The personal bankruptcy process starts with a simple first step: decide that you need help.  Once you realize that you cannot pay all of your debts on your own, it’s time to seek professional help.  You can talk to an accountant, or a lawyer, or a credit counsellor, or you can contact us for a no charge initial consultation.

At that initial meeting will we explain how to file bankruptcy in Canada (since the process is the same across the country), but more importantly we will explain your options for you, right here in London.  For example, it may be possible to avoid bankruptcy by filing a consumer proposal, so we will explain to you the advantages of filing a consumer proposal.

If a bankruptcy is necessary, we’ll explain the entire process.  We’ll explain your duties, including the surplus income calculation.

More importantly, we will give you hope.  We will show you that you don’t have to suffer with too much debt.

We understand that sometimes bad things happen to good people.  Most of the people we meet with in our London office have too much debt because they lost their job, or had their income reduce, or had a medical issue, or got separated or divorced.  Regardless of how you got your debt, we will show you the ways to deal with it.

Imagine what it would be like to have no more debt.  Imagine what it would be like to be able to answer the phone, or open your mail, without worrying about who is yelling at you for money.

There is hope, so please give us a call here in London at Phone: (519) 435-1500 or use the contact form on the side of this page to send us an e-mail, and we can chat on the phone, and then arrange your no-charge, no obligation initial consultation.  Let’s get started.

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The Office of the Superintendent of Bankruptcy recently released the latest 2010 statistics, and yes, fewer people are filing bankruptcy in London.  In the 12 month period ending in June 2010, filings were down 7.5% compared to the same period ending in June 2009.  We have been hearing in the news that we are nearing the end of the recession and this may be an indicator that our London residents are truly feeling the benefit.

Of further statistical note, more people are filing consumer proposals – this is likely due in part to the change in bankruptcy rules that came into effect in September 2009; these new rules can increase both the costs and length of bankruptcy, making a consumer proposal a very attractive alternative.

In the last few months, we seem to be hearing from fewer Londoners; I mentioned this to one of the clients I saw, and he said something interesting: “Well, maybe they have just given up on dealing with their debt, just like the people in London have given up on ever finding a job”.  Maybe, he is right.  I know that Londoners are still struggling – ask some of them about how the end of the recession has helped them get back on their feet and they will tell you that their own personal recession continues – some get quite upset by the reports they hear, since they continue to struggle to find work to feed their families.  Our London Food Bank had to do a special drive to get them through to their next major collection at Thanksgiving – this tells us something that is quite contrary to the reports we hear.

So, what lies ahead for London?  We have heard mutterings about growing fears of a double-dip U.S. recession.  Ontario has a strong reliance on the U.S. Economy – as we read in a recent issue of the London Free Press, many London manufacturers have changed their business models since the recession, but even so, are watching the U.S. situation very closely.

The Free Press made reference to a recent Bank of Montreal study that showed a strong recovery in the Ontario economy in the first half of 2010 – we saw growth in its gross domestic product and growth in employment.  That said, the bank also warned that this growth may wither in the last half of 2010.

Personally, I don’t think we are out of the woods yet – the good news is still good news and I suspect we will see further decreases in the number of bankruptcy filings in the next few months.  I think the trend towards more people filing consumer proposals will continue – in a lot of cases, proposals are simply the most cost effective means for Londoners to deal with their debt. But, I also know that lots of people in London continue to struggle.   If you or someone you know is finding it hard to make ends meet, please know that we can help, and we want to help; please call 310-PLAN or visit us at www.hoyes.com .

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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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So, you might be wondering what THIS box of tissue has to do with bankruptcy in London?   As I was eating breakfast this morning, I found myself studying the words on this very colorful box: “courage”, “support”, “hope”, “believe”, “strength”, determination”… it is these very words that  inspired me to write this blog.  Why?  Quite simply, because I think all of these words describe many of the people I talk to on the phone and see in my office every day.

“Courage” – it takes some form of courage to pick up the phone and ask for help – any kind of help.

“Support” – when we reach out for help, we are looking for someone to support us through a difficult time.

“Hope” – when we reach out for help, and are met with someone who is not only helpful, but kind and understanding, we are given hope that maybe things can get better.

“Believe” – having hope allows us to believe that things will get better.

“Strength” – dealing with the hard things in life takes strength.

“Determination” – having hope and determination, allows us to find the strength to believe that those who are there to support us will give us the courage to weather through the process of dealing with the hard things in life.

So, as you can see, this simple box of tissue and the words it so prettily displays is so much more than just a box of tissue.

If you are dealing with a tough financial situation, please know that there really is hope; most often there is a solution and there are people available who can and want to help you.    Call me in London at 310-PLAN or e-mail me today for a free confidential consultation.

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Just into the New Year, the news continued to be bleak with respect to plant closings and layoffs with the news of the Accuride layoffs and the McCormick plant closing. Comments from city officials were however that this type of news is only temporary as the manufacturing sector in London and London’s business outlook for 2007 is one of growth. It will remain to be seen how 2007 turns out.

An article in the London Free Press late last week indicated the court had given approval for continuation of a class action suit against Money Mart. Legislation in the federal government is still pending which would make the provinces have control over the pay day loan places. The court case is allowed to proceed without waiting for the legislation to be voted on in the House of Commons.

If you are experiencing financial problems because of job losses or layoffs; if you are experiencing financial problems that cause you to use payday loans; or if you are just finding it hard to make ends meet; call us at Hoyes, Michalos. You can call 310-PLAN and talk to one of our professionals about your situation. Let us help you plan for the rest of 2007.

