Mississauga Ontario Personal Bankruptcy Blog

Do proposal's work?

noreply@blogger.com (Brian McIlmoyle) — Mon, 01 Mar 2010 14:51:00 +0000

Making the decision to seek help for financial troubles is likely one of the hardest choices people ever make. There is a lot of uncertainty surrounding the options and procedures involved, it can seem as daunting as the debt it's self. Below is an e-mail I received this morning from a client that we helped. She had struggled for years to try to fix her financial troubles herself before coming to us. I think her words speak far better than any I could write.

Good Morning Brian, Lisa

Brian, thank you for your guidance and time and Lisa your support during this process was appreciated. I am sure you hear this frequently in your business however the events over the last few months have been a challenge. Although I have always paid my bills, recognizing my lack of knowledge when it comes to finances has opened my mind, so to speak. I thought seeking help was a weakness as I was always taught to never give up.

Pursuing a consumer proposal versus bankruptcy I believe was the right choice. Now that it has been accepted and I have a definite plan for the next 5 years I feel relieved. I now see that light at the end of the tunnel and I dont want to be left in the dark again.

This may sound dramatic however I can remember having $6.85 left after paying my bills to buy food for myself and my four dogs and it scared the hell out of me.

Sincerely

(name withheld for privacy)

If you are struggling with debt, you don't have to do it alone, we can help.

Call is today at 310-PLAN and let's get started.

TAX TIME

noreply@blogger.com (Brian McIlmoyle) — Tue, 09 Feb 2010 22:59:00 +0000

It's that time of the year again when everyone starts thinking about taxes. Maybe you just received your T4, Maybe you are self employed and you know your annual tax nightmare is about to start.

If you are having debt problems, tax time can be especially stressful. Money is short and you know that if you owe taxes you won't be able to pay. On the other side of that, your expected tax refund just may be enough to allow you to get a handle on your debt problems. Either way there is no reason to delay in filing your taxes.

I meet with people every day that have tax problems, from reassessment, or un-filed taxes, or even from accumulated tax debt that remains unpaid. Many people believe that tax debt can't be dealt with by bankruptcy or by offering a consumer proposal. This is a common misconception and is not true. A trustee in bankruptcy can help you deal with tax debt.

The first part in dealing with debt is discovering your position. So file your taxes as soon as you can. Once you know where you stand then you may need some help dealing with all your debts including your taxes.

We can help Call 310-PLAN and let's get started.

What about the house?

noreply@blogger.com (Brian McIlmoyle) — Wed, 03 Feb 2010 18:19:00 +0000

What about the house?

I had the pleasure of sitting down with Tom Robic of RE/MAX real estate this morning. Tom was interested in learning more about the insolvency process and how it could affect his clients with respect to buying or selling their homes.

What about my house ? is easily the most asked question when I meet with people to discuss their debt problems. For many people it is possible for them to resolve their debt and keep their homes by offering a consumer proposal to their creditors. For other people selling their home and using the proceeds to offer a lump sum proposal will work to eliminate debt. For some selling and downsizing to a home they can afford and freeing up cash flow to offer a proposal to their creditors is the solution. None of these solutions involve the dreaded BANKRUPTCY .

Far too often people come to see me too late. Dealing with debt is like any developing problem, early intervention is the key to a successful resolution.

Tom asked me a good question, "When should people come to see a bankruptcy trustee?" My answer was "As soon as they start to run into trouble" If this was a health issue, people go see their doctor as soon as symptoms appear that are affecting their quality of life. The same is true for your financial health. When it come s to helping people deal with their debt, I'd rather be the surgeon than the undertaker.

If you have debt problems starting to affect your quality of life you owe it to yourself to find out your options. It may turn out that you can fix the problem yourself with a little help.

Call 310-PLAN today to make an appointment to see me for a free no obligation consultation.

Ill help you make sense of your options and decide what is best for you to do for you and your family.

Debt problems are a family affair

noreply@blogger.com (Brian McIlmoyle) — Fri, 22 Jan 2010 00:14:00 +0000

Debt problems are a family affair

When I meet people at my Mississauga or Brampton office they are often embarrassed and ashamed of their situation. No one likes to deal with debt problems, people like to tell other people about their debt problems even less. I've become accustomed to being "the last person" anyone wants to come see.

Debt problems often remain a secret until the problem becomes so large it can't be hidden any more. Very often Families with children will do everything they can to insulate the children from their debt problems.

Except in the case of very young children who lack the ability to understand financial troubles, I firmly believe that children can benefit directly from being "clued in" to the financial problems you are facing. . Particularly when teenage children are involved, I believe that it is very important for parents to share with their children the problems facing the family. Very often solutions to debt involve radical lifestyle changes. Teenagers in particular can be bewildered about the reasons for such changes and can put up substantial resistance.

If teenage children are involved in the solution and informed about the financial challenges facing the family a valuable life lesson can be gained. Insulating your children from the debt problems facing the family and the solutions available and implemented only serves to deny them valuable experience. This experience can be useful later in life when they have their own finances to attend to.

