family loans as temporary income

August 30th, 2013 by Questions

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.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)