Bankruptcy Kitchener Blog by Scott Schaefer

Earlier this week in my Kitchener office, I met with Jane and Tom (for privacy reasons, I have changed their names). Jane and Tom were referred by a family member who had previously filed a bankruptcy with me. They were very nervous and concerned about meeting a “trustee in bankruptcy” but knew that the meeting was necessary since the pressure of their debts was causing great stress and strain on their family unit. It was obvious to them that they needed to do something to deal with their debts, but really did not know what options were available to them. They thought that I (as a trustee in bankruptcy) would only talk to them about personal bankruptcy – they did not realize that there were other options. I understand this is a common misconception people have and so I thought this would be a good time to share with you what a meeting with me involves.

The initial role of a first consultation is to review both the financial and personal situation in detail and discuss how all the options available apply. I remain completely unbiased during the meeting and do not make judgement on anyone. The options available are the same for everyone I meet with however, they will not apply the same for each individual case and the key during our meetings is to find the right solution to deal with the debts and develop a plan for a desirable future.

The meeting typically begins with open conversation, which then leads to a review of the specifics with respect to debts, assets, and income. Once I understand the exact situation we discuss in detail how the options work and review the pros and cons of each. At that point the meeting opens for other unanswered questions. We often also discuss future plans and goals. At the end of the meeting, I encourage the individual to go home and consider what they want to achieve going forward and which option they feel will work best for them to obtain these goals.

I feel it is about making the right plan for each situation. Just because one option works for one person/family does not mean it will work for everyone. As for Jane and Thom’s case, they went home and thought about the details of our meeting and gave me a call back today to let me know they thought a consumer proposal is the option for them. They realized that they needed control of their debts. They wanted to protect their house. They felt they had enough money to pay some of the debts back through one monthly payment and did not what to file bankruptcy. Their misconception of the intimidating meeting with a Trustee in Bankruptcy was dissolved. They already feel better about their situation and they have only had one meeting with me.

You too can review your situation with me in a private environment. Please do not hesitate to contact me. I will sit down with you free of charge to explore the options and help you develop a plan for the future. I can be reached via e-mail or at 519-747-0660.

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According to Wikipedia, a staycation “is a neologism for a period of time in which an individual or family stays at home and relaxes at home or takes day trips from their home to area attractions. Staycations have achieved high popularity in the US during the financial crisis of 2007–2010 in which unemployment levels and gas prices were high.”

In the Kitchener-Waterloo Region, I have seen and heard this term being used more and more. Staycations are a great way to take in the vast amount of activities and attractions we have in Kitchener and Waterloo. I think there are many activities that we have never experienced because they are local and often overlooked. So from a budget and local impact point of view, a satycation is an excellent way to save money and still get out. But the reality of it is that many people cannot afford to travel away from home right now. With financial debt levels increasing, the amount people are spending just to make their monthly debt payments is growing into a large number. I understand how the past 2 years have affected many people and families in the area.

I have found that summer can be a time when families in the Waterloo Region look at their situation and ask themselves, is this where they wanted to be financially? If a staycation is in your summer plans due to your debt levels, then maybe this is the sign that it is time to consider a plan for your future financial situation. Maybe a consolidation with a bank will help, or maybe it is time for a debt management plan or a consumer proposal.

At this point, the best thing to do is:
a) Create a list of all your debts with total owing and monthly payments to each;
b) Work on a monthly cash-flow tracking what you have coming into the family unit as income and where you spend your funds. See this link for a budget worksheet;
c) Talk to someone to see if your cashflow is missing or omitting something that you missed and will affect your decision making;
d) After drawing up your cashflow, determine what your overage or shortage is.

If you would like to sit down and review your situation to determine how the various options work for you, please call my Kitchener office at 310-PLAN or send me an e-mail. There is no cost or obligation in meeting with us. We will gain an understanding of your situation and then provide you with details of how the options work and at what monthly amounts you would have to pay.

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As a licensed Trustee in Bankruptcy, I am a one of just over 1,000 Trustees in all of Canada. A Trustee in Bankruptcy has a unique role. We are like a referee in the bankruptcy process. We sit down with people who are experiencing financial hardship and assess their situation as well as review the options to deal with their debts. Then, if someone needs the protection and relief from their creditors, we administer the bankruptcy process. We are not lawyers, but rather licensed by the government. We are all required by law to uphold a minimum standard and we report to and are monitored by the government.

So how are the Trustees at our firm different?

At Hoyes Michalos and Associates Inc. we think that people make the difference. In our Kitchener Waterloo bankruptcy office, my associate Ian Martin or myself meet with every individual. Ian and I are both Chartered Accountants. We personally work with everyone who sees us in the Kitchener Waterloo to make the process is fully explained and understood.

