Scott Schaefer, Credit Counsellor

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 519-747-0660 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.

Scott Schaefer Bankruptcy Trustee

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 519-747-0660 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.

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 519-747-0660 and we will discuss your situation in detail to help make PLAN for the future.

Scott Schaefer, CA CIRP

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 519-747-0660 or at this e-mail if you would like to talk specifically about your situation.

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 519-747-0660 and I will try to answer it on the air.

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(7526).

Scott Schaefer, Trustee

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 519-747-0660 or via e-mail to arrange a free consultation to review your situation and options.

• 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 519-747-0660 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.

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.

The class was an hour and twenty minutes, during which we discussed:

• Today’s working families
• Financial constraints
• Budget/Cash-flow
• How to manage credit
• What can go wrong
• How financial troubles impact marriages
• How to resolve tough situations

We explored how family employment has changed over the years resulting in an increase in the number of relationships that have both spouses working. One of the reasons for this is the financial constraints we have in today’s society which has added great stress to couples and families.

When you factor in the increase in credit use, the average family is now carrying more balances on credit cards and loans then they make in a year’s income. Thus, costs of living have increased over the years and we are spending more and saving less.

During my talk, I had the class work on a family budget for a year’s period. I wanted them to assume they were a family of 4, bringing home $60,000 per year. It is interesting to see the amount of difficulty that the students had with this project. I have always believed that our education system has not properly prepared today’s youth with the fundamentals in personal financial management. There are many techniques and methods to budgeting and not all them work for each person/family.

We then discussed that one of the major leading causes of insolvency in Canada is marriage breakdown. When a couple dissolves a relationship, the costs of living increases significantly as there is now the requirement for two residences as well as support payments. The impact of financial strain on a relationship, like all other stresses should be dealt with as they arise. There are solutions to these financial strains.

If you are experiencing financial stresses or strains and they are impacting your relationship, call us at 310-PLAN or e-mail us to discuss the options you have.