Consumer Proposal

Does a consumer proposal cover income tax debt?

Posted on Wednesday, March 3, 2010 | Filed under: Consumer Proposals
 posted by Questions @ 6:08 pm 1 Comment
1 Expert Comment:

 At March 4, 2010 | 4:21 pm , Bart Goth, Trustee in Bankruptcy Said...

Yes, the filing of a consumer proposal does include income tax debt. However it is important to consider what percentage of your debt is income tax. The reason this is important is that for a consumer proposal to be put in place you need the majority of your creditors to cooperate with the filing of the proposal. Canada Revenue Agency is not in the habit of accepting proposals, so if they represent more than 50% of your debt then the filing of a proposal may not be a realistic option as Canada Revenue Agency and the size of their claim may result in any proposal be voted down by creditors.

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