Brantford Ontario Personal Bankruptcy Blog

Record month for Bankruptcy in Brantford

2009-07-03T08:29:00.001-04:00

I hate to be the bearer of bad news, but June was a record month for the number of personal bankruptcy and consumer proposals filed by my firm in Brantford. Since we opened our Brantford bankruptcy office in 1999, we have never had a busier month than we just finished. In fact, our volume in June, 2009 was more than twice as high as it was in June, 2008. The bad news for Brantford residents is that June is not normally a busy month; we are usually busy in March, April and May, and then as the summer approaches we slow down. Not this year. Our Brantford help line is busier than ever, with no slow down in sight.

Why is this happening?

First, more people in Brantford are losing their jobs, or having their hours reduced at work, so they just can't make ends meet.

Second, house prices continue to fall in Brantford, so it's no longer possible to re-finance your house to pay off your debts, or sell your house at a profit to raise cash. An increasing number of Brantford residents are finding themselves "under water" (the value of their house is less than the amount owing on the mortgage), so they are letting the bank foreclose, and they are finding a place to rent, and then dealing with the resulting shortfall.

Finally, a large number of the people I meet are no longer optimistic. They believe that the recession won't end tomorrow, so they are deciding to go bankrupt now to deal with their debts, in the hope that by 2010 the economy has improved, and they will have a fresh start.

I can't predict when the recession will end, or when house prices in Brantford will start to increase, but I can tell you that debt problems don't go away on their own, so if you are struggling with debt, now is the time to act. Call my Brantford bankruptcy office at 519-770-4440 or 310-PLAN (no area code required), or e-mail me today with your questions, and let's get started making a plan for dealing with your debts.

The Brantford Casino, Bankruptcy and Hope

2009-06-09T12:43:00.007-04:00

Since Casino Brantford is a short drive from my Brantford bankruptcy office, I am often asked if I see a lot of people with gambling problems in Brantford. The answer: I don't. I don't see gambling debts as a problem any more than I would see in any of my firm's other Ontario bankruptcy offices.

However, I do have a large number of Brantford residents that have filed a bankruptcy or consumer proposal with me that work at the casino. The casino is one of the largest employers in Brantford, so it's not that surprising that I meet with people who work there. Often they lose their job, are off work for a period of time, and then they finally get a job at the casino, and they are afraid that their wages may be garnisheed, so they file bankruptcy. Their financial problems are not caused by gambling at the casino.

This morning I met with two people who are currently in the bankruptcy process with me, and both of them work at the casino. I asked them how business was, and they both said the same thing:

Booming.

That surprised me; I would have assumed that during a recession people would save their money and gamble less, but apparently that's not the case. The casino is very busy these days.

I asked both people why they thought the casino was busy during a recession, and they both had the same response: If you have lost your job, and if you have very little money, you are looking for hope. The casino offers hope. They hope that they may win some money and make everything better.

I have no objection to people going to a casino. It's your money, you can spend it as you wish. I don't see much difference between spending $100 at the casino, or spending $100 on dinner and movie, or $100 going to a sporting event.

I do worry about people spending money they don't have, and my two contacts this morning told me that they worry about that as well. If you are spending your Employment Insurance or Welfare cheque at the casino, you've got a problem. We all want hope, but that's not a good way to get it.

Here's my advice: if you are down on your luck, don't despair. We are in the worst recession any of us have ever lived through. You are not alone. Everyone else is also worried about losing their job, or not having enough money to pay the bills. Instead of hoping to win by gambling, a better strategy is to follow my three point plan for financial success:

1. Make a budget. Unless you know where your money is going, you can't control it. Here's a link to some free personal budgeting tools.

2. Pay off debt. A recession is not the time to be carrying a lot of debt, so pay down your debts as fast as possible. If you have more debt than you can handle, it's time to investigate your options.

3. Once your debt is under control, start saving money. It's a lot easier to survive a job loss if you have money in the bank.

There is hope, but in most cases the casino isn't the solution. It's fine as entertainment; gambling is not a financial plan. For more information on your options, call my Brantford office at 519-770-4440 or 310-PLAN (no area code required in Ontario), or e-mail me to set up a no charge intitial consultation, and let's get started.

