Are you concerned about CRA deadlines for filing and paying income tax? There have been several Government of Canada news updates regarding income tax for the 2019 tax year. For individuals, self-employed and corporations, the deadline for filing for the 2019 tax year is June 1, 2020, and the deadline for payment for the 2019 tax year is Sept. 1, 2020. In other words, penalties and interest will not be charged if payments are made by deadlines above.
Please do not hesitate to call Rumanek & Company at 416-665-3328 if you need personal finance help, you are considering personal bankruptcy in Ontario or would like answers concerning filing for either a consumer proposal or bankruptcy in Ontario.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the 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.
You just got a letter/phone call about an old debt that you owe. The first consideration is to determine if you owe the money. If you do not owe the debt, simply tell the collection company that you do not owe the money. Ask them to send you copies of any documentation that proves otherwise. When they say that they do not have to send you any papers or that they do not have to prove to you that you owe the money – be very clear – yes, they do have to prove that you owe the money and if they refuse to prove it, you will not pay them any money. In other words, you are not refusing to pay what you owe, but you are legally entitled to know what you owe and to whom you owe it to.
In Ontario, there is a law called The Limitations Act of Ontario which stops a creditor from suing you if your debt is over two (2) years old. The debt is still owing, of course, but the creditor cannot go to a court to collect the debt. You must be aware that if you acknowledge the debt in any way, the two-year period starts all over again. Also note that the credit bureau (Equifax Canada and Trans Union of Canada) will still list the delinquent account for six years as an R9 bad debt which will keep your credit score low. Certain debts are not subject to the two-year limitation period – these include income tax, government guaranteed student loans, child support arrears, etc.
Other provinces/territories have similar limitation periods. Ontario, Alberta, British Columbia and Saskatchewan are all two years. Quebec’s limitation is three years. The rest of Canada is six years.
If I am in financial trouble, do I have to go see (and pay) a consultant before I speak with a Licensed Insolvency Trustee? You do not have to use a consultant of any kind before speaking with a trustee and considering filing an Assignment in Bankruptcy or a Consumer Proposal. There may be a level of comfort in speaking with a consultant who is not in an officer of the court and may be able to communicate with you in your native language, but, this is a choice that you make that has a cost attached to it. You are paying a consultant for their opinion about your situation and then you still have to pay the trustee who is going to do the work. Sometimes you are simply paying two people to get a second opinion before you make a very serious decision of what to do with your life going forward.
When you file a Consumer Proposal in Ontario, there is a hold on all legal proceedings that your creditors can take against you. Interest on all debts stop as of the day the court accepts the Consumer Proposal and confirms the appointment of your Licensed Insolvency Trustee who acts as the Administrator of your proposal. If the creditors accept the offer in your proposal, then your only obligation is to make payments in accordance with the terms of the proposal, which may or may not include an interest factor. If the creditors refuse your proposal, then you have options. Normally, your trustee will contact the creditors who refused to agree to your proposal and ask what they would accept in payments to change their decision. This may take several months of negotiating back and forth. You want to pay as little as possible. Your creditors want as much as possible. Somewhere in the middle is what is reasonable in these circumstances.
In cases where no proposal can be negotiated with the creditors and the proposal is refused by a majority of creditors, then you, as the person filing would be back at square one. The full rights of all creditors are reinstated and their right to claim interest is back to the day you filed the Consumer Proposal when the interest was stopped. If you subsequently file another proposal or a bankruptcy, the interest stops again.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome personal bankruptcy in Ontario for more than 25 years.