Are All My Debts Included In A Consumer Proposal?



When you file a consumer proposal in Canada, you should always meet with a Licensed Insolvency Trustee (LIT). LIT’s are licensed by the federal government to act as administrators of consumer proposals and bankruptcies. They can properly assess your situation and let you know how each of your debts are treated in a consumer proposal. This article will explain which debts can be included in a consumer proposal and any limitations on what debts can…


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Can I File a Consumer Proposal if I Owe Canada Revenue Agency (“CRA”)?



As a Windsor Ontario trustee I am meeting with more and more people who filed their income tax returns incorrectly and now owe Canada Revenue Agency (“CRA”) tens of thousands of dollars in penalties and interest. Many have hired lawyers to appeal the penalties and taxes, but that can be expensive, and success is not guaranteed. In fact, it appears that few appeals are successful. When someone comes to see me, I always ask for…


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Use Tax Refund to Pay Down Consumer Proposal



One of the advantages of filing a consumer proposal is that you get to keep your tax refund.  Many Canadians rely on their tax refund as a “forced savings plan” and use their tax refund to buy spring clothes for their children, make car repairs, or for other expenses.  Here’s another use for your tax refund: Use your tax refund to pay off your proposal faster. Another advantage of a consumer proposal is that you…


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What Happens to my Tax Refund in a Consumer Proposal?



Many of the people I meet with in our London Ontario office have heard that if they file bankruptcy, they will lose their tax refund.  At this time of year especially, this can be stressful because many of us count on our tax refunds to get caught up on bills, complete car repairs, buy our kids summer clothes, etc.  Unfortunately, if you file bankruptcy, it’s true. You will lose a tax refund.  In fact, depending…


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Four Tricks to get CRA to Accept your Consumer Proposal



Will Canada Revenue Agency (CRA, formerly Revenue Canada) accept a consumer proposal? Yes, they will, but only if certain conditions are met. Today I’ll explain the four most important “tricks” or tests that you must meet for a successful consumer proposal when CRA (the Tax Man) is involved.  It’s important to understand that while creditors like credit card companies and banks will almost always accept a reasonable proposal, CRA has their own set of rules,…


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Consumer Proposal and Taxes



Can you include money owing to Canada Revenue Agency in your consumer proposal? The simple answer is yes but there are some considerations. Tax Debts Are Just Like Any Other Unsecured Debt Just like credit card debt and unsecured lines of credit, tax debts, personal income tax and HST, are unsecured debts and subject to bankruptcy and consumer proposals. When I tell people this, often I am asked how I know because they thought income…


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