FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

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How can we help you?

If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

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Tax consequences of consumer proposals.

Are there any tax consequences of filing a consumer proposal? Will the amount of loan writeoff be considered taxable income?

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One Response to “Tax consequences of consumer proposals.”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

For an individual filing a consumer proposal there aren’t any tax ramifications you need to worry about. Typically you will find that all outstanding tax up to the date the proposal is filed (if a provisional tax return is properly filed) are included in the proposal. The one caveat is that cpp on self employed earnings, as it is calculated on the last day of the year and is seen more as an investment is something that would still need to be paid (as would any taxes from the day of the proposal to the end of the year.