I Can't Pay CRA! Part 2

Tuesday, September 10, 2019 - 20:11

Bankruptcy, Government Debt

Despite your best intentions to pay the debt, sometimes it is not enough when you owe a lot of money to CRA. It may be the amount of the debt is just too high or perhaps the budget does not allow for a monthly payment. If that is the case, I recommended you speak to a Licensed Insolvency Trustee to discuss your options.

Licensed Insolvency Trustees are debt professionals and can assess your financial situation to determine if a bankruptcy or a consumer proposal is the best choice to allow you to make a fresh start. In most cases, debt owing to CRA can be included in a bankruptcy and a consumer proposal. With a few exceptions, CRA is treated like any other creditor in insolvency proceedings and must stop their collection activity once a bankruptcy or a proposal is filed.

A Licensed Insolvency Trustee can also provide continued support to make sure that you are not at risk for incurring future tax debt through the two mandatory counselling sessions.

Beware of Scams

Scammers posing as CRA employees continue to contact Canadians, misleading them into paying false debt. These persistent scammers have created fear among people who now automatically assume that any communication from someone representing the CRA is not genuine. To be sure that it is not a scam, review this website as to what CRA will and won’t do.

If you can’t afford to pay your debt, contact us today for a free, no-obligation consultation. We will be able to review your situation and let you know which option works best for you. 

Latest Posts

Keeping your Savings with a Consumer Proposal

How does making a consumer proposal affect your TFSAs and RRSPs? With a consumer proposal, you get to keep your assets, which includes your tax free savings account and your RRSPs.

October 8, 2019

Consumer Proposals, Asset Concerns

Incorporated Companies and Debt

If your business is incorporated, then legally the business is a separate entity and its assets are owned by the business. In this case the incorporated company can go bankrupt if it cannot meet its financial obligations.

October 3, 2019

Business Concerns