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Self-Employment and CRA Debt

June 7, 2016

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Self-employed individuals are usually extremely talented and skilled at their business. However, they can often run into struggles with bookkeeping, cash flow problems, and can get behind on government remittances and tax filings. We know that once you fall behind on tax remittances or tax filings, it can be extremely difficult to catch up and stay on top of them.

Small Business Owner

Licensed Insolvency Trustees are the only people who can make a legal plan to creditors, including the Canada Revenue Agency (CRA). This plan can stop collection calls and freeze any garnishments that are in place. Licensed Insolvency Trustees can help negotiate with the CRA on a repayment plan to deal with tax debt. This financial repayment plan known as a consumer proposal takes into consideration the amount owed, and your ability to pay based on your current and future cash flows. This cash flow will take into consideration what you should be paying on a regular basis so that required remittances stay up to date going forward.

The CRA has the ability to take very powerful collection remedies. They can seize assets, bank accounts and receivables. They can put liens on property or garnish income. Many people falsely believe that there is no remedy available. It is important to know that Licensed Insolvency Trustees are able to help you deal with CRA debt in a legally binding manner. A credit counsellor or a debt settlement agency cannot stop the collection calls or negotiate any forgiveness on tax debt.

In addition to freezing debt, garnishments and stopping collection calls, Licensed Insolvency Trustees can assist by providing the tools that you can use on a daily basis to move forward from your current debt load, and obtain the fresh start you are seeking.

Many people are able to avoid bankruptcy if they can deal with their financial difficulties head on and early enough. Talk to a Licensed Insolvency Trustee to explore your options.

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