2025-02-28
What happens if I don’t pay my taxes?
Consumer Proposal
Owing taxes can lead to penalties, garnishments, and asset seizures. Learn what happens if you don’t pay and the options available to protect yourself.
If you’re overwhelmed with debt and looking for relief, you may be wondering if bankruptcy is your only option. The good news is – it’s not. Many individuals struggling with debt problems are looking at Consumer Proposals as a debt relief solution with many positive benefits, including a reduced impact on your credit rating in comparison to a bankruptcy.
Below is a quick guide to how your credit score is calculated, based on how overdue your payments are or if you are currently going through a Consumer Proposal or bankruptcy.
As you can see, the credit rating for a Consumer Proposal is R7. If you were to file a bankruptcy, it would be R9 – the lowest score possible. Your credit score will remain R7 until your proposal is completed.
After your proposal is done, a note will be placed on your credit record noting that you have completed a Consumer Proposal. This notation will remain there for three years after completion. During this time, you will be able to take action to rebuild your credit. For example, you can obtain a credit card, get a RRSP loan or ensure all future credit payments are completed on time.
In general, many of our clients will opt for a Consumer Proposal over a bankruptcy in part because of this reduced impact on their credit score. If you’re unsure as to whether a Consumer Proposal is the right life-changing debt solution for your individual situation, contact one of our Licensed Trustees to learn about your options.
2025-02-28
Consumer Proposal
Owing taxes can lead to penalties, garnishments, and asset seizures. Learn what happens if you don’t pay and the options available to protect yourself.
2024-12-17
Consumer Proposal
Navigating personal Bankruptcy is challenging enough, but the complexity increases significantly when you’re also a shareholder or director of a corporation.