No. Filing bankruptcy is not a crime. It is not considered failure in fulfilling your legal civic duties. It is a perfectly legal way to deal with overwhelming debt.
It will not disrupt your citizenship process or put your bid for citizenship at risk, so long as you abide by all bankruptcy laws truthfully and honestly. Citizenship and Immigration Canada website is a great resource for all your citizenship process questions and answers.
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.
If the school years for which you borrowed the money ended more than 7 years ago, the loan is discharged when the bankruptcy or the proposal are completed. If it has been less than 7 years, the student loan is included, but will become due again when the files are closed. Do you take in government debt? I have student loans and debt with Revenue Canada.
Income tax debts are also included in a bankruptcy or proposal. You should be aware, though, that if the tax debt is significant, and especially if you have a history of non-filing, the tax department may become involved in your administration to ensure things are current and unlikely to fall behind again.
Can one person in a marriage file a consumer proposal, if the other does not?
Absolutely – with a caution. If the debts are individual, and not joint with the spouse, then a consumer proposal allows that person to deal with his or her debts while not involving the other. However, all assets listed in the debtor’s name, even joint assets, are listed in the documents (though only their share of it), and the total family income must usually be disclosed. Any debts which are jointly held by both spouses would be included in the proposal, but the non-insolvent spouse would be fully liable to pay them. That is the whole point of joint debt –that if one person does not or cannot pay, someone else is on the hook for it.
In some cases, a creditor may be willing to hold off action against the non-insolvent spouse until the proposal is complete, and they have been paid their share. The spouse would then only pay the balance due, plus any interest added while waiting.
If you have joint debts, contact your trustee to discuss the implications and your options.
It’s that time of year again-most people have until April 30 to file their income tax return (If you are self-employed, you have until June 30). We have received many questions regarding Canada Revenue Agency (CRA) and the fear of filing your own tax return. It is very important to file your tax return to gain uninterrupted access to benefits and entitlements. So, here are a few tips to get you started and ready to file…
Step 1: Where do I get an income tax package?
This year the government no longer automatically sends you the forms to file so you have several options:
1. You can download and print the package from the CRA website
2. Order the package by phone: 1-800-959-2221
3. Pick up a tax package at postal outlets and Service Canada Offices
Step 2: Get organized and keep all your records!
Getting organized is half the battle and if you start good organizational habits and skills now…next year will be that much easier!!
1. Collect all employer information slips and receipts for your tax year (If you are missing slips you must estimate your income and deductions)
2. These slips differ and depend on your individual situation and include:
T4 Statement of Remuneration paid
T4A: A statement of Pension, Retirement Annuity and other income
T4E: Statement of Employment Insurance and other Benefits
T5007: Statement of Benefits
3. Tax credit slips: Here are a list of tax credit slips to remember and consider when filing
Children’s fitness tax credit (Federal and Provincial)
Children’s arts tax credit
Public Transit
Tradesperson’s tools deduction
First time home buyer’s tax credit
Family Caregiver’s tax credit
Step 3: File your General Income Tax T1 return!
Need Help? There is an income tax help line 1-800-499-3930
Watch for: Fight the Fear…File your Tax Return! Part 2
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.
Government Debt? Student Loans & Revenue Canada
Can one person in a marriage file a consumer proposal, if the other does not?