Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog

I recently joined Hoyes Michalos, and I work in our London and Sarnia offices. Previous to joining Hoyes Michalos I spent 6 years as a credit counsellor. One theme that comes up again and again in my work is that folks we see are hesitant to call for help.

There is no question that financial distress can be one of the most difficult things to deal with. Money problems are a private issue and it’s hard to tell who to turn to for help.

At Hoyes Michalos our goal is to help you to find the right option for you and your family. People I talk to worry that personal bankruptcy is the only option. Rest assured that when you call us, bankruptcy is the last option we will discuss, not the first.

As a former credit counsellor I’m well qualified to discuss how a debt management plan may be the solution to your problems. Debt management plans are great if you have a limited amount of debt, and the ability to repay your debts in full.

If you can’t repay your debts in full, a consumer proposal may be the perfect option. Like a debt management plan we negotiate a settlement with your creditors, and in most cases a settlement can be reached where you pay less than the full amount owing.

When you call Hoyes Michalos, you will speak with someone who cares about helping you find the right option. We will go over your situation with you, and if you like, we can book you a free consultation to meet face to face and review your options. There is no obligation or cost to this meeting, and you will find us welcoming and non judgmental.

If you are struggling with debt due to job loss, difficult business climate, relationship issues, or any other reason at all, let me invite you to call us. We can be reached toll free at 310-PLAN (that’s 310-7526 – no area code is required). We look forward to helping you build a plan to deal with your debts.

But remember, we can’t help you if you don’t first make the call.

I was interviewed on Sunday March 29 on CBC Television on their CBC News Sunday program. As the recession continues, personal bankruptcy in Canada is increasingly in the news. Bankruptcy rates are up, so the CBC wanted to do a story on how bankruptcy affects the average person that files bankruptcy. I have done many TV and radio interviews over the years, but this was the first time I was interviewed with a person who had actually filed bankruptcy (although not with me), so it was a great chance for people trying to decide what to do to actually here from someone who had gone through the process.

I explained the different options available to someone in financial difficulty, and then the interviewers delved into the psychological aspects of bankruptcy.

I explained that the typical person I meet feels embarrassed and “down” as a result of their financial problems. However, after they understand their options, and decide to take action, they start to feel much better. Once they have made the decision to deal with their debts they feel as though a weight has been lifted from their shoulders, and they start to feel much better. They have a more positive outlook on life, and that positive outlook helps them at work and in their personal relationships.

The solution may be credit counselling, a consumer proposal, or a personal bankruptcy; the point I attempted to make in the interview is that there are options, but it’s up to the person in trouble to take the first step and make the call asking for help.

If you are experiencing financial problems, please call our offices at 310-PLAN (no area code required) or e-mail us today, and let’s get started.

The economy is getting worse. I just met with a car salesman who told me that he is selling fewer cars this year than last. Factory workers are telling me there is no more overtime, and many are now on reduced shifts or layoffs. I even met with a collection agent this week who is in financial trouble because the economy is so bad he can’t even collect on delinquent accounts! What does this mean?

It means you need a plan.

If you have any debt, the worsening economy may mean that your income will be reduced, and it will be harder for you to repay your debt in the future. Ask yourself this question: what will you do if you lose your job tomorrow, or if your hours get cut back? What will you do if the price of gas keeps increasing, and you have less money to make your debt payments?

You need a plan to deal with your debts.

If you still have a job, and if your wages are not yet being garnisheed, you have more options. You may be able to get a second job to increase your income, or you may be able to start cutting expenses to free up cash to pay your debts. You may still qualify for a debt consolidation loan to reduce the interest rate you are paying on your high interest credit card debt. You may be able to file a debt management plan through a not-for-profit credit counsellor who will negotiate a repayment plan with your creditors.

What if the bank won’t give you a debt consolidation loan, or you can’t afford a debt management plan?

