the basis that you had the ability to file a consumer proposal, and yet decided to file bankruptcy instead.

However, none of these factors existed in Jane’s case. This was her first bankruptcy, she had not used her credit cards for many months before filing bankruptcy, she had no surplus income, no assets, and she had completed all of her duties. When I asked Big Bank why they were opposing her discharge, they said, simply, that they wanted more money. In addition to what Jane had already paid, they wanted Jane to continue making monthly payments for an additional six months. They said they would agree to withdraw their opposition if Jane agreed to pay more.

As the trustee, I had a choice. I could have taken the easy way out and said to Big Bank “okay, go ahead and oppose Jane’s discharge”. Needless to say, at Hoyes Michalos it’s not our company policy to take the easy way out.

Instead, I talked to Big Bank, and here’s what I told them (and yes, I’m paraphrasing a bit, since we had a number of conversations, both verbally and in writing, over a period of about a month):

If there is no surplus income, it is not possible to simply extend a bankruptcy to give a bankrupt time to make additional payments. As a creditor, you have the right to object to any bankrupt’s discharge. In order to oppose a discharge you are required to have a lawyer attend a discharge hearing in bankruptcy court on your behalf. It generally takes three to six months to schedule a discharge hearing, after the expiration of the initial nine month period. While many trustees do not attend discharge hearings, at Hoyes Michalos it is our policy to attend all discharge hearings. At that hearing I will advise the judge that the bankrupt had no surplus income, and there is no indication that the bankrupt has behaved inappropriately. This hearing is being held simply because Big Bank has decided that they want more money than the rules would otherwise require the bankrupt to contribute. If the court agrees that Jane is not required to make any additional payments, I will request that Jane be reimbursed for the cost of traveling to court, and missing a day of work.

In simple terms, I acknowledge the right of a creditor to oppose a discharge, but I also wanted them to fully consider the implications of their actions. They wanted Jane to simply pay more. Unfortunately for Big Bank, it’s not that simple. A first time bankruptcy with no surplus can only be extended through an opposition. Jane couldn’t simply agree to give Big Bank more money. Big Bank would need to go to court and ask the court to force Jane to pay more than the rules required. In the absence of any misconduct on the part of Jane, I advised Big Bank that they would look bad if the court disagreed with their position.

So, what happened?

After considering their options, Big Bank sent me a letter advising that they had decided to withdraw their opposition. Jane was automatically discharged earlier this month, with no court hearing required. Needless to say, Jane was quite happy with the outcome.

Jane’s story is a perfect example of the Hoyes Michalos difference. We work very hard to ensure that all of the rules are followed. We don’t simply let Big Banks do whatever they want. We make sure they operate within the rules.

Jane was happy, not because I worked for her, but because my team worked to ensure that everyone played by the rules.

If you are experiencing financial problems and what to experience the Hoyes Michalos difference, please call one of our offices, or e-mail us, or complete our free on-line evaluation form, and let’s get started.

Bankruptcy Discharge Detour

Although it doesn’t happen often, while a creditor cannot stop you from going bankrupt, they can object to your bankruptcy ending. They can object to your bankruptcy discharge. For most people who have never filed bankruptcy before, you are eligible to be automatically discharged after either 9 or 21 months (depending on your surplus income), as explained in our article on the length of the bankruptcy period in Canada.

So imagine this; you have faithfully completed all of your duties, paid the necessary money and are anxiously awaiting word from your Trustee at Hoyes Michalos that you have been discharged. Then, a week before your scheduled discharge date, you receive a notice in the mail from Big Bank’s lawyer advising you that they are opposing your discharge.

Yikes, what do you do now?

Well, the first thing you will do is meet with your Hoyes Michalos Trustee to determine a go forward plan and to try and figure out why Big Bank (or Big Credit Card Company, or whomever) opposed your discharge. A creditor opposition means you cannot be automatically discharged, even though you have done everything you were asked to do. So much for the fresh start!

If a creditor opposes your discharge, you are required to attend a discharge hearing in Bankruptcy Court, and the Bankruptcy Registrar (a judge) will decide on the terms of your discharge. The judge may decide that you are not required to do anything else, or they may decide that you are required to make additional payments, or fulfill other duties.

So now you are worried about going to court, which is a natural reaction.

