The Office of the Superintendent of Bankruptcy has once again released current statistics for bankruptcy and consumer proposals filings in Canada including the Hamilton region. The most current numbers released are for the second quarter of 2011 and detailed information can be found on our Bankruptcy Canada or Consumer Proposal Canada sites.

In the Hamilton area the total number of filings increased slightly by 1% but the good news for Hamiltonians is that the rate of bankruptcy filings for the first 6 months of 2011 compared to 2010 was down by 20%. More specifically, only 689 people filed a bankruptcy as compared to 859 people during the same time last year. The increase in total comes for the increase in consumer proposal filings of 35% or 735 filings this year compared to 546 last year.

So why is this good news you may ask? The decrease in the number of people filing a bankruptcy would suggest that more people in Hamilton are now working and they are able to manage their debts. The decrease could also be attributed to the bankruptcy rule changes that came into effect in 2009 making the period of time a person is bankrupt longer and much more expensive when a person has income in excess of the government guidelines. In situations where a person has decent income but still cannot manage to pay all their debts as required or on time or the cost of a bankruptcy is high due to surplus income requirements, I would suggest filing a consumer proposal.

If you find that you are struggling with your debt, remember that you are not alone. The important thing is that you seek help from a professional such as a licenced Trustee in bankruptcy and avoid debts consultants who will likely charge you thousands of dollars in fees only to refer you to a Trustee. For a free, no obligation consultation, please do not hesitate to call me at 905-777-0770 or email me.

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The Office of the Superintendent of Bankruptcy released statistics yesterday which show a decline in the number of Hamilton residents who filed for personal bankruptcy during the first quarter of this year as compared to the same period last year. The report breaks down the numbers by province and even by Census Metropolitan Area including Hamilton.

The figures for the Hamilton area show that there were 372 personal bankruptcies filed during the period which is down by 22.5% from the 480 who filed a personal bankruptcy during the same time last year. It is also important to note that the numbers are down from the last quarter of 2010 as well from 474 or 21.5%. This continual decline would suggest that things are looking better for Hamiltonians.

While the rate of bankruptcy filings is decreasing, the rate of Hamiltonians filing consumer proposals rose by 43.5% from 308 to 442 during the first quarter of this year as compared to the same period last year. A consumer proposal is a legal process where you make a negotiated settlement with your creditors to repay a portion of your debt with affordable monthly payments over a period of no more than 5 years. With the new bankruptcy laws introduced in September 2009, consumers are opting to file a proposal as a more viable option to filing a bankruptcy. This remains true in our Hamilton offices as we are meeting more and more people lately that are choosing to file a consumer proposal.

Doug Hoyes from our firm commented in the Hamilton Spectator this morning that “the positive view is that the economy is better and people are more confident about their ability to pay a settlement”. He continued that “there’s no doubt some of that feeling is around because the economy is better than it was in the depths of 2008”.

Although it would appear that the economy is getting better, we understand that there are still a great number of Hamiltonians that are struggling with their debts. If you find yourself in this situation, give us a call to book a free initial consultation to review your situation and let us help you develop a plan to deal with your financial situation. Bankruptcy is not the only option; a consumer proposal might me in your best interest. Give us a call today in our Hamilton office at 905-777-0770 or send me an email and let’s get started on a plan to provide you with a fresh start.

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Fall has arrived and along with that comes the start of another hockey season. Many people in our community can appreciate the impact and the lifelong learning experiences an organized sport such as hockey can have on our children. There is no better example of this than the events happening this week in Dundas. The local community rallied behind the town in helping win Kraft Hockeyville this year and now the town is buzzing with excitement with the recent visit of the Stanley Cup and the upcoming Kraft Hockeyville NHL pre-season game between the Ottawa Senators and the Buffalo Sabres.

At Hoyes, Michalos and Associates, we also believe in giving back to our community with continued support for minor hockey and we have once again agreed to sponsor the Hamilton HUB Bantam Tigers this year. The sponsorship of the team last year proved to be rewarding both for the boys and the local food bank. Our receptionist, Heather Chandler, presented me with a plaque of appreciation from the team in recognition of Hoyes, Michalos and Associates sponsorship. Heather’s son, Jacob, plays on the team and her husband Lee is the coach. The team did really well last year and they went on to win the provincial championships. The boys also learnt a valuable life lesson last year made possible by the generous sponsorship that they received so I asked Heather to write about the team and their experience and here is what she had to say.

“Recently I presented Billy Martell with a plaque of appreciation from my son’s minor hockey team.  I have been working for Hoyes, Michalos and Associates for just over a year now and when I approached Billy with the idea of sponsoring my son’s hockey team, the Hamilton HUB Minor Bantam Tigers, he asked Doug Hoyes and Ted Michalos what they thought.  They were all on board to support my son’s team.  I had heard through the office that they support a lot of causes that mean something to their employee’s and the community. 

Through the generous sponsorship from Hoyes, Michalos the team was able to purchase winter jackets for all 17 players on the team.  Very nice jackets too with the team crest on the left chest, the players number on the right, and of course our sponsor “Hoyes, Michalos and Associates” on the back. 