Then you should consider a consumer proposal. Give us a call at 310-PLAN and one of our professionals will ask you some simple questions, such as how much money you owe, what you own, and what you take home each month. If you could afford to repay some of your debt, a consumer proposal may be the solution for you. For example, if you have $50,000 in credit card and other debts, we could file a consumer proposal where you pay $400 per month for 50 months, or $20,000 in total. You get an affordable repayment plan, with no interest, and your creditors are happy because at least they get some of their money. Of course the exact amount your creditors will accept will depend on your individual circumstances, but the call to us at 310-PLAN is free, so you have nothing to lose (but your debt) by calling us today.

If you cannot afford a consumer proposal, the final option is personal bankruptcy in Ontario. At Hoyes, Michalos & Associates we consider personal bankruptcy to be a last resort, if all of the other options won’t work for you. However, bankruptcy exists to give you a fresh start, so if that’s what you need, we would be happy to walk you through the process. So what do you need?

You need a plan.

No option is right for everyone, but one of the options discussed above is right for you. You don’t need to suffer through the endless telephone calls and threatening letters. It is possible to get a fresh start, but your fresh start only starts when you make a plan to deal with your debts. Here’s how we can help:

Call us at 310-PLAN. We have professionals available from 8:00 am to 6:00 pm during the week, and from 9:00 am to 1:00 pm on Saturdays. Our 310-PLAN phone number works throughout Ontario, and you don’t even need to dial the area code. Or, take three minutes and complete our free on-line bankruptcy evaluation form. One of our professionals will review your information and e-mail or call you back with a plan for your unique circumstances. Or, just send us an e-mail and we will call or e-mail you back with the answer to your questions, and if you want, we’ll arrange for a no-charge initial consultation at one of our 22 fresh start offices in Ontario.

There is help available, but you need to make a plan to get started.

Earlier this week I received an e-mail from Michelle Miranda, the manager of Credit Counselling at the Family Counselling Centre of Brant, to remind me that today is the launch of the first annual Credit Education Week, which runs from November 13 to November 16. During the launch, the results of a national consumer survey of more than 4,000 Canadians were released, and the survey showed that the majority of Canadians do not have a sufficient understanding of basic personal finance and credit.Michelle and I have discussed credit problems many times over the years, so neither one of us was surprised that the survey found that 55% of Canadians have monthly expenses that exceed their monthly income at lease once a year, and 40% of Canadians do not pay their credit card off in full each month. Full results of the survey can be found at crediteducationweekcanada.com.

Are Michelle and I alone in believing that excessive debt is a problem? To find out, yesterday Scott Schaefer, Ted Michalos and I had lunch with Heather Cudmore, Dave Pearson, and Krista Dobson from the Catholic Family Counselling Centre in Kitchener. We discussed the survey, and they all agreed that Canadians need to take a more active role in managing their money, and taking steps to reduce debt.

If you are carrying more debt than you can handle, all of the credit counsellors I talked to agreed that debt problems do not generally go away on their own, so you should take action now, before your problems get even worse. As described in our article on Debt Management Plans, one option is a debt management plan that typically involves your creditors agreeing to a reduced or zero interest rate, provided you repay them in full over no more than a five year period. For more information, contact Michelle and her team at the Family Counselling Centre of Brant in Brantford at (519) 753-4173, or Heather and her team at Catholic Family Counselling in Kitchener at (519) 743-6333, or use our list to find a credit counsellor in your city.

If you have more debt than you can repay over a five year period, then a consumer proposal or a bankruptcy may be necessary.

Whether it’s a debt management plan, consumer proposal, or bankruptcy, help is available, and the sooner you get help, the sooner the collection calls stop and you can get on with your life. At Hoyes Michalos our initial consultation is always free, so to explore any of these options contact Hoyes Michalos
today.

Norma Yau, our trustee responsible for our London, Sarnia, Strathroy and Goderich offices, shares this success story: