Chatham Ontario Personal Bankruptcy Blog

Make the Call, We are Here to Help

2010-01-19T15:00:00.004-05:00

I recently joined Hoyes Michalos, and I work in our London and Sarnia offices and occasionally in Chatham. Previous to joining Hoyes Michalos I spent 6 years as a credit counsellor. One theme that comes up again and again in my work is that folks we see are hesitant to call for help.

There is no question that financial distress can be one of the most difficult things to deal with. Money problems are a private issue and it's hard to tell who to turn to for help.

At Hoyes Michalos our goal is to help you to find the right option for you and your family. People I talk to worry that personal bankruptcy is the only option. Rest assured that when you call us, bankruptcy is the last option we will discuss, not the first.

As a former credit counsellor I'm well qualified to discuss how a debt management plan may be the solution to your problems. Debt management plans are great if you have a limited amount of debt, and the ability to repay your debts in full.

If you can't repay your debts in full, a consumer proposal may be the perfect option. Like a debt management plan we negotiate a settlement with your creditors, and in most cases a settlement can be reached where you pay less than the full amount owing.

When you call Hoyes Michalos, you will speak with someone who cares about helping you find the right option. We will go over your situation with you, and if you like, we can book you a free consultation to meet face to face and review your options. There is no obligation or cost to this meeting, and you will find us welcoming and non judgmental.

If you are struggling with debt due to job loss, difficult business climate, relationship issues, or any other reason at all, let me invite you to call us. We can be reached toll free at 310-PLAN (that's 310-7526 – no area code is required). We look forward to helping you build a plan to deal with your debts.

But remember, we can't help you if you don't first make the call.

Start planning for 2010

2010-01-06T11:58:00.002-05:00

I do realize the holidays are over, but now is the time to start planning for 2010. One of the most important things a person can do is to set a budget. Not just for gifts, but for everything. Our phone lines are quite busy in January as people start to receive their holiday credit card bills and are shocked to discover how much money they spent.

Here is the plan. Set a limit on how much you are going to spend and then set aside money each month in advance. For example, if you are planning on spending $500 on gifts, set aside $42 each money. If you start doing this in January, you will already have the $500 set aside. It is a lot easier to save a little bit each month than to try to come up with a large amount all at once.

I realize that many people have debt they can’t manage and that is where we can help. Sometimes bankruptcy or a consumer proposal is the best way to get a fresh start.

If you have having difficulty managing your debt, call us at 310-PLAN or 519-351-2323.

Bankruptcy Statistics

2009-11-20T14:35:00.004-05:00

Not surprising to anyone having financial difficulties, there was a large increase in the number of personal bankruptcy filings in the third quarter of 2009 (the latest statistics are available by the Office of the Superintendent of Bankruptcy).

Statistics for individual cities are no longer available. Instead they are published based on region. For our region, the statistics include Chatham, Windsor and Sarnia. In our region, there were 1,061 personal bankruptcy filings in the third quarter of 2009, a 44% increase from the third quarter of 2008. In addition, there were 213 consumer proposals filed, a 20% increase over the same period in 2008.

For the 12 months ending September 30, 2009 there was a 41% increase in bankruptcies and a 24% increase in consumer proposals filed. The bankruptcy numbers are not surprising since many people rushed to file bankruptcy before the change in legislation took place. In fact, in many offices the first half of September resulted in record bankruptcy filings.

Times continue to be tough in Chatham, but the message remains the same. Now is the time to develop a plan to deal with your debts.

For a no charge, no obligation to review your situation, call me at 310-PLAN, email a question or complete the online evaluation form.

Collection Agencies

2009-11-11T15:44:00.002-05:00

As a Chatham bankruptcy Trustee, I receive calls and emails from people wanting to know what to do about aggressive collection agencies.

Collection agencies are calling because money is owed and they want to collect it. So what do you do?

1. Make a payment arrangement with them
2. File a consumer proposal
3. For bankruptcy

If you need proof of the debt, advise the collection agency that you will not pay them until you have proof that you owe the money.

