Howard Hayes - Client Services - Hoyes Michalos & Associates Inc

It’s the time of year again that children look forward to the most – back to school.  

This also means it’s a time of year that a parents wallet can get hit hard.  The cost of putting a child through a school year seems to rise every year. 

MoneyProblems.ca has recently run a 5 part series of blogs with helpful advice on money saving tips related to sending kids back to school.

Make a List:Plan for what you’ll need to purchase and where you can get your supplies from.  Ask the children and have them involved in the process by having them look in the local store flyers for the best deals.

Shop at Home: From your list, see what you already have that could be used again. Perhaps your eldest child may have finished with something that could be handed down to a younger child. Especially with simple things like, pens, pencils text books.

Make a Budget: Before you hit the stores, have a clear idea in your mind of what you’d like to buy and how much it will cost.  Keep the children involved. Set yourself a realistic budget and explain to the children why a budget is important to stick to and helps them to learn where to prioritize where the money in a budget is best spent.

Don’t Buy Everything All At Once: Some back to school supplies you may not need to buy.  Once your child gets in school, you may realize that some items are indeed supplied by the school and it may not also be immediately apparent what your child actually needs for the particular course they’re going to be taking.

Try shopping on-line:If you have a big purchase in mind such as a new lap top, the internet is a great tool for quickly being able to research the best deals.  Save the time, energy and cost of trawling around all the big stores by looking up the latest deals on the internet first.  You’ll quickly be able to see which stores have the items you want at the price in your budget before leaving your home.

If you’re heading out this weekend with the children to get some back to school supplies, clothing, electronics, try leaving the credit cards at home before you go too.  It’s a great way to force yourself and your children to stick to your list and your budget and not be tempted to add a few more things to the shopping cart you didn’t originally intend to buy.

If you’re looking for further budgeting advice or if you’d like to talk to myself about options available to deal with debts and debt repayment options such as a Consumer Proposal, call our office today or 310-PLAN or email me your questions.

Howard Hayes - Client Services - Hoyes Michalos & Associates Inc

I met with a gentleman this morning in our Cambridge office that was looking for ways to solve his debt problems that were largely caused as a result of his previous employer having to lay him off during the economic downturn of 2009.  He claimed employment insurance benefits whilst laid off which allowed him to at least be able to pay his rent and feed his family, but he had nothing left over at the end of the month for his ever increasing credit card debt.

He had just found out earlier this week that he had been offered a job at a machining plant in Cambridge and he’d be guaranteed full time hours.  This was great news for him and he’s excited to be returning to finally be returning to work after a 9 month layoff.  However with his credit cards going to collection agents for unpaid balances, he’s left unable to meet their demands of full payments on the accounts and came to us for help. 

He does not want to file for personal bankruptcy and now that he has a full time job he wants to pay back the money he owed on his credit cards as he is worried that now he is working again, if the collection agents found out where he was going to be working that they could contact him there or even worse, garnishee his pay if he did not pay them back soon. 

He’d like to offer to pay back as much of his debt as he can reasonably afford over a period of time and as he’s struggling to negotiate with the collection agents himself,  we discussed how a Consumer Proposal works and what terms he could realistically afford and he decided it would be the perfect solution for his debt situation.

After he left the office, this prompted me to look up some statistics as his story is one we’re coming across more frequently here in our Cambridge office.   

The latest statistics provided by the Office of Superintendent of Bankruptcy show a decline in the number of Personal Bankruptcies being filed in Cambridge, Ontario.

Howard Hayes

Insolvency Filings in Cambridge during the first 6 months of 2010:

144  Consumer Proposals

108  Personal Bankruptcies

352  in total

In the first 6 months of 2009, the total number was over 400.

A decline in the number of people filing personal bankruptcies in Cambridge is good news for the city and its residents.   Most indications are that the economy is starting to show signs of recovery in 2010 when compared to downturn of 2008 and 2009.    

The obvious sign here is that more people are returning to work and as a result are finding ways to deal with debts they have without having to turn towards a bankruptcy or proposal.

