Can Bankruptcy stop Canada Revenue Agency Collection
Do you have concerns regarding a Canada Revenue Agency Collection and how a proposal or bankruptcy affects this difficult issue for you?
First before you can file for bankruptcy or a consumer proposal, a trustee must examine your finances to authenticate that you are insolvent. Someone who is insolvent, must owe at least $1,000.00.Also, they must be in general incapable of paying their debts as they are due, or have stopped paying their debts altogether, and/or their debts are greater than their assets. Read more on what is insolvency.
Once you are declared insolvent, then the trustee will review all possible options available, including alternatives to a proposal or bankruptcy
Consumer Proposal / Bankruptcy and the CRA
In numerous cases, CRA (Canada Revenue Agency) taxes can be included in a bankruptcy – nevertheless the CRA has the option, to not allow some taxes to be included.
It is also possible to have the CRA (Canada Revenue Agency) consent to a reduced sum on outstanding taxes when a Division I Proposal or Consumer Proposal is filed.
So there is hope if you have outstanding payments owning to the CRA. The next step is to call us for a free consultation where we can review your case, and help determine which the best option for you to take is. If you live in the Toronto area, you are welcome to call us at 416-498-9200.
For some past CRA Case Histories with David Sklar & Associates, see the following
http://davidsklar.com/blog/case-history-doug-bankruptcy-and-the-cra/ – Doug’ had prolonged health issues and large debts to creditors and the Canada Revenue Agency (CRA). Read more on this case history.
http://davidsklar.com/blog/division-1-proposal-for-a-small-business/ – This is a Division 1 Proposal Case History. ‘Mark’, An IT Manager faced up to his mistakes and deals with a Canada Revenue Agency garnishee. Read more on this case history.
If you are facing financial problems and have surmounting debt, call the offices of David Sklar & Associates for a free consultation. We are here to help you!