If you can't pay the debt, you need to speak with a professional who can help you. You can call us at 519-351-2323 or 310-PLAN and we are review your situation in detail. Their is no charge to speak with us.

What shouldn't you do?

You shouldn't ignore the collection calls and letters. If they can't reach you, they will probably just start legal action.

Don't make a commitment you can't keep. Deal with them in a forthright and professional manner.

For more information about dealing with collection agencies, their rules and the complaint process, contact the Ministry of Consumer Services.

Call us at 519-351-2323 or 310-PLAN and we can review your situation in detail and help you with a plan that is right for you.

The importance of budgeting

2009-10-28T14:02:00.002-04:00

I met with a husband and wife a few weeks ago in Chatham. They told me they were interested in filing a consumer proposal. We reviewed their debts in detail so I could look at the historic voting pattern of their creditors in order to formulate a payment plan.

My next step was to review their budget. When I asked if they had written out their budget I was met with blank stares. That's ok, I said, we can write it out together. The questions I asked them were the same questions I ask everyone such as rent, food, gasoline, utilities. When we added up all of the expenses, not surprisingly, they were $200 overbudget. I explained to them that meant they were spending $200 each month than they brought home. They then realized that each month they were taking cash advances from their line of credit or credit cards in order to pay for their living expenses. They were then using one form of credit to make the minimum payment on the other credit.

My first assignment to them was to go home and review their budget in detail to get it balanced (the expenses total the income). The next step then is to cut the budget even further to make sure they could afford a consumer proposal.

They came back to see me yesterday with a new and improved budget and showed me how much they could afford to pay each month towards a consumer proposal. They are scheduled to sign the documents to file the consumer proposal next week.

If you find you are having difficulties paying your bills call me at 519-351-2323 and we can review your situation in detail.

The Chatham Office has moved

2008-09-22T14:58:00.002-04:00

We have now moved to 193 St. Clair Street in the offices of Terry Micks, CGA. We are between Grand and McNaughton Avenues.

Our phone numbers remain the same at 519-351-2323 or 310-PLAN

Can I apply for a credit card during a bankruptcy?

2007-01-22T15:43:00.000-05:00

This question was sent to me recently from someone in Chatham .

Yes you can apply for credit, but if you are asking for credit over $500, you must declare that you are currently in bankruptcy. If you don't you are violating the bankruptcy.

Bankruptcy is meant to help you get a fresh start. I would encourage you to avoid credit until you are discharged.

Happy New Year

2007-01-08T15:49:00.000-05:00

I wish all of our Chatham website visitors a happy new year.

If you find yourself stressed over your bills, now is a good time to talk to someone about your financial situation and to review your options.

Call me at 519-351-2323 or email me for a consultation in Chatham.

Can I pay off my consumer proposal early?

2006-12-12T16:12:00.000-05:00

The above question was emailed to me by someone who filed a consumer proposal with us in March 2006. Since she filed her consumer proposal, she sold a piece of property and wants to use the money to pay her proposal in full. The answer is yes, she can pay it off early. She is bound to the money offered, not to total number of payments. Since she is paying off her proposal faster, it will be dropped from her credit rating that much faster.

What are my duties after I file for bankruptcy?

2006-11-28T14:21:00.000-05:00

Your duties in a bankruptcy are:

1. Submit monthly income and expenses statements;
2. Pay the required payment to the trustee;
3. Attend 2 financial counselling sessions;
4. Provide the necessary tax infomation to the trustee;
5. Co-operate with the trustee;
6. Attend the meeting of creditors if one is requested;
7. Advise the trustee of any change in your address or phone number.

