|
|
|
How many people went bankrupt in Cambridge in 2008? That’s a hard question to answer, because the Office of the Superintendent of Bankruptcy (the "OSB") in Ottawa does not publish statistics for Cambridge. They include Cambridge in the results for Kitchener, so it’s impossible to know from their published statistics exactly how many people go bankrupt in Cambridge each year.
Fortunately, there is a way to find out. Every year (including last year) I request a summary of bankruptcies and consumer proposals by postal code from the OSB. Each year they send me a summary of by postal code (they don’t send me the names of the people who filed; just the number per postal code).
|
We then take that information and add up all the numbers. You can see the results on a postal code map by going to our Bankruptcy Cambridge Statistics page. Here are the results:
In 2008 there were 477 individuals that filed personal bankruptcy in Cambridge, and another 189 Cambridge residents filed a consumer proposal. There were another 25 commercial proposals filed (filed by people, not corporations in most cases), for total filings of 691 people in Cambridge, Ontario in 2007.
That’s an increase of 30% from last year, which is significantly more than the Ontario increase of 16%, and the 14% increase in all of Canada.
Of course statistics don’t matter; all that matters is your personal situation. I publish these bankruptcy statistics for one simple reason: to show you that you are not alone.
If you would like to discuss your options, please call my Cambridge office at 519-622-3773 or 310-PLAN, or e-mail me a question and my staff will set up a meeting so that I can personally review your situation, because you are a person, not a statistic.
by Douglas Hoyes on April 15, 2009
Last week I was asked to appear on the CBC Television CBC News Sunday program to discuss what it’s like to go bankrupt, so on Sunday morning, in the rain, I got into my car and made the hour long drive to the CBC studios on Front Street in Toronto. As the economy worsens, the media is paying more attention to the problems of the "little guy", so we are getting ever more frequent requests to discuss bankruptcy and related issues on the TV and radio.
This interview was a first for me; I was interviewed with a man who declared bankruptcy four years ago. (He did not go bankrupt with me, and I had not met him until we met at the television station). The producers of the broadcast wanted an inside look at the bankruptcy process.
I explained the bankruptcy process, and the gentleman explained how bankruptcy truly did give him a fresh start.
I’m pleased that the media is paying more attention to the problems faced by the average person. Many people I talk to believe they are all alone, and that no-one else is experiencing financial problems. That’s not the case, as an increasing number of Canadians are led to file personal bankruptcy in Canada as a result of their financial problems. I believe it was valuable for the viewers to hear from an actual person who filed bankruptcy.
I then had the opportunity to explain that bankruptcy is not the only option; I always discuss consumer proposals and other solutions with everyone I meet, but in the end it’s up to you to decide which solution is best for you and your family.
You can watch the entire segment about bankruptcy on the CBC web site.
If you want a personal review of your situation, please call my Cambridge office at 519-622-3773, or e-mail me, and my staff will arrange a no charge initial consultation so we can review your options and allow you to decide how to deal with your debts.
by Douglas Hoyes on March 30, 2009
Many of the people I meet with in my Cambridge bankruptcy office believe that they are they are alone; they think that no-one else is having serious financial problems. Howard Hayes and I meet with dozens of people every month in Cambridge, so I can tell you that you are not alone.
In fact, as the recession deepens and the economy gets worse, the media is doing a much better job of reporting on personal bankruptcy, and the implications of bankruptcy.
I want everyone to understand all of the options available, so I will often appear on the radio or TV to discuss the options. (You can see a list of my radio and television appearances on the Doug Hoyes Radio and Television page). For some reason newspapers don’t report on personal bankruptcy as frequently as is done on radio and television, but that is changing.
Last week I appeared on a live question and answer forum hosted by the Globe and Mail. Readers were invited to e-mail in their questions; I answered them, e-mailed the answers back to the Globe, and they were posted immediately. The session lasted for an hour and a half, and in that time I answered 19 questions (and yes, my fingers were tired at the send of the session). You can read the Globe and Mail personal bankruptcy article with Doug Hoyes here.
But you don’t need to watch TV, listen to the radio, or read the newspaper to get the answers to your questions. You can e-mail me directly, or call my Cambridge office at 519-622-3773 or 310-PLAN, and get answers to all of your questions. You are not alone, but you only get answers if you take the first step and call or e-mail, so if you have questions, please contact us today.
by Douglas Hoyes on February 6, 2009
I was working in my Cambridge bankruptcy office today and I had to make a deposit at the bank, so I walked from our office on George Street down Main Street and over the bridge over the Grand River (thankfully they have finally finished the construction on the bridge). As I left my office at around 1:30 pm it was about -8 degrees and sunny; cold, but a perfect day for a quick walk to the bank, since the wind wasn’t blowing.