The team had actually budgeted for the jackets to come out of team funds but since Hoyes, Michalos was so generous with their sponsorship, the boys were able to take the money that they budgeted to buy food for our local food bank from “No Frills”.  All the boys participated in this donation and they were surprised and unaware how many people actually needed a little extra help. They went to No Frills, picked up their shopping carts and started loading non perishable food items in their buggies.  I think the boys were quite surprised at how fast the grocery bill grew as they thought we would need a transport truck to haul the food they could buy with the amount of money we had to spend.  They loaded all the food in parents vans and then drove right down to the food bank, where people were standing in line waiting to go in. The boys got an appreciation for what it is like to give back to their community.  

We were quite proud of our boys for doing this for their community and very grateful that Hoyes, Michalos and Associates made this possible by sponsoring the team.”

It’s nice to see a community come together and even better when we can teach our children to give back to the community.

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As reported in the Hamilton Spectator this morning, The Office of the Superintendent of Bankruptcy released statistics that show the total number of personal bankruptcies and consumer proposals filed in the Hamilton area has declined by more than 14% in the last three months.

The statistics for the second quarter of this year show that 908 consumers either filed a personal bankruptcy or consumer proposal which is down from 1,060 for the same period last year.

More specifically, there were 553 personal bankruptcies filed in the Hamilton area which is down from 729 and there were 355 consumer proposals filed, up from 331 last year. Combined, this accounts for an overall decline of 14.3% over the same period last year.

The decline in personal bankruptcies gave rise to consumer proposals which is not surprising given the changes made to the rules last September which make filing a bankruptcy more complicated and more expensive than in the past. The effects of the rule changes have made people reconsider filing a bankruptcy and opting to file a consumer proposal instead. This is good news because it means more people in Hamilton are choosing to negotiate a settlement with their creditors in order to avoid filing a bankruptcy.

Will this trend continue? I believe we may see it continue for a short time but as my colleague, Doug Hoyes, commented in the article we have not yet felt the ripple effect of the new Harmonized Sales Tax which was introduced in July. The new tax has driven up the prices of some goods and services in which only the GST previously applied to. This caused many consumers to make big ticket purchases in the months leading up the new tax and the effect of this is just starting to filter through the economy. The impact could see reduced production from the manufacturers as sales start to decline which could lead to job losses forcing individuals to consider restructuring by way of filing a personal bankruptcy.

If you find yourself faced with a layoff or you are living pay cheque to pay cheque due to a rise in interest rates or increased living expenses due to the HST, and you have a lot of debt, the time to take action is now. Look at your budget and see if you can cut some of your expenses and use the extra money to pay down your debt. If that’s not enough to solve your problems, you should consider getting some professional help and finding out about your options including credit counselling, filing personal bankruptcy or consumer proposal.

Want to find out more? Please email me or call my office in Hamilton at 310-PLAN and Wendy, Sue or I would be happy to answer your questions or book an appointment for you to meet with me personally to review your situation.

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The press in Hamilton has done a great job reporting on the massive increase in the number of personal bankruptcy filings in Hamilton, and in Ontario, and Canada. The Hamilton Spectator interviewed me for an article that said that Bankruptcies Jump 36% in Hamilton area. I thought the article was a perfect summary of the situation, and I’m glad they included my comment that “behind every number, there’s a person.”

This morning I was interviewed live on the CHML Morning News on 900 CHML with with Shiona Thompson and Bob Bratina to talk about the massive increase in the number of personal bankruptcy filings in Hamilton, and in Canada. Listen to Doug Hoyes on 900 CHML here.

Here are the numbers: In the year ended September 30, 2009 the number of personal bankruptcies filed in the Hamilton-Niagara region were up 36%, and consumer proposals were up an astounding 51%. Over the last three months the number of personal bankruptcies increased by 39% in Hamilton, so it’s clear that the pace of filings is increasing. That’s not good news for the economy.

In the last year in the Hamilton area 5,468 people filed bankruptcy, and a further 2,047 people filed a consumer proposal. That’s a lot of people, and it proves that if you are having financial problems, you are not alone. The recession probably won’t end tomorrow, so if you are have more debt than you can handle, give us a call.

Our team in Hamilton, lead by Billy Martell and Wendy Young, understand how to deal with debt, and they are ready to help you with your questions, so give us a call in Hamilton today at 310-PLAN, or e-mail us today, and let’s get started.

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For the past six weeks I have been following a multimedia series published in The Hamilton Spectator titled “The Way We Spend” which features four local families dealing with budgeting, cutting back on indulgent spending and saving in a healthy way. This week the Greenways were featured and the credit counsellor they were paired with from Catholic Family Services reviewed their financial situation and the recommendation to them was that they consider filing a personal bankruptcy. Although the Greenways knew that a bankruptcy might be their only option, they wanted to take responsibility for the debt they owe.

