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.

Share this:

The decision to file bankruptcy results from a variety of life’s events that lead to financial difficulty.  In the last month alone, I have seen several clients, each with different problems.   Two had recently separated, and were concerned that they would not be able to manage their respective halves of the matrimonial debt on their now individual incomes.  One was separated a year ago, and was worried that she would not be able to manage the joint debt she shared with her ex husband who had just filed bankruptcy himself.  One middle-aged fellow had just entered a treatment program for a gambling addiction, and wanted to deal with the debt that his gambling had caused.  A couple I saw had spent their savings and accumulated credit card debt helping their recently separated daughter and grandchildren get re-established over the last few years.  Another young man I saw had overspent on the multiple credit cards that he had attained after graduating from College.  Yet another couple had suffered the financial impact of his having had a heart attack and being unable to return to work. 

So, as you can see, there is no single reason that people file bankruptcy.  The reasons may be varied, but the consequences are all similar – in all cases, the clients needed help and direction, and were glad they had taken the step to call us to learn about the options they had to deal with their financial problems and questions.   In fact, in some cases, we were able to offer solutions and suggestions that allowed some of the folks to avoid bankruptcy.  Many of these people filed a consumer proposal.

If any of the above scenarios sound familiar, you too can get help and direction.  Call us at 310-PLAN or visit us at hoyes.com.  We’d be pleased to help you Turn the Worry of Debt into a PLAN for the future.

Share this:

Filing personal bankruptcy is often referred to as getting a “fresh start”.  So, what does this mean?   Well, it can mean different things to different people.  For example, to a recently separated individual whose goal it is to start a new life, filing bankruptcy severs any ties that there may be to any joint debt that was shared with their ex-spouse or partner.   In the case of someone suffering the financial consequences of a gambling addiction, bankruptcy allows him or her to rid themselves of the constant reminders of the problem they worked hard to address and control.  For individuals in this situation, dealing with unmanageable debt often forms a critical component of their counseling.   A young fellow that I saw had recently graduated from university and in the year that followed had amassed considerable credit card debt; he had spent a few months trying to run away from it – in his own words “filing bankruptcy made it so I could look at myself in the mirror again”.

A “fresh start” really refers to the fact that bankruptcy wipes the slate clean for the most part.  It allows someone who finds themselves in financial trouble to get relief from all or most of their debt, and to rebuild.  Rebuilding takes time, and does not happen overnight.  The waiting period from the time someone is discharged from bankruptcy and the bankruptcy is stricken from their credit report is intended as a rehabilitative period; an opportunity to regain financial strength and control.

We understand that reaching out for help is anything but easy.  A good place to start would be to visit us a www.moneyproblems.ca – Ted Michalos, a Trustee and one of the founders of Hoyes Michalos & Associates has posted a short video that will help you to understand the options that we discuss with people when they come to see us.  Bankruptcy may not be your only option – you may be able to qualify for a consolidation loan or perhaps a credit counseling agency could help.  There is also an alternative to bankruptcy called a consumer proposal that you might be able to consider.  So, as you can see, you do have options.  If you would like to speak to us personally, give us a call at 310-PLAN; we guarantee you will speak to someone who is compassionate and respectful, and dedicated to helping you find a solution that is right for you.

You deserve A FRESH START and we’d be pleased to help you to develop a PLAN to do just that.

Share this:

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 .

Share this:

Most of us go through some form of analysis when we are dealing with a life problem.  A lot of us make a list of pros and cons or advantages and disadvantages in an effort to point us towards a “best” decision.  I have seen several clients who have used the same process to assist them in assessing bankruptcy as an option.  Here are a few examples:

Advantages

• My creditors will stop calling and threatening me
• I will be able to afford to buy the groceries I need again
• I will be able to afford my medications again
• I will feel less stressed
• I’ll be able to see a light at the end of the tunnel
• I can get a secured credit card for emergencies after I am discharged from bankruptcy

Disadvantages

• I won’t be able to get a lot of credit for a while
• I have to deal with the fact that I have filed bankruptcy

Lists will vary depending on the individual and their circumstances, but in most cases, the exercise is both helpful and illuminating.  In most cases, the people who file realize that the advantages do outweigh the disadvantages even though it is a very hard decision for them to make.

If you are struggling with debt and are not sure what to do, take the time to analyze the problem – make a list of the pros and cons.  Do some research – try to understand what ALL of your options are so that you can choose the best solution for you.  Most people have heard of bankruptcy, but did you know that there is an alternative to bankruptcy called a consumer proposal?

If you determine that the status quo is simply not working for you, take the next step – call us at 310-PLAN or send us a request for a free on-line evaluation – we’d be happy to help.

Share this:

What is a personal budget?  Essentially, a budget is a projection of how we are going to spend our money.  Budgets are usually based on monthly income and expenses; some people track weekly, some daily, but unfortunately, most of us simply do not budget at all.   A budget works when at the end of the month, we have spent only the amount of money that we have earned, or better yet, when there is an amount of money left over.  So, how do you create a personal budget?

The first step is to list every monthly expense that is unavoidable – that is, even if you had no money coming in, the expense would still be incurred.  Examples include, rent or mortgage payments, gasoline to get to and from work and utility payments.  Do not include groceries because, even though we have to buy groceries, we have some control over how much we spend.  This is not true of our rent or mortgage.

