| |
Yes. The Canada Revenue Agency (CRA) has much greater rights to collect debts owed to it than most of your creditors. If you owe the CRA, they can:
- Charge interest and penalties on the amount you owe them as soon as it is overdue.
- Take money directly from your pay check or bank account, through a process called garnishing.
- Keep back any GST credits or child tax credits while you still owe the CRA any debt.
Tax debt is one of the most serious debts you owe, as the CRA is one of the few creditors with the ability to put you in jail (after a court case) if you have not paid them. If you approach them as an individual, rather than through a trustee or tax lawyer, the CRA will almost never reduce the amount you owe, including any penalties or late fees. At best, they are willing to allow you come up with a payment schedule. This is why it is important that your trustee know exactly how much tax you owe and if you have any years in which you did not file a tax return.
IN THIS SECTION
|
|
- Why did my trustee tell me to file all outstanding tax returns?
- I’m declaring bankruptcy because of taxes. Is this allowed?
- Will I still owe my student loan after bankruptcy?
- I can’t afford to pay back my student loan and it’s been less than seven years since I left school-what are my options?
- How long does bankruptcy last?
- Can I keep my car during bankruptcy?
- Can I keep my RRSP during bankruptcy?
- Can I keep my home if I declare bankruptcy?
- Will I still be able to rent an apartment or home if I declare bankruptcy?
- Can I keep a credit card during bankruptcy?
- Is it okay to use a credit card if I am thinking about bankruptcy?
- Can I get a checking account after bankruptcy?
- I co-signed on a loan for someone who declared bankruptcy. What happens now?
- If I’m married and I file for bankruptcy, does it affect my spouse’s credit?
- If my spouse declares bankruptcy and I am listed on their credit cards, am I responsible for the debt?
- I am divorced and my ex has declared bankruptcy. Do I still owe for debts and credit cards that I co-signed with my spouse?
- If I file for bankruptcy, will it be noted on my spouse’s credit file?
- Will filing for bankruptcy affect my job situation?
- Who will find out about my bankruptcy?
- Can I get utility services (telephone, cable, hydro, gas, etc.) after bankruptcy?
- Can I keep any money if I declare bankruptcy?
- What is surplus income?
- Can I go to jail for not paying my debts?
- The collection agency is threatening to take me to court: can they do that?
- What happens if a collection agency takes me to court?
- I am behind on my debt payments; can a collection agency take my furniture, electronics, clothes, etc.?
- I am being harassed by a collection agency: what can I do?
- Can I stop a wage garnishment?
- How do I find out if someone is bankrupt?
- What is Chapter 7 bankruptcy?
- What is Chapter 13 bankruptcy?
- What happens if I live in both Canada and the U.S. and declare bankruptcy?
|
|
|
