Howard Hayes Bankruptcy Cambridge Ontario Blog

Fines

2010-02-02T10:24:00.005-05:00

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

2010-01-27T09:23:00.004-05:00

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.

Welcome Danielle

2010-01-21T13:45:00.002-05:00

Doug Hoyes and I are pleased to welcome Danielle Ratford to our Cambridge team. Danielle will be working out of our Cambridge office five days a week and can help you with advice of dealing with debts and options that you have available, such as a Consumer Proposal or a Personal Bankruptcy. As a trained insolvency administrator and counsellor, Danielle can also help you and guide you through a Consumer Proposal or Bankruptcy should you need to file with us.

After taking a business administration course at Conestoga College, Danielle joined Hoyes Michalos & Associates in February 2008 and has been working out of our Head Office in Kitchener working on the administration of bankruptcy estates.

She recently enrolled and passed the National Insolvency Counsellors Qualification course to be a qualified credit counsellor. With counselling knowledge and her experience from working with us for the last 2 years, she'll be happy to answer your questions on any aspects of dealing with debts.

If you have financial worries or are looking for advice on how to get out of debt, call us today for a free consultation on 519 622 3773 and speak to myself or Danielle. We offer advice on many options to get out of debt including budgeting, credit counselling, proposals to creditors and more.

'Til Death (or money) do us part- Does divorce lead to bankruptcy?

2010-01-20T13:20:00.003-05:00

When we talk about the average person who needs to file for bankruptcy, we often say that they are average, hard-working people just like you and me who have run into unfortunate circumstances that have caused serious debt and financial trouble.

Among these common life experiences are illness, death and divorce. But how exactly does divorce lead to bankruptcy?

Take this scenario I came accross in my Cambridge office last week... A couple has two incomes supporting one household. Together, they cover all of the living expenses including mortgage payments, food, utilities, child care costs and car payments. When a divorce happens, suddenly the two incomes are no longer combined.

Now you have two separate people supporting their own homes. The problems get compounded further when children involved who will be visiting both parents, expenses are driven up for both parties as each home will need to be equipped with what the children need including space, furniture, food and computers for homework. The fact that the divorce itself would also create huge costs in terms of legal fees makes it easy to see how divorce leads to financial trouble.

With only one income, the lifestyle the couple was accustomed to when they were together is no longer manageable for each of them separately. When people are struggling to get by on their own, they often begin using credit cards to get by in the short term. It is incredibly easy to create huge credit card debt in a short period of time and eventually need to file for bankruptcy.

When a divorce happens, it is a very difficult time for a family both emotionally and financially. Everyone needs to make adjustments to how they are living if each former-partner is going to get by on their own income.

If you are separated/divorced and are facing serious financial debt, call me today at 519-622-3773 or send me an e-mail. I will be happy to answer any of your questions or arrange an initial consultation to start mapping out your plan to get back on financial track!

Make Money From Christmas

2010-01-07T10:13:00.002-05:00

Does this happen to you? You recieve those gifts at Christmas you don't really want or need.

The old saying of one man's junk is another man's treasure springs to mind. Although it might seem a little ungrateful to consider, but those gifts you get that you know you'll never use could have opportunity written all over them.

Instead of putting them in the cupboard or the basement to collect dust, why not consider selling them online through Ebay, Kajiji, Amazon?

It could be a great way of turning 'stuff' into cash that will help you to pay off your own debts.

This is always a time of year when we start to look back and wonder how much was spent over the holiday period. If you have financial worries or are looking for advice on how to get out of debt, call us today for a free consultation on 519 622 3773. We offer advice on many options to get out of debt including budgeting, credit counselling, proposals to creditors and more.

Holiday Season - Temptation to spend, spend, spend

2009-12-16T11:57:00.003-05:00

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.

CRA and Consumer Proposals...

2009-12-09T11:16:00.002-05:00

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!

My friend told me...

2009-12-01T22:08:00.009-05:00

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!

Ask The Experts - AM 570 Show - Sat 14th

2009-11-14T14:46:00.002-05:00

Today, Scott Schaefer & I were live on Am 570 answering questions on the Ask The Experts show.

Before the show, we invited you to send in your questions regarding Consumer Proposals and Bankruptcy. Over the last two weeks, we've received over 300 questions to Hoyes Michalos & Associates. We reviewed the questions and looked at the most common ones asked. We attempted to answer those questions on the show.

The topics we covered include questions such as

What happens if I file bankruptcy?