When will you be going to Court? That depends on the Court’s schedule. It may be two months for now, or it may be six months or longer. Until the Court date you remain in bankruptcy and you have to continue to report your income to your trustee.

Once you find out the exact court date, you will meet with your Hoyes Michalos Trustee again, probably about two weeks prior to court, to discuss the court process. You may decide you want to hire a bankruptcy lawyer to represent you in court. You may decide to simply appear yourself.

Finally the Court day arrives and your nervously attend in Court. Big Bank’s lawyer explains why they are opposing your discharge. It may be because they think you have the ability to repay some of your debts or maybe they think there is missing information on your bankruptcy papers. You will then answer whatever questions they ask.

The Court will probably advise they will send their decision in writing. Great, another delay. How long will that be? Again, it’s up to the Court, but a written decision may take a few weeks.

So what could happen? You could get discharged without any money owing, or you may need to pay more money in order to get discharged, or complete other duties.

Is there anything you could have done to avoid this? Yes and no. In a bankruptcy, any creditor can oppose your discharge and they can do it up to the day before you are scheduled to be discharge. Unfortunately, there is no way to know for sure in advance what they will do.

There is only one guaranteed way to avoid a creditor opposition and a bankruptcy discharge hearing, and that is to not go bankrupt. If you have more debts than you can handle, and you want to avoid bankruptcy, a possible alternative is to file a consumer proposal, the number one alternative to bankruptcy. In a consumer proposal, you work with your Hoyes Michalos consumer proposal administrator to propose a fair settlement to your creditors. For example, if you owe $50,000, based on your ability to pay you might offer to pay $400 per month over the next 50 months, or $20,000 in total (actual numbers will vary based on your individual circumstances). If the creditors accept this deal, you simply make the payments as agreed, and you are done.

That’s a big advantage of a consumer proposal: you know exactly what you have to pay, you avoid bankruptcy, and you avoid a bankruptcy court discharge hearing or a creditor opposition, because you are not bankrupt!

When reviewing your options it’s important to review the likelihood your discharge will be opposed if you file for bankruptcy. If you think one of your creditors may object to your discharge, a consumer proposal may be your best alternative. Obviously creditor oppositions and bankruptcy discharge hearings are a complicated area of bankruptcy law. They don’t happen often, so you want a bankruptcy trustee that is experienced in dealing with creditors, and the court process. At Hoyes Michalos we have handled more than 20,000 consumer proposal and bankruptcy filings over the years, and we have appeared in court as trustees on hundreds of occasions, so we are very familiar with the court process. That’s why we take the time, at the start of the process, to explain how the process works, and to give you the information you need to make an informed decision.

To find out more, or to arrange for your no charge initial consultation, please use our free, 10 second debt options calculator, or for a more comprehensive review of your situation complete our free on-line evaluation and one of our professionals will call or e-mail you with some suggestions. Of course you can also e-mail us or call us with your questions, so contact us today, and let’s get started.

I pleased to report that Ted Michalos and Douglas Hoyes actually exist. We are real people, and we both meet with dozens of people in person each week, and we talk to many more on the phone each day. We started Hoyes, Michalos & Associates Inc. back in 1999, and we both remain the owners of the firm, and actively involved in the business on a daily basis.

Why does it matter to you that there is actually a Hoyes and a Michalos?

It matters because if you decide to file a consumer proposal, or to file personal bankruptcy, you want to know that you have chosen to work with a team of professionals supervised by the two guys whose name appears on the door. You want to know that our reputation is very important, and that we will do everything in our power to administer your file in a professional manner.

You can choose your trustee. There are hundreds of other trustees in Ontario; there is no shortage of licensed trustees willing to help you with your financial problems. So why should you choose Hoyes Michalos?

Hoyes Michalos Running Team

First, we are real people, active in the community. A number of our staff participate in many community events, including the Oktoberfest 5km and 10km run held on October 17, 2010. (That’s me, Doug Hoyes, in the white shirt, along with Scott Schaefer, our Kitchener office trustee, Amie and Jennifer from our Kitchener office, Nelly from our tax group, and Ian Martin, our Kitchener office client service specialist). The Hoyes Michalos running team is our way to stay fit, and to stay active in the community. (Our next scheduled event will be the Cambridge Times Rotary Classic in May, 2011). More details are available on our community involvement page.