To further demonstrate this, of those people filing a bankruptcy or consumer proposal in 2009, 31% filed a consumer proposal. In 2010, the number has jumped to 41%.  This is a clear sign that more people prefer to opt for a proposal where you’re able to negotiate a settlement with creditors to have your debts paid over a period of time at an affordable rate. 

Like the story of the gentleman above, the numbers confirm that he is not alone. 

Here at Hoyes Michalos & Associates Inc in Cambridge we’re happy to meet with you at one of our ‘no charge’ consultations or we can talk on the phone if you prefer.  We’d be happy to talk with you about all your available options that you have to deal with your debts such as the Consumer Proposal the gentleman in our story above will file.  The local number for our office is (519) 622 3773, or send me an email with your questions and I’ll respond personally to you.

Howard Hayes

But what happens if payments to your provider get behind?  Can Cell Phone Bills be included in Bankruptcies & Consumer Proposals?

This question is one of the most common questions that we come across from people we meet with in our Cambridge Office.

The simple answer is yes.  However, you must be willing to cease usage of the service prior to filing the Bankruptcy or Consumer Proposal.   If you continue to use the service after filing a Consumer Proposal or a Bankruptcy or make a payment to the provider after the date of filing, you will then re-confirm your contact with the provider and they will continue to hold you responsible for the debt.  

Some companies that provide cell phone services may also cancel other ‘bundled’ services you have with them such as Internet, Cable.  A bundled account is typically one account; therefore if you include one service from the bundle into a Bankruptcy or a Consumer Proposal, they may exercise the right to cancel all your bundled services on that account.

Additionally, if you have a cell phone that is currently in good standing, but you get behind during the course of a Bankruptcy or Consumer Proposal, you will be unable to include this debt in the proceedings at a later stage.  

When you meet with one of our professional staff here at Hoyes Michalos & Associates, we’ll review your monthly budget with you before you file a Bankruptcy or a Consumer Proposal to help you make the decision as to whether or not continuing with a service such as a cell phone contract is feasible.  It’s often the case that if you bring your debts under control through filing a Consumer Proposal or Bankruptcy that this will free up money within your budget to allow you to continue with a cell phone service as normal.  You may also consider even needing a landline – perhaps just having a cell phone negates the need to have two different numbers to be available on.

If these are decisions you may be facing or if you’re seeking help with budgeting and dealing with debts, then send me an email or give our office a call at (519) 622 3773 or 310-PLAN and let’s get started.

Howard Hayes

Here at, Hoyes, Michalos & Associates Inc., have advised clients in Cambridge from our Cambridge bankruptcy office since 1999.

With offices in Cambridge, Kitchener, Guelph, as well as other cities in Ontario, the team here at Hoyes, Michalos & Associates Inc. has a wide range of experience, and can meet clients in Cambridge or many surrounding communities.

Cambridge clients are unique, and have different issues than residents of other cities.

For example, housing costs in Cambridge tend to be lower than in Hamilton, Mississauga, or Toronto. However, with no direct commuter link to the city of Toronto, many Cambridge residents who work in Toronto, Hamilton, or Mississauga, thend to find that their lower housing costs are partially offset by increased gas and other transportation costs.

Cambridge is also home to large automotive manufacturers and other industries. These employers create jobs, but we still deal with many clients that have gotten behind on their payments and need help.  When the automotive industry is hit hard like in 2008/9, a lot of industry in the Cambridge area suffers too as a result.

Regardless of your situation, we are here to help work out a solution that’s right for you and your family, so send us an email or give us a call at 310-PLAN, and let’s get started.

Howard Hayes

A lot of people think that if they simply ignore all the calls for a while, they will eventually stop.  Unfortunately, the complete opposite can happen.  In fact with modern day technology, most collection agents now use computerized auto dialers that keep calling at set times of the day until someone in the house picks up.

I would never advise someone to ignore calls from creditors.  Not only will they not stop, but the creditors will just try harder.  They might call more often, or find different numbers to call you on such as friends/family/employer.  They’ll also send threatening notices in the mail.  Eventually, they will go to court and attempt to get a wage garnishment against you.  For a consumer debt, that means your employer must give up to 20% of your gross pay to the creditor.   Obviously, a wage garnishment is much worse than some pesky phone calls and you want to avoid this happening.

