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.

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.

I had two interesting experiences this week that illustrate the different approaches possible when dealing with people, and how making a plan to deal with them is usually the best option.

My first experience was a meeting I had with a debtor and a creditor. Not surprisingly, the creditor was upset because he was owed money. The debtor, due to a failed business and job loss, did not have the money to pay. The creditor thought the debtor had money, so he took him to court and sued him, in an attempt to garnishee his wages. Our meeting was the first time they talked face to face. By the end of the meeting it became apparent that what the creditor wanted most, other than his money, was an explanation of how the problems started. Had the two parties sat down and discussed the problem, the situation would probably have never gone to court, and a suitable resolution might have been possible.

Unfortunately, once a wage garnishment starts, personal bankruptcy is often the result.

My second experience happened yesterday, when I had the pleasure of attending a fundraising luncheon for the Catholic Family Counselling Centre, the only non-profit credit counseling agency operating in Kitchener, Cambridge, and surrounding areas. Also in attendance were financial professionals from other credit counseling agencies, including the Family Counselling Centre of Brant.

The guest speaker was Bill Clinton, the former U.S. president, and he told an interesting story about his dealings with Yassar Arafat and Ariel Sharon in the year 2000, trying to bring peace to the Middle East. He told the story of Ariel Sharon’s proposed visit to a site considered sacred by Arafat’s people. Mr. Sharon made the visit not to upset Mr. Arafat, but rather as a show of strength to members of his own political party, who viewed him as weak.

President Clinton advised Mr. Arafat not to over-react, but instead to meet with Mr. Sharon face to face, peacefully, to work out their differences. For political reasons Mr. Arafat refused to do so, and as a result we sit here today, six years and one Middle East war later, still waiting for peace in the Middle East.

My point is this: we all need a plan, whether it’s to deal with our creditors, or to try to bring peace to the Middle East, and all plans start with dialogue. Without dialogue and a plan, no solutions will be found.

I have no idea how to bring peace to the Middle East, but I do know how to give you peace when dealing with your creditors: start by talking to them. Tell them your situation; tell them how much you can afford to pay them each month, and see if you can work out payment terms with them.

If you can’t reach an agreement with them, get help in your negotiations with a credit counselor in Ontario, or give us a call to talk about helping you negotiate a legal settlement (called a consumer proposal) to deal with your debts.

It is possible to work out a plan to deal with your debts, but it all starts with you. You need to make that first call. We want to help you make a plan, which is why our phone number is 310-PLAN (no area code required), so call us or e-mail us today, and let’s get started.

Filed under credit counselling, consumer proposal, personal bankruptcy, Bill Clinton