Debt Survival Plan

	Debt Survival Plan - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on August 5, 2006.

Show Topic:

On today's show we discuss dealing with debt and explain how you can make a debt survival plan that can help you deal with your money problems without going bankrupt.

Guests:

	Douglas Hoyes is a chartered accountant and licensed trustee in bankruptcy. As the co-founder of Hoyes, Michalos & Associates Inc., one of Canada's largest personal insolvency firms, Douglas has helped thousands of people make a Debt Survival Plan.
	Theresa Yates is a mortgage consultant with Mortgage Intelligence in Kitchener, Ontario. For 27 years Theresa has helped clients deal with their money problems, and currently serves clients in Kitchener-Waterloo, Cambridge, Guelph, London, Hamilton and surrounding areas. Theresa can be reached at 519-653-0898 or 1-888-212-2133.

Show Summary:

	Personal bankruptcy is a legal process that will remain on your credit report for about 7 years, which will make it more difficult to borrow in the future, so you should examine all of your alternatives before deciding on bankruptcy;
	If you've got enough income, paying your debts back yourself is your best option.
	You might try to defer some of your payments or re-negotiate with your creditors to get you back on track
	If you own a house, our guest Theresa Yates explained how you might be able to work with a mortgage professional to borrow against the value of your home to reduce the interest rate you are paying on your debts, allowing you to repay your debts faster.
	A consumer proposal is another option for dealing with your debts.

Question of the Week:

Q. I'm a single parent. I'm self-employed, I own my own home, but I am three months behind on my first and second mortgage payments because of my marriage separation; the bank is threatening to put my house through Power of Sale. Do I have to lose my house and go bankrupt, or is there another option?

A. Theresa explained that if there is equity in your house it may be possible to refinance.

Theresa gave the example of a lady in a similar situation. She was a single mother, self-employed, received child support and child tax credit. The house was in her name only. She had a 1st and 2nd mortgage that were 3 months behind because of separation and the house was about to go Power of Sale. She also had poor credit, unpaid collections on her credit bureau and late payments. With the equity in her house I was able to obtain a mortgage for her at 75% of the value of her house. She paid out both mortgages with her new mortgage and was able to keep her house for her and her 3 children.

Doug Hoyes explained that a consumer proposal is also an option for keeping a house to avoid bankruptcy.

Don't let your money problems overwhelm you; contact a bankruptcy expert or Theresa Yates today for more information on dealing with debt and for help making a debt survival plan that will work for you.