Do I lose my house?

Do my student loans get included?

How will a Consumer Proposal or Bankruptcy affect my credit report?"

You can listen to our show by following the following link to the podcast.

If we didn't address a question you have and you'd like to ask us any question, please don't hesitate to ask us by calling 310-PLAN or 519 622 3773 or email me your question.

Ask The Expert show on 570 News - Nov 14th

2009-11-05T09:13:00.002-05:00

On the November 14th for the "Ask the Expert" show on 570 News, I'll be appearing on the show for an hour with my associate Scott Schaefer.

On the show, we are going to focus on answering the most common questions we receive on-line. If you have a question you'd like us to address please email it to asktheexperts@hoyes.com

We'll be covering topics on personal bankruptcy, consumer proposals, credit counselling. Don't be afraid to ask any question, we'll do our best to answer it on the show.

Some questions we've received already include;

Do I lose my house if I file a Consumer Proposal?
If I go bankrupt, how many years will the trustee keep taking my tax refund?
Can the people I owe money to garnishee my baby bonus?

The show will air between 12 and 1pm on Saturday 14th. You'll be able to listen in by tuning your radio to AM 570 or listen on-line by going to the AM 570 website and clicking the "listen live" link.

Stopping a Wage Garnishment

2009-10-08T18:28:00.002-04:00

I've met with two people today in our Cambridge office who are both facing the same problem. The pay cheque the receive is about to be subject to a garnishment order. In Ontario, this means for a consumer debt, 20% of the gross pay will be deducted and sent directly to court for the benefit of the creditor.

It seems that in todays tough economic world, some creditors are reacting a little quicker than perhaps they have in the past to try and recover money owed to them by using legal channels rather than working out a plan together with you.

If you're worried the same thing may happen to you soon, you need to know how to stop it from happening.

The first thing you could try to do is to make a deal with the creditor. You can approach the creditor and ask them if you can work out a payment plan that is more manageable for you. It is worth a try, but unfortunately, the creditors are probably not going to agree to it. If they have gotten a wage garnishment against you already, it probably means you have missed many payments and ignored their phone calls and letters. They will probably not believe that you will pay them just because you say you will.

There are two other options for you that are guaranteed to stop wage garnishments. Filing a consumer proposal or for personal bankruptcy. Both of these are legal processes and the rules say that when you file, creditors must stop the garnishment actions they are taking or have taken against you.

In a consumer proposal, we can help you make a deal with the creditors to pay back some, but not all of what you owe over a period of up to 5 years. In a bankruptcy, the concept is that you give all your assets (that are not protected from a bankruptcy trustee seizing) in exchange for the elimination of your debts. For more information on what assets cannot be lost in a bankruptcy click this link.

If your wages are being garnished and you would like to find out whether filing a consumer proposal or personal bankruptcy would be good options for you, send me an e-mail or call me at 519 622 3773 and I would be happy to review your situation and help you find a plan to get your full wages back.

Backpacks for Bookworms

2009-10-01T09:24:00.003-04:00

This month we're please to announce that we've supported a local charity here in Cambridge. We made a cash donation in support of the Cambridge Self-Help Food Bank's Backpack's for Bookworms program.

Backpack for Bookworms was created by the staff at the Self Help Food Bank when low-income families expressed a difficulty when purchasing school supplies for the upcoming school year. The recent economic downturn has effected every industry including schools. With parents of children going to school watching every cent, it's important to ensure kids still have the opportunities they deserve.

Backpack for Bookworms ensures that families will be able to receive a backpack, school supplies and other essential school items such as a pair of running shoes for gym class.

If you'd like to help support our local charities such as the Cambridge Self Help Food Bank, you can visit their website or call them at 519-622-6550. You can also contact us here at Hoyes Michalos & Associates Inc at 519 622 3773 or 310-PLAN.

New rules regarding vehicles in personal bankruptcy

2009-09-08T22:25:00.005-04:00

Can I keep my car?

When I meet with people in the Cambridge office, this is one of the most common questions people ask when they meet with me when considering filing for personal bankruptcy.

The general concept of bankruptcy is this - you assign (surrender) ownership of your assets to a trustee for the general benefit of the people you owe money to.

When we review your finances and circumstances, we'll let you know what affect bankruptcy will have on all of your assets, including you car. There are some basic rules for whether or not you will lose your car in a bankruptcy.

