We recently ran some ads on the FAN 590, Toronto’s only all sports radio station. In the ads I say that “over the years we have helped thousands of people, just like you, who are overwhelmed by debt, to make a plan to deal with their debts.” (That’s why our phone number is 310-PLAN).

Yesterday I got a call from a man who had heard our commercials many times on the FAN, but he didn’t call us right away because he didn’t believe we could actually help him. He thought it sounded too good to be true; he thought we must be exaggerating how we can help people.

I told him that Hoyes Michalos & Associates Inc., like all trustees, is licensed by the federal government of Canada, and therefore we have the power to use federal law, the Bankruptcy & Insolvency Act, to help people deal with their debts.

We file a large number of consumer proposals in Toronto every year to help people deal with their debts. In a consumer proposal, we work with you to determine what you can afford to pay, and then we negotiate a legally binding repayment plan with your creditors. In most cases you pay no interest on your debts, and you repay less than the full amount owing.

Sound too good to be true? As I told the caller, a consumer proposal requires you to make payments each month, and it will appear on your credit report for three years after you have made all required payments, so it’s not a free ride. However, for many people, a consumer proposal is a great way to get back on track.

Unfortunately with the high cost of living in Toronto a consumer proposal is not always possible, so a bankruptcy may be necessary.

Either way, the professionals in our Toronto bankruptcy office, located steps from the subway on Yonge, just north of Sheppard, will meet with you personally to review your options and work out a plan that works for you, so e-mail us your question or call us at 310-PLAN (no area code required) and let’s get started.