My husband and I are into the revenue canada for around 50k. While we agreed to make monthly payments, we haven’t been able to keep up with them and even when we do they don’t seem to even be affecting principal. Now, for whatever reason these payments are not good enough for revenue canada, and they are going to start garnishing wages and writ our home. We have a family member willing to lend us some monies, but how much would the goverment accept to clear the debt without doing a formal proposal by filing a bankruptcy?
Taxes
Posted on Friday, November 17, 2006
posted by Questions @ 2:24 pm
1 Expert Comment:
At November 20, 2006 |
10:38 am
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
While, I never discourage someone from making this type of attempt, unfortunately, the government doesn’t normally accept any reductions without a formal process such as a consumer proposal or a bankruptcy. The only thing I would recommend is do this don’t delay. Make the offer, wait for their response, if they are not willing to go for it consider filing something formally as quickly as possible. If you wait and CRA decides to writ your property you will likely loose a good portion of the equity in your house as the registration of this writ changes CRA’s claim from an unsecured to a secured creditor and then the balance of the writ will survive bankruptcy and possible erode some of the equity exemption in your residence.
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