CRA & A Consumer Proposal
My husband and I are going through a consumer proposal at the moment as of Nov 09 we will be finished. My problem is between the both of us we owe rca $21,000.00 for the tax yr 08.We already paid in $14k which leaves us a balance of 21k owing for the 08.I should also mention we are self employed the business owes nothing this debt is personal.The rest of our bills are in good standing.My concern is rca I am sick to death over this and have no idea what to do.We filed bankruptcy in the early 90`s and were almost done the proposal.I am so embarrassed and scared to call our trustee.My husband work hrs were cut back in Oct and we`ve used all our savings up.I had spine surgery this past march to which im still in recovery.Should we put our house up for sale in hopes it sells?I know we have about 75k equity.I`m worried the house won`t sell right away and rca will demand the money.Please help!
Posted from: Alberta
If you have equity in your house that is probably the best option. In terms of what CRA can do in the mean time, they have significant collection abilities, but if you contact them in advance, explain that you understand you are behind, the house is up for sale and the proceeds will be used to pay the outstanding tax bill and then provide them regular updates in terms of the sale process, they will likely cooperate with you.