News & Insights

I recently took a ride in an Uber car and had a very interesting conversation with my driver that highlighted a precarious problem for Canadians: being self-employed and planning for end of year income taxes is not always easy for people to do. Within one month I spoke to two drivers and in both cases the concept of putting aside money for income taxes had not even crossed their mind. They were also not aware that when they reach the income threshold, HST would need to be remitted to the Canada Revenue Agency. In recent years we have seen a…

An avoidable mistake Even when a business is completely inactive, and not generating any income, the owners should still file the required returns with the Canada Revenue Agency (CRA) to avoid issues, including potential penalties that can arrive years down the road. A common misconception that exists amongst business owners is that if the organization is not generating any revenue, and therefore no profits, there is no need to file income taxes with the CRA; this misconception often leads to major unexpected penalties that can have significant implications for individuals, corporations and their directors. If there’s no revenue, do I…

Self-employed lawyers, doctors, dentists and other professionals can benefit from consulting a Restructuring Professional such as a Trustee in Bankruptcy! Self-employed individuals find themselves in financial trouble for many different reasons. Slopes in the economy, poor judgment calls, not paying income taxes, not remitting HST, the list goes on. We have proven track record for assisting self-employed professionals and other individuals reduce their debt, particularly with the Canada Revenue Agency. It is not uncommon for self-employed professionals to seek the advice of a licensed professional such as a Restructuring Professional or a Trustee in Bankruptcy. A Trustee provides an independent…

If you’re struggling with your finances, you are not alone. Many people have an ongoing problem with debt, especially since it can sneak up on you when you least expect it. One day you’re behind on one bill and the next day you’re months behind on several bills and your finances are spiraling out of control. What is a Consumer Proposal? A consumer proposal is a deal that you make with your creditors to settle your debt. Usually the total that you pay under the settlement will be an amount that’s less than the total that you owe to your…

Corporate insolvencies involving Canada Revenue Agency (“ CRA ”) debts have been increasing for several years. Up until the outbreak of COVID-19, CRA utilized their extraordinary investigation and collection powers with ever increasing vigour. Will the era of COVID-19 make CRA more amenable to viable settlements of tax liabilities? And, if so, how can a settlement negotiated under the Proposal provisions of the Bankruptcy and Insolvency Act ( “ BIA”) be of benefit to companies. Why Tax Driven Insolvencies Increased prior to COVID-19: We have seen a significant increase in the number of businesses seeking assistance as a result of…

Choosing to file an Ontario Consumer Proposal is a big decision, and understandably you’ll have questions regarding what steps you need to take, how the process works and what will happen after it’s all said and done. Here are a few facts to consider about Ontario Consumer Proposals: Amount Obviously every person who files an Ontario Consumer Proposal does not have the same amount of debt as the next person, so the amount that you will ultimately pay to settle your debt depends on each specific case. However, in mostly all cases, once the consumer proposal is approved you will…

Many of us have been in a tough financial situation ourselves, so seeing someone you love—like a family member—go through this type of struggle can be difficult. Wanting to help someone you love that’s in need is only natural, and sometimes lending to a family member can be very helpful; however, sometimes it can snowball into a far more serious problem. A family’s members financial problems can isolate some members from others, cause fights and even end relationships. So, one can often wonder: how do I know when I should and shouldn’t help? Here are some tips to help you…

Albert Gelman Inc. offers free, no-obligation financial consultations. Our licensed Trustees can help you get back on track! Call us today at 416-504-1650 or visit our locations page to find a location that works for you! A consumer proposal allows you to pay back your debt or part of it, by offering an affordable monthly payment to all your unsecured creditors. The plan is based on different factors, including your income, which ensures that it will be affordable. Consumer proposals also allow you to take up to five years to pay back the proposed amount. Advantages to a Consumer Proposal…

If you’re finding yourself in debt with the CRA, you’re not alone. This type of debt is often unforeseen and can be a heavy burden. The following are some of the things that may result in CRA income tax debt: A re-assessment of a prior year tax return A self-employed individual who received a larger tax assessment than is anticipated The inability to make the required income tax installments An unsuccessful appeal resulting in a larger tax debt than expected disallowance of expenses claimed by a self employed individual In many cases, an offer can be made to the Canada…

Bankruptcy can be a good option when you have a serious amount of debt. If you have a limited income, have little to no equity in your assets and are struggling to pay your bills and pay down the debt, bankruptcy may be the best option for you. What are the Benefits of Declaring Bankruptcy? When you declare bankruptcy, you are essentially getting a fresh start from your debt. Any wage garnishments and other collection actions will cease, and you will be obligated to make one monthly payment to the Trustee which is based upon the amount of your income.…

Bad Debt vs Better Debt You may have heard that there is such a thing as “good debt,” and wonder how it is possible to owe a creditor money in a good way. Although it’s true that there is debt that can be considered “good” in a sense, however, “good” is not necessarily the best word choice. Think of it as better debt. Student Loans The debt you accumulate while attending post-secondary school is much better than the debt you can accumulate from buying that outrageously priced handbag, or getting your car windows tinted. Furthering your career and life successes…

Income Tax Debt Solutions: What You Need to Know Do you find that every time you file your income taxes you seem to owe the government money? Are you struggling to repay these debts and spiraling further and further into debt? You are not alone. Many people find themselves in a situation where they cannot pay their outstanding income taxes owing to the Canada Revenue Agency (CRA). There are many reasons as to why this happens, but there are also many solutions to aid this problem. What Can Cause Income Tax Debt? Income tax debt can come as a result…

When debt accumulates to a point where it is difficult to manage even your minimum monthly payments, something has to give. Most people that find themselves in a situation where they are drowning in debt and want to pay their creditors. Sometimes creditors will demand payment in full or monthly payments that are beyond your ability to pay and negotiating with them becomes futile. The creditor may decide to take collection action against you and send your account to a collection agency and then the really aggressive collection action will begin. The collection agency may phone you several times per/day,…