Bankruptcy Kitchener Blog

Statistics Canada released the bankruptcy and consumer proposal rates today and Kitchener Waterloo was hit harder than the Ontario and Canadian averages. 2009 was a year marked by the recession, the downturn in the automotive sector and financial crisis. These all contributed to individuals falling on tough financial times.

In 2009, 151,712 individuals filed a consumer proposal or bankruptcy in Canada. This was an increase of 31.0% over the 2008 number of 115,789. For Kitchener Waterloo, the increase in personal bankruptcies and consumer proposals was 39.2% which was higher than the Canadian increase of 31.0% and the Ontario increase of 32.7%. The numbers with respect to just personal bankruptcies in Kitchener are even more drastic – Kitchener bankruptcies saw a 45.9% increase as compared to Ontario of 28.5% and Canada 28.4%.

For my Kitchener office, we met with many people from Kitchener Waterloo and as such personally understand how hard this year was on them as they saw the impact of the recession on them and their families.

In the past, Kitchener Waterloo may have fared better due to our diverse economy with the high tech sector, universities and college, hospitals, insurance, and manufacturing sectors, but 2009 had a deeper impact that spread to all areas and sectors.

Kitchener Waterloo is rebounding, but individuals are still feeling the long lasting impacts that 2009 brought to their situation and with increased debt levels, individuals still will need the assistance to get a fresh start through a consumer proposal or bankruptcy.

If you would like a free review your situation to make a plan to deal with your debts, call our Kitchener office at 519-747-0660 or send me an e-mail.

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My associate Ian Martin and I spent the noon hour this past Saturday on the Ask the Expert show on 570 News. During the show we discussed market trends, the significant increase in insolvency filings, and how consumer proposals and personal bankruptcy work. We consider the Ask the Expert radio talk show an important forum for providing the community of Kitchener Waterloo with information.

While preparing for the show, I looked at various statistics. Here is what I found; the current debt to income ratio is now at 145%. When we did a similar show in February 2006, the ratio was only 118%. That is a significant increase of 27%, but the fact that this number has increased to over 100% is of concern. This could be one of the leading causes that for the 12 months ending November 2009, there were more than 150,000 personal bankruptcy and consumer proposals filed in Canada. Further, when I compared previous data, I found that 2005 was the first time more than 100,000 people filed personal bankruptcy or consumer proposals. Seeing an increase on this scale is of concern because it can cause people to fall into financial hardship when they experience something unexpected in their life.

Kitchener Waterloo has been affected by the recession as well as unemployment rates which are now at 9.9%. This is above the current national average of 8.3%. Many people have gone back to work to be retrained, taken lower paying jobs, or have had over-time slashed. When you compare that to the demands for debt payments, people are overwhelmed.

As Trustees in Bankruptcy, we are available to help people obtain fresh financial starts through consumer proposals and personal bankruptcies. Ian and I meet with many people from Kitchener Waterloo who have faced tough times and were thankful for the options available. While a consumer proposal or personal bankruptcy is not the option people plan for, it does provide a safety net and allows these individuals to take control of their financial future.

If you are from Kitchener Waterloo and want to sit down and discuss your situation in detail so that we can make a plan to deal with your debts, call us at 519-747-0660 or send us an e-mail. There is no cost in meeting with us.

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

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Doug Hoyes and I aired on the hour long Ask the Experts show on 570 News in Kitchener. We discussed the options Personal Bankruptcy and Consumer Proposal for listeners in Kitchener area. We focused our discussion on the impact of the new rules that came into law on September 18th, 2009. Part of our role as Trustees is to inform individuals of their options when they are experiencing financial difficulty. The radio show allows us to share the information with people throughout Kitchener, Waterloo, and Cambridge.

Who are we? We are a licensed Trustee in Bankruptcy firm that focus on solutions for individuals. The firm, Hoyes, Michalos and Associates Inc. started in 1999 in Waterloo Town Square. Since then, we have moved to our Kitchener location at 607 King Street, on the second floor of the strip mall near Zeke’s Restaurant. We have helped thousands of people from the Kitchener-Waterloo region since then. We are the largest firm in Kitchener-Waterloo that only provides solutions for individuals.

My back ground consists of:
1997 – BA Economics and Accounting from Wilfrid Laurier University
1999 – Chartered Accountant (CA)
2002 – Insolvency Credit Counsellor Certification
2007 – Chartered Insolvency and Restructuring Professional (CIRP)
2007 – Licensed Trustee in Bankruptcy

If you are interested in a free consultation to review your situation and discuss your options to make a plan, call me at 519-747-0660 or e-mail me. My approach to our meetings is non-judgmental and my objective is to provide you with the information you need to understand the pros and cons to your options so that you can choose the right one for you.

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

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After 57 years in the Kitchener-Waterloo community, the local not-for-profit organization, Catholic Family Counselling Services is experiencing a name change – going forward, they will be known as Mosaic Counselling and Family Services. The organization is a member agency of the United Way.

The Mosaic Counselling and Family Services is located at 400 Queen Street South, Kitchener. They offer a wide range of services to residents in Kitchener-Waterloo. When someone is in need, counsellors are there to meet with the person and help in a supportive role.

One key area of focus for the organization is offering credit counselling. They meet with individuals and families to review their situation, work on budgets, and help guide them in the right direction. One aspect of the business is a Debt Management Plan, which is a 100% repayment option through the Ontario Association of Credit Counselling Services. Another service offered is credit counselling in a personal bankruptcy. For individuals filing personal bankruptcy in Kitchener, the system requires 2 one on one credit counselling sessions to assist in obtaining a fresh start. We refer several people Mosaic Counselling and Family Services for these sessions.

If you are in financial stress, call Mosiac Counselling Services at 519-743-6333 or call us at 519-747-0660. We are both located in the Kitchener-Waterloo region to help people in tough financial situations.

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This past weekend was Homecoming at Wilfrid Laurier University (WLU). I attended the School of Business & Economics (SBE) from 1993 – 1997, were I double majored in Economics and Accounting. As an alumni of Wilfrid Laurier University in Waterloo, I enjoy going back to take in some of the events.

Friday was the Dean’s Alumni Golf Classic. It was wet, windy, and cold, but we made the best of it and were able to get in a partial round of golf. The tournament was in support of awards for deserving students within SBE. The Kitchener office of Hoyes, Michalos & Associates Inc. sponsored a hole for this event to show our involvement to support local students.

On Sunday, I took part in the 2nd Annual Laurier Loop (a running race). The race is part of the Waterloo Running Series and was a 2.5 KM circuit through beautiful Waterloo Park which started and finished on the track in the Laurier University Stadium. In this event, Ian Martin and myself joined two others in a 4 person relay team to run a 10km relay race, we each ran a 2.5 loop as fast as we could – our final combined time was 43 minutes, 26 seconds. This race was raising funds for Laurier’s Movement Disorders Research & Rehabilitation Centre (MDRC). Once again, thanks to Hoyes, Michalos & Associates Inc. in Kitchener for sponsoring 3 staff members in this event.

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