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.

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.

“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 519-435-1500 or 310-PLAN or e-mail me today for a free confidential consultation.

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 or locally in the London area at 519-435-1500 and talk to one of our professionals about your situation. Let us help you plan for the rest of 2007.

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 or locally in London at 519-435-1500. 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.

An article I read lately had a quote from TD Bank Financial Group that said debt management is “critical” to Canadians. They indicated that we tend to think a lot about financial planning only in terms of savings and retirement plans, but not how to manage debt. Maybe you are having this problem.

Ask yourself these questions:
- do I know how much my credit cards and loans total?
- could I repay that amount of money if they asked for all of it today?
- could I repay it back in 4 years if there was no more interest on the balances?
- can I pay my living expenses and the minimum balances on my debt without borrowing more money?

If any of your answers were no, you might be having a debt management problem. If that worries you, please call us at 310-PLAN or 519-435-1500 in the London area. You will talk to one of our professionals about your situation and if necessary, they will set you up with an appointment to talk to me about your options and to determine a plan that will help you not only manage your debt, but perhaps even get a “fresh start” on managing savings and retirement plans. Call us today.

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.

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.

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.

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.