Personal bankruptcies up significantly in Brantford

2009-05-12T14:02:00.002-04:00

Each week I meet with about a dozen people in my Brantford bankruptcy office. The Office of the Superintendent of Bankruptcy released statistics this morning showing that personal bankruptcies are on the rise in Brantford.

In the first three months of 2009 there were 125 residents of Brantford that filed bankruptcy, and a further 47 people filed a consumer proposal. That's a total of 172 filings, as compared to 124 filings during the same period last year.

That means that personal insolvencies in Brantford increased by 38.7% in the first three months of this year.

How does that compare with the rest of the province?

Brantford's insolvency rate increased by a similar amount to Kitchener (36%), Toronto (39.9%)Windsor (39.5%) and fared much better than Hamilton (47.2%) and London (62.5%).

The Ontario rate was up by 40.7%, so Brantford fared slightly better than the entire province. In Canada consumer insolvencies increased by 35.9%, so Brantford was slightly worse than the national average.

However, the statistics only tell part of the story. In the last week I've met with a number of people in Brantford who are worried about losing their home, and they are worried about further job losses. The numbers are bad now, and they worry they may get worse. My message to them is that there is help available, so if you don't want to be a statistic, give my office in Brantford a call at 519-770-4440, or send me an e-mail, and let's talk about ways to deal with your debts so you can avoid becoming a statistic.

The Brantford Community

2009-04-23T13:23:00.003-04:00

I often meet with people in my Brantford office who have heard our commercials or have found us on the internet, and they are surprised to learn that I personally meet with people here in Brantford. Yes, I do, and I have worked with Brantford residents for more than 10 years.

I believe it's important to be active in the community as well. This weekend my son and I will be running in the Brantford Classic 5 km run to raise money for Rotary Club charities. (We will be jogging, not running, but you get the idea).

I am also proud to be a sponsor of the Community Curl in support of Community Living Brant. We share office space with IPC, and for many years I've been happy to help Don and Mike and their team with their community based activities.

If you have financial problems and don't want to deal with a big firm from Toronto, give us a call in Brantford at 519-770-4440 or e-mail us. I look forward to meeting you here in Brantford to work out a solution to your debt problems.

Brantford Credit Counselling

2009-02-18T14:25:00.003-05:00

Today Howard Hayes and I had lunch with Michelle and Sue from the Family Counselling Centre of Brant.

As readers of the Bankruptcy Brantford Blog know, the Family Counselling Centre of Brant is the only not-for-profit credit counselling agency that personally meets with clients in Brantford, and I highly recommend their services.

Since we last met for lunch in September, Sue and Michelle tell me that they are seeing more clients than ever. With the recession in full swing, and with debt levels at record high levels, and increasing number of Brantford residents are finding themselves in financial trouble.

Their approach is the same as my approach when meeting with someone for the first time: we review your assets, who you owe money to, and what you earn and spend each month. Based on that we recommend solutions.

Brant Family Counselling specializes in working out Debt Management Plans, where they negotiate a plan to repay all of your debts, in full, over a two to five year period, at often a reduced or zero rate of interest. In the past these plans were only used for unsecured debts, like credit cards and bank loans. Sue tells me that now they have even had some success negotiating extended payment arrangements on car loans.

So, if you are having debt problems, and you don't want to talk to a bankruptcy trustee, give Brant Family Counselling a call in Brantford at 519-753-4173, and they will be happy to walk you through your options.

Can you still get a mortgage in Brantford?

2008-12-01T09:32:00.004-05:00

Last week I had lunch with Wendy Young from our Hamilton bankruptcy office, and Harvey Woods, a mortgage broker with Mortgage Intelligence in St. George (Harvey's office is across the street from the St. George Arms, so we ate there). Most of Harvey's clients are in the Brantford area, but he and his team helps people as far west as London, and as far east as Toronto.

I wanted to meet with Mr. Woods (that's his picture on the right) to find out first hand how the credit crisis and the decline in the real estate market is impacting on residents of Brantford. Specifically, is it still possible to refinance your house to repay your high interest credit card debts, and is it still possible to get a mortgage to buy a new home?

Harvey told me that yes, it is still possible to get a mortgage, but it is more difficult to qualify than it was two year ago at the height of the real estate and credit market. Two years ago it was common to be able to get a mortgage with no money down; today, it is almost impossible to get a no-money-down mortgage unless you have perfect credit and a high income. If you have good credit and sufficient equity in your home, you may still be able to refinance up to 90% of your home's appraised value. If you are buying a new house, your chances are better if you have a more conventional 25% down payment.

