Date 09.02.15
An Insolvency Trustee at A. Farber & Partners recently worked on a case involving an individual who was under pressure from the Canada Revenue Agency (CRA). When this client first came to see us, she was self-employed with a complex situation involving tax liens registered on her personal assets, as well as against her farm. In fact, her assets were fully encumbered by CRA liens.
The client was under pressure from the CRA to sell her farm and assets to pay her tax debt, which she didn’t want to do. This was causing her immense stress. The stress and pressure lead her to come to A. Farber & Partners for a free consultation. She met with an Insolvency Trustee, to discuss all of her available debt relief options.
In her complex situation, the best option was a Division I proposal. The major difference between a Division I proposal and a Division II proposal (commonly known as a Consumer Proposal) is that in a Division I proposal, total debts, excluding any debts secured by the individual’s principal residence, are more than $250,000.
We filed a Division I proposal and negotiated with the CRA to resolve her tax situation. The proposal was ultimately accepted by CRA and approved by the court.
The client was relieved of a great deal of stress and very happy. Under the terms of the proposal, she is currently making payments directly to CRA to settle the tax liens and making proposal payments to A. Faber & Partners, which we administer and distribute to the other creditors.
At the end of her Consumer Proposal, this client will be debt free, and the tax liens will be removed from her assets. This means she gets to keep her farm and her debt problems will have been resolved.
A. Farber & Partners has Licensed Insolvency Trustees and other debt solutions professionals with the experience and knowledge to prepare both Division I and Division II proposals, and provide clients with the best option to resolve their debt issues, regardless of the amount of debt they have.