October 18th, 2006 by Questions
the cra has secured a certificate in federal court. I understand that if we declare bankruptcy it wont go away, but how do we deal with what we owe…it is a very very large sum….we are dealing with a trustee presently and we were going to file a division 1 with the courts and try and negotiate payments…if that fails then we will have to declare bankruptcy….but still how do we settle the tax issue….im confused a little bit? thnk you fo this website
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October 18, 2006 at 3:33 pm, A licensed trustee said:
Since your trustee has all the facts, if the process is not clear to you (which is not surprising, since some aspects of this are very complex), I suggest you ask to meet with the trustee again for a full explanation.
It is possible to file a Division 1 proposal that includes payment terms to CRA, such that at the end of the proposal they discharge all liens, certificates, etc. Without knowing the details of exactly what CRA has done, I can’t be more specific.
If you go bankrupt, and CRA has a lien or charge against property, such as a house, the lien is not discharged in a bankruptcy, which may mean you may be forced to surrender your house.
Again, this is a very complex area of bankruptcy law, well beyond the scope of this blog, so I suggest you discuss this further with your trustee, or contact another licensed trustee if you want a second opinion.