Dealing with debt is not taught in any school, there are no financial management lessons for teenagers. It's up to parents to teach successful strategies for financial success and warning signs to watch for in the cases of trouble.

You may be surprised by how supportive and helpful your kids can be to help the whole family get through financial troubles. You never know, the experiences you share with your kids just may help them to avoid financial troubles in the future.

If you're having financial problems and you are worried about your future and the future of your children call us at 310-PLAN and let's get started on your family survival plan.

2009 a year to forget?

noreply@blogger.com (Brian McIlmoyle) — Tue, 29 Dec 2009 16:59:00 +0000

A difficult year past, what does 2010 hold?

2009 is going to go down as "one to forget" when it comes to times past. Everyone is looking forward to 2010 to be an opportunity for a fresh start.

Our Firm, Hoyes Michalos and Associates Inc. has never been busier but I have to admit that the work this year has been emotionally draining. So many people were in serious distress due to job losses, financial reversals of fortune, business failures and all the related stress that brings. Add to this the government's bad timing for bankruptcy law changes and we had a "perfect storm" resulting in difficult times for many people.

Often when I meet with people they are at their wits end. Fortunately, our team has been able to help very many people get relief from crushing debt and a fresh start. But for some, even bankruptcy won't resolve the issues of loss of employment and income reduction. For many all they can do is dig in and focus on surviving until their situation stabilizes.

There are signs of recovery though, work hours for many people who suffered cuts are returning to full time levels. Some laid off workers are being called back and employers are looking to increase staff as the economy begins to return to growth.

For others the tough times will continue, particularly for older workers laid off from long time employers who are now no longer in business. Returning to the workforce for these workers usually means a pay cut and little in the way of job security. Significant lifestyle and downsizing adjustments will be required and oftentimes substantial debts will remain to be resolved from extended periods of unemployment.

If you find yourself back to work, but with a reduced income and carrying big debts we can help you regain control of your finances, no one wants to consider bankruptcy, but for some it is a viable solution to resolve debt. Bankruptcy is not the only option, we can help you make a plan that works for you and fits your "new reality" . You don't have to carry the burden of debt , put 2009 behind you, we can help. Call us today at 310-PLAN and let's get started on your 2010 fresh start.

Worst Case Scenario Survival tips

noreply@blogger.com (Brian McIlmoyle) — Thu, 05 Nov 2009 19:52:00 +0000

I see people every day who are under serious distress due to the global recession. My offices in Brampton and Mississauga are "ground zero" for the downturn in good paying manufacturing jobs in Ontario. A lot of people are out of work and in many cases won't be going back to the good paying positions they had. They had built a lifestyle on 2 good incomes and in many cases they are now down to one income and in some cases both breadwinners in the family are laid off. This recession took many people by surprise, few people had prepared. So, now they are in the position of building their financial "survival kit" after the crisis has already struck. It's a worst case scenario.
The first and most important element in survival is realizing you are in trouble. Many people hold onto the hope that "they will find another job" or "things are turning around" and this may very well be true. However you don't want to pin your survival on hope, you need to act. What should you do?

Taking the "survival" analogy further.

1. Do an inventory of what you have . What resources are at your disposal ? What is the income coming in , what assets are available to be liquidated. What help can you count on from others?

2. Conserve what you have. You have no idea how long you are going to need to survive, don't waste anything. Slash your expenses, reduce spending to the bare minimum, cut all the "fat" from your budget. Inform everyone in your family what is happening and what you are doing about it. The members of your family particularly your children ( provided they are old enough to understand ) need to know about the situation and the measures being taken. Everyone is going to be impacted by your "survival plan" so they need to be involved in its shaping and implementation.

3. Get informed. Find out what kinds of services are available at your bank, maybe you can reduce payments, pay interest only or maybe it's time to consolidate. Talk to your creditors.

4. Seek help, You may not be able to do this on your own. You may need the help of others to make it through. This could be as simple as credit counseling and budgeting sessions with a counselor. Maybe you need to consider formal remedies to debt such as a proposal to your creditors or even bankruptcy. Even if you don't think it will come to that get informed so that you have an understanding of what you can do.

5. Don't panic, "freaking out" will result in bad decisions and loss of resources. You need to be rational, you need to act in your own interests and in the interests of your family. This may mean that you need to consider things that you'd rather not. Survival could mean the reduction of the number of vehicles in the household, it could even mean moving to less expensive accomodations. Everything needs to be on the table, don't reject any options just because they are not want you want. Remember survival is about doing what needs to be done, not what you want to do.

6. don't give up, all of this is 100% survivable and you will rebuild and recover. Once you do, keep your "survival kit" stocked with savings so you can survive the next crisis with less scrambling.

If you think you need some help or would like information about your options call us, we can help you to make your Financial Survival Plan. Call 310-PLAN today

The Incredible Shrinking World

noreply@blogger.com (Brian McIlmoyle) — Mon, 05 Oct 2009 19:32:00 +0000

Economic Downturn, we've been hearing these words everywhere we go for months. But what does it mean?

