Posted under Bankruptcy Kitchener & Consumer Proposal
I have met with several people over the past year in our Kitchener office that have suffered a plant closing or downsizing which has resulted in their personal financial struggles. In the Kitchener-Waterloo economy, statistics still appear to remain relatively strong, but there have been and will still be some significant job losses in the area. Below is a list of a few businesses with recent job layoffs:
- La-Z-Boy in Waterloo for 413
- Automation Tooling System in Cambridge for 169
- BF Goodrich in Kitchener closure resulted in 1,100
- Imperial Tobacco in Guelph closure resulted in 550
- NCR in Waterloo laid of 250 on Dec 23 and are expects to cut 450 jobs in 2007
- MTD in Kitchener is now fighting to save 400 jobs
When meeting with these people, it is clear that most of them have obtained new employment in the area, but the issue is that the new jobs are at a significantly reduced rate of pay. When you combine their monthly living expenses and debt payments with their new reduced family income, the financial struggle begins. Their budget was being met with their old, higher paying union jobs, but now they are running a shortfall each month and cannot see a way out. This results in a call to us to work on a Plan for their future.
Although each of these individuals or couples have a different situation, the common element to the situation is job loss. During our meetings, we review their debt levels, assets, and monthly budget as well as their future outlook. After reviewing the options and the situation, several of the individuals file a consumer proposal or personal bankruptcy to control their debts and obtain a fresh financial start based on their current income. None of them ever expected to have to meet with us, but the reality is that they did not expect to be downsized or laid off from their former jobs.
If you are struggling to make ends meet and have experienced a similar situation and want to review your options, call us at 310-PLAN or e-mail us at questions@hoyes.com.
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