Under new rules that are being proclaimed into force on Sept 18th 2009, a leasing or financing company will no longer be able to automatically repossess a vehicle based solely on the grounds that you have filed a bankruptcy. They will, however, still have the option to repossess the vehicle if you are behind with your payments to them. Remember, if you are leasing or financing a car, technically, you do not fully own it until you have finished paying for it.

This important new rule, should allow more people the option to decide on keeping the vehicle without having to fear losing the vehicle automatically because they have filed for personal bankruptcy. In general, the finance or lease company wants your money more than the car back so as long as you keep your payments up-to-date, they like to let you keep it.

The Bankruptcy and Insolvency Act and property rules in Ontario state that you may keep a car that you own, if it is worth up to $5,650.

In order to find out if your car meets this requirement, you can take it to a dealer to be appraised. Lots of local dealers in Cambridge will be happy to help you with this.

The value of the car is what somebody would pay for it given its make, condition and mileage. If your car is worth more than the allowed amount, you can still keep it as long as the difference is paid to the bankruptcy estate (to the trustee). So, if you car is worth $6,500, you will need to find a way to pay the trustee $850. ($6,500-$5,650 = $850)

If you would like to find out more about how filing bankruptcy is going to affect your car or any other assets, contact me today by sending an email or calling 519-622-3773.

Meeting with Cambridge Real Estate Agent - Bob Brown

2009-08-12T20:58:00.005-04:00

Doug Hoyes and I last Friday had a meeting with Bob Brown, who, as many of you are already aware, is a Real Estate Agent expert in Cambridge, Ontario.

We asked Bob for his thoughts on the recent economic downturn and how things are looking in today's real estate market?

Bob said he was not surprised to hear from Doug and I reporting on the increasing number of people in the Cambridge area filing for personal bankruptcy and Consumer Proposals. He has witnessed an increasing number of people asking for home valuations on the properties they own as they prepare to either re-finance the mortgage they have to consolidate debts, or to simply try to sell to use the proceeds to clear debts.

On a positive note, he was happy to tell us that the actual number of sales he's seen in his office has risen in the last month or two. His thoughts on the reasons for this was that with the bank of Canada's interest rates being so low lately, that this is encouraging a lot of people to try and either get into the market if they are a first time buyer or to upgrade to a larger property with a better new mortgage deal.

We agreed on the opinion that it may be some time yet though before we see a sustained and consistent growth from the market.

If you are thinking of selling your home or need advise on real estate matters in Cambridge, Bob or one of his associates at Team Brown would be happy to talk with you. You can contact his office through the website or by calling (519) 658 1396.

Contact us here at Hoyes Michalos & Associates at 310-PLAN if you wish to discuss your debt situation. We can help people in different situations, whether you're unable to release equity in your home by refinancing to clear up your debts, or if you cannot afford your current mortgage payments and are worried about the sliding value of real estate, we can work out a plan together.

Economic Slide

2009-07-06T15:47:00.005-04:00

More and more people are finding debt relief through Consumer Proposals or Personal Bankruptcy. Hoyes Michalos & Associates reported a record number of people filing proposals and bankruptcies for the company in June 2009. This is on the back of two consecutive record months here in our Cambridge office in April and May.

Some of the local real estate agents I've talked to recently have said the rate of home foreclosures has not slowed since the fall of last year and property values in the Cambridge area continue to slide.

Equifax have just released new figures last week highlighting a record increase in the number of accounts they report as being 90 days late. This is often a sign that as pressure to service debt loads mounts, people either prioritise whatever cash they do have to making sure secured loans, such as a mortgage or car loan get paid first, before the credit cards. After paying secured loans, if no money is left over, then the credit card gets left behind.

The amount of people claiming EI benefits is contributing to a backlog of claims with Service Canada. We've also had a lot of comments from people we've met this last month saying that the applications they've submitted in April for employment insurance claims, have not yet been processed and here we are in July.

The theme of this blog, in light of all the depressing news, is to have a plan B. If you were to be laid off tomorrow, or if you broke you leg and could not work, or if some other unforeseen event interrupted your cash flow, would you have a plan B in place?

Our article on hoyes.com has lots of good advice to help take steps to either prepare or get through.

We're also here to talk to you. If you already have debt you can't service, and cutting expenses won't help? You need professional advice, so e-mail us or give our debt help line a call at 310-PLAN and ask us whether a consumer proposal or a personal bankruptcy is necessary to deal with your debts.

