Oweing LARGE amt to CRA
December 21st, 2007 by Questions
New Bankrupcy Law
On your web-site it states that 1 of the new laws will be :
1) Large tax debts may cause a longer bankruptcy.
I have about $140K owing to CRA, but it is for not filing my taxes for about 7 years, due to special circumstance. I have applied for FAIRNESS consideration for these 7 years and was given 4 years worth.
Even after that, I still owe about $140K
Will my bankrupcy last longer for 9 months and if so, how long do you think it will last.
What is it based on ?
Thank-you
One Response to “Oweing LARGE amt to CRA”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
December 24, 2007 at 11:25 am, Barton Goth GCO Bankruptcy Trustees said:
This will depend on a few things. For instance if the tax debt is makes up greater than 75% of your total unsecured debt a discharge hearing will have to be scheduled as follows:
1. First time bankrupts with no surplus – after 9 months;
2. First time bankrupts with surplus – after 21 months;
3. Second time bankrupts with no surplus – after 24 months;
4. Second time bankrupts with surplus – after 36 months;
5. Third or more time bankrupts – after 36 months.
The thing to remember is that these laws are not in place currently, while technically they could be enacted at any time, I don’t expect them to be in place for at least 8 months as it will take some time to set up all the required systems and educate all the stakeholders properly.