Self employed with a negative for 2010 income

October 16th, 2011 by Questions

I am newly married with 17,000 debt. I filed my taxes and have a negative income according to them. I do bring in around 40,000 now but can’t really prove it. I have two children and I don’t want this to affect my husbands good credit. Can I file for a consumer proposal?

Posted from: Ontario


One Response to “Self employed with a negative for 2010 income”

, A licensed trustee said:

In order to file a consumer proposal you need to be able to demonstrate an ability to make the payments – that means whne you prepare your monthly budget you have to show (at least on paper) that you can make the payments.

From a practical standpoint, whichever trustee you speak to is going to ask you whether or not it makes sense to continue with your self-employment. If you are losing money for tax purposes it may be that you aren’t actually making any money. I understand that you are probably writing off some of your rent, car and other expenses, but at the end of the day if you aren’t showing a profit then the business may not make sense… Just be prepared for this conversation.

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