If you think refinancing your house may be the solution to repaying your high interest debts, or if you are considering buying a home, Harvey can be contacted through his website.

If your house has declined in value and now you owe more on your mortgage than your house is worth, or if you have large credit card and other debts, give me a call in Brantford at 519-770-4440 or 310-PLAN, or e-mail me, and we can discuss your options for dealing with debt in these difficult economic times.

Credit Counselling in Brantford

2008-09-18T15:44:00.003-04:00

Earlier this week Howard Hayes and I had lunch with Michelle, Sue, Nina and Terri from the Family Counselling Centre of Brant.

(Totally off topic, we had lunch at Cafe Andreou on West Street; I had never eaten there before and we wanted to try it. I was told the food was great but the owner is a bit unusual. Sure enough, the food was great, but when the waiter made a small mistake on Terri's order, the owner, rather than apologizing, came out an basically said "you have no choice but to sit and wait until we fix it." Maybe it's just me, but perhaps an apology and a free appetizer might have been a better approach).

The Family Counselling Centre of Brant is the only not-for-profit credit counselling agency that personally meets with clients in Brantford. I have worked with their team for many years, and highly recommend their services.

They work with many other agencies in Brantford, as well as with employers and schools. Their main focus is on prevention.

I think their focus on preventing financial problems is great, because no one else is doing it. (The credit card companies want you to borrow more, not less).

Their Brantford credit counsellors are experts in helping you create a budget. Creating a proper household budget is the first step in assessing and preventing financial problems.

In addition to giving advice, the credit counsellors at Brant Family Counselling can also negotiate payment arrangements with your creditors through a debt management plan. For example, if you owe $20,000 on four different credit cards they can probably negotiate a plan where you pay $400 per month for 50 months to pay off your debts in full, and the credit card companies in most cases will waive all future interest, so you can get out of debt faster.

If you think a debt management plan may be the correct solution for you, call Brant Family Counselling in Brantford at 519-753-4173, or call my office in Brantford at 519-770-4440, or e-mail me and I can explain credit counselling and your other options for dealing with your debts.

How to Survive a Recession in Brantford

2008-09-08T07:39:00.001-04:00

Each week I meet with about a dozen people in my Brantford bankruptcy office. Over the past few weeks, I have been hearing a number of stories that lead me to believe that the economy is really slowing down in Brantford. We are in a recession in Brantford.

I spoke to a car salesman at one of the local new car dealerships. He told me that he sold half as many cars last month as he did in the same month last year. I met with another person who told me that his factory has now gone to a work share arrangement, so instead of getting five days per week of work, he only gets two or three days per week, with a partial top up from unemployment insurance for the rest.

Lots of other Brantford residents have told me that they are having a hard time finding a job, and those with a job have had their hours cut back at work.

I have also heard lots of stories about house prices in Brantford. One person this week told me that last year their house in Brantford was appraised at $195,000, but a recent appraisal for mortgage purposes put the value at $175,000. This means it is now harder for people in Brantford to re-finance their mortgage if they need to raise extra money to deal with their debts. And, of course, it is now harder to sell your house to get enough money to pay off all of your debts.

The good news is that there is still hope. Since opening our office in Brantford ten years ago I have helped hundreds of Brantford and area residents file a consumer proposal or bankruptcy to deal with their debts.

That may not be the correct solution for you, but there is no charge or obligation if you call my office in Brantford at 519-770-4440, or e-mail me to set up a free initial consultation. I will review your options and help you decide what you need to do to protect yourself in this down economy.

Brantford Casino Strike and Bankruptcy in Brantford

2008-06-05T15:09:00.001-04:00

Most people are not surprised when I tell them that the casino in Brantford is a significant source of work for my personal bankruptcy practice here in Brantford, Ontario. What is surprising to everyone is that it is rare for me to meet with someone who lost a lot of money gambling at the casino in Brantford. Most of my work comes from people who are employees at the casino.

