Bankruptcy Guelph Trustee Ted MichalosThis may not be something that people want to read about, but each year approximately 400 people from Guelph and the surrounding area file either personal bankruptcy or a proposal to their creditors. They were individuals from all walks of life and at all income levels. Financial disasters are sort of like hurricanes. They don’t discriminate, when they hit they take out anyone in their paths.

What does that mean for you and me? Well, the most common reason for filing an assignment in bankruptcy is a marital breakdown. That’s right, divorce or separation is the single largest cause of personal financial problems. You go from two incomes servicing a reasonable level of debt to suddenly one income trying to cover the same debts and something is going to give. What’s worse, once the first member of a pairing gets themselves into trouble, their creditors start looking for the other member of the pair. Even though they may no longer be a couple if both parties signed for the debts then both parties may be held accountable.

The next largest cause of personal insolvency relates to employment. If a person’s income is interrupted for more than a few weeks it often results in an accumulation of credit card debt that is very difficult to deal with. We’ve had some great successes in Guelph in recent years as far as new jobs go, but we’ve also had some pretty miserable closures. Anyone that went from a high paying job on Woodlawn Road to piece work in the west end can relate to what I am talking about!

Other reasons that people file for bankruptcy include an over use of credit (too much debt), illness, gambling, and others to name just a few. In most cases the individuals involved didn’t see the problem coming and/or couldn’t do anything to stop the hurricane once they realized it had arrived.

So what can you do? If you are already in a financial mess then take the next step and seek out some professional assistance. If you’ve found our website then make the decision to send us an e-mail me or give us a call at 310-PLAN. Together we’ll review your situation and develop a plan that’s right for you.

If you aren’t certain if you’re already in financial trouble then look for these warning signs:

  1. you regularly carry balances on your credit cards
  2. you use advances from one credit card to make your minimum payments on another card
  3. you aren’t able to make your minimum payments
  4. collection agencies are calling you
  5. you’ve been served with legal papers!

The newest danger signal: you are relying on payday loans to make it through the month.

If you are experiencing any of these danger signs then you should consider seeking some professional assistance. It may be with a little coaching, we can get you back on track or perhaps you need to consider a more involved solution. Regardless, the best course of action is to send an e-mail or make the call and start working on a plan of action today.

If you aren’t in financial trouble yourself and aren’t experiencing any of these warning signs then congratulations on your good fortune . You might be visiting this site for a family member or a friend. 10% of the people that call our offices for help are actually doing so for someone else. It never ceases to amaze us the number of people that think there is nothing that they can do if or when they get themselves in too deep with debt.

The most difficult part of this process is recognizing that you (or someone you know) is in financial trouble. It is not something we are raised to talk about, nor are we trained to deal with it. Credit is a right and a privilege, but it can carry a heavy responsibility too.

To meet with me, Ted Michalos, please call our office in Guelph at 310-PLAN.

You can reach me at 310-PLAN. If you prefer, you can also e-mail me your questions, and I will get back to you within two hours during normal business hours. Please contact me today, and let’s get started.

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