Howard Hayes Bankruptcy Cambridge Ontario Blog: Howard Hayes Answers Questions about Bankruptcy in Cambridge Ontario

Fines

Question: Do my traffic fines get included in a bankruptcy?

Answer: No, certain debts survive bankruptcy proceedings. For a full list, click here. Debt as a result of a court imposed fine will survive a bankruptcy.

It's not all bad news.

If you have other debts on top of the fines, you may want to consider various options such as credit counselling, consumer proposal or bankruptcy as a way to bring the other debts you have under control and to a manageable re-payment. Once the proposal or bankruptcy is complete and you no longer have other debts to service, you will probably have more disposable cash available which you could use towards repayments on the fines.

If the court has ordered you to make payments on the fine during the bankruptcy proceedings, it may reduce the payments you'll be required to make to the trustee during the bankruptcy. When surplus income is calculated during a bankruptcy, if you're able to prove to the trustee that you've made payments on your fines, the trustee will take this into consideration before calculating your payment required under the surplus income rules in the bankruptcy.

Talk to the court or city too. You may be able to negotiate a payment plan with them that will allow you to make regular repayments back to them. This is often a good way of being proactive if you're unable to repay them in full immediately so that they don't look at suspending your licence for non payment.

If you have fines, penalties to pay, it's important to ensure your budget allows for the repayment of the obligations. If you need help with discussing ways to make a plan to deal with fines and other debts you may have, give our office a call right now at 519 622 3773 or send us an email and lets get started.

Temptations to Spend

January is here once again, it's a new year and a new start for many people. The holiday rush is over, the bills are rolling in, but the temptation to spend is still there.

I was recently walking through the mall and I was amazed at how many retailers are still pushing consumers to spend, spend spend even after the holidays. Take 50% off here, 40% off there, and an additional 20% off if you use your credit card. The savings appear to be too good to pass up.

Everyone loves to "score" a great deal, but when does it become a problem? Here are some warning signs that your spending may be out of control:

Spending over your budget- You may not be able to afford the item, but purchase it anyway.
Compulsive Buying- You go in for a t-shirt and come out with 10, in every colour.
Hiding your purchases- To avoid being criticized by family or friends.
Excessive use of credit -Unable to keep track of spending.
Anxiety after making purchases- Feelings of guilt, or depression after making a purchase.

In any situation it is important to have a budget and a plan before you spend. Completing a budget will help you stay on track while spending. Revert back to the "old days" - you may want to consider using cash; it is often easier to keep track of cash rather than swiping your debit or credit card which can easily lead to over spending.

Identify your needs vs wants. Step back and ask yourself, "Is this an essential item?" Or is it a "splurge"? Asking yourself these questions is a simple yet effective way to control your spending.

If you feel spending has gotten out of control, your credit card bills are too much to handle, and you are facing serious financial hardship contact our office today at 519-622-3773 or send us an email, we talk to you about options such as a Consumer Proposal as a way to consolidate debts you have into one manageable montly payment as an alternative to having to file for Personal Bankruptcy.

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Posted on Tuesday, February 02, 2010

Fines

Posted on Wednesday, January 27, 2010

Temptations to Spend