As I walked over the bridge over the Grand River and looked down, I was surprised to see foot prints across the river. The Grand River was frozen all the way across. Some brave sole had managed to walk, through the snow, from one side of the river to the other. I’m sure the river has frozen over before, but since I moved to Cambridge in 1997 I don’t remember ever seeing the River completely frozen. Obviously January 2009 has been a very cold month.
Unfortunately when we look back on early 2009 I don’t think it will be the cold weather we will remember, or the fact that the river was frozen. I think it will be sad state of the economy that will be uppermost in our minds.
When I got back to the office I met with a lady who works in the automotive industry. Her hours have been cut back, and she can’t pay her bills. Yesterday I heard the same story from a long-time Toyota worker. There is no overtime anymore, so it’s harder to make ends meet.
What’s the solution? I give everyone the same advice: make a plan now. You may be able to cut your expenses and pay off your debts on your own. Perhaps you can get a debt consolidation loan. Perhaps you need to file a consumer proposal or go bankrupt. The solution will depend on your individual circumstances, which is why I strongly encourage you to give our Cambridge office a call at 519-622-3773 or 310-PLAN, or e-mail me, and we will explain your options, and then book a time for us to meet to go through your options in more detail.
I can’t do anything about the weather, but I can explain your options, but only if you call and get the process started, because with financial problems waiting is almost never the correct solution.
by Douglas Hoyes on January 27, 2009
On Saturday January 17 Ted Michalos and I appeared 570 News to talk about how to deal with credit card debt. Our Cambridge office gets a lot of phone calls after the Christmas season from people with more credit card debt than they can deal with, so I always welcome the opportunity to go on the radio and answer questions about how to deal with credit card debt.
On the show I was asked how to deal with credit cards and other debts. The advice I gave on the show was the same as the advice I give when I met with people privately in my Cambridge office.
First, you must make a list of all of your debts, and prepare a simple monthly budget. By making a list of everything you spend each month, it’s easier to see what expenses can be chopped, which is the first step to getting back on track financially. For many people cutting expenses is enough to free up cash so that they can pay their debts on their own. If you can’t cut enough expenses to increase your cash flow to pay off your debts, the next possible solution is credit counselling.
With credit counselling a not-for-profit credit counsellor creates a debt management plan where you repay all of your debts, at a reduced or zero interest rate.
Of course one option is to file personal bankruptcy. However most people I meet with in Cambridge want to explore all options before considering bankruptcy, so I always mention filing a consumer proposal, which is often the best strategy for dealing with credit card debt. A consumer proposal is a deal, or a settlement, that is negotiated with your creditors. If you have $50,000 in debt, it may be possible to negotiate a settlement where the creditors accept 50 cents on the dollar, or $25,000, over up to a five year period. For example, a proposal of $500 per month for 50 months would be accepted in most cases by the creditors. In some cases it’s possible to get proposals accepted for 30 cents on the dollar, or even lower, depending on your monthly income.
As I said on the show, there are options, so to find out what option is best for you, give us a call at 310-PLAN (310-7526), no area code required, or e-mail me to schedule a free initial consultation.
by Douglas Hoyes on January 17, 2009
On November 8, 2008 I appeared as a guest on the ProvinceWide television show. The show was a panel discussion about Your Money, Your Future, and I was one of the guests giving tips and advice about how to deal with debt in these difficult times. You can watch my segment on this ProvinceWide link.
My advice on the show was the same as the advice I give to Cambridge residents every day: First, reduce your debt, and second, have a plan to deal with your debt.
I talked on the show about consumer proposals and personal bankruptcy. Proposals and bankruptcy are not your only options; you may be able to deal with your problems on your own, or with the help of a credit counsellor. Regardless of the possible solutions, I emphasized on the show that you need a plan NOW. Even if you are already drowning in debt, it is still possible to make a plan to deal with your debts.
Please give my office in Cambridge a call at 519-622-3773, or 310-PLAN, or e-mail me, and together we will explore your options and make a plan to deal with your debts.
by Douglas Hoyes on November 10, 2008
Today Ted Michalos and I appeared live for an hour long call in show on 570 News. We discussed a very timely topic: How to Survive the Economic Crisis. I expressed the opinion that the world has changed. Today it’s much harder to lease a car or get a mortgage. Even worse, if you already have debt, you probably are not getting the overtime or bonuses at work you were getting a year or two ago, and that makes it even harder to service your debt.
I gave some tips on How To Reduce Your Debt, and I explained that debt is dangerous in tough economic times. If you get laid off or have your hours cut back at work, Employment Insurance will probably be enough to cover your rent and help you buy groceries, but it won’t be enough to cover payments on credit cards and bank loans. That’s why it’s important to reduce debt now, before your financial situation gets worse.
But what do you do if your situation is already bad? I’ve met with a number of Cambridge residents over the last few weeks who have more debt than they can handle, and don’t know what to do. They don’t qualify for a debt consolidation loan, and they can’t afford credit counselling. That leaves two final options: a consumer proposal or personal bankruptcy.
