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CRA Personal Property Lien

We live in Ontario and after learning the CRA has filed a lien against my husband for personal property in the amount of 15K we have come to realize that we can no longer deny we are in financial staights.

CRA has registered a Personal Property Lien against one name only (husband). The general collateral description states, “all present and after acquired property including but not restricted to machinery equipment furniture fixtures and receivables.” It also states Secured Party / Lien claimant “Her Majesty the Queen in Right of Canada.”
We are receiving conflicting answers to our inquiries.
Some say it is only a matter of time till it is registered against our property.
Some say it doesn’t matter because they will take no action until we sell.
Are they now a Secured Party?
Some say they are.
Will this lien be included in our bankruptcy debt? Or will it survive a bankruptcy?
If we were to file bankruptcy for other debt and this is not included will CRA seize any and all assets now and in the future even though they are exempt under the bankruptcy laws?

We are considering filing bankruptcy. Will bankruptcy affect the lien in anyway? Also, if they seize his personal property are they going to take my belongings as well? How will they know whose is whose? We do have documentation from the tax courts to prove that the amount CRA registered is not correct but they refuse to accept this. We are at a loss and have talked with several different Trustees but keep getting conflicting answers.
Thank you for any answers you can offer

One Response to “CRA Personal Property Lien”

A licensed trustee said...

If CRA has registered a lien, they are a secured party, just as a mortgage holder on a house is a secured party. Even if you go bankrupt, they are still secured, and can still seize the security. If they have a lien only on the husband’s goods, they cannot seize anything belonging to the wife. If you have documentation from the courts indicating that CRA is wrong, I suggest you contact your lawyer; they may be able to have the lien discharged if it is invalid.