Archive for July, 2006

Ted Michalos and myself had lunch today with the credit counsellors of Family Counselling and Support Services for Guelph-Wellington. As noted on the Family Counselling and Support Services for Guelph-Wellington’s web-site, they are a non-profit, community based family service agency dedicated to supporting, strengthening and enriching individual, couple and family life by providing counselling, education, support and advocacy services that meet the needs of the community. The agency is a fully accredited member of the Ontario Association of Credit Counselling Services. They are located at 109 Surrey Street East in Guelph.

The credit counselling team includes Meg, Ingrid and Christina. Their credit counselling services are divided into 4 categories:

Assessment – the assessment is of an individual(s) financial situation and followed by a referral and/or counselling
Creditor – negotiation and the administration of debt management plan
Educational – seminars and training sessions
Prevention – information and workshops

To book an appointment, you can call them at 1-519-824-2431. An appointment will be scheduled and the individual will be asked to bring a completed monthly budget and listing of the debts. We request the same information before a consultation as it is essential to understand the debts and budget prior to discussing options and a future plan. Their assessment is consistent with our approach to reviewing the options, including budgeting, debt consolidation, credit counselling, debt management plans, proposals and bankruptcy.

They receive referrals from many agencies in the Guelph area, including other not-for-profit agencies, hospitals, companies’ Employee Assistance Programs, etc. But a referral is not required – you can book a meeting for yourself and family. They are a not-for-profit agency and request a payment for the service be made based on the family income and size of the family unit.

We have always been partial to their non-judgmental approach they take with the individuals; they are professional and work towards a solution for that person and their family.

If you have any questions about credit counselling, please contact Family Counselling and Support Services for Guelph-Wellington at 519-824-2431 or via e-mail or Hoyes, Michalos & Associates Inc. in Guelph at 519-310-PLAN or vial e-mail.

Owning a house is a dream many people have and many individuals from Guelph have made that dream a reality in the residential community. But with any home ownership, there are significant costs associated with it – mortgage payments, property taxes, furnishing the rooms, repairs and maintenance, renovations, etc. The cost of the house and upkeep along with other commitments and debt obligations can become unmanageable and some individual explore the options of a consumer proposal or personal bankruptcy in hopes of keeping their home. The option that allows the debtors to keep or protect their house will depend on any potential equity in their house.

Under a personal bankruptcy, the bankrupt individual’s assets vest with the trustee, but the trustee generally will only realize on the assets if there is equity in the property. Therefore, if there is an estimated net loss in the equity calculation using the current market value of the house, then the trustee will not realize on it and the bankrupt may be able to deal with the secured mortgage holders to keep it.

If there is equity in the property, then a personal bankruptcy may not be the logical option to allow the individual to keep their home, but a consumer proposal would. In a consumer proposal, the individuals keep control of their assets. As the real estate market has increased over the past several years, the equity in houses become larger.

If you are experiencing financial difficulty and want to protect your house, then we suggest you contact our Guelph office at 519-310-PLAN or e-mail us a question. We encourage individuals to obtain a market value opinion letter or an appraisal from a real estate agent so that their options can be explored in greater detail.