Bankruptcy and Insolvency Act Archives - Page 12 of 18

What happens to my tax refund in a bankruptcy or proposal?

Posted on April 4, 2014April 17, 2016 by Jordan Rumanek

What happens to my tax refund in a bankruptcy or proposal?

If Canada Revenue Agency (CRA) is one of the creditors in a bankruptcy, any refund you are entitled to, for the year of bankruptcy and any prior year, may be retained by CRA to offset the amount owing. After discharge, any debt still outstanding to CRA which formed part of the bankruptcy, cannot be recovered by CRA. Post-bankruptcy Income tax refunds are property of the estate and any subsequent income tax refund may be retained by you.

If CRA is one of your creditors in a proposal, any refund you are entitled to, for the year of the proposal and any prior year, may be retained by CRA to offset the amount owing. You are entitled to all future income tax refunds.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Tax Returns Before Bankruptcy

Posted on April 3, 2014April 17, 2016 by Jordan Rumanek

Tax Returns Before Bankruptcy

I have to file my tax returns before considering filing for bankruptcy? I haven’t filed my income tax returns for the past two years. Do I need to do this even if I haven’t been working? I know I am not eligible for a refund.

No. You do not have to file your tax returns in order to file for bankruptcy. Under the Income Tax Act you must file your income tax returns every year, regardless of whether or not you are eligible for a refund. You should file your income tax returns before considering bankruptcy in order to know whether or not you owe money to the tax department. If you do, the debt can be included in your bankruptcy. If you have a refund, you will not get it unless you file your tax returns.

Does Bankruptcy Stop A Wage Garnishee?

Posted on March 29, 2014April 17, 2016 by Jordan Rumanek

Does Bankruptcy Stop A Wage Garnishee?

Bankruptcy law is very powerful. Once a person files a bankruptcy a consumer proposal (and the filing is registered with the federal government), a powerful Stay of Proceedings is automatically in place. Creditors are banned from seizing wages, calling your house, or taking legal action to collect the debt, unless they go to Bankruptcy Court for permission to continue (a relatively rare occurrence). Your Trustee will submit a formal notice of the Stay of Proceedings to your workplace, which should stop the wage garnishee. If the person who manages your payroll is not familiar with the requirement to stop a garnishee in a bankruptcy, you may want to give their contact info to the Trustee for clarification. Finally, depending on the timing of the bankruptcy and your payroll schedule, the most recently seized funds may be returned to you. If the garnishee does not stop, contact your Trustee right away.

Will Canada Revenue Agency seize my tax refunds?

Posted on March 14, 2014April 17, 2016 by Jordan Rumanek

Will Canada Revenue Agency seize my tax refunds?

Unfortunately, if you owe income tax, the answer is yes.

If you owe income taxes, CRA can seize any tax refund otherwise owed to you for the years prior and including the year of your proposal. For example, if a debtor owes taxes for the 2008 and 2009 tax years, and files a consumer proposal in March, 2011, any refund they are due for the 2010 tax year (the year prior to the proposal) AND the 2011 tax year (the year of the proposal) will be seized by CRA against the amount owed to them.

After the proposal year, all further refunds are sent to you.

Tag: Bankruptcy and Insolvency Act

What happens to my tax refund in a bankruptcy or proposal?

What happens to my tax refund in a bankruptcy or proposal?

Tax Returns Before Bankruptcy

Tax Returns Before Bankruptcy

Does Bankruptcy Stop A Wage Garnishee?

Does Bankruptcy Stop A Wage Garnishee?

Will Canada Revenue Agency seize my tax refunds?

Will Canada Revenue Agency seize my tax refunds?

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Tax Returns Before Bankruptcy

<img loading="lazy" decoding="async" class="alignright wp-image-844" title="Canada Court" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2012/01/canada_court-150x150.jpg?lossy=1&strip=1&webp=1" alt="Wage Garnishee" width="150" height="150" />Does Bankruptcy Stop A Wage Garnishee?

Will Canada Revenue Agency seize my tax refunds?

Get Started Now

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Does Bankruptcy Stop A Wage Garnishee?