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2007 is almost here and if you are like many people you are just trying to get that last minute shopping finished. If you have not stayed on budget this year and the Christmas shopping will have put you over the edge, please consider your options before doing anything that could get you into deeper trouble.

Once the bills start coming in January, check out the balances. Are they higher? Did you spend more than you realized? Can you pay the minimum amounts?

If you are going to be worried about the amounts owing, please contact us at 310-PLAN. Our professionals will talk to you about your situation and set up an appointment to help you get a new start in a new year. We look forward to helping you develop a plan.

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When you file for personal bankruptcy or a consumer proposal, one of the things that the trustee monitors closely is that you complete your duties. These are outlined in Section 158 of the Bankruptcy and Insolvency Act and there are quite a number of them.

One of the duties states that you must make yourself available at a place and time to be fixed by the Official Receiver for an examination under oath. The Official Receiver is the federal government agency that oversees the bankruptcy process and the person who would conduct the examination works for this agency. They are reviewing your conduct, the causes of your bankruptcy and the disposition of your property. As it is done under oath, you could be charged if you lie during the examination.

The results of the examination are reviewed and if the person has any concerns over your conduct, causes of your bankruptcy and how you disposed of assets prior to the date of the bankruptcy, they will notify your trustee and request that the trustee look into the matter.

It is important that you answer all the questions carefully and with thought on our application if you are thinking of doing a bankruptcy or proposal. They have been designed to bring to our attention any matters that might cause problems during the bankruptcy or proposal process. If you are examined and you give answers that you didn’t give to the trustee, it makes it very suspect as to whether your information is correct on the examination or on the Statement of Affairs (a listing of your assets and liabilities and answers to various questions) and could cause the trustee to examine issues more carefully. It could cause a delay in your discharge, another topic for another day!!

If you are experiencing financial difficulties, please contact our offices to set up an appointment to discuss your situation. And please give information when it is asked of you in an open and honest manner at all times. This will mean that the process should no surprises come about, no matter whom is doing the asking. Call us at 310-PLAN or in the London area at 519-435-1500 and talk to one of our professionals today about your situation.

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A few posts ago I talked about the court case in B.C. with respect to payday loans.

A recent article in the London Free Press talked about provinces regulating the indsutry. It appears the federal government has introduced Criminal Code changes that would clear the high-interest, short-term lending issues. The changes would give the provincial governments authority to regulate payday loans.

A lot of people end up constantly borrowing from the pay day loan place as the late charges if they miss a payment and the amount of interest charged make it almost impossible to “catch up” if the payment is missed. The effective rates charged can be up to 1,000 per cent annualized once service charges are included. It is illegal under federal law to charge more than 60 per cent annual.

Payday loans are big business – the London Free Press quoted the number of $2 billion a year to two million Canadian clients.

It will be interesting to see how each province deals with this legislation if it is passed, but in the meantime, if you are one of these 2 million customers experiencing financial problems and need to see someone, please call us at 310-PLAN. You will talk to one of our professionals and start the process to making a plan to deal with your situation.

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When I meet with people and we are discussing their situation, it is usually very late in the appointment that they indicate they have been bankrupt before. They usually then say “That means I can’t go bankrupt again, right?”

Actually you can go bankrupt more than one time but when we are discussing your financial situation, if you do not let me know you have been bankrupt before, the issues this creates might not be discussed. Make sure you let the person with whom you are meeting know that you have done this before.

Issues that should then be discussed:
- how has the process changed since you filed that last time?
- what is the increased cost?
- do you realize that in the London area at least, you will need to attend a discharge hearing at court to get your discharge?
- why did you go the last time and how long ago?
- the effect of a second bankruptcy on your credit record.

These are just some of the items that should be covered. Depending on the situation, it may mean that filing personal bankruptcy a second time is not the best option. Perhaps a consumer proposal or a debt management program with a credit counselling agency is a better option.

Do not be tempted to keep information to yourself when you are meeting with our firm. We encourage people to be open about their affairs as only with good information can we properly advise you as to the options that you have available and help you make the decision for the best option.

I look forward to meeting you at the London office so call 519-435-1500 or 310-PLAN today to talk to one of our professionals and have them set up an appointment with me.

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A lot of people are worried when they come to meet with me that it means they have to file for bankruptcy – they will have no choice.

Meeting for an initial appointment with a trustee means you should be able to discuss your situation with that person, get an idea of what options are available and more specifically what options are available to you in your situation and finally information on how the options will affect you. In no circumstances should you sign or feel you are being forced to sign anything at that first meeting.

At Hoyes Michalos when you call for an appointment you will actually talk to someone a little bit about your situation during that first call. They will either refer you to another agency or person for help, or set up an appointment with the office closest to you. They will ask you to bring in some information to assist in that first meeting.

At the meeting, some of the options discussed will be:
- waiting for the right time to do something about your situation
- consolidation of your debts and who can help you with that
- debt management plans with credit counselling agencies
- options such as personal bankruptcy and consumer proposal under the Bankruptcy and Insolvency Act
- borrowing money from other sources
- selling assets
- reducing expenses
- any other ideas that might work to help your financial situation.

Sometimes the answer to your financial problem is very clear and you will know what your next steps are going to be. Sometimes you need to do more research or obtain more information before the final decision can be made.

Whatever your situation is, contact us to make that first initial appointment to dicuss it. We will provide you with information you need to make your choice of the best option or get you started on the way to making it.

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