family loans as temporary income

I’m 160k indebt for taxes (sole proprietor business) plus 20k to visa. I’m looking at consumer proposal but because of the nature of my business I do not have a steady income and may be relying on family loans to pay bills in up coming months. Will this be a problem?

Posted from: British Columbia

One Response to “family loans as temporary income”

A licensed trustee said...

Sorry, but it is unlikely that you will be permitted to file a consumer proposal without a stable source of income. If one of your family members wants to guarantee your payments then CRA might accept such an offer, but they’ll ask for a guarantee in writing effectively making your family member responsible for your payments. I am not sure this is a good idea…

To further complicate things, CRA generally doesn’t agree to accept proposal for large tax debts if the person didn’t file their tax returns on time every year – they take the position that by not filing you didn’t give them a chance to collect the money that you owe the government.