Let me give you an example, today I visited our head office in Kitchener, it's located in a small plaza just north of the Kitchener downtown. In this plaza there is ground floor retail business, a small grocer, a convenience store, a payday loaner ( that no one should ever use, but that is another story ) and across the plaza a well known coffee and donut shop. Well it used to be a well known coffee and donut shop. The windows are all papered and the familiar sign gone.. just the light coloured outline remains.

The jobs in such places are considered workplace entry or exit level jobs, the place where teenagers start at their first job or seniors work to supplement fixed income. Often moms who have limited hours to work due to child care responsibilities also work at entry level jobs in places like this well known coffee shop.

What happened? Why did this, from all accounts popular and well traveled location close? What factors resulted in likely 20 or so people ending up unemployed?
Likely we can chalk it up to "Economic Downturn" . When unemployment strikes a community as it has most communities in Ontario during this recession it effects everything. Factory workers laid off , no longer stop off at the coffee shop on the way to work. Contractors formerly stopping in to buy 15 coffees and dozens of donuts for their busy crews are idle, sitting at home or running with reduced or no crews. Loss of jobs or even reduction in hours and overtime in well paying jobs will result in the loss of jobs at the lower end as people dig in and spend less on things like coffee and donuts.

Recessions come from time to time, some are deep and far reaching like the one that we are experiencing . Its like the turning of the seasons. Every year come the fall we get ready for winter because we know its coming. We should do the same as much as we can with our finances, savings, a contingency fund, and making certain that we are not over-extended with borrowed money will all contribute to being able to make it through the financial winter of a recession.
If you have be caught by the economic downturn and you find yourself in a position that your preparations to survive have not been sufficient you may need some help. No one can predict how long or how deep a recession is going to be. I'll bet that the people who used to work at the coffee shop I mentioned above felt pretty secure about their jobs right up to the point that they dissappeared.

If you are struggling, call us we can help you make it through, you may just need a little direction, or you may need to make a proposal to your creditors, in some cases bankruptcy may make sense for you. We can help you to make the decision that is right for you.

Call 310-PLAN and lets get started.

Will new bankruptcy rules affect you?

noreply@blogger.com (Brian McIlmoyle) — Mon, 14 Sep 2009 19:27:00 +0000

New rules coming into force

Finally after years of delay new regulations regarding the administration of bankruptcies and proposals in Canada will come into force September 18 2009.
I could go into details regarding the reasons for the delay of coming into force for these new rules, but it's not really relevant to someone considering making a proposal to their creditors or filing for bankruptcy. The fact is, after September 18, the way bankruptcy laws will apply to situations will change.
In general there are aspects of the rules that simplify the trustee's job and should make the whole system simpler and less costly to administer, but again, that does not really matter to someone thinking of filing bankruptcy. What does matter is how the new rules will affect persons who file after September 18 2009.
In General many people who file after September 18 will see the term of bankruptcy extended beyond the current minimum 9 month period out to 21, 24 or 36 months. Automatic discharges will apply for the majority of cases of personal bankruptcy . The number of cases that will need to be heard in court will reduce dramatically. What this means is we can more reliably predict the outcome of a bankruptcy filing at the outset allowing people to make better informed decisions about filing.
After September 18, the only people who will see their bankruptcy finished within 9 months are persons or households with minimal income. Individuals or households with greater means will be required to pay for a longer period but will still qualify for an automatic discharge after a stipulated period. For someone who has never been bankrupt before but has income above a set threshold ($1870.00 net income per month for one person , more for larger households) they will be discharged automatically after 21 months of bankruptcy. For persons filing for a second time, with minimal income, they will be discharged after 24 months, and if they have income above the threshold, after 36 months. In all cases no court appearance will be required unless requested by their creditors.
These changes may make proposals to creditors much more attractive to persons having debt problems. There are some changes to proposals as well. The most significant change is the limit of debt allowed to be managed under a consumer proposal has been increased from $75000.00 per person to $250 000.00 ( not including a mortgage on their principal residence ) Meaning that the more complex and expensive "Division 1" proposal process will not apply for the vast majority of individuals facing debt problems for which a proposal is their only viable option.
From these changes it’s clear that the direction of law changes are designed to favor consumer proposals as the typically chosen remedy to debt problems.

If you are having debt problems call us today at 310-PLAN. We can review your options and show you how these new rules may affect you.

Is there a difference between bankruptcy in Toronto and bankruptcy in Mississauga?

noreply@blogger.com (J. Douglas Hoyes, CA, Trustee) — Tue, 21 Jul 2009 18:30:00 +0000

Question: I live in Mississauga and work in Toronto. Does it matter if I file bankruptcy in Toronto or in Mississauga?

Answer: No, it doesn't matter where you file your bankruptcy. Some people prefer to file with a trustee near where they work, so they can meet with the trustee during their lunch hour or immediately before or after work. If that interests you, we have an office that will help you file bankruptcy in Toronto.

However, there are advantages to filing near where you live. We can meet with you in our Mississauga bankruptcy office before you head in to work in Toronto in the morning, or after work (we have late afternoon and early evening appointments), or on your day off.

Give us a call today at 310-PLAN (no area code required) or e-mail us for more information, and to set up your no charge initial consultation.

Are your debts really the problem?

noreply@blogger.com (Brian McIlmoyle) — Thu, 11 Jun 2009 15:33:00 +0000

Every day I meet with people who are stressed out about debt. I think it's fair to say that people are stressed out about debt today more than any other time in the recent past.

But is it the debt that is the problem?

Maybe you have recently lost your job, maybe you were laid off a few months ago now and it's looking like you won't be called back soon or at all. I know for certain that I meet with people every day in my Mississauga and Brampton offices that are in this situation. When we sit down and review their budget we find in many cases that there is a lot more money going out than coming in. In many cases people stopped paying their debts some time ago, but still they are hundreds ( and in some cases ) thousands of dollars short each and every month.
The result of this shortfall is ballooning debt. The shortfall gets shuttled onto credit cards and lines of credit until there is no more credit to consume. Everyone is "hoping" things will turn around soon, then their household economy hits the wall. With no more credit and a running deficit in the budget the problem can no longer be ignored.

The problem feels like there is too much debt, because that's who is making all the noise, creditors are calling and everyone wants paid. You feel like, "if only I could get rid of this debt everything would be ok" but really.. it won't . The problem remains, not enough money coming in and too much going out.
If this is the case, then changes have to made to deal with the deficit, expenses have to be reduced and belts tightened, this could mean big changes. You may have to sell your home ( or surrender it to the mortgager if its value has dropped below what you owe on it ) you may have to give up a car, you may even have to take up a second job or take 2 part time jobs to replace a lost full time job. Every possible solution has to be considered and reviewed.
Bankruptcy or a Proposal to creditors is for many people a viable solution for debt, but it won’t solve a budget deficit if you have already stopped paying your creditors and still can't make ends meet.
Once you have your budget under control, then it's time to deal with your debts. A proposal to your creditors or a filing of personal bankruptcy could be your first step back to financial recovery.

Every recession ends and financial recovery will happen, personal financial recover will happen as well. If you need some help to get there Hoyes Michalos & Associates Inc. can help you.

Call 310-PLAN today and let’s get started.

It's not looking good for our hero's

noreply@blogger.com (Brian McIlmoyle) — Mon, 09 Feb 2009 16:11:00 +0000

"Economic downturn" seems to be on the tip of everyone's tongues today. Practically every news report is talking about job losses and "tough times ahead" . People are frightened, jobs are on the line and many people have seen their pay cheques shrinking due to the loss of overtime or short term lay offs.

It's fair to say that everyone is feeling the effects of this recession, but the question remains, what can you do?

In a word.. plan.

Do a budget, reduce unnecessary expenses, cut back on spending and dig in. Reducing your debt should be your first priority. Build up a contingency fund of savings ( the new tax free savings account may be a good place to tuck away this money). Everyone needs to have a plan to carry them through lean times, It's a mistake to think "it won't happen to me".

Practically everyone I see in my Mississauga and Brampton offices never thought they would need the help of a Trustee to resolve their financial problems but the fact is that for many people facing rising debt and dropping income, bankruptcy or a proposal to creditors is the only viable way through the downturn.
What is certain is that there are options to dealing with debt that suddenly becomes unmanageable. Part of you plan to survive the recession should be to ensure that you know all your options.

If you are facing a lay off, if you have seen your income shrink and your debt become too much to deal with its time to take action now. Make a plan, Hoyes Michalos & Associates Inc. can help you. A phone call and a free consultation can get you on the path to being debt free.

Call 310-PLAN and lets get started.

Has the Cloud lifted?

noreply@blogger.com (Howard) — Thu, 17 Jul 2008 21:57:00 +0000

It has for some people struggling under student debt load.

Recently the government made changes in the Bankruptcy and Insolvency Act that reduces the waiting period for the discharge of student loan debt from 10 year to 7 years.

For many people who have been burdened with crushing student loans this is very welcome news. No one accepts students loans thinking that they will still be struggling to pay then off many years later but it is a fact that many people are faced with exactly this problem. Life can throw curves and for many people their higher education simply did not pay off as hoped. This can result in overwhelming debt that can lead to wage garnishments, collection actions and deepening stress levels.

Finally for some people who have been waiting for their loans to become dischargable in personal bankruptcy, the wait has been shortened dramatically. In some cases loans only 5 years old can qualify to be discharged with the approval of the court.

If you have student loan debt that you can’t get on top of you owe it to yourself to find out what your options are.
Call 310-PLAN or email us and make an appointment to see me at our Brampton or Mississauga offices, It costs nothing to find out your options.

