A lot of communities are feeling the pain of job loss – factories have closed or moved operations elsewhere, companies have downsized in an effort to meet a decrease in demand for the products they sell. Sadly, in many cases those affected are long-term employees who never imagined their jobs would be in jeopardy. In the last year or so, I have seen a number of folks who I would not have seen had it not been for the recession – their first words to me are often “I can’t believe I am sitting here talking to you about filing for bankruptcy”.
Most Canadians carry debt – in fact, a study conducted by the Vanier Institute of the Family estimated that the average Canadian family’s household debt climbed to $96,100.00 in 2009. Debt payments are manageable when we have the income coming in to support the payments, but as many folks have learned, managing quickly becomes a problem when our income levels are reduced.
So, what can you do if you find yourself with payments that are falling behind because you have lost your job and you have not been able to find other work? The first step is to reach out for some help. Talk to your bank about a debt consolidation loan – if they can’t help, consider calling a credit counseling agency – if they can’t help, consider calling a bankruptcy Trustee – in most cases, there is something that we can do to help, and in many cases, we can help you deal with your debt without claiming bankruptcy.
For some people, bankruptcy is simply the most affordable and realistic solution. But… there is a lesser known alternative to bankruptcy called a consumer proposal. Essentially, a consumer proposal is an offer of payments to your creditors; the best part, is that most often you end up having to repay only a portion of the total amount of debt you owe. If you have to repay only part of the debt, this generally translates into a more affordable monthly payment. All good, right? And it gets better – a consumer proposal often allows folks to keep assets i.e. houses, RRSPs, RESPs etc. that they might otherwise lose if they were to file bankruptcy. So, as you can see, a consumer proposal can be a very appealing option to consider.
Sadly, this recession has hurt a lot of people. If you have been downsized from your job and don’t know where to turn, please know that you are not alone and that there are solutions available. Please visit us at www.hoyes.com; there you will find lots of information about ALL of your options; better yet, give us a call at 310-PLAN – we’d be happy to help you explore each and every one of them.
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