Brian McIlmoyle

“I don’t want to be bankrupt”

What are the Advantages of a Consumer Proposal?

Often when I meet people in my MississaugaOffice , these are the first words out of their mouths.  No one wants to file a bankruptcy, and thankfully not that many people have to.

When I meet with people to discuss their debt problems we talk about all the options available to them. when we get around to talking about ConsumerProposals , most people have never heard of them, despite the fact that they are now the most popular means for dealing with debt and avoiding bankruptcy in Ontario.

Just what are the advantages of a ConsumerProposal?

Probably the most important advantage is it’s not a bankruptcy. For many people that is important, but there are lots more advantages.

You pay back your debts, as much as you can afford.

You get a monthly payment you can live with.

You can keep your house, your cars, your RRSPs.

You are not penalized for earning “too much money” like you can be in bankruptcy.

You can pay it off early and get debt free faster in some cases.

You don’t have to go to court and explain in front of everyone how and why you go into debt.

You can continue to own and operate an incorporated business.

You can deal with TAX debt.

You can rebuild your credit faster than a bankruptcy in some cases.

You can deal with all the debt in the household with a Joint Proposal

you never pay any interest

You don’t pay any extra fees, all of the fees are included in the deal

You don’t have to worry about wage garnishments.

You never have to say “I’ve been bankrupt”

And finally , you take back control, you make a deal with your creditors and you get back in charge of your money.

Dealing with Debt is not easy, but with a ConsumerProposalit can certainly feel a whole lot better than having to file a bankruptcy.

If you are dealing with debt, and want to make a deal with your Creditors call us today at 310-PLAN( 7526) or click www.hoyes.com and lets get started

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Mississauga Bankruptcies down in 2010

A good indicator of the health of the economy is the volume of people filing consumer proposals and  personal bankruptcy . In 2009 there was  a 30% increase in filings in Ontario over 2008. Now half way into 2010we are seeing a 17% decrease in filings in Ontario from 2009 levels. I’ve seen it in my Mississauga Bankruptcy office as well, though we are still busy, I sometimes get home from the office in time for dinner, which never happened in 2009…

Even more interesting is the change in the number of people  filing 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 levels

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Changes to Bankruptcy law that came into affect in September of 2009 make personal bankruptcy longer and more expensive for many people.  This has resulted in far more people choosing to file a consumer proposal in order to resolve their debts.  this was one of the intentions of the law changes, so it is nice to see the government has done something that actually worked.

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 personal 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.

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CREDIT CARDS  – THE GOOD THE BAD THE UGLY

 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.

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All the experts say “the recession is over”, someone should inform the people I see every day in my Mississauga and Brampton offices.

The recession hit Peel region particularly hard, it’s a manufacturing center and a lot of companies just did not weather the storm and failed. This put a lot of people out of work, a lot of people are still out of work and the jobs they used to do just don’t exist any more.

At this point, many of those people who were collecting EI benefits are now seeing those benefits come to an end. The problem is, employment has not resumed. Particularly hard hit were older workers, people who have invested 10, 15, 20 + years in a company only too see it all swept away in the recession. 

Some of these workers with years of experience on the job are finding it very dificult to get back into the job market at the income they had before, I’ve seen 40-60% wage reductions for people who were able to find work.

Periods of unemployment and subsequent wage reductions are a significant contributor to debt problems. A lot of people have tried to supplement their income by using credit to make up the shortfall. This can work for short term wage interruptions, but when we are stretching this out over a year or more huge debt can result.  Oftentimes even with a return to employment the accumulated debt is greater than can be managed on the new reduced income.

In circumstances such as this, there are remedies available to get things back under control, bankruptcy, though the right solution for some people, for others a consumer proposal is the right way to recover from the “post recession hang-over”

Before anyone should consider taking control of their debt problems they have to ensure that the issues that created the debt are resolved.  A balanced budget is the first requirement of a successful recovery.  If you have enough money coming in to look after the household expenses, but not enough to take care of accumulated debt borrowing more money is not the solution. You owe it to yourself to find out about all your options. We can help you identify all the possible solutions to your debt problems.

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

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