I had a case where a client was burdened with a lien on his home by the Canada Revenue Agency (CRA). When I first met the client, he had significant personal tax debt, as well as HST debt. He was behind in filing the current year’s returns for both taxes and had not filed for several years prior.
The monthly proposal payments combined with the lien would be acceptable to the creditors. We filed the proposal and one of our Licensed Insolvency Trustees negotiated with the CRA to obtain a better outcome for the client in regards to the lien on the house.
The CRA agreed to cap the amount of the lien, and that the client would pay the full proposal along with an additional $15,000 within 5 years of the proposal being completed. Once this was done, the CRA would release the lien completely, with provisions that the client’s taxes were not behind and that there is never an amount owing of more than $5,000 at any given time.
This case serves as a reminder that now matter how complicated a debtor’s situation may seem, even tax debts, a professional Licensed Insolvency Trustee can provide options and advice to resolve the debt situation.