The next step is to then subtract the unavoidable (sometimes called “Fixed Expenses”) from your total regular monthly income.  It is important to make sure that you are making your calculations using your base income only – it is not a good practice to include overtime or extra income that you may earn by doing odd jobs for example.  Why?  It’s pretty simple – your budget then becomes dependent on your having to do odd jobs and work overtime to make your budget work.   What happens then if there is no overtime to work, or no odd jobs to do?  You guessed it – your budget won’t work, and you’ll end up in the red at the end of the month.  Subtracting our fixed expenses from our “real” monthly income leaves us with the amount of money that is remaining to pay for all of the expenses over which we have some degree of control.  Examples include groceries, snacks, restaurants and clothing.  If after subtracting these items, there is money left over, then there is money available for items such as more features on your cell phone or saving for a trip to Bermuda.  Ideally, you would also allocate an amount for savings first – some suggest 10% of your income.

A budget is a place to start, but for some of us budgets are very hard to stick to.  Why?  In my opinion, and my experience, the answer is sometimes not that complicated.  We all know that “Murphy’s Law” creates unexpected expenses, such as vet bills and house repairs, but sometimes we simply want more than we can really afford; this causes us to rely on credit to get the things we want.    If we “want more” too often, the minimum payments can exceed our budgets, and soon we end up struggling to make our payments.  So, the trick is to insure that we try our best to live within our budgets.  Even so, a budget cannot help us in situations where our base income has been affected by uncontrolled events like illness, separation or job lay-off.   If you are having trouble balancing your budget, we may be able to help.  Call us at 310-PLAN for a free consultation; learn more about bankruptcy and consumer proposals or visit us at www.hoyes.com.

Share this:

A consumer proposal is the lesser known alternative to filing for bankruptcy, and many clients find that it is a better solution for them than filing bankruptcy.    So, in what circumstances might a consumer proposal be a good alternative for you to consider?

1.)  You may have things that you own (assets) that you wish to keep, but might be required to surrender if you filed bankruptcy.  This is one of the most common reasons that clients choose to file a consumer proposal rather than bankruptcy.  Let me give you an example.  Let’s say you owned a home that had $10,000.00 equity in it (equity is the amount of money after selling costs that would be left in your pocket if you sold it).   If you filed bankruptcy, you would have to give that equity to your Trustee to give to your creditors, and that would happen in one of 2 ways – either you give the Trustee $10,000 or the Trustee takes your house and sells it.  For many people finding $10,000 to give to a Trustee is next to impossible.  If you file a consumer proposal, you  still have to give the Trustee $10,000 to give to your creditors, but you can  do so by making monthly payments to your Trustee over a period of up to 5 years that will then be distributed to your creditors.

2.)  Based on the government’s rules, you might not be able to afford the payments you are required to make if you file for bankruptcy.   These rules are called the  Surplus Income Payments and they don’t apply when you file a consumer proposal.  This is another common reason why people choose to file a consumer proposal.  Again, let me try to illustrate this with an example. Let’s say that you are a single person earning $2,800 per month.  If you filed a bankruptcy, you would be allowed to keep $1884 of this income, but would be required to give your Trustee half of any monthly earnings that exceeded this amount; in my example, if you earned $2800 in a month, you would pay 50% of $916 ($2800-$1884) which would be $458.  Further, depending on how much income you earn over the period of your bankruptcy, you could end up paying this for an extended period of time.  As you can see, for many people, the bankruptcy payments in of themselves can be difficult to manage.  If you filed a consumer proposal you would still pay the Surplus to your creditors, but again, you would do so in more manageable monthly payments over a longer period of time.

These are the 2 of the most common reasons that people choose to file a consumer proposal rather than bankruptcy.  In many cases, people choose to file a proposal because it is simply more affordable.  So, if you have delayed seeing a Trustee because you are worried about the costs of bankruptcy or that you might lose your house or other assets, perhaps a consumer proposal is an alternative you could consider.   If you have any questions or would like to discuss how filing a proposal might help you in your situation, give us a call at 310-PLAN or fill out an on-line evaluation – we would be very pleased to help.

Share this:

I heard a couple of interesting things on the news in the last month.  First, it would appear that our Canadian university football teams have made the headlines – players are using performance enhancing drugs in order to obtain an advantage on the football field.  Second, the Ontario Lottery and Gaming Corporation (OLG) is getting into the on-line gambling business – several groups have spoken against this initiative citing concerns that bringing gambling into the home will facilitate serious gambling addictions( I can’t say I disagree, but that is not why I am writing this blog).

So, why are these two items of interest?  In listening to the discussions about football and gambling, it occurred to me that those who use drugs on the football field and those who gamble share something in common – the desire to put themselves in a better position.  Football players use drugs because they want to win (and to better their chances of getting to the pros); those who gamble want to win so that they have more money to either deal with their current financial difficulties or to be able to live a better life.    Sadly, we do not always win – often football players get caught and end up ruining their athletic careers, and even more often people that gamble lose and end up exhausting their savings or worse, using credit to support the hope of the big win.  In both cases, life changes dramatically and the financial impact can be devastating.  In some cases, the effects can be so devastating that folks are simply left with no alternative but to explore options to deal with the mounting debt and frustration.  This brings us to Hoyes, Michalos & Associates – we help people that find themselves in financial trouble, for whatever reason, find solutions.

Oddly enough, football, gambling and bankruptcy do have something in common.  You may not be a football player and you may not have a gambling problem, but you might be in financial trouble – however you got there, please know that there is help available.  So, give contacting us some thought – give us a call at 310-PLAN or visit us at www.hoyes.com;  read about consumer proposals and bankruptcy – in fact, maybe another option might work for you – maybe you could qualify for a consolidation loan or maybe a debt management program might be the answer.   There are alternatives to the worry and stress of debt; you do have options.  If we can help, we’d be pleased to do so.

Share this:

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.

Share this:

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.

Share this: