How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Are loans from friends income?

I have the good fortune to have a few friends who will loan me money for rent and expenses through BK, with payments and interest to begin 1 year after I get out of Bk. Assuming that we write up appropriate promissory notes (should we notarize them?), would those borrowed monies be considered income or surplus income? Thx Hard times for a lot of these days…

Posted from: British Columbia

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One Response to “Are loans from friends income?”

A licensed trustee said...

Borrowed money is NOT considered income – the trick is to convince your trustee (and the Court) that they are loans and not a gift. If the amoutn you are lving on is less than the governmetn threshold the question is moot (becuase you won’t owe any surplus income payments). If you require more than the threshold to live then things might get interesting.

Your best bet is to discuss this with your trustee BEFORE you decide to file…