How Many People Go Bankrupt in Mississuaga Each Year?

noreply@blogger.com (J. Douglas Hoyes, CA, Trustee) — Fri, 15 Feb 2008 18:04:00 +0000

In 2007 there were 1,260 residents of Mississauga that filed personal bankruptcy. In addition, a further 745 Mississauga residents filed a consumer proposal.

The 745 consumer proposals filed in 2007 were the highest number of consumer proposals ever filed in Mississauga, 21% higher than the 618 proposals filed in 2006, and almost double the 480 consumer proposals filed back in 2004.

In contrast, the Mississauga personal bankruptcy rate remained virtually unchanged from the 1,259 personal bankruptcies filed in Mississauga filed in 2006.

Why are proposals increasing while bankruptcy filings remain stable? We believe it is because an increasing number of Mississauga residents want to avoid filing bankruptcy, but they need a way to deal with their debts. For many people, a consumer proposal is the perfect solution.

To find out whether a consumer proposal or a personal bankruptcy is the correct option for you, e-mail our Mississauga office or give our Mississauga office a call at (905) 848-3649 or 310-PLAN (no area code required) if you have any questions, or want to arrange a no-charge initial consultation.

Don't know what to do - bankruptcy if not working?

noreply@blogger.com (Questions) — Fri, 23 Mar 2007 15:13:00 +0000

Question: I lost my job last July and tried to continue my payments which I was able to do until September. When I realized I was unable to make any more payments I wrote letters to my creditors and told them the situation and that I would resume payments as soon as I could. I have been unable to live up to my obligations. What is the next step? I tried making a small payment of $150 each to MBNA AMEX HBC and SEARS but that has been all that I could do. I believe they have all gone to collection now. What next?

Answer: If your debts have gone to a collection agency, their next step will be to attempt to collect from you, by making phone calls and sending you letters. If they are unable to collect, they may then decide to take you to court and sue you; their goal is to obtain a garnishment order so that they can garnishee your wages.

If you are not working, you do not need to worry about your wages being garnisheed. However, once you return to work, and the creditors find out where you are working, you will need to take action. At that point a bankruptcy may be necessary.

If you are back to work, or expect to be back to work soon, we suggest you contact a trustee to review your options in more detail.

Make a Budget to Start the New Year

noreply@blogger.com (Sandra Sykora, Trustee) — Thu, 28 Dec 2006 01:05:00 +0000

Well it is the end of another year busy year for most of us and the holiday season and all its festivities are almost done. For most, we are a few pounds heavier and our pockets are a few dollars lighter. Now it is time to look forward to a new year and all it brings with it.

One thing I recommend to the people I meet with in Mississauga and Brampton is to sit down and spend some time doing up a plan or budget for the new year. A budget is important as it will help you set goals for such things as a holiday or new sofa that you need.

To start, review what has happened in the past year or at least the past 3 months to determine what you make in a month, that is your take home pay after taxes and how you spend it on food, car payments etc. For most of this information does not change and can be put into a new budget for the new year. Then we add the new things and the increases that are required for things like rent, food and gas for the car. Yes, it is expected that gas prices will once again increase in the summer months so don't forget to make an allowance for this extra cost. If it does not happen then that is a good thing but at least you have tried to budget for it.

I like to do my budget based on my monthly income and expenses. It's just easier to organize and see how much is left over each month or not. Also don’t forget to put money aside each month for the one time expenditures. For instance some people pay their car insurance only one a year. Thus you need to set aside funds each month so that you will be able to make that payment in the month it is required.

Once you have done this budget for each month in the new year you will be able to see if there is a trend toward savings or are you behind each month. If it looks like you will be behind you may want to determine why. Is it because you have credit card payments that are charging a lot of interest and you cannot make the payments and need to decide each month which one will be paid and the ones that will not? Do you have payday loans that you being taken out for at least one pay per month and you never seem to catch up on the payment? Are you borrowing from friends and family to get to the end of each month?

If this sounds like you then these are some red flags that may mean you have some financial difficulties to deal with. This is where we at Hoyes Michalos & Associates will be able to assist you. We can provide you with all the options available for dealing with your debts. Personal bankruptcy may not be the only option. You may be able to do a consumer proposal. Or you may be able to see your bank about a debt consolidation loan. To understand all your options and have as many as possible available to you, usually means starting as early as possible. So give us a call at 310-PLAN or in Mississauga at (905) 848-3649 and we can set up an appointment for you to see one of our trustees at a location that is convenient for you. This meeting is a free consultation and we will review all the options and allow you to make the choice that's right for you.

Worried

noreply@blogger.com (Questions) — Thu, 14 Dec 2006 00:37:00 +0000

My husband and I filed bankruptcy about a year and a half ago. It was discharged in July 2005. We included our car loans, however we continued to make payments. About two months ago my husband decided to buy a new truck and the dealership told him that his current truck was discharged and that he didn't need to trade it in, all he had to do was walk away from it. The debt showed as discharged on our credit report. However, Toyota Finance Corp sent a confusing letter saying they we either owe 2K to get the truck back or they will sell it & we owe the defficiency. Can this really happen if the debt was discharged in the bankruptcy? Help I don't know where to turn for answers.