Every day I meet with people who, just like the Greenways, have exhausted all other possibilities and find themselves struggling with the thought of having to file a personal bankruptcy. Many people try to hang on as long as they can before looking for professional help with their finances. Unfortunately, if you wait too long to seek advice and you ignore your creditors they will get aggressive and try and collect, which could lead to a wage garnishment or action against your assets.
If you are struggling to pay your bills on time and you would like to find out more about bankruptcy, my advice is to give me a call in Hamilton at 310-PLAN, or email me. I would be happy to answer your questions as they pertain to your personal situation.

We also offer a free confidential consultation where we can review the bankruptcy process with you and also provide you with information on other options such as a consumer proposal or debt management plan.
Keep reading in the weeks to come for my comments on other topics covered in this week’s feature dealing with garnishments, preferred creditors and credit rating as provided by the Office of the Superintendent of Bankruptcy.

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I appeared this morning for a live interview on the morning show on 900 CHML with with Shiona Thompson and Bob Bratina to talk about changes to the personal bankruptcy rules that take effect on September 18, 2009. I always enjoy appearing with Bob and Shiona; they do their research and always ask good questions. Click here to hear Doug Hoyes on the CHML Morning News discussing The New Bankruptcy Rules

I explained that under the old rules most first time bankruptcies ended in nine months. Under the new rules, if you have more than $200 in surplus income each month your bankruptcy is automatically extended for a further 12 months, so you are bankrupt for 21 months in total, and you are required to make your surplus income payments for the full 21 months. Obviously for many people this will more than double the cost of bankruptcy.

Bob and Shiona asked me why the government made this change. I said I didn’t know, but I can only assume it’s to encourage more people to avoid bankruptcy and file a consumer proposal instead. Under the new rules you can file a consumer proposal even if your total debts, not including the mortgage on your principal residence are up to $250,000, so I suspect that a greater number of Hamilton residents in the future will choose to file a consumer proposal.

We ran into a commercial break, so in an unusual move Bob asked me to stay for a second segment. When I returned, he asked me about student loans, and I explained that under the new rules if you have been out of school for more than seven years your student loan is automatically discharged in a bankruptcy, or a consumer proposal.

What does all of this mean? If you are in debt, you need to deal with a firm that understands the new rules, and can advise you on your best options. Our team in Hamilton, lead by Billy Martell and Wendy Young, is fully briefed on the new rules, and they are ready to help you with your questions, so give us a call in Hamilton today at 310-PLAN, or e-mail us today, and let’s get started.

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My colleague Douglas Hoyes was quoted in the Hamilton Spectator today, in an article on Using Plastic to Pay Daily Expenses.

As the economic gets worse, more and more Hamilton residents find themselves using credit cards to buy food, and to put gas in their car.  That leads to high levels of debt.  Doug is quoted as saying that many people feel “hopeless”; they don’t know what to do or where to turn.

I agree that sometimes things can seem hopeless.  If you have lost your job, or if your hours were cut back at work, you may not know what to do or where to turn.

My job is to give people hope.  Even in a bad economy, there are still ways to deal with debt.  For many people the answer may be credit counselling,  where a deal is made to deal with your debts at a reduced interest rate.

Another great option is a consumer proposal, where we work out a deal where you pay a portion of what you own.  If that’s not possible, bankruptcy may be the answer, but only after considering all alternatives.

You may feel hopeless, but there is hope, so give me a call today in Hamilton at 310-PLAN, or e-mail me to set up a free initial consultation, and let’s get started.

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As I picked up my copy of the Hamilton Spectator on Saturday, I couldn’t help but notice the big bold number printed on the front page “129,000”. That is the number of jobs lost in Canada during the month of January, and over half of them from Ontario. Since Statistics Canada began compiling data in the 1970s, this is the largest single monthly job drop.

How has this massive loss of jobs impacted the Hamilton area? For starters, the unemployment rate in Hamilton has jumped to 8 per cent, which is among the highest rates in Canada, and it is reported that Hamilton has lost over 8,000 jobs since last October, mainly from the manufacturing and steel industries.

Although economists believe that the current recession will be short lived, for many Hamiltonians, reduced income and mounting debt could spell disaster.
Is it possible for you to weather the storm and deal with your financial problems on your own? The best advice I can give is to be proactive and have a plan in place now. It may be as easy as seeking the help of a credit counsellor to learn how to cut back on some expenses and to rework your budget. Alternatively, filing a consumer proposal or a personal bankruptcy might be most advantageous in your personal circumstances.

If you would like to discuss your options with me, simply give our Hamilton office a call at 310-PLAN, or email me. I would be happy to review your situation with you and answer any questions you have.

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I had the pleasure of appearing this morning on the Morning News on AM 900 CHML with Shiona Thompson and Bob Bratina to talk about debt and Christmas.  I gave some Tips on Surviving the Economic Crisis, which included reducing your debt, and staying out of debt.

At Christmas time we all want to buy lots of gifts for our loved ones, but given these uncertain times I suggested that using cash or a debit card is a good idea this year; leave the credit cards at home.

If you already have more debt than you can handle, give Billy or Wendy a call in Hamilton at 310-PLAN, or e-mail them, and they will help you work out a plan to deal with your debts.

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