Consumer Proposal & Filing Income Tax
Hi, I have recently lost my full time job and working only about 20 hours/week. I have 45000.00 in unsecured debt. I cannot afford to pay all my payments on time. I have met with a financial counsellor who has advised me that my income tax will be taken like in a bankruptcy as well as child tax credits I receive for my 2 children. Is this fact?
Thank you in advace.
Posted from: Ontario
Either the financial advisor misunderstood your question, or they simply aren’t afmiliar with proposals (or bankruptcy for that matter). Income tax refunds for the year you file for bankruptcy and any years prior to that are lost in a bankruptcy. They are NOT lost in a proposal. Further, your child tax benefit (baby bonus) is not taken under any circumstances – it is included in yoru household income for the purposes of determining your surplus income payment in bankruptcy, but that’s it. You will still receive whatever CTB you are entitled to in a bankruptcy or a proposal. You might want to go and see a different financial advisor…