The job market has been tough in Brantford over the last few years (you can read my post about the increase in the bankruptcy rate in Brantford last year). One of the few places that has been hiring over the last few years is the OLG Casino in Brantford. Here's a common scenario:

A Brantford resident is out of work, so they apply for a job at the casino. By the time they are hired they have fallen behind on their debts, so to prevent their wages from being garnisheed they file a consumer proposal or bankruptcy in Brantford to deal with their debts. (If you are not working you have no wages for creditors to garnishee, so most people wait until they return to work to go bankrupt).

The strike at the casino has caused problems for many of the employees at the casino. I met with one person who was going to go bankrupt, but has delayed the filing until the strike is over. I am working with other debtors who work at the casino and are either in a proposal or a bankruptcy who are now having a tough time making ends meet without their regular paycheque (strike pay is only $180 per week).

On behalf of the many employees at the casino that I work with every month, I hope for their sake the strike is settled soon and they can get back to work.

If you work at the casino, or if your hours have been cut back at work and you are now feeling financial pressure, I encourage you to call my office in Brantford at 519-770-4440, or e-mail me to set up a free initial consultation to review your situation and help you decide which options will best help you deal with your debts and get a fresh start.

Debt Problems in Brant County

2008-03-26T20:49:00.000-04:00

Over the lunch hour today I was invited to speak to a group of employees at the Brant County Health Unit here in Brantford. Many large employers often hold “lunch and learn” sessions where guest speakers discuss topical issues. Even if we are not experiencing financial problems ourselves, we often know others who have money problems, so I was asked to discuss strategies for dealing with debt problems.

I started by describing the typical person I help here in Brantford. I explained that often bad things happen to good people, and as a result of job loss, marriage break up, medical condition, or bad money management people use credit to survive and end up with more debt than they can handle.

We then talked about solutions to debt problems, including personal budgeting, debt consolidation, credit counselling, consumer proposals, and bankruptcy.

The group then had lots of questions about different ways to deal with debt, and they also had many questions about credit reports.

Regarding credit reports, I recommended getting a free copy of your credit report each year to ensure that all information is correct. (You can get a free copy from the Equifax web site).

I closed by reminding everyone that financial problems occur frequently, so if you know of anyone experiencing debt problems, help is available by calling my office in Brantford at 519-770-4440, or e-mailing me to set up a free initial consultation.

How Many People Go Bankrupt in Brantford Each Year?

2008-02-16T13:20:00.002-05:00

After experiencing a decline in the personal bankruptcy rate in Brantford in 2005 and 2006, the number of personal bankruptcy filings in Brantford increased by 13% in 2007. In total, 384 residents of Brantford went bankrupt in 2007.

In addition, a further 112 Brantford, Ontario residents filed a consumer proposal in 2007, a 12% increase from the 100 people in Brantford who filed a consumer proposal in 2006.

While the unemployment rate declined slightly in 2007 in Brantford, employment growth was a tepid 1%. Similar to other communities in Ontario, Brantford has lost higher paying manufacturing jobs and replaced these with lower paying service jobs. In early 2007, Genfast Manufacturing Company was just one company to close resulting in the loss of 210 jobs in Brantford. In August, Canadian Blue Bird closed affecting a further 130 manufacturing jobs. The list of plant closings also included Easton Coatings, Dura Automotive and Kester Canada.

By way of contrast, personal bankruptcies increased by 5.2% in all of Ontario, and by only 0.7% in all of Canada, so obviously Brantford has been hit harder than other cities in Canada.

If you have lost your job, or had your hours cut back at work, or if you are just faced with more debt than you can handle, please call me in Brantford at 519-770-4440, or e-mail me to set up a meeting to review your options, and let me help you find a solution to your debt problems.

Brantford Bankruptcy Trustee in Ottawa

2008-02-10T14:53:00.000-05:00

On February 7, 2008 my Brantford bankruptcy office was closed. I was in Ottawa, appearing as an expert witness before the Senate Standing Committee on Banking, Trade and Commerce to provide testimony on the proposed new bankruptcy rules.

Most of the witnesses that have appeared before the Committee were lawyers or lobbyists; no-one had appeared to give the average bankrupt's perspective. In my opening remarks I told the Senators that the average person who goes bankrupt in Brantford, or anywhere in Canada, is a real person who in many cases has lost their job, gone through a marriage break-up, suffered through an illness or other personal problem, and is left with an overwhelming amount of debt.

