The Office of the Superintendent of Bankruptcies released the 2011 third quarter results today. If you like you can look at them at this  LINK Overall we can see a continued trend.

Bankruptcy filings are down from 2010 and trending down throughout 2011.  This is not really surprising as the economy continues a slow recovery from the 2008-2009 recession when bankruptcy filings reached a peak. More and more people are getting back to work, things are getting better for many people.

Another interesting trend is the continued increase in people choosing to file ConsumerProposals rather than filing for bankruptcy.

In the Toronto region Bankruptcy filings are down 25% over 2010  but Consumer Proposal filings are up over 3% over 2010 numbers.  In some parts of Ontario, the numbers are more striking, In Hamilton for example bankruptcies are down by 25% but Proposal filings are up by nearly 30%!

I think that this is due to a combination of reasons, foremost, people are learning more about Consumer Proposals, Trustees ( particularly HoyesMichalos & AssociatesInc.) are working hard to get the word out about Proposals. In addition legislative changes in 2009 to the bankruptcy and Insolvency Act made Proposals a much more viable solution for dealing with debt than they used to be compared to Bankruptcy.

In general these numbers give us insight to 2 things. first, the overall numbers of people needing to file bankruptcy or proposals is down from 2010.  Second, more and more people are avoiding bankruptcy by filing a ConsumerProposal to deal with their debt.

Although filings are trending downward, which is good news, we have not seen filings reduce to pre-recession levels. Clearly there are still a lot of people who need help dealing with their debt.

If you are struggling with debt, take some time and call us, we can help you get a fresh start, and finally put you on the road to debt freedom.

Call 310 PLAN ( 7526)  ir click on www.hoyes.com and lets get started

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Howlongisbankruptcy?

Most of the people I meet in my Mississaugaoffice have some pretty significant misconceptions about the bankruptcy process. This is not surprising as for most of them they have never needed to know anything about bankruptcy, until now.

Many people say that they “heard from a friend” that  “bankruptcy is 7 years”. Frankly there is a lot of misinformation out there. Some of it is even put out there by “DebtConsultants” to confuse the issue and get people to sign up with them in expensive and doomed settlement agreements.

so what is the real story?

For most people for whom bankruptcy is a viable option for dealing with their debt the process takes 9 months to complete.  Some people who have higher incomes the process can be extended out to 21 months to enable more money to be collected for the creditors, The cost of bankruptcy and how surplus income works I wrote about earlier this month you can find that post here . If you have been bankrupt before, the process is longer automatically, 24 to 36 months depending on your income.

So where does the 7 year thing come from?

After you finish the bankruptcy say in 9 months, there will be a footnote entered on your credit report indicating when you filed for bankruptcy and the date you finished. This record stays on the report for 6 years. So 9 months plus 6 years is pretty close to 7 years.

For many people who have too much debt and yet have a decent income, a bankruptcy is not the best option, for these people often a ConsumerProposal is the right solution for dealing with their debt.

If you have too much debt and need help dealing with it give us a call at 310 -PLAN ( 7526)

or click on www.hoyes.com and lets get started.

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Many of the people I talk to each day in my Mississauga office start the conversation with “ so how does this work?”

For most people considering filing for bankruptcy has been a long road, and not at all easy. Often a lot of very bad things have happened along the way to bring you to the point that filing for bankruptcy is a consideration.  The good news is, making the decision to go see a trustee is probably the hardest part of the process. Everything else is easy.

The procedure for filing is not all that complex, you do need to engage a licensed trustee in bankruptcy to proceed, only a licensed Trustee can file a bankruptcy for you. Also the paperwork required is not difficult to prepare, and your trustee will help you so you don’t need a “debt Consultant” to do this for you, save your money and see a trustee directly.

This link will take you to a site that goes through the details of what you need and what you can expect as you go through the process.

Another thing that many people don’t know is that most people who think they need to file a bankruptcy end up not doing so. Most people after they talk to a Trustee in Bankruptcy end up not filing for bankruptcy and do a Consumer Proposal instead.  A ConsumerProposal allows you to deal with your debt without bankruptcy, and is fast becoming the preferred method of dealing with debt in Canada.

If you have too much debt, and too many questions about what you can do about it, Call us we can help you make a plan the works for you. Initial consultations are free.

Call 310-PLAN ( 7526) or click on www.hoyes.com  and lets get started.

