Mr
Hello – I have just filed 5 years of income tax returns and now owe $23,000, in addition to a $220,000 mortgage, $25,000 vehicle loan, $12,000 credit card and $25,000 home line of credit. My spouse works ($45,000 yr) and I have pension ($25,000 yr). Taxes has put us over the edge – is a consumer proposal an option in our situation? Thanks.
Posted from: Ontario
I consumer proposal is certainly an option, but CRA (the tax department) takes a pretty dim view of people that don’t file every year as required by law. They tend to vote against proposals from people that don’t file, unless you are offering to pay 100% of the debt.
You shoulod speak to a trustee so they can help you look at all your options, including a consuemr proposal – just be prepared for some bad news.