In other words, people who go bankrupt, in most cases, are honest but unfortunate people who need a fresh start. It's important that we don't create bankruptcy rules that make it too difficult for the honest person to get a fresh start.

Our testimony lasted for over an hour, and I believe that when we were finished the Senators had a better appreciation for the problems faced by the average person who needs to file a proposal or bankruptcy in Brantford.

I don't plan on returning to Ottawa any time soon, so if you live or work in the Brantford area and want to talk to someone who provides expert testimony on complex rules, but who also will sit down with the average person and help them understand their options, please call me in Brantford at 519-770-4440, or e-mail me to set up a meeting to review your options, and help you get the fresh start I believe you deserve.

Credit Education Week in Brantford

2007-11-13T13:44:00.000-05:00

Today I received an e-mail from Michelle Miranda, the manager of Credit Counselling at the Family Counselling Centre of Brant, located at 54 Brant Avenue (about a five minute walk from my office at 218 Brant Avenue).

The Family Counselling Centre of Brant is the only not-for-profit credit counseling agency in Brantford that offers one-on-one, face-to-face meetings with people experiencing financial problems. Michelle and her team can help people learn to budget, and they can negotiate payment arrangements with your creditors, called a debt management plan.

She e-mailed me today to remind me that today is the launch of the first annual Credit Education Week, which runs from November 13 to November 16. During the launch, the results of a national consumer survey of more than 4,000 Canadians were released, and the survey showed that the majority of Canadians do not have a sufficient understanding of basic personal finance and credit.

Michelle and I have discussed credit problems many times over the years, so neither one of us was surprised that the survey found that 92% of the survey respondents feel that Canadians have more debt than they did five years ago, however only 7% perceive that it makes sense to carry a larger amount of debt now as compared to 5 years ago. Full results of the survey can be found at crediteducationweekcanada.com.

If you are carrying more debt than you can handle, you should take action now, before your problems get even worse. As described in our article on credit counselling in Brantford, one option is a debt management plan that typically involves your creditors agreeing to a reduced or zero interest rate, provided you repay them in full over no more than a five year period. Michelle and her team at the Family Counselling Centre of Brant would be happy to explain the process.

If you have more debt than you can repay over a five year period, then a consumer proposal or a bankruptcy may be another option.

Whether it's a debt management plan, consumer proposal, or bankruptcy, help is available, and the sooner you get help, the sooner you can get your financial life back on track. For more information on credit counseling or debt management plans, contact Family Counselling Centre of Brant in Brantford at (519) 753-4173. For information on consumer proposals or bankruptcy, please call me at the Hoyes Michalos office in Brantford at (519) 770-4440.

Small Business and Bankruptcy in Brantford

2007-10-24T14:06:00.001-04:00

Question: If I file for bankruptcy in Brantford will I still be able to run my small business? I only suppliment our family income with my business, earning less than $2000 per year and using various computer equipment and software valued in the neighbourhood of $5000. I guess I want to know if I will have to give up my equipment and computers.

Answer: Yes, you will probably be able to continue to operate your small business, and keep your computer equipment if you go bankrupt in Brantford. You are allowed to keep basic goods, so the answer will depend on what other furniture and equipment you own.

There are also a number of issues related to operating a business while bankrupt, including tax issues, so I suggest you give my office a call in Brantford at 519-770-4440 or e-mail me and we can set up a time to discuss your situation in more detail.

How Do I Know if I am Getting Good Advice from my Brantford Bankruptcy Trustee?

2007-10-05T17:14:00.001-04:00

I meet with dozens of people every month at my Brantford bankruptcy office. I do my best to answer all of their questions in plain English. However, some of the questions are complicated, and some bankruptcy concepts can be difficult to understand. So how do you know if the answers I am giving make sense? Here are my suggestions:

First, before you meet with me, do some research on your own. This site is a great place to start. Be sure to write down your questions before we meet, so you don't forget to raise any issue.

Second, if you have a friend or family member who has gone bankrupt, ask them about their trustee. If they were pleased with their trustee's level of service, that's a great place to start (whether or not it was me).

Finally, when we are talking, think about what I'm saying. Does it make sense? Are you receiving clear answers to your bankruptcy questions? Do I seem interested in your situation, or am I more interested in speeding through the meeting? My days are always busy, but I do my best to spend as much time as necessary with you to answer all of your questions.

