If you have tax debt and can’t afford to pay it, one option for dealing with this debt is to file a consumer proposal. Some advantages of filing a consumer proposal are:
Canada Revenue Agency will often accept less than the full amount of the tax debt owing.
If your tax debt is less than 50% of your total unsecured debts, CRA may be forced to accept the proposed terms as long as your other creditors vote in favor of them.
Stops all interest charges on the date of the proposal.
Prevents collection activity and wage garnishments by CRA once the proposal is filed.
Generally speaking, a consumer proposal enables you to negotiate your tax debt obligations without going bankrupt.
If you have tax debt that you aren’t able to pay, contact us today. Your first consultation is free, and we make sure we review all options with you to make sure we take the path that best suits your individual situation.