Second, all of our trustees and staff were hired and trained by Doug Hoyes and Ted Michalos. We believe we have assembled the “A-Team”; caring professionals who know their stuff, and are willing to take the time to explain your options in detail so that you can make an informed decision.

Third, we are one of the largest firms devoted to personal insolvency in Ontario, so we have the skill, expertise and technology to help you deal with your money problems. We are not a “one man band”. If you call our 310-PLAN debt hotline during normal office hours, 99% of the time you will get a live person who can deal with your issue immediately. You will not have to “push 1 for English”, and you will not hear a recorded message that says “please hold while we connect your call.”

Finally, even though we are a large firm with twenty consumer proposal and bankruptcy offices across Ontario, we are not a large, multi-national accounting firm. We handle proposals and bankruptcies for people, and that’s it. We don’t do audits or tax returns for large corporations. We don’t report to a board of directors in New York. We work with debtors and creditors in Ontario, and that’s all we do.

At Hoyes Michalos, we want you to solve your debt problems, but we are not going to try to “sell” you a “one size fits all” solution. A consumer proposal may be the best option; perhaps for you a bankruptcy is necessary; perhaps help with budgeting or a referral to a not for profit credit counsellor will solve your problems. We created this web site to give you the tools to research your options on your own, for free, so please take advantage of our sections on:

• consumer proposals
• personal bankruptcy in Ontario
• help in dealing with debt

Check out our debt options calculator; it takes five seconds to find out the approximate cost of different debt management options.

Then, when you have finished your research, complete our on-line debt evaluation and one of our professionals will e-mail or call you with your options. Or, pick up the phone and call us today at 310-PLAN (that’s 310-7526, no area code required), or send us an e-mail.

We are here to help you, so let’s get started.

Sandra Sykora, Bankruptcy Trustee

First my apologies for any of you trying to reach our offices and not being able to get through. Nothing is more frustrating then getting a busy signal when you need to reach someone. We did get things up and running, at least on a temporary basis later in the day and we were fully functional by Friday morning. Of course there was the catch up that needed to be done.

Second and probably most important, I realized how in the dark I was here in Toronto. Being the proactive type I found it hard not to know what was going on and when and how it would be fixed.  It made me feel very anxious and alone. And it became clear to me that maybe that is how many of you are feeling regarding your debts and money problems.

Most people I meet do not discuss finances with family or friends; you probably feel embarrassed, and keep the issues to yourself. I was only powerless for a couple of hours and found it hard, and cannot imagine feeling like that for a long period of time.

Just knowing your options can empower you (no pun intended) and provide you with at least a plan on how to deal with the various issues and what will happen next. Sometimes it is the not knowing that is the most difficult.

For many of you the starting point is making a list of your debts and then doing up a budget. Your budget let’s you know how much money you have available to deal with your debts.

For some the solution may be personal bankruptcy, but if you seek help earlier on it may be possible to deal with your debts through a consumer proposal. Or it can mean being able to choose between the two options and deciding how you want to deal with your debts instead of your creditors dictating the process.

At Hoyes Michalos & Associates, we would be glad to meet with you to discuss your options and come up with a plan that will work for you and your family. It is really that simple. There is no point wandering around in the dark.  Give us a call today at 310-PLAN (that’s 310-7526, no area code required) or e-mail us to ask a question or to arrange a no-charge initial consultation, and let’s get started.

Scott Schaefer

We receive hundreds of e-mails every day from people experiencing financial hardship. Several of these e-mails ask similar questions so we have decided to provide answers live on the radio at 12 noon on Saturday November 14, 2009.

Scott Schaefer, the bankruptcy trustee responsible for our Kitchener office, and Howard Hayes from our Cambridge office, are going to answer your questions during the hour long Ask the Experts show on AM 570 News.   570 is Waterloo Region’s All News station.

We have created an e-mail address to allow youto send in their questions.  Send us your questions, and will will answer them  live on the Ask the Experts radio show.

Howard Hayes

If you have a question that you want answered, or you think other people would like to have answered, please e-mail us your question today.

If you can’t wait until Saturday, or you want to discuss your situation off air, call us at 310-PLAN (no area code required) or e-mail us today.