CRA Consumer Proposal Question from Ron B.
I have been self-employed for the last three years (and did not pay my taxes) and Canada Revenue Agency has just frozen my bank accounts. Can I go bankrupt on a CRA debt or what are my options?
Answer- Thanks for the question Ron. If you use BNA solutions who are Licensed Insolvency Trustee’s we can fix this for you. When you file a proceeding under the Bankruptcy and Insolvency Act, as soon as that happens you get immediate court protection and CRA would release the freeze from your account. Yes, you can file a bankruptcy if you owe CRA monies for personal income tax as well as any GST debt you have. As an alternative to bankruptcy, you could file a consumer proposal. Whether you file a bankruptcy or a consumer proposal we would want you to become debt free after you complete your consumer proposal or bankruptcy. As a result, we would need all of your debts included in your consumer proposal or bankruptcy such as credit card debt, a line of credit etc. We strongly suggest you contact us to arrange a free consultation.
For more information, we also have a page on our website that would help you with Revenue Canada or CRA debt. You can find it here.
In addition, you can always check or find more information directly on the Revenue Canada website.