Oweing LARGE amt to CRA

December 21st, 2007 by Questions

New Bankrupcy Law

On your web-site it states that 1 of the new laws will be :
1) Large tax debts may cause a longer bankruptcy.

I have about $140K owing to CRA, but it is for not filing my taxes for about 7 years, due to special circumstance. I have applied for FAIRNESS consideration for these 7 years and was given 4 years worth.
Even after that, I still owe about $140K

Will my bankrupcy last longer for 9 months and if so, how long do you think it will last.
What is it based on ?

Thank-you

Questions

One Response to “Oweing LARGE amt to CRA”


December 24, 2007 at 11:25 am, Barton Goth GCO Bankruptcy Trustees said:

This will depend on a few things. For instance if the tax debt is makes up greater than 75% of your total unsecured debt a discharge hearing will have to be scheduled as follows:
1. First time bankrupts with no surplus – after 9 months;
2. First time bankrupts with surplus – after 21 months;
3. Second time bankrupts with no surplus – after 24 months;
4. Second time bankrupts with surplus – after 36 months;
5. Third or more time bankrupts – after 36 months.

The thing to remember is that these laws are not in place currently, while technically they could be enacted at any time, I don’t expect them to be in place for at least 8 months as it will take some time to set up all the required systems and educate all the stakeholders properly.

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