Consumer Proposal and Income Tax Return

October 1st, 2010 by Questions

If I file for a consumer proposal, will I lose my income tax refund?

Posted from: Ontario


One Response to “Consumer Proposal and Income Tax Return”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

This is one of the differences between the filing of a consumer proposals vs. filing a bankruptcy.

With a bankruptcy you would loose the tax refund. But with the consumer proposals that refund is yours to keep, unless you have inserted a term into the proposal stipulating that the creditors will receive those funds. This would be an unusual term, but it is technically possible.

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