Why does the trustee file pre-bankruptcy income tax?
Filing personal bankruptcy deals with all debts which were incurred prior to filing. The reason the trustee files a pre-bankruptcy income tax return is because it needs to include income tax debt which was incurred right up to the date of filing personal bankruptcy. The pre income tax return deals with the period from January…
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Debts Included in a Personal Bankruptcy
There are several kinds of debt that can be included in a personal bankruptcy. Recognizing the kind of debt that is included in a bankruptcy and comparing them to your own debts can be the first step towards obtaining your fresh start. Some of the most common debts are: Tax debt Owing money to the government…
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Preparing Students For a Financially Sound Future
As students prepare to make the leap from high school to college or university, many have not been prepared for life on their own, especially when it comes to money. Low financial literacy can lead to major debt challenges down the road. Coming out of university with major debt is one of the worst things…
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Getting Rid Of OSAP And CSL Debt
Struggling with student debt is common. Many of the people I see on a daily basis are still struggling with student debt. Graduates don’t have a lot of time to start making money before they have to start paying back their loans. If you owe money to Ontario Student Assistance Program (OSAP) or have a Canada Student Loan (CSL), you have…
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Should you file bankruptcy before the new year?
There are some clear advantages to filing before the end of the year. When you file personal bankruptcy the trustee will prepare and file your income tax return and keep the refund for the year of bankruptcy and any prior taxation year that you had not yet filed and received the refund for. What this means is…
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Top Concerns For Canadian Students
It’s almost September, which means it’s time for students to start worrying about many things. Will I like my roommate? Who is going to make me dinner? What if I can’t find my way around campus? These are all common concerns you would expect from students just entering their post-secondary career. According to an article…
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RRSP Contributions And Filing Your Income Tax
You can make RRSP contributions during the first sixty days of 2016 and claim these contributions on your 2015 income tax return. Most years the RRSP contribution deadline is March 1, however because 2016 is a leap year the RRSP contribution deadline is February 29, 2016. The main benefits of contributing to RRSPs are; you can build an asset for retirement…
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Tax Deadline Will Be Here Before You Know It
It’s that time of year again. Tax time can be a welcome time for some, but for many Ontario residents who do not receive a refund, it can be a time of great stress and anxiety. For those people, even if they have tax deducted from their place of work, the government can require that they hand…
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Does a bankruptcy cover Canada Revenue Agency debts?
If you owe Canada Revenue Agency (CRA) for income taxes, GST, or employee remittances, these debts can be included in a bankruptcy and can be discharged under certain conditions. Generally speaking, a discharge of the debt is granted if you have completed your duties under the Bankruptcy and Insolvency Act and you have complied with…
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CRA and Consumer Proposals
Back taxes are one of the most difficult debts to absolve because they are owed to the government and required by all income-producing residents. Making a consumer proposal can be a good option when you have tax debt as you could potentially pay less than what you owe. However, Canada Revenue Agency (CRA) will not…
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