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Many of the people I meet with every day at my Mississauga office often say “they never thought they would be in a situation like this”

Everyone at some point deals with financial problems in their life, it turns out that they typical person who may reach out for help to a Trustee in Bankruptcy looks a lot like your average Canadian.

A recent study entitled “Joe Debtor : the face of bankruptcy” completed by Doug Hoyes and Ted Michalos the founders of Hoyes Michalos & Associates Inc. indicates that the typical person who files for Bankruptcy or files a Consumer Proposal is exactly that , a typical person. The study shows that anyone can run into hardship, but it also shows some trends that are worth noting.

This 2011 study updated a similar study completed in 2007 by Hoyes Michalos & Associates Inc. In the intervening 4 years there has been some changes. We have come through a recession and the rules and regulations governing Bankruptcy in Canada have also undergone some revisions that has had an impact on the face of bankruptcy in Canada.

Some of the trends indicated in the study illustrate the changing face of debt in Canada.

The amount of debt held by people that file is going up, The number of people burdened by student loan debt is also increasing and women are increasingly the ones burdened the most by crushing student loan debt.

Most worrying is the trend of people carrying too much debt being older and retired persons and the amount of their debt being often much higher than the average.

All of these trends come together to illustrate that on average Canadians are carrying more debt than ever and are struggling with that debt well into their retirement years.

Also indicated in the study is a growing trend for people to deal with their debt by filing a Consumer Proposal rather than going Bankrupt. This trend is being driven by 2 factors, changes in legislation that made bankruptcy both longer and more expensive and the fact that many people burdened with too much debt, none the less have reasonable income and often own assets that they wish to preserve. Both of these factors make a Consumer Proposal a more effective remedy for dealing with debt than Bankruptcy.

If you can see some of yourself in “Joe Debtor”  You owe it to yourself to find out what options are available to deal with your debt. We can help call us at 310-PLAN or visit www.hoyes.com and lets get started.

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Keeping things in perspective, Dealing with Bankruptcy in Mississauga

Dealing with debt is stressful, I know this,  Everyone at some point hits some financial challenges, myself included.

But it is important to keep the problem in perspective. We have all been watching what has been happening in Egypt, History is being made, people are struggling for the basic rights that we all take for granted here in Canada.

One of the worst things we could end up dealing with here is how to sort out too much credit card debt. This problem really pales in comparison to the issues that Egyptians are struggling with today.

I don’t know what’s going to happen in Egypt, I hope for the best, that a fair and free democratic government will take root, but I can’t do much to make that happen.

I can however help you deal with your debts. I can help you put your debt problems into perspective. We can work together to make a plan to get you debt free. You may be worried about what will happen, how this all works but you can rest assured that you can get relief and that bankruptcy may not be necessary.

It may be possible to reduce your monthly payments to a single affordable payment  under a consumer proposal.

Call me today at 310-PLAN or click on www.hoyes.com and lets find out what works for you.

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Winter storms, Colds and thinking about Bankruptcy in Mississauga

This week Winter came, snow, wind freezing temperatures… and I have a cold.

I don’t get sick often, but when I do, I am usually down for the count. I took a day off away from the office as clients typically don’t want to meet with someone who is sneezing and coughing all over them.

Over my lemon tea I was thinking about how my cold came on, and how that is also how debt can come on to a person.

You think you are ok, but you have a feeling that something is “not good”  maybe you had to miss a payment due to some crisis, or you took a payday loan to tide you over to your next pay. But now things are getting out of control.

Creditors are calling and you don’t know what to do.

You have a full on debt crisis on your hands and you can’t seem to get back on track.

Just like my cold… I felt a tickle in my throat, and 2 days later I’m shivering under my covers wondering what then heck happened.

There is not a lot you can do about a cold other than keep warm, drink lot of fluids and wait for your body to kick out the virus. Fortunately that is not the case when you are dealing with debt.

You can take control of the situation and take action to get back on track. You don’t have to pull the covers over your head and hope it will all go away, because it won’t. Debt problems don’t solve themselves.

The first thing you want to do is get informed about the options. Maybe all you need is a little budgeting help, or credit counseling. Certainly you should take the time to examine all the options available including meeting with a Trustee to review the formal options such as Consumer Proposals and Personal Bankruptcy.

A free no obligation meeting with one of our trustees will get you started in the process of taking control of your debts. Call 310-PLAN or click www.hoyes.com and lets get started.

We can’t do anything about the Common Cold, but we can help make your financial future debt free.

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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 or e-mail us for more information, and to set up your no charge initial consultation.

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