Twitter

2009-06-29T15:50:00.004-04:00

To help the Cambridge area residents experiencing financial difficulties, I will be posting some musings on Twitter as well as regular contributions to this blog.

I can answer bankruptcy and other debt management related questions. So, if you have bankruptcy questions submit them anonymously to this Blog or, if you prefer a confidential and direct answer, email them to me or our Cambridge bankruptcy trustees.

You can now follow my thoughts on personal bankruptcy via my Twitter page at https://twitter.com/howardmhayes

Also, we are open for consultations: call our Cambridge office today to arrange for your initial consultation at no charge at 519 622 3773 or 310-PLAN.

How to be prepared for your first meeting with a trustee

2009-05-27T14:12:00.005-04:00

Meeting with a bankruptcy trustee for the first time is a new experience which makes a lot of people really nervous. You may be wondering what to expect. What are you going to be asked? Is there anything I should ask? What should I bring with me? There really is nothing to worry about when you first meet with us and we will be happy to answer any questions you think of during the process of filing your bankruptcy or consumer proposal.

I met with a lady yesterday that came to us after talking to an unlicensed "counsellor" from a debt settlement company. She said she did not call us initially because she had heard on the radio and on newspaper ads that "a trustee works for your creditors". Assuming that to be true, she thought she'd look elsewhere for help with her debts. I was happy to advise her that the statement she heard is very misleading. A trustee does not work for your creditors, nor is a trustee paid by creditors. A trustee is licenced by the government and appointed to ensure bankruptcy and proposal proceedings are followed by the rules.

There are a few things you need to have prepared before you come to our first meeting. We are going to need to know exactly what you owe, to whom and how much. The best thing to do is to bring in the most recent statements you have from your creditors. We will also need to know about your assets- what you own and how much they are worth. Finally, we will be using your monthly budget to determine what your best option is so you should have that prepared when you come. A simple list of your income and expenses will do. If you are planning to keep any assets such as your house or car, include these payments in the budget.

Having all of these things prepared will make our first meeting go smoothly and will make the process of planning your fresh start as efficient as possible.

If you have done your part by being prepared, it is also important to know that the trustee will do his or her part too. When you leave the office after your first meeting you should have a full understanding of your options, what effect they will have on your situation and which one is best for you. After we've explained all your options to you, including both a consumer proposal and personal bankruptcy, we can also give a recommendation as to which one would be best for you and why - In fact, we're often able to find a solution for around half of the people that contact us that avoids having to file a proposal or a bankruptcy.

If we have explained it well enough, you should agree. If there is anything you do not understand or are unsure about, do not hesitate to ask. We understand that the decision to file bankruptcy or a proposal is an important one and you want to ensure you are doing the right thing.

If you would like to book your first meeting with myself or if you have already and have any concerns about what you need to bring, send me an email or call me at 519-622-3773 and I will be happy to answer any questions you may have or book an appointment with you. Using all of the information you give us, I am confident that I will be able to help you find the best plan to get you back on top of your finances!

What about tax debt? Is there any way to get rid of it?

2009-04-06T17:16:00.003-04:00

There are a lot of ways that people can end up in financial trouble and one is when they are charged more taxes than they expect and don't have the money available to pay them. This happens for lots of reasons.

The main thing to remember at this time of year - is to file your taxes. CRA will be more willing to work with you on paying arrears if you are up to date with your returns.

Sometimes, pensions are not taxed at the source and so the government comes to the person later asking for money. People who are self-employed or working multiple jobs also often get charged more taxes than they anticipate. Unfortunately, when people cash out their RRSPs (possibly to pay-off other debts), they are then required to pay tax on that money. It is easy to see how many people can wind up in debt with the Canada Revenue Agency (CRA).

A common misconception that people have is that the Canada Revenue Agency is special and that there is no way to solve debt problems with them. In reality, the only thing special about the CRA is that it has more power than other creditors. While other creditors may call you or garnish your wages, the CRA can do these things and also withhold any government benefits (income tax returns, child tax benefits) until you pay the money you owe them.

Many people I speak with are surprised to learn that in the case of a personal bankruptcy or a consumer proposal, the CRA is treated just like any other creditor. So, the consumer proposal is legally binding on them if the majority of creditors agree and in the case of bankruptcy, tax debts are wiped clean when you file.

By filing your taxes on time each year, at least we ten have a clear understanding of the problems you face with how much you owe to CRA and we can then give you options to deal with those debts accordingly.

