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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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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