Kitchener Ontario Personal Bankruptcy Blog: March 2006: Answers to Personal Bankruptcy Questions

Posted on Friday, March 31, 2006

You are not alone, bankruptcy more common than you may think

Financial problems can affect individuals in every profession no matter where they are located. The Office of the Superintendent of Bankruptcy has released statistics detailing the number of Canadians that declared personal bankruptcy or filed a consumer proposal, and for first time in history, there were more than 100,000 filings during 2005 across Canada.

For Kitchener, Ontario, in 2005, despite having one of the strongest economies, there were still 1,058 individuals that obtained a financial fresh start by declaring personal bankruptcy or filing a consumer proposal. Specifically, 807 individuals filed a personal bankruptcy and 251 filed a consumer proposal in Kitchener-Waterloo.

At Hoyes, Michalos & Associates in Kitchener, Ontario, we helped hundreds of those individuals resolve their financial hardships and obtain a fresh start in a professional and personal manner. We understand that a financial strain can be a very stressful experience, so we encourage you to e-mail us a question or give our Kitchener office a call at 747-0660 or 310-PLAN to arrange a free meeting to discuss your situation in more detail.

Posted on Friday, March 24, 2006

Income tax returns not filed with the government?

Have not filed your taxes for a while now because the debts may be unmanageable?

One type of situation that we see at Hoyes, Michalos & Associates Inc. in Kitchener, Ontario, is when an individual has not filed his/her income tax returns in the past few years as the returns will likely result in a tax debt that the individual could not handle along with his/her other debts.

Tax return debts occur for various reasons, including self-employed income with no tax withholdings, cashing out RRSP's, working more than one job, receiving pension income, and other situations.

If there is a tax balance owing on an outstanding income tax return and it is filed late, Canada Revenue Agency (CRA) will automatically charge a 5% late filing penalty and then accrue interest & penalties on the unpaid balance.

We always recommend that you have your outstanding tax returns prepared and filed so that the debt is known and a plan to deal with debt can be arranged. If the tax debt and your other personal debts become unmanageable, there may be a formal option available for you to get a fresh financial start. To discuss your situation in detail, please contact us or call us at 310-PLAN.