Bankruptcy Kitchener Blog

Our firm, Hoyes Michalos & Associates Inc. (our head office for our bankruptcy firm is in Kitchener), runs commercials on 570 News in Kitchener.

Our professionals also appear frequently on Ask the Experts, a show where listeners can call in with their questions. (You can hear an archive of some of our past shows on our radio page).

Kitchener’s economy is performing relatively well (last year the unemployment rate was only 5.2%, well below the Ontario average of 6.3%), and interest rates are near 30 year lows, so even though debt levels are high, most people are able to service their debts. But what can you do if you are one of the residents of Kitchener who has more debt than you can handle? On the radio show on Saturday we talked about five options:

First, you can try to work through your debts on your own, by making a budget and cutting expenses to free up cash to service your debts. If you have sufficient income and good credit, a debt consolidation loan is another possible option.

If you don’t qualify for a debt consolidation loan, the third option to consider is credit counselling; in Kitchener, that means talking to the Catholic Family Counselling Centre, the only not-for-profit credit counselling agency with offices in Kitchener. They can often work out a plan where you repay your debts, in full, over a period of three to five years, usually with little or no payments for interest required.

If you cannot afford to repay your debts in full, the next option is a consumer proposal. In a consumer proposal, we negotiate a settlement with your creditors; in most cases you pay less than the full amount owing.

If you cannot afford a consumer proposal, the final option is personal bankruptcy, where your debts are officially discharged.

We ended the show by reminding everyone that if you have debt problems, you are not alone. Last year in Kitchener 316 people filed a consumer proposal, and 1,177 people filed personal bankruptcy. Across Canada, the total of those numbers is just under 100,000, so again, you are not alone.

Ted, myself, and our entire Kitchener team look forward to meeting with you to work out a plan to deal with your debts, so call us at 310-PLAN (310-7526, no area code required) or e-mail us to arrange a free initial consultation. There is help available, so give us a call, and let’s get started.