I was sitting in the Kitchener Bankruptcy Court last week where I noted some major differences between trustee firms. There were 65 individuals being seen by the court for their discharge hearing that day. Not all personal bankruptcies have to appear before the court, only certain cases go to court to get their discharge. I was there to report to the court as the trustee on 5 individual bankruptcies. There was only one other trustee firm represented at the court, even though there were individuals at the court for at least 10 other trustee firms.

How does court work? The judge deals first with clients whose trustee is present. Therefore, the individuals there from Hoyes Michalos were dealt with first and out of the court within minutes. After that it got interesting. I decided to stay in court until all cases were heard. I sat in the court room watching what happened for the individuals whose trustee chose not to appear at court. Each case was heard one by one, with just the individual sitting before the court and having to speak alone – without the support of their trustee. There were some cases where there appears to be some miscommunication between the trustee and the individual and the trustee was not there to sort it out. This left the individual confused and not sure of what had just happened.

For most people, they have never been in a court house. Now if their bankruptcy has to go to court, they are left to go it alone. At Hoyes, Michalos and Associates Inc. we will appear at all discharge hearings because we see it as part of our role as trustees. Further, it is imperative that everyone understands want the process is so that there is no confusion. This is one major difference between us and the other trustee firms in the area.

For a free assessment of your situation, call me at 310-PLAN or send me an e-mail. The Kitchener Waterloo office is located in the middle of both cities at 607 King Street West in Kitchener – near the intersection of King and Victoria.

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Based on the statistics that the government released last Friday, personal bankruptcies in Kitchener-Waterloo increased 60% for the 3rd quarter (July – September) in 2009 over 2008. This is a significant increase when you consider the Canadian average was an increase of 47%. Even for consumer proposal filings in the 3rd quarter, Kitchener-Waterloo increased 43% versus the Canadian average of 39%.

These are staggering increases. Working in the Kitchener office, I have met with many people that were facing the decision of how to deal with their debts. There is a variety of reasons that someone has to file, here are a few key factors; the economy downturn has caught up with the Waterloo Region, the debt levels of the average person has increased, as well as a result of the new bankruptcy rules that came into effect on September 18, 2009. These are average people who fell under tough financial times and needed to obtain a fresh financial start.

To discuss actual numbers, in the 12 month period ending September 2009, total consumer bankruptcies and proposals in Canada totaled 148,378. This is a 36% increase over the same 12 month period ending September 2008.

If you are experiencing financial difficult in 2009, you are not alone. Call us at 310-PLAN and we will discuss your situation in detail to help make PLAN for the future.

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This Saturday, November 14th, Howard Hayes and I will be spending the hour between 12:00 and 1:00pm answering your questions live on air on the Ask the Expert Show on 570 News. If you have questions and want to hear them answered, please send us an e-mail at this e-mail address created for this show. We will attempt to answer all of your questions.

We receive many e-mails from people in the Waterloo Region. These e-mails are asking questions about garnishments, personal bankruptcy, consumer proposals, assets, creditors, or any debt related question to name a few. Personal finance problems are stressful and overwhelming, so hopefully our live radio show will help you understand your options and how specifics in your situation will be handled.

As a Trustee in Bankruptcy, I am responsible for our Kitchener Office. I can be reached at 310-PLAN or at this e-mail if you would like to talk specifically about your situation.

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Hoyes, Michalos & Associates Inc. has been helping the residents of Kitchener-Waterloo since we opened our doors on January 1, 1999. As a firm, our focus is on individuals and their families. We assist with helping develop a PLAN to deal with individuals or families debts. We are non-judgmental as we understand that there are many different factors for financial difficulty.

When someone calls us, we try to gain an understanding of the situation so we can advise on all options. It is important that people understand how all options work so that they can make the best decision for themselves after evaluating the pros and cons of each.

This coming Saturday, Doug Hoyes and myself will spend the noon hour on the 570 News radio show called Ask the Experts. We are going to discuss the new bankruptcy rules, the economy, and answer caller’s questions. We go on this show to help Kitchener-Waterloo residents understand personal bankruptcy and consumer proposals in more detail.  Please tune in to 570 News at noon on Saturday for our one hour live broadcast, or go to the 570 News web site to listen live.

If you have a question that you would like answers to and do not want to call into the show, send me an e-mail or call me at 310-PLAN and I will try to answer it on the air.

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Bankruptcy Reform – legislation referred to as Chapter 47 was passed in 2005, but was never fully implemented. In August 2008, there were parts of the law implemented with respects to student loans and RRSP – see details here but last week, it was announced that on September 18, 2009, the remaining changes will be put into force.

What does this mean to people from Kitchener-Waterloo, Ontario? Like any change, there are pros and cons. Overall, personal bankruptcies will cost an individual more money and time than they did under the current law. On the other hand, the government made the option of a consumer proposal more available.