Credit Reports

2006-10-31T14:49:00.000-05:00

As a Chatham bankruptcy trustee, I am frequently asked how items get on credit reports and asking for my help to correct them. Unfortunately we are unable to correct items on your credit report, even if you filed bankruptcy or a consumer proposal with us. The two major credit reporting companies are Equifax and Trans Union. They won’t talk to us about your credit report. We have tried to talk to them to correct errors with reporting for people who filed with us. What you need to do is to contact them yourselves in writing with a copy of the correct information. The credit reporting agencies only report what they have been given by your creditors. If they have incorrect or old information, unfortunately, you need to take the steps to correct it.

Joint Debts

2006-10-18T16:59:00.000-04:00

I received an email question from someone in Chatham :

"I have a bank loan that my dad cosigned. If I go bankrupt, how does it effect him."

If you file for bankruptcy, as the cosignor, your dad is totally responsible for the debt. Your bankruptcy only effects your responsibility towards the debt. It is probably a good idea to let you dad know that you plan on filing for bankruptcy.

If you have a question, please feel free to email me.

How do I choose a trustee?

2006-10-11T16:18:00.001-04:00

People often wonder how do they know which trustee to see in Chatham . There are number of things to consider.

1. When you call an office, how quickly to they respond to you? Can you talk to a person, or do you always get voicemail. We respond to all of our calls and emails quickly. We have a large staff so you can always speak to someone. On the rare occasions when everyone is helping out someone else, you may need to leave a voicemail,
2. Do they make you complete paperwork before they will even meet with you? We understand that you just want to meet with someone and that you are under some stress. We are not going to make you complete a form first. However, you always have the option of downloading our "fresh start" application form and bringing it with you to your meeting with us.
3. If you are thinking about bankruptcy, ask how your GST and tax refunds are dealt with. We help you get your bankruptcy finished on time and are efficient in closing your file soon afterwards. That means you tax refunds and GST will come to you faster.

Call us at 310-PLAN to book a meeting and let us help you develop a plan that is right for you.

How much time do I have to make a decision about what to do?

2006-09-25T21:34:00.000-04:00

A Chatham debtor recently asked this question. The simple answer is that you can take as much time as you need to decide what option is best for you. Sometimes a bankruptcy is a better option and sometimes a consumer proposal is better.

We will review your options and which might be better for you. It is important to remember that until the documents are signed, you are not protected from your creditors, they can continue to call you for payment, and they can take you to court and garnishee your wages. The phone calls and garnishment will stop once a bankruptcy or consumer proposal is file.

Email me a question and together we can develop a plan that is right for you.

Credit Rating and Bankruptcy

2006-09-11T12:09:00.000-04:00

As a Chatham trustee, I frequently have debtors ask how long bankruptcy remains on the credit rating.

According to equifax.ca, a first time bankruptcy stays on the record for 6 years after discharge and 14 years for a multiple bankruptcy. A consumer proposal is on the record for 3 years after completion.

Chances are you are overwhelmed with debt. If you need to talk to someone about your financial difficulties, email a question or call me at 519-351-2323 or 310-PLAN.

Obtaining Credit After Filing for Bankruptcy

2006-09-05T14:15:00.000-04:00

I recently received a call from a creditor in Chatham . She was concerned because she gave credit in the amount of $400 to someone who had filed for bankruptcy, but the debtor did not diclose she had filed for bankruptcy. The creditor wanted to know what she could do. The bankruptcy occured in January and the loan in May.

Under the Bankruptcy and Insolvency Act, undischarged bankrupts can obtain credit less than $500 without diclosing it to the creditor. If the amount is more, the bankruptcy court can issue a fine.

In this case, the creditor is free to pursue her debt under the normal collection methods.

CK Today

2006-08-17T14:39:00.000-04:00

You may have heard familiar name on CK today in Chatham on Tuesday on CK Today on Tuesday, August 15th. I was invited to appear on the show to discuss bankruptcy and consumer proposal with Christine Summers on her talk show. Stay tuned to this blog for more information about future shows and be sure to call into the show with your general questions.

Feel free to call me at my Chatham office at 519-351-2323 to discuss your personal situation and to develop a plan that's right for you.

