Canada Revenue Agency and your Consumer Proposal
A consumer proposal is filed with the Office of the Superintendent of Bankruptcy and sent to all your creditors who then have 45 days to decide if they want to accept or reject the proposal.
For your consumer proposal to be accepted, the majority of your creditors (and this is determined by the overall dollars owed), will vote on your proposal. The Canada Revenue Agency is only one creditor included in a consumer proposal and unless the amount of the debt owed to the CRA represents the majority of the total debt owing, they do not have the ability to reject the proposal by themselves.
So, while the CRA can vote either to accept or reject a consumer proposal on their individual claim, it is up to the majority of your creditors (based on dollar amount) whether the consumer proposal is ultimately accepted or not.
Before filing your Consumer Proposal in Ontario, you will need to make sure that all of your tax returns are current and up to date. Not having this done may cause delays in the approval of the proposal until the returns are filed and may ultimately result in the CRA rejecting your proposal.
If you live in the Greater Toronto Area – and are coping with a big debt load that you are unable to pay – please call us at 416-498-9200 for your FREE consultation. Take the next step to starting over. Our caring debt professionals will review your finances in detail and go over all your options for getting out of debt and getting on with your life.
