How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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CRA and Consumer Proposal

If $150K are owing to the CRA from unpaid taxes through a sole proprietorship business, with roughly half of that interest and penalties, is a CP a viable option? CRA has put a lein on the house and is garnishing accounts (so it’s progressed to that point), and making payments is viable, but not on the entire $150K. Taxpayer relief has been filed, but CRA is still pushing things, will filing a CP halt this while the terms are being considered or is a tax lawyer a better bet in this circumstance? Thanks for any advice.

Posted from: Ontario

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One Response to “CRA and Consumer Proposal”

A licensed trustee said...

If CRA has registered a lien on your home then your tax debt is now the equivalent of a mortgage on you home. If you have equity in your home the lien will survive bankruptcy or a consumer proposal just like a mortgage on your home.

You should speak to a trustee about your situation, but it may be too late to do much about it. A tax lawyer might help if you think there are grounds to have the actual tax debt reduced. If the tax debt is reduced, the interest and penalties will be recalculated too. Of course the lien will still be in place and you will have to deal with it.