Income Tax Debt Settlement Options

 

Income tax debt settlement options are a real thing that we can assist you with. Most people that reach out to us to discuss options for transforming their lives to get out from the burden of debt are surprised that personal tax debt can be eliminated in a bankruptcy or included in a deal with the Canada Revenue Agency (“CRA”) through a consumer proposal.

The main tools the CRA uses to collect are:

  1. Garnishment of your wages and freezing your bank account. Where other creditors like credit card companies or banks have to make court applications and serve you with notice, the CRA can do this without a court application;
  2. If you have a house, the CRA can register a CRA lien against the title of the property. No court order is required and they do not need to obtain your approval or consent for this.
  3. If you have a business, the CRA will issue “requirements to pay” to your customers demanding that they pay the CRA the amount they owe you instead of you or your business receiving that money.

The stress of owing taxes is a common one. It is not uncommon to avoid opening mail from the government, and not wanting to answer phone calls from the CRA. To alleviate this fear and discuss some options, please reach out to us to discuss your situation in a confidential setting.

Tax debts are unsecured debts just like most other debts and they can be included in a bankruptcy, and negotiated on in a consumer proposal. Once you have performed all the duties in either one of these solutions we offer, your tax debt will be eliminated. Contact us today to see what your income tax debt settlement options are!

When faced with a bankruptcy or a consumer proposal, there is a lot to consider.


If you are worried about a creditor or the government garnishing your wages, contact a Licensed Insolvency Trustee at The Fryzuk Group Inc. to discuss your options and to get the guidance you need to make the best choices for your situation. You can do this by calling us at 403-561-8228, or emailing debtfree@recoverfromdebt.ca.