Consumer Proposals & The CRA
When it comes to consumer proposals, you probably know that you must file the proceedings with the OSB (Office of the Superintendent of Bankruptcy).
From there, the material is forwarded to your creditors who get a total of 45 days to reject or accept the proposal itself.
In order to receive acceptance, the majority of creditors – something based on the owing amount – must accept the proposal.
This is done via vote.
Since the CRA is only a single lender in your proposal, their ability to reject the proposal is proportionate to the amount you owe them.
If the debt to the CRA exceeds half of your total amount owing, they will be able to strike down the proposal.
However, if it is just a component of your total debt, even if they do reject the proposal, your other creditors’ decision holds more water.
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Keys to Success
Prior to filing the consumer proposal, it is wise to ensure that all of your taxes are up to date.
This alone creates a better climate for success.
If they are not, then it can generate a stall and delay the overall proposal process.
It can also create an atmosphere in which the CRA will be more likely to reject your proposal itself.
If you are struggling with debt for which the CRA is a large creditor, don’t delay.
The best results come from early action; so, with that in mind, seek out the advice of a licensed credit counsellor.
They can advise you on the best course of action to both pay down your debt responsibly and retain a good quality of life during the process.
The meetings are confidential and objective, enabling you to use the wisdom to make wise financial decisions both today and into the future.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal