liens & bankruptcy

August 6th, 2005 by Questions

CCRA has placed a lien on my house, there is very little if any equity in my house. Will bankruptcy remove this lien, if not how may I do so.

Questions

One Response to “liens & bankruptcy”



August 07, 2005 at 2:02 pm, A licensed trustee said:

Bankruptcy does not remove a lien on a house; bankruptcy only discharges unsecured creditors, not creditors that have a charge on an asset (such as a lien on a house or a car, or a mortgage).

To remove the lien, you either have to sell or surrender the house, or have Revenue Canada (CRA) remove it.

Generally CRA will only remove a lien if they are paid in full, or if they accept a proposal, which is typically difficult.

This is a complicated area, so you should seek professional advice to determin how best to deal with this lien.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)