Should I apply for a Consumer Proposal?
I went through a separation at the end of 2022 and had to start completely over, my ex and I owned property and a house together and we are currently still in a legal battle to split our assets- He stopped showing up to mediation last year and I finally got the go ahead for an uncontested trial.
The trial has been booked for this fall.
In 2022 -2024, I racked up $35,000 in unsecured debt. Within the past year or so, I have managed to pay off $15,000 out of the $35,000.
A few weeks ago I received a notification from the CRA saying that they were reassessing my tax returns from 2016-2024, this week I received a letter in the mail stating that I owe $15,250.00 in taxes which is insane. I called and spoke to a representative who stated that the lowest payment they would take is $1,000 a month, there’s obviously no way in hell I can afford that , so I asked if I had any other options and she sent me a form to fill out to lower the monthly payments- if accepted.
I’m honestly feeling so overwhelmed and like I’m drowning in debt again, basically like the 15,000 I paid off meant nothing and I’m back at square one.
I would love to wait until the uncontested trial is over and use some of that money to pay off my debt but I have a feeling my ex will end up not paying whatever amount is granted and I’ll have to take him to court again.
I’m honestly at a loss and I’m not sure if I should try to pay everything down again and wait for the separation settlement or file for a consumer proposal. I’m also terrified to go the consumer proposal route. I’m worried about my credit rating being bad for the 5+ years, i’m also worried about the stigma.