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Consumer Debt Proposals

Can a lien by Revenue Canada on your house become part of a consumer debt proposal? Can your house by part of a consumer debt proposal if it has a lien on it?

Posted from: Ontario

One Response to “Consumer Debt Proposals”

A licensed trustee said...

The short answer is no. Once a lien has been registered by CRA (formerly Revenue Canada) they become a secured creditor and consumer proposals normally only deal with unsecured debt.

Having said that, if you decide that you want to surrender your house to the mortgage company and CRA as part of a consumer proposal you can – the house will then be sold and if there is a shortfall, the debt will be dealt with you your consumer proposal.

This sort of situation is complicated enough that you shold probably speak directly to a trustee in your area BEFORE you decide what makes the most sense for you and your family.