Bankruptcy Montreal Quebec » consumer proposal

in a bind…..

Questions — Fri, 11 Dec 2009 19:58:00 +0000

Question: Hi, I find myself owing some substantial amounts back taxes to both prov revenue qC and CRA after some initial investments involving my rrsp went sour (although both gov. had accepted the claim in 2006.Now they both want the taxes on these RRSPs + interest for the last years…….I filed a NOO with CRA and the case is being represented by the Synergy 200 inc company that came up with the original investment package………Can I make a deal? (like get rid of interest charges ?? that was my pension and now aside from our home we have nothing and owe +85,000$!!! much of it interest ???

thanks

Ray

Answer: Yes, it is possible to make a deal, but unfortunately making a deal with the government is very difficult in most cases. If you can’t make a deal with them, or if you can’;t get them to waive penalties and interest, you may have no choice but to consider a consumer proposal or personal bankruptcy.

Federal and Provincial Taxes are too difficult to pay!

Questions — Tue, 27 Oct 2009 15:04:00 +0000

Question: Please tell me what to do? I have absolutely no debts accept Federal and Provincial taxes in the amount of $3000 per month in installments for my last years income. I have made an arrangement with both governments to make installments each month totaling $3000 per month. Now my business has declined this year 50% I cannot afford to pay the taxes from last year….what do I do? If I take another job with less pay I certainly cannot pay these taxes…monthly…I am willing to pay but what worries me is what happens to next years taxes I owe…if I get a regular job and own my own business how can I catch up on these taxes?

Answer: Without knowing what the future will hold, it’s impossible to create a perfect strategy. Here are your options:

First, you could pay whatever you can afford each month. If you can afford $1,500 per month, pay that. It’s possible that over the next few months your business will improve, and you will be able to get caught up in the future.

Your second option, as you mentioned, would be to get a “regular job” where taxes are deducted from your pay each month, so that at the end of the year you don’t owe any taxes. That solves your problem in the future, but does not deal with your old tax debts. It may be that it will take a long time to get caught up with the government.

Your final option would be to file a consumer proposal or personal bankruptcy in Montreal to eliminate your tax debts.

To make your decision, you will need to decide whether or not your business is viable. In other words, in the future will you be able to earn enough to support yourself and to pay your taxes. If you are self employed you should remit your tax installments every month, or every three months; if you are always paying last year’s taxes this year, then your business probably isn’t viable.

Once you have decided on the viability of your business, talk to a Montreal bankruptcy trustee to discuss a consumer proposal or a bankruptcy, and to evaluate if those options are appropriate for you.

Divorce and Bankruptcy in Toronto and Montreal

Questions — Mon, 20 Jul 2009 14:54:00 +0000

Question: I got myself in a mess was divorced 4 years ago and have sole custody of my 14 year old. One year after the divorce I was laid off my employment after 12 years and it took me 5 months to find a job, finally found one less money of course but again 1 year later that company went bankrupt. The last time it took me 7 months to find another job again less money and I was very behind paying everything. I have been working since 1 1/2 years but I just cannot catch up my loan payments and living expenses are just not enough to catch up.

I went to meet with the Bank about a debt consolidation loan and they are offering something but almost 2 weeks of my salary will have to go to pay it off and will take me 8 years they say best they can do. I owe about 45K and after 8 years I will have paid 91K with what they are asking. I just do not know if I should try to do this and kill myself doing it or go another way. I would appreciate it if you could tell me your opinion. My x-husband has nothing to do with me or my son and under no circumstances do I want him to find anything about this. Is there another way I can go. I had a friend who filed for bankruptcy in Toronto; I don’t know if I should filed for bankruptcy here in Montreal. Also I have a good job not and do not wish for my employer to find out either.
Thank-you.

Answer: You have presented a good analysis of your situation. You are correct that the first option to consider is to work through your debts on your own. You start by making a personal budget to determine what expenses you can cut to free up more cash to pay your debts. This will also help you understand how much you can afford to repay if you get a debt consolidation loan. The bank has already given you a lot of debt consolidation loans information, so you know the numbers on which to base your decision.

It would appear that it would be very expensive for you to make the payments on the consolidation loan for the next eight years. Given that you know how difficult it is to keep a job during a recession, a big concern would be whether or not you will have un-interrupted income for the next eight years so you can make all of the payments. That’s a big risk.

Another option would be to consider a consumer proposal. In a consumer proposal you make payments over a period of up to five years, but in most cases you are repaying less than the full amount of your debt, so the payments are affordable.

If that’s not possible, a bankruptcy may be necessary, but that’s a last resort.

We suggest you start by using a debt options calculator to evaluate your options, and then contact a Montreal bankruptcy trustee for a free initial consultation to review all of your options.

Planning a Consumer Proposal

Questions — Sun, 07 Dec 2008 01:35:00 +0000

Question: Hello, I am planning a consumer proposal, my question is will it affect my home mortgage or me owning my home in any way?
Mortgage is up to date but credit is starting to lag behind.
Thanks

Answer: In general, a consumer proposal does not affect an existing mortgage. In most cases if your mortgage is up to date the mortgage company will allow you to continue making payments on your mortgage. In fact, wanting to keep their home is one of the most common reasons for filing a consumer proposal.

However, to be sure, it is often advisable to confirm with your mortgage company that your mortgage will not be impacted before you file your consumer proposal.