transferred property
I owe a significant amount to CRA. The money owed is payroll withholding taxes. I am considering winding down the business, assuming personal responsibility for the CRA debt and then making a personal proposal. I transferred full ownership of our house to my spouse after most of the CRA debt was incurred. Is there a time limitation in a proposal or bankruptcy after which the transferred property is no longer available for settlement of the debts?
Posted from: Ontario
Typically a creditor can go after the property for a 5 year period. This is regardless of whether a bankruptcy or a consumer proposal is filed. As well, having been involved in this type of transfer may result in very significant difficuties if the consumer proposal or bankruptcy is filed as this type of transfer is an offense under the Bankruptcy and Insolvency Act and will likley prevent you from being elgible for discharge.