Canada Bankruptcy

Will Basic Income Increase Or Decrease Bankruptcies?

Douglas Hoyes | Posted 04.25.2017 | Canada Business
Douglas Hoyes

The Ontario government just announced a pilot project to test a basic income for low-income earners in Hamilton, Brantford, Lindsay and Thunder Bay. Will the program be successful? I have no idea. The answer will, in large part, depend on what will be measured.

Paying Down Debt Is The Top Financial Resolution, Again

Douglas Hoyes | Posted 01.03.2017 | Canada Business
Douglas Hoyes

As we start a new year, we have yet another new poll about how Canadians are once again listing paying down debt as their top financial priority for 2017. This survey, from the CIBC, says that for the seventh straight year concerns about debt were a top concern for most Canadians.

A Message To Anyone Going Through A Tough Time

Adrian Wesley | Posted 12.20.2016 | Canada
Adrian Wesley

It is Saturday night and I am rebounding on my mini trampoline (so good for the body and mind), watching a movie on The main character j...

Don't Let Real Estate FOMO Set You Up For An Ugly Bankruptcy

Douglas Hoyes | Posted 06.15.2016 | Canada Business
Douglas Hoyes

Real estate agents can talk about the upside of buying right now, but they don't explain the downside of carrying massive debt. Yes, you may build some equity if you purchase a home, but if you've mortgaged 90 per cent of it, very little of your payments in your first five to 10 years will go towards repaying principal.

2015 Insolvencies Reflect Provincial Economies

Douglas Hoyes | Posted 05.03.2016 | Canada Business
Douglas Hoyes

The Office of the Superintendent of Bankruptcy just released their 2015 Annual Report of bankruptcies and consumer proposals in Canada and from these numbers we can see the impact shifts in the Canadian economy have on indebted Canadians. In 2015, 121,609 Canadians filed for insolvency, an increase of three per cent over the prior year.

Can I Just Walk Away From My Debts?

Douglas Hoyes | Posted 03.24.2017 | Canada Business
Douglas Hoyes

I've had a few people say to me recently "If you have debt, just walk away; the banks won't do anything. My friend stopped paying, and nothing happened to him. Don't bother with credit counselling, or a consumer proposal, just walk away". Does that strategy actually work?

Your Bankruptcy Score May Be Behind That Refused Loan

Douglas Hoyes | Posted 01.18.2017 | Canada Business
Douglas Hoyes

Lenders have been using a person's credit report for years to judge their overall creditworthiness and the risk that they might default and become a bad debt. However, financial institutions often use another measure, a bankruptcy score, to refuse a loan application for someone who may otherwise have good credit.

The Biggest Personal Finance Fails Of 2015

Jeffrey Schwartz | Posted 12.31.2016 | Canada Business
Jeffrey Schwartz

To err is human. Mistakes can be a valuable learning opportunity, and sometimes, the bigger the mistake, the bigger your lesson will be. Lucky for us, there are plenty of people out there who made huge personal finance mistakes in 2015, and we have the benefit of being able to sit back and learn from them.

The Reversal of Fortune Survival Guide

Jen Lawrence | Posted 09.15.2016 | Canada Living
Jen Lawrence

Recently, a friend asked me if I could help a neighbor whose life had fallen apart. I have the bittersweet reputation of being someone who's lived through some soul-shattering events and has managed to stay vertical, so she thought I might be able to offer some comfort and advice.

Please Buy 50 Cent's House Already

CP | Posted 08.26.2016 | Canada Business

HARTFORD, Conn. — Rapper 50 Cent's bankruptcy attorney says he'll try again to sell his 50,000-square-foot Connecticut mansion. The Hartford Couran...

How to Fix the Student Debt Crisis

Douglas Hoyes | Posted 07.21.2016 | Canada Business
Douglas Hoyes

Here's the bottom line: too many students are burdened with excessive student debt and that hurts all of us, so a solution must be found, and the sooner the better.

High Risk Credit Products Lead to Insolvency

Douglas Hoyes | Posted 05.05.2016 | Canada Business
Douglas Hoyes

Consumers who file insolvency are in severe financial distress, but surprisingly this does not mean they are behind on their payments. According to Equifax Canada, about 70 per cent of consumer accounts are paid as agreed at the time the individual files for bankruptcy, and this is definitely consistent with what we see every day. More debtors are turning to subprime debt as a way of balancing payments. While any one payday loan, high cost instalment loan or low credit car loan will not necessarily lead to bankruptcy, it does begin a slippery slope and these loans are a primary indicator of an increasing percentage of insolvencies.