Emailing me a question

2006-07-23T22:35:00.000-04:00

Occasionally I get an email from someone in Chatham which does not give me any information about their situation. It might just say something like "I need help". Although emailing me is a good first step, in order to give information by email, please provide details such as the amount of debt, any assets such as a house or RRSP's, and how much income you take home from work, employment insurance or other sources. This will help me give you advice faster than if you don't provide any information at all.

Email a question and together we can develop a plan that is right for you.

How is my spouse effected if I file for bankruptcy?

2006-07-19T15:30:00.000-04:00

I was recently asked by someone in Chatham how bankruptcy effects the spouse.

If the debts are just in the name of the personal filing for bankruptcy then it has no effect. However, if your spouse co-signed the debts, or has a supplementary credit card then that debt becomes the spouses debt.

If you are in this situation, or have a question about your situation, email a question.

I filed for bankruptcy in Chatham and my discharge was opposed. What does that mean?

2006-07-12T15:43:00.000-04:00

I met with someone in Chatham recently who filed for bankruptcy and now the trustee has opposed their discharge. In simple terms, this means that unless he does what is required of him, he will not get out of his bankruptcy.

When you file for bankruptcy your trustee tells you what your duties and responsibilities are. If you do not do what is required you will not be discharged. The court could also advise the trustee to close the file which means that the creditors can start collection on the debt again. Therefore it is important to do what is required.

If you need a plan to deal with your debt, you can email a question.

Automobiles and Bankruptcy

2006-07-07T09:43:00.000-04:00

New legislation was recently passed dealing with the equity in an automobile in a bankruptcy. Prior to June 22, 2006, an automobile was exempt from seizure if its value was greater than $5,650. For example, if the car was valued at $5,000 it was not seized by the trustee, but if it was worth $5,651 it was seized by the bankruptcy or the bankrupt had to pay the trustee the value of $5,651.

Under the new legislation, the first $5,650 is exempt from seizure. For example, if the car is valued at $5,651, the bankrupt person has to pay the difference of $1 ($5,651-$5,650) to the trustee.

This new wording will help people filing bankruptcy to keep their car, and help them get a fresh start.

To discuss your financial situation and develop a plan that is right for you e-mail a question.

Will I lose my house if I file for bankruptcy?

2006-05-16T12:55:00.000-04:00

The answer is "it depends". If the house was a recent purchase and you did not put a lot of money down, then probably not. You have to have your mortgage up to date with the bank and keep it current. If you don't, then the bank could take the house. If you have had your house for many years and you could make money if you sold it (you have equity in your house), then bankruptcy is probably not for you.

If you file for bankruptcy you surrender your assets (subject to certain limits) to the trustee. Equity in a house is considered an asset. You won't lose your house, but you will have to pay the equity to your trustee. In a lot of cases this can make bankruptcy not very practical. A lot of people in that situation then consider filing a consumer proposal.

To review your options in detail, please call me or email a question.

What Happens at the First Meeting?

2006-03-09T16:31:00.000-05:00

When you first call our office, we will ask you some basic questions about your debt. When we meet with you we ask that you bring along a list of your debts, including recent statements, list of assets, and a budget.

We will then review your unique situation and the options that are available. We don't tell you what to do. We provide you will the tools available so that you can make the decision that is best for you.

If you would like to book a no charge, no obligation, please call us at 351-2323 or email us your questions.

Welcome to the Chatham Bankruptcy Blog

2006-01-10T16:52:00.000-05:00

Welcome to the Chatham Bankruptcy Blog.

This is a place where resident of Chatham Ontario and the surrounding area can post their questions about bankruptcy and alternatives to bankruptcy.

My name is Rebecca Martyn, and I am the licenced trustee responsible for the Chatham Ontario personal bankruptcy office. I will be posting to this blog and answering any questions you might have.

If you have a question, you can email a question or call the Chatham, Ontario office at 351-2323 or 310-PLAN to arrange a no charge initial consultation.