Ignoring collection calls will only make your problem worse.  The only way you can get them to stop is by one of these three options.

1. Finding some way to pay at least some of the money you owe.  You might try to make a deal with them to pay your debts in a way you can afford.
2. You can file a Consumer Proposal with a licensed trustee, or
3. File for Personal Bankruptcy which, like a Consumer Proposal will legally force them to stop all actions against you. 

If you would like to discuss any of these options for getting your creditors to stop calling, I would be happy to speak with you.  Call 519-622-3773 or send me an e-mail and we can make it possible for you to pick up the phone without fear!

Danielle Ratford - Client Service Specialist - Hoyes Michalos & Associates Inc

With the summer months fast approaching us I thought it would be useful to share some money saving tips to help cool off spending in the heat of the summer.

Here are my top 5 tips:

Turn down the Air Conditioning- Some days can be sweltering during our Canadian summers, but you can take advantage of our cool nights. Open your windows and let the cool air in. It’s good to breath in the fresh air and good on your wallet. Less Air conditioning means less energy which equals more money in your pocket.

Keep your summer holidays local- Everyone needs some form of get away to unwind and enjoy time with family and friends especially during the warm months. Check your local newspapers and blogs to scope out free events in your area. There is practically something going on every weekend in the summer, from Music Festivals in local parks, to out door movies at City Hall. Most of these events are offered for free or at a small fee, these events are local and support your community. Click here for more information

Walk, Bike, Rollerblade to work- In the summer month’s gas prices often peak. If you live close enough to your place of employment, why not consider leaving the car at home on nice days and walk to work. You will save on gas, and get some exercise at the same time. If you do this a couple times a week, you will be amazed at the savings this can generate. Our Region is participating in the 11th Annual commuter challenge, which challenges all of us to consider a more eco friendly to travel. For more information on how to get started check out the link below.

Hang your clothes outside to dry-Instead of using the clothes dryer to dry your clothes, hang them out to dry on warm days. You can purchase a clothes line from your local hardware store which are relatively inexpensive. Using clothes lines to dry your clothes will again cut down on the energy you use and are friendly for the environment.

Create a summer budget- Summer time is often one of the busiest times of year for some people. It is important to create a budget to achieve as much as possible during the summer without causing a strain financially. Set up a budget for all areas, but include summer specific categories examples of areas to consider could be vacation or day trips and parties. It is important to create a realistic budget and stay within it.

If you finding yourself in a position where you cannot stay within your budget and  are stretching beyond your means each month and you are considering your options or need guidance with your financial situation, feel free to give at 519-622-3773 or send us an email to discuss your options.

The Hoyes Michalos Rotary Run Team

As proud sponsor and supporter of the event, Hoyes Michalos & Associates Inc  Cambridge Office entered a team this year.

Although it’s not about where you finish, we’d not do this blog justice if we failed to mention that Adam and Scott from our Kitchener Office both won medals in their respective age categories and that Hoyes Michalos won the overall team event.

The Cambridge Times reports that this years Rotary Run will also feature special guest Walter Gretzky.

Walter Gretzky

If you’ve not already registered, it’s not too late to join.  The registration fees for each race is $20 and $25 respectively.

Doug Hoyes

Scott Schaefer

Our Cambridge Office Trustee, Doug Hoyes will be running this year along with other members of the team here at Hoyes Michalos & Associates. 

Normally, collection agents are hired to collect on a debt when the person you owe to realizes that you’ve not been making the monthly payments on debts.

The collection agent usually has one thing in mind – keep calling, calling, calling until the account is collected.  It can get so bad for the person who owes the money as every time the phone rings they never know if it will be someone asking for money that they simply do not have.  If this sounds like you, you may be wondering how you can stop these annoying calls?

Here’s some idea’s:

Howard Hayes

Firstly, you can try to make a deal with the creditor that you will pay-off what you owe them in a way you can afford.  This is for people who think they can pay back the entire debt but just can’t make the monthly payments that are being asked.  If they are able to make smaller monthly payments over a longer period of time, they could eventually pay back everything they owe.  Sometimes, creditors will agree to this. 