Which option is right for you? As I told the callers on the radio show, the answer for you depends on your situation: your monthly income and expenses, what you own, and who you owe. Fortunately, we can help. Give our Cambridge office a call at 519-622-3773 or 310-PLAN (that’s 310-7526, no area code required), or e-mail us to arrange for a no-charge initial consultation; we will walk you through your options, and you will then have a plan to deal with your debts, and get a fresh start.
by Douglas Hoyes on October 25, 2008
Last week Howard Hayes and I met with a man in our Cambridge bankruptcy office. He had met with a clerk at another trustee’s office, and was confused about his options. Before we talked about options to deal with his financial problems, he wanted to know if we were different than the other trustees in Cambridge.
I explained that all trustees are licensed by the federal government, so we are all required to follow the same rules. However, if you visit us in Cambridge, you will meet with two people: 
Howard Hayes, who manages our Cambridge office, and me, Douglas Hoyes, the trustee responsible for our Cambridge office (and the founder of Hoyes, Michalos & Associates Inc., the largest firm in Canada dealing exclusively with personal insolvency; we don’t do bankruptcies for corporations, or audits or tax work like the national accounting firms).
In other words, the difference is our people. You meet with senior, experienced people, not administrative clerks.
This man was pleased that Howard and I took the time to listen to him so we could understand his situation, and he was happy that we didn’t just talk about personal bankruptcy in Cambridge. We covered all of his options, including debt consolidation, credit counselling, and consumer proposals. With all of this information, it was easy for him to make a decision.
Whether you need a first or second opinion, please call our Cambridge office at 519-622-3773 or 310-PLAN, or e-mail us, and let’s get started on a plan to help you deal with your debts.
by Douglas Hoyes on October 20, 2008
Over the last few weeks I have noticed an increasing level of pessimism in many of the people I meet in my Cambridge bankruptcy office. Many people are realizing that as the real estate market softens, it’s harder to refinance your house to raise cash to pay off debts. Many people are also worried about what’s happening in the stock market, as they see their RRSP’s declining, which may significantly delay their retirement.
The worst problem I’m seeing these days is a decline in confidence. People are worried about losing their jobs, and not being able to provide for their families. In these uncertain times, my number one rule is simple:
Get out of debt.
If you can reduce or eliminate your debt, you have the flexibility to survive this economic crisis. I’ve summarized it in our article on the Five Tips to Survive the Economic Crisis.
If you can’t deal with your debt on your own, a consumer proposal or a personal bankruptcy may be necessary to eliminate your debt permanently. To learn more, call our Cambridge office at 519-622-3773 or 310-PLAN, or e-mail me, and let’s work out a plan to eliminate your debt and help you and your family survive this recession.
by Douglas Hoyes on October 10, 2008
I met with a married couple last week, with a very common story.
Ten years ago they bought a house. Like many newly married couples they used their credit cards to furnish the house, and to buy things for their growing family. Five years ago they owed $30,000 on their credit cards.
Fortunately for them, their house had increased in value, so they were able to refinance their mortgage, borrow an additional $30,000, and pay off their credit cards.
Unfortunately they continued to spend more than they were earning, and ended up with more credit card debt. Fortunately for them, two years ago their house had continued to increase in value, and they were able to refinance once again, and pay off their credit cards.
They were using their house as though it was an ATM machine, dispensing cash when they needed.
When I first met with them a few months ago, they were somewhat depressed. Over the last year their hours at work were cut back, and they were again using credit cards to survive. They approached their bank, again, and were shocked to learn that they could not borrow any more money against their house. Over the last few months their house had actually declined in value, and with their reduced incomes the bank would not lend them any more money.
What could they do? I suggested a number of options.
First, they could sell their house and rent. Their was still a small amount of equity in their house, and they could use that money to pay down some of their debt. They decided that it was best for their family to remain in their neighbourhood, and renting would cost almost as much as owning, and selling the house would not generate enough money to repay all of their debts, so they decided against selling.
Since we already knew they could not refinance, and since they did not want to go bankrupt, we decided that a consumer proposal was the correct option.
We worked out a budget so that we knew what they could afford to pay each month. We ended up filing a consumer proposal where they will be paying $400 per month for the next five years (although they can pay it off faster with no penalties if they want to). In total they will be paying $24,000, even though their total debts (not including the mortgage) were almost $50,000.
Their creditors are happy, because they know that in a bankruptcy they would only get about $10,000 from the house, and this couple is happy because they know they can afford one monthly payment of $400, and they can keep their house.
I am seeing an increasing number of people in Cambridge who have used the equity in their house to help with their debts in the past; as that becomes more difficult, a consumer proposal may be the answer. If you think a consumer proposal may work for you, please call my office in Cambridge at 519-622-3773, or e-mail me to set up a free initial consultation, and I’ll help you work out a solution that’s right for you.
by Douglas Hoyes on September 22, 2008
