★★★★★
"Charla and her team treated me with kindness and respect from day one. I finally feel like I can breathe again. I only wish I had called sooner."
— Sarah
CRA Tax Debt Calgary, Alberta
In our experience, CRA will not reduce the principal amount of tax debt in a payment arrangement negotiated directly with them, and interest continues to accrue throughout any payment arrangement. However, through a consumer proposal filed by a Licensed Insolvency Trustee, CRA can be offered and frequently accepts a settlement for less than the full amount owed. This is because a dedicated unit within CRA is authorized to accept reduced settlements when the situation warrants it. Learn more about negotiating a payment arrangement with CRA.
A consumer proposal also provides something a payment arrangement cannot: an immediate legal stay of proceedings. The moment the proposal is filed, CRA must stop all collection action, including wage garnishment, bank account seizure, and benefit interception, regardless of whether they have voted to accept the proposal yet. Interest stops accruing immediately. This legal protection makes a consumer proposal fundamentally different from any informal arrangement with CRA, especially if you have received a CRA Notice of Collection.
CAN CRA TAX DEBT BE SETTLED FOR LESS THAN I OWE?
If a consumer proposal is not the right fit, bankruptcy can discharge most CRA tax debt entirely, including personal income tax, HST/GST, and related penalties. Business owners should also consider how directors can be liable for a corporation's debt. Any corporate tax debts you are personally liable for can also be included in a consumer proposal or bankruptcy. A Licensed Insolvency Trustee will assess your full situation in a free financial advice consultation and advise which option best fits your circumstances.
When you owe money to the Canada Revenue Agency (CRA), it’s easy to feel overwhelmed, especially if you’ve received a Notice of Collection. Whether the debt relates to personal income taxes, corporate taxes, GST, or payroll deductions, one thing is certain: ignoring the problem won’t make it go away. The CRA has unique and powerful ways to collect, such as wage garnishments or bank account freezes that can be undertaken without first taking you to court. Since their debt rarely becomes statute-barred, they won’t typically stop until they have exhausted all options to collect. The good news is that the CRA is generally open to a fair arrangement if you act early and responsibly.
BEST DEBT RELIEF SOLUTIONS
Debt happens, and we know there are many reasons why people get into financial difficulty. At Charla Smith & Company, our job is not to judge but to help. We will discuss how to solve your debt problems in a way that respects your dignity and acknowledges your unique circumstances.
Our small team of insolvency professionals provide financial advice and can offer consumer proposals and bankruptcy filings where appropriate.
We’re here to answer questions, guide, and advise you so you can take back control of your financial situation. Complete this contact form or call us at 1-403-899-3890 today for a FREE, no-commitment consultation.
WHY A CONSUMER PROPOSAL MAY BE THE BEST SOLUTION FOR CRA TAX DEBT
Benefits
- Immediate legal stay quickly stops all CRA collection action such as seizure of wages, bank accounts, and benefits.
- Interest and penalties stop accruing immediately on filing.
- CRA can accept a settlement for less than the full amount owed through a Licensed Insolvency Trustee.
- All other unsecured debts, including credit cards and loans, are addressed at the same time.
- Even if CRA votes against your proposal, they must comply if the majority of creditors by dollar value vote to accept.
- Bankruptcy discharges most CRA tax debt entirely for those who qualify.
Things to Consider
- CRA payment arrangements do not provide a legal stay; collection can resume at any time.
- Interest continues to accrue throughout a payment arrangement.
- High Tax Debtors, with at least $200,000 in tax debt representing 75% of their total debt, face additional complexity in bankruptcy.
- All required CRA filings must be up to date before CRA will accept a consumer proposal to address tax debt.
FIND FREEDOM FROM YOUR DEBT
Debt can feel unmanageable and overwhelming and can affect all aspects of your life. It’s easy to feel like there’s no way out of it.
At Charla Smith & Company, we understand the stress caused by unsustainable debt. As a Licensed Insolvency Trustee, we're here to help with financial advice and we can offer relief from your debt through a consumer proposal or bankruptcy.
Your best interests always come first. We listen without judgement and provide unbiased expert advice. Contact us today at 1-403-899-3890 for a FREE, no-commitment consultation, and let us empower you to move forward and take back control of your finances.
WHY CHOOSE CHARLA SMITH & COMPANY?
Trusted Advice
We give you unbiased guidance grounded in our legal duty as Licensed Insolvency Trustees. Your best interests come first always.
Highly Personalized Service
We're a small, local team based right here in Calgary. You'll work with the same people from your first call through to your fresh start.
A Kind, