November 20th, 2010 by Questions
We owe Revenue Canada and are having trouble paying them back…are we able to negotiate a debt settlement with them?
Posted from: Ontario
November 21, 2010 at 4:09 pm, A licensed trustee said:
Yes and no. CRA will negotiate a 1 (or possibly 2 year) repayment for income taxes, but that’s about all they are authorized to do. You may also hire either a tax accountant and/or a tax lawyer to negotiate on your behalf. They can get you longer to repay and likely have the interest and penalties reduced. You may also file a consumer proposal or personal bankruptcy to deal with yoru tax debt, but it will also impact all of your other debt (and credit) too.
You might start by requesting a meeting with your CRA collector – they should outline all of the options I just listed and usually they will give you a frank assessment of which one makes the most sense for you.
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