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liens & bankruptcy

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.

One Response to “liens & bankruptcy”

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.