I am a guarantor of someone else’s loan. When I file for bankruptcy in Toronto, does this release me from this debt as i can no longer afford to pay the loan?

When someone meets me for the first time, I don’t view this as a meeting to simply explain bankruptcy to them. This is a chance for me to explain how they can get a fresh start and what their options are. My job is to evaluate your financial situation, determine a way of dealing with your money problems and then help you implement a plan to put this all behind you. During our meeting, we will explore all or your options.

Personal bankruptcy is an option, but you probably didn’t know that most of the people we see do not end up going bankrupt.

Some people simply need help with budgeting; others may be candidates for a debt consolidation loan. Perhaps a debt management plan administered by a credit counselor is right for you. And then there’s my favourite, a consumer proposal, which I would be happy to explain to you. Finally, once we have exhausted all these options, we may have determined that bankruptcy is your only course of action.

Everyone’s situation is different; my job is to help you develop a plan that’s right for you. Feel free to e-mail or call me at 310-PLAN to schedule a consultation. It’s up to you now to take that first step towards a fresh start.

Let me address this topic with just one word: DON’T.

From my personal experience as the Trustee in Bankruptcy responsible for the Greater Toronto Area practice of Hoyes, Michalos, I can tell you that the number of people who come to see me with payday loans included in their list of creditors is on the rise. Payday loans are a big business and they are easy to get in to but hard to get out of. I don’t consider payday loans to be the main problem; they are merely the “icing on the cake”. By the time someone has decided to get a payday loan, the problem has usually gone way too far.

So what is the answer? You need a plan. You need a plan to deal with your current financial situation, and live within your means. There are options available to you. Our job is to investigate your specific financial situation and then come up with a plan that is right for you and your family. If you would like to schedule an appointment to review these options, e-mail or call us as at 310-PLAN.

Almost every one of us experiences some level of financial difficulty in our lifetime. Sometimes, we have no one to blame but ourselves, whether it be due to uncontrollable spending, poor money management or just plain being irresponsible. Other times, the situation may be beyond our control: separation, loss of employment, health reasons, or a business failure. Here are some of the warning signs you should be on the look out for:

> Your credit cards are always maxed out
> You use cash advances from one credit card to pay another
> Minimum payments on your credit cards are all you can afford
> You have missed a loan or mortgage payment
> You get calls at home and at work from collection agencies
> Your creditors are taking legal action against you
> Your finances are affecting your health and personal relationships

If you recognize any of these bankruptcy warning signs, you should seek out professional help. A trustee in bankruptcy is qualified to evaluate your specific financial situation and recommend a solution for your problem. You may not have to file for bankruptcy: a consumer proposal might be right for you. The best thing to do right now is e-mail or call us to schedule a consultation. Our telephone number is 310-PLAN. Don’t wait for your creditors to start taking action against you; take care of your problem as soon as you notice it.