Scarborough Ontario Personal Bankruptcy Blog

The crisis of high gas prices, will it lead to more personal bankruptcy in the GTA?

2008-10-01T20:25:00.002-04:00

We have all seen gas prices reach record levels over the past few weeks in the GTA. What does this mean for the number of bankruptcies that will be filed? The answer is they are going to go up. Transportation costs are a basic need, just like housing and food; there is no avoiding it. When the price of gas goes up but our wages remain the same, there is no choice; we simply have less money to spend on other things. If people cannot adjust their monthly budgets, they will find themselves in financial trouble. And what makes the problem worse is that most people pay by swiping their card at the pump because it is convenient. It is not until they get their credit card bill at the end of the month that they see how much they are really spending.

Many people made the choice in the past to move to the suburbs where housing was more affordable and they could commute to work. Now, many of these people are finding out that the costs savings have been wiped out by the higher transportation costs. It may even cost them more to commute than what they are saving by living in a less expensive home. If they looked at the numbers now, it may make more sense to pay for the higher cost of real estate in the GTA, but be able to take public transit to work, or better yet, cycle or walk.

And the higher costs of transportation affect us in a lot of other ways. Pretty much everything you buy at the supermarket these days made its way there by a truck. The higher transportation costs are being passed on the end user.
You may think that these transportation costs issues are putting you in a hopeless situation. What you need to do is keep a close eye on your personal budget to avoid falling into debt. You may have to make some sacrifices, but you have to be realistic. If you are finding yourself in financial trouble, you should be calling (or e-mailing) us today at 310-PLAN (310-7526), no area code required, and arrange for a personal meeting so that I can review your finances and outline your options.

New Bankruptcy Scarborough Rules

2008-07-10T09:45:00.003-04:00

New Bankruptcy Rules in Effect Starting July 7, 2008

Two changes became law this week:

Student loans now discharged after 7 years

If you have been out of school for 7 years and still can't manage your student loans, they can now be included in a bankruptcy or a proposal. The old rule required you to wait 10 years.

Your RRSP is now protected

RRSPs are now exempt from seizure; this means you can keep them (except for any monies you invested in the last 12 months; this prevents people from abusing the system). Before this change, most RRSPs would have been seized by the trustee in a bankruptcy.

Questions?

These rule changes are significant. If you would like more information on how they impact you, contact one of our offices to schedule a consultation.

Cars and bankruptcy? (NEW government rules)

2006-06-22T22:50:00.000-04:00

A quirk in the law was corrected today. Now, if you file for bankruptcy and your car is worth less that $5,650, you may keep it. (Under the old rules, you had to give it to your trustee.) If your car is worth more than $5,650 and you want to keep it, you will have to pay your trustee the difference.

This change will allow people who have to file for bankruptcy a better chance of starting over without any additional pressures being put on them.

If you would like some more information about this topic or have any other bankruptcy related questions, e-mail or call us at 310-PLAN.

Bankruptcy Alternatives: What Are Your Options?

2006-04-23T13:08:00.000-04:00

I usually have a different view of my first meeting with people facing financial difficulty than what they expect; they want to know how to file for bankruptcy; I want to explore their options to see if they can avoid filing for bankruptcy.

So, what are the options we discuss?

Budgeting - maybe this is all the person really needs help with
Debt Consolidation - this could be their solution
Debt Management Plan - these are administered by credit counsellors
Consumer Proposal - "Let's make a Deal"
Bankruptcy - the final solution

No two people have the same fact situation; my job is to meet with you and work out a plan that's right for you. If you would like to take that step, e-mail or call me at 310-PLAN.

Where can I get help with my finances, or bankruptcy, in Scarborough?

2006-02-28T19:44:00.000-05:00

This is the spot! You can read about your options: bankruptcy, or maybe a consumer proposal. If you would prefer to watch and listen to what we can help you with, you can view one of our videos. But more importantly, you can meet with a trustee in bankruptcy personally. We will assess your situation, outline your options and recommend a plan that is right for you.
E-mail or call us at 310-PLAN.

The Scarborough Office of Hoyes, Michalos

2006-02-27T21:38:00.000-05:00

This Scarborough personal bankruptcy blog is sponsored by Hoyes, Michalos & Associates Inc., a leading Ontario personal insolvency firm.

We are located at 55 Town Centre Court, Suite 700, Scarborough.

If you would like to schedule an appointment to discuss your options, e-mail or call us at 310-PLAN.