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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Tax and Fees

Are amounts owed to Revenue Canada eliminated in a bankruptcy? Are the fess
paid to a banruptcy trustee tax deductible?

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One Response to “Tax and Fees”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

In most circumstances amounts owed to Revenue Canada are eliminated in a bankruptcy but it would be important to discuss the nature of these debts with your trustee to ensure they are not given unique treatment under the Bankruptcy and Insolvency Act. I would recommend contacting a trustee immediately as a delay on your part can provide Revenue Canada with additional time that can allow them to take measures that cannot be reversed in a bankruptcy proceeding (i.e. if Revenue Canada registers a statutory lien on any real property this then acts like a second mortgage and survives bankruptcy). In terms of trustee fees being tax deductible, unfortunately they are not.