Even more interesting is the split between the filings of Bankruptcies and Consumer Proposals between 2009 and 2010. Year over year for the same period, bankruptcy filings are down by 30% , but filings for Consumer Proposals are actually up by nearly 16% over 2009.
Changes to Bankruptcy law that makes personal bankruptcy both longer and more expensive has resulted in far more people choosing to make a Proposal to their creditors to resolve their debts. Overall this was the intention of the law changes, so it is nice to see the government do something that actually works as it was intended.

As a measure on the overall health of the economy bankruptcy statistics are interesting but they hardly tell the whole story. I see many people in my Mississauga Bankruptcy office that are still struggling with making their payments. Although many people are back working, often it is at reduced hours and reduced pay. For many of these people filing a Consumer Proposal is exactly the solution that they need to complete their recovery from the recession.

It’s nice to see that things are turning around and it is also heartening that many people are successful in dealing with their debt without bankruptcy. If you are still struggling maybe a Consumer Proposal is the solution you have been looking for. Call me today at 310-PLAN or click www.hoyes.com  and lets get started.

 Credit cards are likely the most significant financial services innovation of the last century. Credit cards allow “regular people” ready access to borrowed money; when they first hit the consumer banking scene in the 1950s, they were a revolution.

 Borrowing money of course, is nothing new. As long as money has existed as a means to exchange services, those that had it were keen to lend it to those that did not – but for a profit. Credit cards simplified this process and have launched a headlong rush into consumer debt ever since.

 So, are credit cards good?

 For many people, the convenience of access to instant credit simplifies business transactions and helps to smooth out the bumps in cash-flow. For unforeseen emergencies, access to instant credit can turn a crisis into a manageable problem. For reducing risk of loss by nearly eliminating the need to carry large amounts of cash while traveling, they are invaluable. And today, for making online purchases for goods and services they are critical.

 But, remember… at the end of the month, the bill has to be paid.

 So, are credit cards bad?

In a word – no. Used properly and carefully managed, credit cards are an important part of modern participation in the economy. They enable the sale of goods and services and provide security for transactions that otherwise would result in large amounts of cash changing hands. For online commerce, they are almost a must. Today it’s nearly impossible to get along without credit cards.

 So when do things get ugly?

We run into trouble with credit cards when we start carrying balances on cards. Credit cards were never intended for long term financing, neither are they an inexpensive way to borrow money. Even the lowest interest card charges two to three times more than in any other money lending manner. Normal credit cards are offering rates of five times and some as much as ten times more. If you are relying on credit cards to finance basic expenses and have to carry those balances long term, it’s going to get ugly fast if you’re only able to make minimum payments. You will soon find yourself struggling under that debt as the interest monster will consume more and more of your income just to carry the debt.

 If the “Interest Monster” has made your finances a mess, you may very well need some help to get back on track. We can help you make a plan that puts you in the driver’s seat and ultimately debt-free.

 Call 310-PLAN  or go online at www.hoyes.com and let’s get started.

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.