Kitchener Ontario Personal Bankruptcy Blog: March 2009: Answers to Personal Bankruptcy Questions

Posted on Wednesday, March 18, 2009

Taxes and the Economy

This tax season may be a different time than ever before for many people in Kitchener-Waterloo. More people are losing their income through reduced hours or even lost employment is evident with the increase in the unemployment rate. The Kitchener unemployment rate is now over 9%. This global recession and financial crisis is affecting good hard working people. In our Kitchener office - located at 607 King Street, we are seeing a record number of people who are struggling to keep up with their basic household expenses, not to mention their debt payments.

Tax season could be a temporary relief for people receiving a large refund or alternatively it could compound the problem if people have to pay taxes. Either way, the stress of the current economy is affecting all of us. At Hoyes Michalos & Associates Inc. we are helping families make a PLAN to deal with their debts and focus on a fresh start financially. When someone calls us, typically they never thought they would have had to call us, but the harsh reality is that the economy has made it too difficult to pay their debts plus deal with the cost of living.

Sometimes a consumer proposal is the option that couples choose as it is a method of restructuring debts through a monthly payment plan. A consumer proposal allows the debtor to pay part of the debts back to their creditors at the same time protecting their assets. If that monthly payment is even too much for people, a personal bankruptcy is an option to discharge their debts. A personal bankruptcy is a process that runs for a minimum of nine months.

Last year in Canada, 115 789 of people filed a proposal or personal bankruptcy and this year it is predicted to be much higher due to the economy and financial crisis. These options are Federal laws that are established to give the unfortunate Canadians fresh starts financially.

This past Saturday, Ted Michalos and I spent an hour on the Ask the Expert Show on 570 News discussing the economy, taxes and the all important PLAN.

If you have had a reduction in your income and the stress is affecting your life, it may be time to explore the options available to you. For a free no obligation discussion, call us in Kitchener at 519-747-0660 (or 310-PLAN) or send me an e-mail.

Labels: bankruptcy kitchener, tax