If you have many debts including tax debt and you would like to find a way to get rid of them, I would be happy to help. Call 519-622-3773 or send me an e-mail and I would be happy to discuss your options of filing a consumer proposal or personal bankruptcy. Together, we can find the best plan for you to get rid of your tax debt and have a fresh start!

Mortgage After Bankruptcy and Proposals

2009-02-26T14:07:00.004-05:00

I met with Karen Monteiro from the Mortgage Alliance at Melvilles Cafe last Friday in Cambridge, Ontario for a coffee; and one of the questions I put to her was one that we get asked frequently here at Hoyes, Michalos & Associates.

Will I qualify for a mortgage in the future if I file for a personal bankruptcy or a Consumer Proposal now?

It is something that is far from impossible but does take some work and patience to achieve. After chatting with Karen, the kind of information she was able to tell me was that each lender is different of course with their own set of qualification criteria, however, if you've filed for a bankruptcy or have filed a consumer proposal in the past, here is what a typical lender might look for:

You have been discharged (your bankruptcy/proposal ended) for a period of around 2 to 3 years minimum.
You have saved up for a down payment of at least 5% that came from your own savings (ie, you did not have to borrow from someone else or used a gift)
You have re-established good credit on two new trade credit accounts with a period of 2 years payments that have been made on time. (No glitches or late payments).
You have started further savings, perhaps into an RRSP.
You make a joint application with someone who has not filed insolvency proceedings

Karen also mentioned that as usual, it all depends on your individual circumstances and the market/lending conditions at the time you apply, but as a good starting point, its helps to know what a lender might be looking for. Its reassuring to know that lenders are willing to keep the door open and that their is life after bankruptcy.

If your goal is to have your own home in the future but don't know where to start, give Karen a call at 519 624 9222 and she'd be happy to help.

If you feel your current debt load is preventing you from starting on your way to saving for a down payment or establishing a good credit score then give our office a call at 519 622 3773 or send me an email and we can talk about solutions that will help to get you started on the path to achieving your goals.

2009-02-10T13:33:00.005-05:00

Today, Doug Hoyes and myself delivered a presentation to mortgage brokers from around the around the local Cambridge area.

We were invited to speak at the presentation by David Gyurits from the Mortgage Allicance and Interglobe. David's Interglobe Financial Services company helps people to build financial security and independence. The Interglobe website has many interesting articles ranging from topics from dealing with debt, tax and investment advice along with on products such as RRSP's and Life Insurance. Visit the website at totalqualityfinancial.

Some of the mortgage brokers we met from the area such as Karen Monteiro, Madelia Almeida and Dale Dyer were telling us that have noticed an increase in the number of people calling them concerned about the falling house prices in the Cambridge area and people asking for advice on re-financing their homes.

With mortgage lenders and banks tightening the requirements people need to meet in order to be able to borrow money against property they own, its important that you understand all your options when considering a financial strategy for you and your family.

If you're looking to re-finance your mortgage and you have debts you need to bring under control, it's important to look into all your options before making a decision on how to deal with the debts.

Here at Hoyes, Michalos & Associates, we're firmly of this belief and we'll often suggest to help clear up your debts with honest impartial advice. For example, even in light of today's falling house prices, if you have some equity in your home that has built up over the years and you want to look at borrowing money against the property you own, to put towards credit card/credit lines, maybe contacting a mortgage broker is the right step for you to take first.

If a mortgage broker is unable to help you secure the financing you need, you still have options that we provide here at Hoyes, Michalos & Associates, here in Cambridge such as a Consumer Proposal or even personal bankruptcy. A Consumer Proposal would be a logical option to consider if you have equity in your home and are afraid you'd lose it if you filed for Bankruptcy. A Consumer Proposal would allow you to keep the equity in your home, whilst at the same time paying down you unsecured debts at a rate that is more manageable for you to handle.

Please contact us for more information, and to determine if a proposal is the correct option for you.

Holiday debts again... Can I file for bankruptcy more than once?

2009-01-15T18:58:00.003-05:00

You have filed for bankruptcy once before and hoped that by using the skills you learned in your two credit counselling sessions, you would not find yourself in financial trouble again. Then something happened. Unexpected life circumstances often lead people to fall behind in their monthly payments and for someone who has had debt problems in the past, they are incredibly disappointed to find themselves in this situation again and may think that this time, there is nothing they can do because they have filed bankruptcy already.

