Howard Hayes Bankruptcy Cambridge Ontario Blog

How can you survive the holidays and beyond during this economic crisis?

Here are three things to consider when walking around the malls with your Christmas list.

1. Use cash, not credit cards. Use cash for your holiday spending. Credit card interest rates average between 18% and 25%. These rates are astronomically high. This means that an unpaid balance of $2,000 can cost you $4,000 or more to repay. Make paying cash a habit and leave the credit cards home when you hit the malls.

2. Spend Less and think of alternatives. It was reported on CTV news yesterday, many people are in a similar situation this year. Rather than spending excessive amounts on gifts, is this the year to consider gifts you can make; like baby-sitting, offering to do the household chores for mom, fixing Dad’s car?
These are gifts that are appreciated but do not actually cost too much. Discuss the topic with your family and friends. Think of what your mom always told you, it’s the thought that counts.

1. Reduce your debt. If you have credit card debt you are paying interest, greatly increasing the cost of your purchases. Debt also means you’re not calling the shots. The credit card company is now telling you when to pay, and how much. If you have debt, you are not in control. You can take immediate steps to reduce your debt to regain control of your finances.

The best way to avoid financial problems is to prevent them. Email us or call us at 310-PLAN or 519 622 3773 for more information on bankruptcy, budgeting and credit counselling.

Is a consumer proposal still an option to deal with tax debt to CRA if CRA have a lien against your house (but there\’s no equity in the house)?

Yes, however CRA would be under no obligation to remove the lien. When a proposal is filed to your creditors, you receive legal protection that prevents creditors from taking any further legal action against you in an effort to recover the debts you have with them.

If the proposal is accepted by the majority of your creditors (every creditor has one vote for every dollar you owe them), then all creditors are bound by the terms of the proposal.

The lien will likley remain and CRA will be paid from the proceeds of the sale of the property when or if you eventually can sell the property for enough money to be able to pay out all the encumberances against the property.

If filing a consumer proposal or personal bankruptcy can often be the first step toward getting a fresh start with all your debts including CRA. Call me today at 519-622-3773 or sending me an e-mail. I look forward to meeting with you in Cambridge and helping you make your plan for a fresh start!

Some times, when we meet with people during an initial consultation, we often hear questions from people that start with the phrase “My friend told me…”

For example,

“My friend told me my name will go in the local newspaper saying I’m bankrupt”

“My friend told me you get a criminal record if you go bankrupt”

“My friend told me the trustee works for your creditors”

The answer to all of the above questions is ‘not true’. Basically speaking, the trustee does not work for your creditors, you don’t get a criminal record just for filing a bankruptcy and your name only has to be published in a newspaper if the trustee is going to receive more than $15,000 from selling assets you own that are not exempt from the trustee taking.

If you have heard people talking about bankruptcy and you’re not sure about advice you’ve been given – call us - talk to a professional first and get proper, informed, correct advice before deciding for yourself what the correct facts about filing a bankruptcy are.

A lot of people believe that those who need to file bankruptcy are lazy, irresponsible people who have gambled away their earnings. In reality, people who file personal bankruptcies are often average people like you and me who hit some unfortunate circumstances and couldn’t keep up with their finances as a result.

The negative stereotypes associated with bankruptcy make some people afraid to do it or may feel embarrassed in case their friends find out.

If the fear of what may or may not happen, is stopping you from filing a consumer proposal or personal bankruptcy will only make your financial situation worse. You can take the first step toward getting a fresh start by calling me today at 519-622-3773 or sending me an e-mail. I look forward to meeting with you in Cambridge and helping you make your plan for a fresh start!