garnishment

April 26th, 2012 by Questions

I received a letter from Canada revenue that action is being taken against me which could lead to garnishment of my wages.How can I avoid this?Can I strike a deal with them so that they can withhold my tax returns for certain period instead?

Posted from: Alberta

Questions

One Response to “garnishment”


April 26, 2012 at 2:47 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Yes it is possible to negotiate with CRA to put a stop to a potential garnishee. But it is unlikely that CRA will be willing to forego the garnishee if you agree to let them take future tax returns, after all this is something they will likely do as well. The options to avoid a garnishee are as follows:

1. Contact CRA and negotiate payment terms. They will have an internal level they will consider acceptable and you will have to talk to them directly to see what level of payment will be necessary to have them hold off.

2. File a consumer proposal. This is a legislated way to negotiate a settlement with your creditors that can only be done with the services of a licensed trustee. The moment you file a consumer proposal there is court protection that is in place that prevents CRA or any creditor from collecting your debts.

3. File for bankruptcy. A bankruptcy also has the same protection as the consumer proposal and will force CRA to cease and desist.

My recommendation is try to negotiate first, if that is not successful than you may want to sit down with a local trustee.

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