In our corner of Ontario, one problem many local people here in Cambridge are facing are lay-offs from work. Both permanent or temporary. An unexpected event like this can catch many people unaware, especially at a time like the recent holiday season when we are more susceptible to the lure of using credit to make purchases for gifts to friends and family. Even having been through a previous bankruptcy, something as drastic as being laid off from work can put you right back into the thick of financial problems again.

It is absolutely possible to file bankruptcy more than once as long as your previous bankruptcy was discharged. If you did everything you were supposed to, handing in your monthly statements and expense reports and attending your two credit counselling sessions then there should not be a problem. When you arrange for your first meeting with the trustee, they will make sure that you have no outstanding filings that have not been discharged.

Although it is possible to file bankruptcy numerous times, the process gets more and more difficult. In your first bankruptcy, you were probably eligible for an automatic discharge which meant that after nine months, as long as you fulfilled your duties, your bankruptcy was over. For your second, third or fourth bankruptcy, you will no longer be eligible for automatic discharge and instead, will need to appear in court and they will decide what the conditions of the discharge will be.

You will be asked questions about the circumstances leading up to each bankruptcy and the amount of time between them and then will decide if you will have to wait a longer period of time or make some more payments in order for you to be discharged.

When you go bankrupt a second time, it will stay on your credit report for fourteen years instead of the seven your first bankruptcy did. For this reason and others, you might want to consider whether you can afford to file a consumer proposal instead.

If you are having debt trouble again and would like to find out more about your options, give me a call at 519-622-3773 or send me an e-mail and I can set up a meeting for an initial consultation at my office in Cambridge.

Do I really need to make a budget for the holiday season?

2008-12-02T11:32:00.004-05:00

So many people have a very hard time making and sticking to a budget.

Sometimes, it's because they don't know how to start or maybe we would rather spend our time with the kids or sitting by the tv rather than punching numbers into a calculator.

The key to motivating yourself to do anything is to look at the potential benefits of doing so. Making a budget really is one of the most important activities you could do and its usually something we all start to think of more around this time of the year.

A budget is basically a list of your income and your expenses. It is a way for you to ensure that you know where all of your money is going and to help you save enough to meet your financial goals. A budget is the foundation of any financial plan. Your plan could involve long term plans such as saving for your childs education or something more short term, such as how do I get through the holidays?

There are a number of good things that can come out of making your budget. First of all, if you involve your partner and family members, it will bring up important conversations about values, priorities and everyone will feel a sense of responsibility toward the family's finances. When you look over your budget, you will be able to determine whether you are spending more than you make. If this is the case, you need to figure out areas where you can cut-back in order to avoid getting into serious financial trouble. At this time of year, one way to avoid the temptation of going over your budget would be to make a determined effort to leave the credit cards at home when going on a shopping trip.

The people who I see in the Cambridge office are unable to service their debts because they do not have enough money left over after covering other expenses. I use their budget to determine whether they are a candidate for a consumer proposal or personal bankruptcy and which of these would be best to get them out of financial trouble.

It is sometimes the case that people simply lack the budgeting skills necessary to stay on top of their finances. When you file bankruptcy, you are required to take part in two credit counselling sessions where you will learn the necessary skills to fix your budget so that hopefully, you will not get into financial trouble again. If you have realized that you are spending more than you make and cannot service your debts, call me at 519-622-3773 or send me an e-mail. Together, we can look over your financial situation and find a way for you to get a fresh start free from debt.

Why settle for less? What are the chances my creditors will actually accept my consumer proposal?

2008-11-07T15:17:00.003-05:00

Often when I tell people about consumer proposals; that they can offer to pay their creditors only part of their debt, they are very skeptical. It seems too good to be true that just by paying what you can afford over a period of time, your debts will be erased. People often wonder, why would my creditors go for this? Especially if they have spent a lot of time harassing you with collection calls and perhaps even garnishing your wages. It seems the creditors would stop at nothing to get the money you owe, why would they now agree to take any less?

A well-designed proposal administered by a licensed bankruptcy trustee ensures that it is fair for both the debtor and the creditors. The fact is, creditors know when you are in financial trouble because you are not making your payments to them and when you approach them with a proposal they know that if they don’t accept it, you will probably need to file bankruptcy.

A consumer proposal offers the creditors more money than they would receive if you filed bankruptcy. So for them, it does not make good financial or common sense to refuse the proposal because they will end up getting far less money when you are forced to go bankrupt.

