cra debt
December 21st, 2009 by Questions
I was self employed from 99 to 2006 in which I incurred a large debt from a cra payroll audit done in 2003, over the years the debt with intrest and penalties is now $130 000, I have been employed for the past three years and my salary is $80 000/yr. I have approx. $100 000 equity in my home and no other debt, would a consumer proposal be advised? Also would they make me sell the house? please advise. thank you
Posted from: Ontario
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December 22, 2009 at 8:07 am, A licensed trustee said:
A consumer proposal may work, but CRA is quite particular about the terms they will accept when a debt has been incurred by someone that hasn’t file their taxes every year as required. You should expect to have to pay an amount equal to the equity in your home as a minimum. As long as you can pay an amount equal to your equity over no more than 60 months, you should not have to sell your home. If you can’t meet that time frame then the house may come into play.
Use the links to find a trustee in your area, but before you call them you may want to check with the local land registry office – if CRA has registered as lien on you home already then things will be a bit more complicated.