Given the state of the economy right now, Kitchener residents are facing hard times and these reforms are going to affect each person differently. People now have a month’s time to consider their options under different laws. One could file now and use the current laws, or wait till the new laws are in place. Either way, I feel it is important for individuals facing difficult times to talk to a professional, understand their options, and make a plan for the future.

For more details of the changes, click here for an article posted on hoyes.com.

Our professionals along with myself in the Kitchener office can sit down and review the situation and discuss the laws in detail. We are located at 204-607 King Street West, Kitchener, Ontario. The office is on the second floor of the plaza by Zekes restaurant. Send us an e-mail or call us at 310-PLAN.

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The Waterloo Running Series put on great running races throughout the year, including last week-end’s Waterloo Classic Road Race featuring 3KM, 5KM, and 10KM races. I have taken up the sport of running over the past year and find it challenging as well as rewarding. I ran the 5KM race. It was the 4th time I entered into a 5KM race and wanted to push myself for a personal best time of around the 23 minute mark. In the end, I ran a 23:01 gun time (with a 22:52 chip time). I need to thank Thom Light and Ian Martin for running with me and pushing me for these results.

But beyond the race, was a good cause – fundraising for Heartwood Place. Heartwood Place is a charity who’s effort is to help with affordable housing in the Kitchener-Waterloo and Cambridge area. Thanks to my personal sponsors: friends, family and especially the Kitchener office of Hoyes, Michalos & Associates Inc.
As a Trustee in Bankruptcy operating our Kitchener office, I meet with people every day that are struggling financially. Some of the people I see are unable to afford their rent. It is important to have local organizations that help those in need with affordable rent, rental places, and rent arrears. Below is a list of some of the organizations to seek help from if you are having rent related issues:

Heartwood Place
Lutherwood Housing Services including their Rent Bank
Region of Waterloo Social Serives
City of Waterloo
City of Kitchener
Ministry of Community and Social Services
Kitchener-Waterloo Rental Apartments
Places4Rent

If you are unable to pay your rent due to some or all of your bills, then maybe a consumer proposal or personal bankruptcy is the option you need to give you a financial fresh start and allow you to keep current with your rent. Myself or any one of our associates can be reached at 310-PLAN or via e-mail to arrange a free consultation to review your situation and options.

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When do we feel that we need a second option? Personally, I feel I need a second opinion when:

• I still have questions and I am not being provided answers
• The explanation I have been given is confusing or not related to my situation
• I feel like I am being given a quick answer
• I feel like the person did not listen to me

 

 

The reason I raise this point in my blog today, is that I meet with people every week who have been to another place and they are unsure about the explanation they have been given about personal bankruptcy or consumer proposals. As a Licensed Trustee in Canada, I am responsible for adhering to the same standards as all other trustees. The difference in our firm is our people. We focus only on personal solutions for individuals facing financial hardship. In our Kitchener-Waterloo office, individuals only meet with experienced members of our Team. Two of my most experienced members are Jane Merling and Lynn Strouth, each with over 25 years experience in helping people with personal financial solutions. One of the ways we stay current is by supporting aspiring team members in their efforts to obtain a Trustee license (a rigorous 5 year program). Through this we attempt to provide clear information and help individuals and families make a PLAN for the future.

In Kitchener-Waterloo, we answer the phone, treat people with respect, and strive to answer all their questions. After meeting with an individual, we encourage them to call us back at anytime to answer any follow-up questions or to explain something if the person is unclear. It is never a bother or an interruption; we work as a team to be available when the person calls.

If you would like to discuss your situation or arrange a free consultation with us, please call us at 310-PLAN or e-mail us. We are located on the second floor of the plaza at 607 King Street West in Kitchener which is near Zeke’s restaurant and Tim Hortons.

 

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Today’s blog is to pass on an e-mail that we received from someone who has just completed a consumer proposal through our Kitchener office.

E-mail received:

“This is not a question but a thank you. The service and advice I received was way more than I expected, Any question was answered, and in a very timely manner. You handled every detail with utmost professionalism. From the moment we started to work together right up to now, my mind was at ease and I am so happy to have reached the end of one road and the start of another. I have recommended you to others I have encountered in my position and want to once again thank you for helping me get my life (and finances) back in shape.”

 

At Hoyes, Michalos & Associates Inc. we take pride in helping individuals obtain a fresh financial start. We understand that financial strain can have a significant impact on personal and family life. A consumer proposal or personal bankruptcy are some of the options that individuals have available to ease their stress and obtain a fresh start.

 

Our approach is to answer questions and provide facts so that individuals can make an informed decision for themselves. When they file a consumer proposal or personal bankruptcy with us, we attempt to provide assistance when they need it.

 

If you’re experiencing financial hardship and want to discuss your options in detail, e-mail us or call us at 310-PLAN. There is no cost in calling us or having a meeting to review the options and we are located at 607 King Street, Kitchener – between uptown Waterloo and downtown Kitchener.

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