I owe close to $30,000. I always kept in contact with CRA over the years (student loan is 18 years old) and attempted to pay as much as I could, but the last 5 years or so I would just inform them that I was unable to pay and would send them financial info to show this. After I received notification that Canada Revenue Agency was going to take me to court, I decided to file for bankruptcy immediately.

Has anyone ever had this happen to them and what was the outcome? Why would they take me to court when I clearly am unable to pay? Would the court order me to pay more to them and something outrageous like $550 a month (which is what they wanted from me the last few years)?

 

What people are not aware of is that simply filing a stament of inability to pay to CRA and filing general issue financial information forms doesn't really do anything. If you asre in hardship then you have to poke through this barbaric system and present a demonstration of hardship ith extenuating circumstances to either have it removed temporarily - or permanantly, depending on the scope and cicrumstances underlying hardship. The system (CRA and HRSDC) make it VERY difficult for borrowers by discouraging them though a preliminary assessment, which is done verbally by a CRA collection rep. These representatives are collectors who have no experience or eeucation in economics, human/consumer behavior, or analysis. They just "tell you" for the most part - "sorry, won't qualify".

 

In my opinion, CRA commenced or threatened to commence an action (and carry forward with it) for the purpose of protecting their own best interest, that being the prevention of a limitation issue from happening. I work with these cases by the hords every month. It is fascinating to see the money and lengths the government will go to make a statement or a point.  The scariest part is that this is the tax payer's money and not theirs yet they do not care or worry about anyone raising a fuss. It's the government and in Canada, Uncle Charlie and Stephen are impervious to a lot of things really.

 

The outcome of whatever requirement to pay is will depend on your financial posture and overal situation. If you area homeowner then you can expect them to place a lien on any property in your name - or that you are married into, in such a case. If you are working then they will seek either a payment arrangement that they deem fit - or attach wages if they are not satisfied.

 

These are the nuts and bolts of cases as you are describing and I know them very well because there so many clients of ours that are within this particular scope of intervention and mediation.

 

If you want me to do an assessment and analysis you can book one for tomorrow, or any day there is space available.  If you want to subcribe online, make sure you identify yourself from here at http://www.cfwgroup.ca/contact-us.html" rel="nofollow - http://www.cfwgroup.ca/contact-us.html . Or, call 866-239-7889 and leave a detailed message and contact information, and best time to reach you.

 

Best,

 

Johnny