You could also try to make a lump sum deal with the collection agent themselves.  Collection agents are paid by commission based on how much money they get so, if you offer them a lump sum of what you can afford, even if it is not the full amount they might go for it since it means they will get commission right away rather than having to wait many months for it.

File a Consumer Proposal. By offering a Consumer Proposal that is filed through the office of a licenced trustee, you’ll be legally protected from collection agents calling you trying to collect on the accounts.  As soon as the collection agent is made aware of the filing of the proposal (usually within 2 to 5 days of filing) they have to cease their efforts in trying to collect.

File personal bankruptcy.  This will guarantee that these collection calls are stopped.  When you file for personal bankruptcy, all of your unsecured debts are cleared.  As with the consumer proposal above, upon filing a bankruptcy, a ‘stay of proceedings’ is sent to the creditors telling them to stop all the actions they have taken against you, including collection calls.  A stay of proceedings is federal law under the authority of the Bankruptcy & Insolvency Act, so you will have peace of mind when your phone rings knowing that it is a friendly call and not someone demanding cash.

If you would like to learn more about how to stop collection calls, send me an e-mail or call me at 519-622-3773 and I would be happy to answer any of your questions and review all of your options with you. 

Other useful ideas along with an explanation of your rights are explained in more detail in books such as “The Wolf At The Door”, written by expert and previous collection lawyer Mark Silverthorn.  Click here for more information on how to obtain your copy.

However counselling services are also offered outside the scope of a Bankruptcy or Consumer Proposal.

Danielle Ratford & Glyn Bickford

Friday I sat down with Glyn Bickford a credit counsellor from Credit and Debt Services, who performs counselling for people from Cambridge who are experiencing financial difficulty.   I took this opportunity to ask her some questions related to her services and the benefits of credit counselling. Here are some highlights from our discussion.

Q: Should I meet with a credit counsellor before I meet with a Trustee In Bankruptcy?

A:  Sometimes clients will come in to see a credit counsellor before meeting with a trustee because they feel intimidated by the process, by meeting with a counsellor we can assist them and guide them in the appropriate direction for their situation. We are able to help initiate the process should they decide to file a Bankruptcy or Consumer Proposal and work closely with the trustee.

Q:  What do you feel is the biggest misconception about credit counselling?

A: Often times, people I meet with feel as if they are going to be judged with regards to the current situation they are in and can sometimes be defensive because of it. A credit counsellor is not there to judge, rather they are there to help and make the client feel comfortable discussing their situation. Also, sometimes people assume that the counselling session will take place in a group setting, which is not the case, all our sessions are completed in a one on one format.

Q: What would you say is the biggest benefit of credit counselling? 

A: Budget management is an important topic that we discuss; a budget is the foundation of financial management. Sometimes I will meet with clients who have no experience with creating a good budget, and they find this to be an extremely helpful and valuable tool.   When I meet with people during a Consumer Proposal or Bankruptcy, the service is provided at no cost to the client, so its a good opportunity to get professional advice for free.

Q: What are some topics I can expect to discuss during a session?

A: First and foremost budgeting, we will also discuss the causes of your current financial situation, and warning sings of financial difficulties going forward. We discuss what percentage of your income should be designated for certain expenses such as debt repayment, as well as ways to re-establish credit. 

Set up a meeting today with a professional that can help you.

Q: How can a credit counsellor help someone through a Bankruptcy or Consumer Proposal?

A:  Credit counsellors can help individuals through the Bankruptcy or Consumer Proposal process by assisting with money management skills for the future, as well as explaining any questions you have about the Bankruptcy or Consumer Proposal process. However one of the biggest advantages of meeting with a credit counsellor is being able to “share” the stress by discussing your feelings and talking through the process and what lead to your current situation. Clients will often leave counseling sessions feeling like they have gained a better understanding of how to manage their finances as well as a renewed sense of hope and like a weight has been lifted off their shoulders.

If you feel that meeting with a local credit counsellor such as Glyn from Credit & Debt Services will be beneficial or are simply considering your options, call us at 519 622 3773 or send us an email we would be happy to help you make a plan to deal with your finances.