I can tell you that, like all trustees, I am licensed by the federal government. If I'm not doing my job I can lose my license, so I work hard to make sure you are getting the answers to every question you ask.

I strongly believe that you should let your judgment be your guide when deciding which trustee is going to be a good bankruptcy trustee for you. If you are not comfortable with the person you see, or you don't believe you are getting good advice from a trustee, get a second opinion. There are many trustees in most cities in Canada, so you can talk to other ones until you find one that will be a good bankruptcy trustee for you.

To set up a meeting with me, please call my Brantford bankruptcy office at 519-770-4440, or e-mail me to set up a meeting with me personally. I'm here to answer your questions, so let's get started.

Bankruptcy Rate Rises Dramatically in Brantford in the First Half of 2007

2007-08-02T11:11:00.000-04:00

In statistics just released by the Superintendent of Bankruptcy, the number of personal bankruptcies filed in Brantford in the first six months of 2007 was 198, a 21% increase over the 163 Brantford residents who filed personal bankruptcy in the first six months of 2006.

This compares to a 5% increase in the rate of personal bankruptcy in Ontario, so Brantford's increase was much larger than the Ontario average.

From January to June of 2007 55 Brantford residents filed a consumer proposal, as compared to 52 people in the same period last year, for a 6% increase. A consumer proposal is an alternative to bankruptcy, where you make payments to your creditors over a period of time, usually for less than the full amount owing. (So far this year I have filed about 40% of all consumer proposals filed in Brantford, so if you want more information, please give me a call).

I am starting to see signs of a weakening economy in Brantford. I have helped many more people this year than last year, and as interest rates rise I suspect the trend will continue.

If you want a fresh start, feel free to call my office in Brantford at 519-770-4440, or e-mail us to ask your question or set up a free initial consultation to review your options. Don't let your financial problems get out of hand; there is help available, so feel free to call.

What Happens to my car if I go bankrupt in Brantford?

2007-07-07T15:02:00.000-04:00

Since opening my Brantford bankruptcy office in 1999, one of the most common questions I am asked is "will I lose my car if I go declare personal bankruptcy in Brantford?" This is a big issue in Brantford, because many of us need our cars to get to work (as we all know, there is no subway in Brantford).

The answer depends on a few factors.

First, if you live in Brantford, or anywhere else in Ontario, you are allowed to keep one motor vehicle worth up to $5,650 if you go bankrupt. So, if you are driving an old car, you may be able to keep it.

However, if there is a lien on your car, or if you got a loan and pledged your car as security, whether or not you keep your car if you go bankrupt is up to the lender. The lender in most cases will allow you to keep the car, provided you continue to make all of your regular car payments.

A word of caution: not all banks will allow you to keep your car. Most banks do, but there is one bank in particular that will automatically repossess your car if you go bankrupt, even if your payments are up to date. I don't want to get sued so I'm not going to mention the name of that bank in this blog posting, but if you send me an e-mail or give my office a call in Brantford at 519-770-4440 I would be pleased to review your situation and let you know whether or not it is likely that you will be able to keep your car if you go bankrupt.

Bankruptcy Rate in Brantford Falls in 2006

2007-02-23T15:43:00.000-05:00

The bankruptcy rate in Brantford fell in by 6.2% in 2006, due largely to employment growth of 2.0%, and an unemployment rate that fell to 6.3%, the lowest level in four years. In 2006 341 people filed for personal bankruptcy, and a further 100 people filed a consumer proposal.

The decrease in the personal bankruptcy rate in 2006 was the largest annual decrease in the bankruptcy rate in Brantford since the 8.4% drop recorded in 2002. Unfortunately in 2003 the bankruptcy rate increased by 17.9%, the largest increase in many years. Will we see an increase in the bankruptcy rate in 2007, like we saw in 2003?

Probably not. As new employers move to Brantford the employment picture should remain positive, so I predict very little change in the personal bankruptcy rate in Brantford in 2007.

Of course just because bankruptcies are down does not mean that people don’t get into trouble. If you are in financial difficulty, you are not alone. In 2006 441 people in Brantford filed a consumer proposal or a personal bankruptcy, so if you want help, please e-mail me a question or call our Brantford office at (519) 770-4440 to book a no-charge initial consultation, and let’s get started.

