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Recent Bankruptcy Questions:
Question (submitted by a reader): If your house is taken over by the bank, is your line of credit automatically paid off?
Answer: If you have a line of credit secured by your house (like a mortgage), and the bank forecloses on the house and sells it, the line of credit is no longer secured by the house, since the house is sold.
If the bank recovers enough money to pay off the line of credit, then yes, it is automatically paid off. However, if the bank does not get enough to fully pay it off, they can pursue you for the shortfall, which in some cases may require you to file a consumer proposal or bankruptcy to deal with the debt.Labels: consumer proposal Brantford, house, personal bankruptcy Brantford
 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.Labels: bankruptcy Brantford, consumer proposal Brantford
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.Labels: bankruptcy Brantford, consumer proposal Brantford
 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.Labels: bankruptcy Brantford, bankruptcy statistics Brantford, consumer proposal Brantford
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.Labels: bankruptcy Brantford, consumer proposal Brantford, credit counselling Brantford
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. Labels: bankruptcy Brantford, bankruptcy statistics Brantford, consumer proposal Brantford
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.Labels: bankruptcy Brantford, bankruptcy statistics Brantford, consumer proposal Brantford
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If you're having financial difficulties and live in the Brantford area, call (519) 770-4440 today to meet with one of our experts, or complete the ask a question form to send us a message and we'll get in contact with you.
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