Women Need To React Sooner and More Aggressively When It Comes To Finances

Douglas Hoyes | Posted 12.10.2014 | Canada Living
Douglas Hoyes

Looking at our study, the percentage of women filing bankruptcy who were living on their own, either because they were single, divorced or widowed, increased over the four year study period. The largest growth occurred in women who were divorced or separated. We also saw an alarming increase in the percentage of female single parents declaring bankruptcy.

Just Because You Can Get a Big Mortgage Doesn't Mean You Should

Douglas Hoyes | Posted 11.14.2014 | Canada Business
Douglas Hoyes

If you can't afford the monthly mortgage payment (and property taxes, and repairs and maintenance) your mortgage is too big. The "equity" answer is that if you have less than 10 per cent equity in your house, you are at higher risk of financial problems.

How An Aging Population Means Trouble For Canada's Debt

Douglas Hoyes | Posted 10.08.2014 | Canada Business
Douglas Hoyes

Although aging Canadians were typically the most financially stable age group, older Canadians are piling up debt more quickly than other demographics. A recent study by the Vanier Institute of the Family showed that more than 70 percent of those aged 55 to 64 held some form of debt in 2012, up from 61 percent in 1999.

Get Back On The Horse: Saving For Retirement After Financial Losses

Posted 05.12.2014 | Canada Living

On the road to financial comfort and a history of good investments, it is more than likely that you’ll run into your fair share of bumps and pitfall...

Why a Higher Minimum Wage Won't Reduce Bankruptcy Rates

Douglas Hoyes | Posted 04.05.2014 | Canada Business
Douglas Hoyes

The government of Ontario has announced that the minimum wage will increase to $11 per hour on June 1, 2014. Putting more money in the pockets of the working man or woman should reduce the bankruptcy rate, right? I doubt it.

Why One in Six Canadians Will Eventually Go Bankrupt

Douglas Hoyes | Posted 03.15.2014 | Canada
Douglas Hoyes

With low interest rates our average debt service ratio is at record lows. In 1990 Canadians used over 11 per cent of their disposable income to pay interest on their debt; today we only need 7 per cent of our income to pay interest. All is good. Or is it?

Canadians Are Going Bankrupt, So Let's Change the Money Conversation

Tanya Raheel | Posted 10.06.2014 | Canada Business
Tanya Raheel

Did you know that not only did the overall number of women (especially single, divorced and widowed) who declared bankruptcy after the 2008 Recession go through the roof both in Canada and the U.S., but it's been on a steady rise ever since?

What Triggers Personal Financial Collapse?

Douglas Hoyes | Posted 01.23.2014 | Canada
Douglas Hoyes

Over the years I have met with thousands of people who "unexpectedly" lost their job. My advice: assume you might lose your job at some point in the next year, and make a plan now to deal with that job loss.

Financial Lessons You Can Take Away From Detroit's Bankruptcy

Jane Blaufus | Posted 09.22.2013 | Canada Business
Jane Blaufus

Are you dealing with overly optimistic assumptions when it comes to your investments? Detroit's pension fund managers had assumed a rate of return on their annual investments of 8 per cent. I do not know about you but I have not seen 8 per cent on any of my investments for a long time.

Give Me Liberty, or Give Me Debt

Douglas Hoyes | Posted 09.02.2013 | Canada
Douglas Hoyes

Conventional wisdom says that debt used to purchase something of lasting value, like an investment, or a house, or a car, is good debt, because you benefit from the purchase. An example of bad debt would be borrowing to go on vacation, because when the vacation is over you have nothing to show for it. In some cases both of these examples are true.

Canada's Trillion-Dollar Generation

Tim Paziuk | Posted 07.24.2013 | Canada Business
Tim Paziuk

Most people believe that having lots of money and not having to work for a living is a beautiful thing, but we know from studying lottery winners that this is often not the case. In many cases, a large inheritance is no different.

Five Canadian Dreams Destroyed by Debt

Douglas Hoyes | Posted 07.08.2013 | Canada Business
Douglas Hoyes

Every two years my bankruptcy firm, Hoyes, Michalos & Associates, analyzes all of the debtors we have helped in order to put a face on the average person who files bankruptcy or a consumer proposal. In what we call our Joe Debtor study we identified five dreams destroyed by debt.

The Purchase That Could Keep Your Small Business From Bankruptcy

Barbara Haynes | Posted 12.22.2012 | Canada Business
Barbara Haynes

Small and medium-sized business owners are risk takers and dreamers. But most small and medium sized business owners are either unfamiliar with, or put off the purchase of Legal Expense Insurance. Though the benefits could mean the difference between success and bankruptcy, few are aware of the many compelling reasons for such a policy. Here are the top five reasons to look into legal expense coverage.