Can a Collection Agent Take my Furniture If I Don't Pay My Debts?

2006-12-02T14:43:00.000-05:00

Every week I meet with someone in my Brantford office (at 218 Brant Avenue, across of from the Avenue Medical Centre) that tells me a collection agent is threatening to come to their house and take their furniture. In most cases I tell them that it is highly unlikely that anyone will take their furniture.

In order to be able to seize your furniture the lender must have a lien on your furniture, or they must have a court order. If they don't, they can't take your furniture.

Many finance companies give what are called household goods loans. As part of the loan documents they make you sign a document, with a list of your furniture, that gives them the right to repossess your furniture if you don't pay. They must then register this lien in the Ontario government's Personal Property Security Act system in order for the lien to be valid in most cases.

If they have not registered a lien, they will require a court order to seize household goods, which is very difficult to get (the courts almost never allow for the seizure of household goods).

If collection agents are threatening you, you probably have more debt than you can handle, so I suggest you e-mail me or call my office in Brantford at 519-770-4440 to set up a meeting with me personally to review your situation and determine how we can make a plan to deal with your debts.

Mortgage after a consumer proposal

2006-11-01T15:12:00.000-05:00

How long before you can apply for a mortgage after you have done a consumer proposal?

How Does Bankruptcy in Brantford Affect my Credit?

2006-10-20T12:51:00.000-04:00

There is a lot of confusion about how long a bankruptcy in Brantford will remain on your credit report. Here are the facts:

According to Equifax, Canadas largest credit reporting agency:

"A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating "included in bankruptcy" and will purge six (6) years from the date of last activity."

"When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid."

In other words, a first bankruptcy remains on your credit report for six years from the date of discharge, and a consumer proposal remains on your credit report for three years from the date your proposal is completed.

Please note that your ability to borrow is affected not only by what's on your credit report, but also by your income, job history, and ability to make payments.

My advice: if you have more debt than you can handle, give us a call at 310-PLAN (no area code required) or e-mail us and we will meet and determine if a bankruptcy or proposal is necessary to deal with your debts. If it is, we can then make a plan to re-build your credit once your bankruptcy or proposal is completed.

Income Tax Debts?

2006-10-11T14:14:00.000-04:00

At Hoyes, Michalos & Associates in Brantford, we meet with many individuals from the community for various reasons, but one common element in some of the cases is the existence of tax related debts. A tax related debt could arise for many difference reasons including being self-employed, cashing out RRSP's, working more than one job, pensions receiving pension income with out taxes taken off, etc. What ever the reason, tax debts tend to be hard to plan for as they are calculated after the year is over and when added to all the living expenses and other personal debts that individuals have it can be unmanageable.

At Hoyes, Michalos & Associates, we have group of people that can assist with individuals experiencing financial difficulty. I am Scott Schaefer and my background is I am a Chartered Accountant with various accounting and taxation experience. Currently, I am in the final stages of the trustee in bankruptcy program. I have been working in the insolvency/bankruptcy industry since 2002. With this insolvency and tax experience, I manage the income tax group at Hoyes, Michalos & Associates and assist many individuals in dealing with there tax debts and obtaining a fresh financial start.

If you are currently are in a financial situation, including income tax debt problems, and want to discuss your options, you can reach us at 310-PLAN or e-mail us. We can arrange a free consultation at our Brantford office located at 218 Brant Avenue.

Credit Counselling in Brantford - Family Counselling Centre of Brant

2006-09-27T14:48:00.000-04:00

Yesterday I met with Michelle Miranda, the Manager of Credit Counselling at the Family Counselling Centre of Brant, located at 54 Brant Avenue (about a five minute walk from my office at 218 Brant Avenue).

The Family Counselling Centre of Brant is the only not-for-profit credit counseling agency in Brantford that offers one-on-one, face-to-face meetings with people experiencing financial problems. Michelle and her team can help people learn to budget, and they can negotiate payment arrangements with your creditors, called a debt management plan.

As described in our article on credit counselling in Brantford, a debt management plan typically involves your creditors agreeing to a reduced or zero interest rate, provided you repay them in full over no more than a five year period.

According to Ms. Miranda, the typical debt management plan they do in Brantford would be for a person with between $10,000 and $20,000 in debts, and would involve payments of $200 to $400 per month over a period of up to five years.