If you fail to plan you plan to fail

noreply@blogger.com (Brian McIlmoyle) — Tue, 14 Nov 2006 15:51:00 +0000

Often when I meet with clients at our Brampton and Mississauga offices we end up discussing "what went wrong". In many cases some unforeseen event has caused financial trouble to become unbearable. Divorce, job loss, injury or illness can all cause our finances for come apart.
Sometimes I meet people who run into trouble just because they don't have a plan. Keeping tabs on expenses is not exciting, certainly not as much fun as going shopping, or going out, but it is a necessary part of financial health.

If you think that your finances may be a little out of control. If you don't seem to have enough money to pay all your bills on time. Its time to make a plan, if you take control early enough you can get back to financial health by sticking to your plan. If things seem to be out of your hands then you may need some help. Give us a call we can help you to make a plan that can get you a financial reset and get you debt free, often without bankruptcy. Call 310-PLAN today and take control of your future!

ARRG! they called again!-Dealing with Collection Agencies

noreply@blogger.com (Brian McIlmoyle) — Thu, 19 Oct 2006 22:08:00 +0000

Collection Agencies are a necessary service in the realm of finance. When bills go unpaid companies can't afford to get bogged down in following up on unpaid accounts. This is where the "Bill Collectors" come in. Sometimes companies will sell their unpaid accounts to the Collection Agency for an amount less than the amount owing. This way the company gets paid a portion of the bill. Now the collection agency is 100% responsible to collect the debt. If they want to make any money on the debt they bought the have to collect as much as possible as fast as possible. In other cases collection is contracted out to collections agencies and they are paid a commission on the amounts collected. To say that collection agents are "highly motivated" is an understatement.

Individual collectors are paid a commission on the dollar value they collect. Every aspect of the collections agency behavior is devoted to getting the money.
This can result in some very aggressive behavior as the agents work the phones to get the money, it is a tough job, and it takes a special personality to do it with compassion.
If you are on the receiving end of the collection agent's efforts it can be difficult to realize that the person you are talking to is just trying to pay their own bills, and for them to do that you have to pay yours.

Regardless, there are rules for what can and can't be done by collections agents to collect bills. Those rules were tightened on June 1 2006. If you are having trouble paying your bills and they have been placed with a collection agency you should know those rules so that you can be certain that who you are dealing with is sticking to them. Some of the most important elements of the new rules are guidelines for how often collectors can contact you. They can't contact you more than 3 times in any 7 day period. There are very clear rules about collectors calling your work or other members of your family. They can only call once to confirm your employment, they can only call your family to ask for your address or phone number. They can't give false or misleading information to anyone nor can they use threatening, profane, intimidating or coercive language, neither can they use undue, excessive or unreasonable pressure. As the one receiving the call you are the judge of whether a collections agent is doing any of the things they are not supposed to.

The thing about Collection Agencies is they won't stop or go away, and they will escalate their efforts if you don't respond, including going to court to get an order to take some of your wages. If you have to deal with collectors, be upfront with them, tell them what you can and can't do, don’t be bullied into agreeing to do anything you are not certain you can handle. Keep the interactions professional, but keep the lines of communication open. Most collectors are willing to work with you if you show you are willing to work with them.

If it is all too much and you know you can't solve the problems yourself, call 310-PLAN to talk to a trustee. You have options and you owe it to yourself to make sure you know all your options.

Trouble on the way?

noreply@blogger.com (Brian McIlmoyle) — Tue, 05 Sep 2006 20:57:00 +0000

Warning sign!
Beyond lies financial trouble!

When meeting with clients at our Mississauga or Brampton offices I often see trends in the situations presented by people who have run into financial trouble.

Here are some of the most common warning signs that you are heading towards a financial crisis. If any of these things are happening to you, you need to take action now.

1.You are often into your overdraft on your main account, or in extreme cases you are always working below the zero line, and only catch up when your pay is deposited.

2.You have to get short term loans at "payday advance" or "cash stores" to pay your bills.

3.You can no longer approach your bank for credit and must go to high interest lenders to finance cars or for consolidation loans.

4.You have more than one credit card that is carrying a balance and you use one to pay the other.

5.You have no reserve, no savings of any kind, any interruption of your income would trigger a financial crisis after only a week or two.

6. Utility bills like electricity or gas are into arrears and are threatening to shut off services.

7. Collection action is affecting you. Phone calls and letters from collection agencies are hounding you.

8. Stress about money is affecting your relationships and your wellbeing, you can't sleep, you get into arguments about money.

If any of these warning signs are familiar you may be heading towards trouble. Taking action now may head off a crisis. Maybe all you need is to reduce expenses and stick to a careful budget. Maybe you need professional help. If you are dealing with any of the warning signs above call 310-PLAN and speak to a trustee today we can help you get back on track.

What happens after my bankruptcy is over?

noreply@blogger.com (Sandra Sykora, Trustee) — Fri, 11 Aug 2006 15:37:00 +0000

When meeting with clients in both our Mississauga and Brampton offices, I am often asked what happens after my bankruptcy is over? What do I do next?