When you file a proposal here in Cambridge with a trustee from Hoyes, Michalos & Associates, we will make sure that you can afford it but that it is also fair and resonable to both you and the creditors. If the proposal is well-designed, the chances of the creditors accepting it are very high. The creditors do not want you to go bankrupt anymore than you want to.

A bankruptcy trustee can help you figure out what you can afford to give your creditors and if a proposal would be a good option for you. If you would like to set up a free-of-charge initial consultation to learn more about consumer proposals, please call the Cambridge office today at 519-622-3773 or send us an e-mail. We look forward to meeting with you!

If I go bankrupt, will my spouse also have to go bankrupt?

2008-10-30T13:24:00.003-04:00

This is one of the most common questions I come accross here in our Cambridge office when somebody is considering filing a bankruptcy. People seem to think that because you are married, you must go bankrupt together. However, whether or not your spouse will need to file bankruptcy with you depends on your individual situation.

In general, when you get married whatever debts you had to your name remain yours and yours only, so if you file bankruptcy in order to have them cleared it will have no effect on your spouse.
In the event that your spouse has co-signed or guaranteed any of your debts or if they hold a supplementary credit card on your account, they may need to file for bankruptcy also.

When the creditors find that they are unable to get the money you owe to them from you, they will go to your spouse to get if their name is also on the debt. If your spouse cannot make the payments either, then they too will have to look at options to deal with the debt including filing for personal bankruptcy.

Be careful for credit card companies that say supplementary card holders are responsible only for the charges that they put on the card. It is often too difficult for them to tell who made what charges and so they will try to make your spouse pay the entire amount.

If neither you nor your spouse can make the payments on debts which have both your names on them, you may need to file a joint bankruptcy. If you would like to learn more about filing a joint bankruptcy or would like information on alternatives to bankruptcy such as a consumer proposal or credit counselling and if you are unsure whether your spouse is going to be affected by your debt troubles, call me today at 519-622-3773 or send an email and I will be happy to answer any of your questions.

Living in Cambridge and surviving the global economic crisis

2008-10-06T16:40:00.005-04:00

The past few months have been one of increased turmoil in the financial markets.
As each day passes we continue to read reports and see on the news and Internet, changing developments in the world markets.
In the United States, it seems every week we are hearing about one financial institution after another filing bankruptcy proceedings, being nationalized or being taken over. The latest of these was Washington Mutual, one of America's biggest mortgage lenders which had assets valued at over $300bn. It was sold to rival JP Morgan Chase for $1.9bn.

What does this all mean for me in Cambridge?

If you're currently investing in the stock markets around the world, you'll be seeing the value of your investments tumble as uncertainty around the world is leading to sale after sale of shares.

Even if you're not investing in the stock markets, the effects that today's problems will cause might not be immediate but will be felt over the coming months/years as leading Canadian economists are predicting we may be heading for a recession. Even if Canada escapes the worst of the worlds economic problems, our biggest trading partner, the United States likely won't. So therefore if people in America are not buying Canadian products, then Canadian companies won't be selling. If they are not selling, they don't need as may staff members and layoffs may be imminent. The more Canadians that then get laid off will result in more local business suffering as Canadians tighten their purse strings.

Another impact on Canada could result from the credit freeze the banks have imposed on each other. Again local business that used to rely on a $100,000 credit line from their friendly bank might be surprised later this year or next year when the banks cut or reduce credit facilities to companies. If the business cannot borrow money to buy products, and no products are in the stores to sell... again, more potential for layoffs or closures.

I don't know if it was coincidence or not but I was walking around the Cambridge mall last Saturday and noticed at least three stores had closing down sale signs in the windows.

One other area for concern would be if the banks decide to lower personal credit limits. If you have a $10,000 credit line, the banks (as they have the right to increase your credit limit) have rights in some situations to cut the limit to say $8000. If this happens to you, is the balance on your credit line less than the new limit of $8000? If not, can you afford to pay the extra interest the bank will likely charge you for now being over your new limit?

Eliminating debt worries by filing a consumer proposal or personal bankruptcy might be a way to regain some control over your finances as well as having a plan to help prepare for potential 'worse case' scenarios.

If you are worried about how these uncertain times might be effecting you now or in the future, get professional advice and call us here at Hoyes, Michalos & Associates. On thing we can all count on in these uncertain times is the need to be prepared and the need to have a plan.
Call me at 519 622 3773 or email me with your questions