The Office of the Superintendent of Bankruptcy just released the statistics for filings in Windsor for the first 6 months of 2011.
During the first 6 months of 2010 there were 270 consumer proposals filed compared with 278 consumer proposals filed in the first 6 months of 2011. It’s only an increase of 3%, but an increase in consumer proposals means that people can pay their debt, they just need help.
Yesterday Mark and Judy (not their real names) came to see me. They both had a decrease in their income and now they find they can’t get ahead on their credit cards payments. Due to their income, we calculated that a bankruptcy would cost around $21,000 in surplus income. Sure, they could file bankruptcy, but they would have to pay $1,000 per month for 21 months and if their income increases, they would have to pay even more.
What are they doing instead? You guessed it; they are filing a consumer proposal for $21,000. They are offering to pay it over 42 months to reduce their payment to only $500. They are coming in to sign their paperwork tomorrow and are on the road to their debt free future.
Mark and Judy are typical of the people I meet with every day in my Windsor office. They can afford to make payments on their debt, just not the minimum payments demanded.
If you are like Mark and Judy and need help, give me a call at 519-250-8060 or email me to book a no charge appointment.
About Rebecca MartynRebecca Martyn is a bankruptcy trustee and consumer proposal administrator responsible for the Hoyes, Michalos & Associates office in Windsor, Ontario.