WSIB Debts, Clearance Numbers & Bankruptcy or Proposal
Clearing WSIB Debts With a Bankruptcy or Consumer Proposal
Even if you’re a self-employed contractor with zero employees, you’re no doubt aware the Ontario Government’s Workplace Safety & Insurance Board (WSIB) rules still apply to you.
With coverage under the scheme mandatory and a WSIB Clearance Number needed to get paid for contracts – it’s created certain issues for many businesses and contractors within the construction industry.
Well, for a start, reporting and payments under the scheme have to be up to date to obtain a clearance number.
Couple that with the fact the number is only valid for ninety days and you’re going to need to stay up to date to survive.
If you’re unfortunate enough to be having cash flow issues, then clearance numbers aren’t going to help you one bit – and in fact, they can be a massive additional problem.
Construction debt problems are not unusual
If you’re a self-employed contractor having debt problems, you’re far from alone.
The construction industry especially is often at the mercy of the weather – and materials costs can also run high.
The odd late or non-paying client is by no means unheard of either.
Tools are expensive, and there can be occasional long periods between contracts too – and that’s before you factor in any open lines of existing credit.
All of it puts self-employed construction contractors in a relatively precarious position – and cash flow problems in construction are far from being uncommon as a result of that.
The last thing you need on top of it all is not to be able to work for want of a WSIB Clearance Number.
WSIB Debt, Consumer Proposals, and Personal Bankruptcy
Both options are a way out; however, there are slightly different implications for each.
- Post bankruptcy, the WSIB issues you with a new account number. Meaning you’ll be free to start from scratch with a new account.
- With a consumer proposal, your account number won’t change. You will, however, have all arrears transferred to a sub-account – so, essentially, you’ll be starting from scratch.
Whichever route you choose, keep in mind you’ll need to have all your WSIB and tax returns filed before you proceed.
Your Harmonized Sales Tax returns will also need to be up to date.
It’s always best to get expert advice when you’re in debt.
Call BankruptcyCanada today on (877) 879-4770 (24/7) for a friendly, no-obligation discussion.