If you have never been bankrupt before the minimum time set by the court to be bankrupt is 9 months. This means that the court will give you relief from your debts in 9 months provided all is order and your duties as a bankrupt are completed. The result is the debts you had in your bankruptcy are discharged and you will get a fresh start. There are certain debts or special debts that you will not be discharged from such as, student loans less then 10 years old, child support payments and any fines or penalties.

Once the bankruptcy is completed the trustee will send you an original of your discharge certificate. The discharge date will be added to your credit report and there will be a footnote in the legal section indicating when your bankruptcy started and when it was done. So when new creditors do a credit check they will see the footnote and know that your bankruptcy is completed.

Now it is time to start to rebuild your credit. It is like taking baby steps. Usually the first step is the get a secured credit card. This means you will have to save some money to put a deposit down on a credit card. The credit card company will allow you to use the card up to the amount of the deposit you provided. This will start to rebuild your credit rating as you are paying off the debt each month in order to be able to use the card. Generally, the next step is to get a small loan or car loan and repay it. Again making payments on time and not missing any will rebuild your credit rating. In this way, creditors regain confidence in your ability to pay your debts and will begin to extend credit to you.

For most the purchase of a home is the biggest purchase they will make in their lifetime. This is usually the last step in rebuilding your credit, as it is such a large purchase. You will want to have a good down payment and you may have to shop around for a good mortgage but it can be done.

So don’t be afraid of starting to rebuild your credit after bankruptcy. You just need to budget and use it wisely.

To get your plan started, please contact the Hoyes Michalos office nearest to you and one of our professional staff will meet with you personally to help get a fresh start.

noreply@blogger.com (Brian McIlmoyle) — Thu, 10 Aug 2006 14:03:00 +0000

I have lost my Job.. I can't pay my bills! What should I do?

Don't Panic! Make a Plan!

Job loss can be one of the most difficult of life's challenges. Practically all of us plan and build our lives around our income. We need the constant influx of cash to keep everything going. When that cash-flow reduces or stops it does not take long for things to start to unravel.
When job loss happens, the first thing to do is make a plan. It is all well and good to presume that you will get another job right away, but it does not always happen.
Reducing expenses and careful budgeting should allow you to weather the storm if you take action as soon as the job loss happens.
Avoid making up the cash-flow shortfall with credit. When an employment interruption happens we can't carry on as if nothing has happened. Continuing to use credit with less or no money coming in to service the debt will result in a big problem in short order.

I see people all the time in our Brampton office who have been maintaining their fully employed lifestyle while unemployed by using credit. All too often the amount of debt generated during the period of unemployment is too great to be paid off even when they get back to work.

No one plans to loose their job, but a little forethought can go a long way to reducing the stress of an interruption of income. Put a little of your income away every pay and build a reserve fund for emergencies. It does not really matter how much as long as you do it with every pay, put the money in a separate savings account and forget about it. You will be surprised how quickly it builds up to a very useful cushion that will give you a bit of breathing room when something happens to your income.

If you have suffered a job loss and have accumulated debts that are causing you trouble call 310-PLAN to talk to a trustee about your options today. We can help you make a plan to get you back on track.

I need my car to go to work. Will I lose it in a Bankruptcy?

noreply@blogger.com (Sandra Sykora, Trustee) — Fri, 28 Jul 2006 16:29:00 +0000

Most of us have a car that we require to get back and forth to work. We consider it a necessity in order to make a living. I find this to be the case for many of the people that I meet with in our Mississauga and Brampton offices.

When making an assignment into bankruptcy you are required by law to surrender all your assets to your trustee who will distribute proceeds from the sale of the assets to your creditors. There are some assets that are exempt from seizure. Each province has different exemptions.
In Ontario, the exemptions are governed by the Ontario Execution Act (the "Act"). The Act has changed over the years regarding how a motor vehicle will be treated in a bankruptcy situation and also the amount of the exemption.

Presently, a motor vehicle worth up to $5,650 is exempt from seizure in a bankruptcy. This change in the exemption amount occurred on December 14, 2005.

Up until June 22, 2006, the problem that arose was if the motor vehicle was worth more then the exemption amount, by even one dollar, it was no longer exempt property. Thus, you were required to turn the asset over to the trustee for the benefit of your creditors or you had to pay the full value of the vehicle to the trustee to keep it. For most individuals thinking of filing for bankruptcy, this seemed very unfair.

On June 22, 2006, the Ontario government saw the error of this law and revised the Act. The Act now allows a car to be exempt from seizure provided it is worth less than $5,650. This has not changed. However, if the car is appraised or valued at an amount higher then the exemption amount, it no longer losses its exemption status completely. Now the trustee can sell its "interest" in the car which is the amount over the exemption less any selling costs or the bankrupt can buy back the trustee's interest so that he or she can keep the car. For example, if the car is appraised or valued at $6,650 at the time of bankruptcy, the trustee's interest for the creditors is the difference between the appraised value of $6,650 and the exemption amount of $5,650, which is $1,000. The bankrupt can repurchase the trustee's interest of $1,000 in order to retain the car. Or the trustee can sell the car and will only keep the amount over the exemption amount. The bankrupt will get up to the exemption amount $5,650.

I have debts from my business; what is personal debt v. company debt?

noreply@blogger.com (Sandra Sykora, Trustee) — Tue, 25 Jul 2006 19:31:00 +0000

Often times I meet with people in our Mississauga or Brampton offices who want options regarding their debts. Many times these options are not only with respect to personal debts but with debts that relate to a business they have or once had. This usually leads to the question; what debts from a business will you be personally responsible for?

The answer depends on what type of business you had. Was it a sole proprietorship or an incorporated company where you were an officer and director?

In the case of a sole proprietorship, there is no distinction between your personal debts and those of the business. The debts are all yours personally and you will have to deal with them along with your personal debts.

In the case of an incorporated company, the debts from the business are the company’s debts and not yours personally unless you personally guaranteed the debt for the company. For instance, a lease for a location the business operates from. The other exception is debts of the company that officers and directors of the company are responsible for. For instance, employee claims for wages and also certain government taxes such as, GST and PST. Generally, as an officer and director of a company you will be responsible for these debts personally and will need to include them with your personal debts when making a plan for dealing with all your debts.

If you find yourself with business debts and personal debts that are overwhelming and are uncertain about your financial options and want advice on dealing with your debts, please contact the Hoyes Michalos office near you, and one of our professionals will meet with you personally to help you make a plan to deal with your debts.

How can I decide what is best for me?

noreply@blogger.com (Brian McIlmoyle) — Mon, 17 Jul 2006 15:31:00 +0000

Often, when I am meeting people to discuss their money problems, I find out that we are the last place they come to for help. This is not really surprising as coming to a trustee to get help to resolve your debts is pretty much the final solution to money problems. Most people are confused about what their options are and what makes sense for them.

In order to come to some plan to resolve your problems there are certain factors that have to be considered. How these factors relate to each other will determine your best course of action. The factors are.

1.How much you owe, and to whom and for what?

2.What you own that could be turned into money, and how much money it could be turned into, and do you want to keep some or all of this stuff?

3.How much income comes into the household every month?

4.How much do you spend each month just to pay your living expenses?

The first factor is important because not all debts can be resolved by bankruptcy. Student loans less than 10 years old, Co-signed debts, fines and restitution orders for example can’t be discharged in most cases.

The second factor indicates what you own, if you own little but can’t pay your debts, then likely bankruptcy is an option worth looking at. If you own a house, cars and investments like RRSPs that you want to keep then perhaps a Proposal would be a better option. Often filing a proposal will allow you to keep your house and the other things you own while still resolving your debt problems.

The third factor is important in that the amount that a bankruptcy will cost you is tied to the amount of money coming into the household. If you have a good income coming in then bankruptcy may be expensive, again a proposal may be a better option. A proposal will cost you more in the long run, but you can pay the proposal amount out over a longer term, allowing it to fit in the budget better.

The final factor indicates how much money is available to put towards resolving your problems. If you are spending more than you make just paying for your basic expenses before servicing you debts, a proposal won’t work for you, you have to show how you can afford to pay for it before the people you owe money to will accept the deal. In this case filing bankruptcy combined with tough budgeting will enable you to get your fresh start.

If you have questions about what you should do call 310-PLAN and one of our trustees will review your situation and help you come up with a plan.

I have money problems, where do I start?

noreply@blogger.com (Brian McIlmoyle) — Wed, 05 Jul 2006 19:55:00 +0000

When meeting with clients I have often found that the solution to their problem is very clear to me, being on the outside looking in. However for our clients, deeply involved in the day to day struggle with their debt, there seems to be no solution. Managing money is not a skill we are born with, we have to learn, and often we have to learn the hard way, by making mistakes and recovering from them. Everyone deals with money problems at some point in their life. Taking action and making a plan to deal with the problem early is critical.

In many cases the financial trouble can be weathered with a combination of "belt tightening" and effective budgeting, sometimes this may be accompanied with re-financing and consolidation of your debt through your bank. This is where the solution to any financial problem should start, with you taking control and making a plan. If this does not work then you may need some help to recover.

Sometimes all you need is a little help getting your budget under control. In these cases a credit counselor can help, if necessary they can negotiate with your creditors and arrange payment terms that you can handle typically with interest relief and extended payment terms. Such schemes are known as Debt Management Plans and are very helpful for clearing away smaller accumulated debts. In addition you can select which debts you want to make part of the plan allowing for much greater flexibility than a formal filing with a Trustee.

If you have tried both of these approaches, and you are still in trouble, then you may need the help of a Trustee to get things back under control.

If you are dealing with money problems and don't know what to do call us at 310-PLAN to speak to a Trustee today. Even if it turns out you don't need a trustee, we can help you figure out a solution to your money problems.