Archive for August, 2006

According to numbers released by the Office of the Superintendent of Bankruptcy, the number of personal bankruptcies filed in Hamilton, Ontario in the first six months of 2006 decreased by 7% as compared to the same period last year. In the first six months of 2005 there were 974 individuals who filed bankruptcy in Hamilton; that number fell to 904 in the first six months of 2006.

The number of consumer proposals also fell significantly, from 239 in 2005 to 213 in the first six months of 2006 in Hamilton, for a drop of 11%. (A consumer proposal is a legal alternative to bankruptcy where you make payments to your creditors over a period of time, generally three to five years).

Combining both numbers the rate of personal insolvency fell by 8% in Hamilton. Of all major cities in Ontario, only London (at 16%), Peterborough (at 27%) and Brantford (at 15%) experienced larger declines. In all of Ontario personal insolvencies fell by 5%, so Hamilton’s performance is well above the average.

No-one knows for sure why the bankruptcy rate is falling in Hamilton, but we believe it is largely because interest rates remain relatively low, making it easier for Hamilton residents to continue servicing debt without needing to resort to filing bankruptcy.

However, as interest rates continue to increase, and if the economy begins to slow down, the personal bankruptcy rate in Hamilton may once again resume the upward trend that existed prior to 2005.

If you are experiencing financial problems and don’t want to become a statistic, please call our Hamilton office at 310-PLAN or e-mail us for more information or to set up a no charge initial consultation.

Tagges as: personal bankruptcy, bankruptcy Brantford, bankruptcy Ontario

Many clients that I talk to tell me that they feel that the amount of debt they have is so small that they are embarrassed to be calling me to talk about it. So, how much is too much debt? This really is a relative question. For some people, $2000.00 may be a lot of debt, for others $200,000.00 may be a lot of debt. So how do we know when the debt we have is too much for us to handle? How do we know when we need help? Too much debt is when we find ourselves:

1.) choosing between buying groceries or making a payment on our credit cards
2.) working overtime on a regular basis to make the payments on our debt
3.) selling our furniture or other property in order to pay our creditors
4.) borrowing from family piggy banks and savings in order to pay for expenses
5.) choosing between paying our hydro or gas bills and paying the people we owe money to

Doing these things for a few months may be necessary to get us through a temporary lay-off or short-term illness, but if you find yourself doing this month after month, you may need help. If you are struggling with debt, please give us a call at 310-PLAN to book a free consultation or e-mail us with your questions. We are here to help you find a solution that works for you.