Family Counselling Centre of Brant has a great deal of success negotiating debt management plans with various types of debts, including credit cards, bank loans, and even finance company and payday loans.

In my experience debt management plans are a great option if you are able to pay your debts in full, but you need some time, say two to five years, to make the payments. Debt management plans work best if you have a good income, and a manageable amount of debt.

If you have more debt than you can repay over a two to five year period, then a consumer proposal or a bankruptcy may be a better option.

Whether it's a debt management plan, consumer proposal, or bankruptcy, help is available, and the sooner you get help, the sooner you can get your financial life back on track.

For more information on credit counselling or debt management plans, contact Family Counselling Centre of Brant in Brantford at (519) 753-4173. For information on consumer proposals or bankruptcy, please call the Hoyes Michalos office in Brantford at (519) 770-4440.

Filed as: credit counselling, debt management plan, personal bankruptcy, bankruptcy Brantford, consumer proposal

Will a softening real estate market cause an increase in the rate of bankruptcy in Brantford?

2006-09-26T10:29:00.000-04:00

I had a meeting today with Tom Mattice, a real estate agent with Royal Lepage Action Realty here in Brantford. Tom told me that since the beginning of September he has seen a definite softening of the real estate market here in Brantford. According to Tom, "the last three years have been booming, and we are now starting to return to more normal activity, like we had five years ago in Brantford."

The real estate market has not increased as much in Brantford as it has in areas like Toronto, so Brantford's real estate market will "soften", but probably not experience significant declines.

However, Tom pointed out that CMHC is projecting that mortgage interest rates will increase over the next year from around 5.5% to 7.25%, which mathematically is an increase of over 30%! That means if you are paying $1,000 per month in mortgage interest now, that could increase to $1,300 per month when you renew your mortgage next year.

Since most people have not had 30% pay increases this year, that will take a big bite out of everyone's budgets, and that doesn't include increases in property taxes, heat, hydro and other costs.

If interest rates continue to increase, and house prices in Brantford do fall, it is possible that some people will be forced to sell their homes at a loss, which may lead to an increase in the bankruptcy rate in Brantford.

Tom's advice? If you have a lot of debt and you are thinking about selling your house to use the equity to repay some of your debts, now is probably the time to sell. If you wait until next year, it's possible that house prices will be lower.

If you live in the Brantford area and want an independent evaluation of the value of your home, or if you are thinking of buying or selling a home, Tom Mattice can be reached at his Brantford office at (519) 753-7311.

If you have more debt than you can handle, and want advice on strategies to deal with your debt, please call our Brantford office at (519) 770-4440 or e-mail us a question and we would be happy to set up a no-charge initial consultation.

Filed as: personal bankruptcy, bankruptcy Brantford, bankruptcy Ontario

A bill collector says they will take me to court if I don't pay. Will I go to jail for not paying by debts?

2006-09-19T19:18:00.000-04:00

Collection agents are very good at collecting money. (In fact, there is a large collection agency right here in Brantford). Collection agents will use "every trick in the book" to get you to pay what you owe. They will threaten to take you to court, and may even tell you that you will go to jail if you don't pay your debts.

It is true that if you don't pay your debts, they can take you to court. If they win in court, they can request a Garnishment Order from the Judge, which allows them to garnishee your wages. If they get a Garnishment Order, you have three choices:
1. let them garnishee your pay until the debt is paid in full;
2. file a consumer proposal; or
3. declare bankruptcy.

However, they cannot put you in jail for not paying your debts. In Canada, thankfully, you only go to jail if you are charged with or convicted of committing a criminal offense. If you kill someone, you will go to jail. Not paying your debts is not a criminal offense, so they won't put you in jail for that.

If you commit fraud, you can go to jail. If you rob a bank, you can go to jail. But using a credit card, fully expecting to be able to pay it, and then losing your job and not being able to pay it, is not a criminal offense.

Of course collection agents generally only call you if you owe money, so if you cannot make payment arrangements with them directly, it may be time to consider outside help, so please give our Brantford trustee office a call at (519) 770-4440 and we can discuss your options for dealing with your debts, including debt consolidation, credit counselling, consumer proposals or a bankruptcy.

Tagged as debt consolidation loan, credit counseling, consumer proposal, personal bankruptcy, bankruptcy Brantford, bankruptcy Ontario