liens & bankruptcy
August 6th, 2005 by Questions
CCRA has placed a lien on my house, there is very little if any equity in my house. Will bankruptcy remove this lien, if not how may I do so.
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August 07, 2005 at 2:02 pm, A licensed trustee said:
Bankruptcy does not remove a lien on a house; bankruptcy only discharges unsecured creditors, not creditors that have a charge on an asset (such as a lien on a house or a car, or a mortgage).
To remove the lien, you either have to sell or surrender the house, or have Revenue Canada (CRA) remove it.
Generally CRA will only remove a lien if they are paid in full, or if they accept a proposal, which is typically difficult.
This is a complicated area, so you should seek professional advice to determin how best to deal with this lien.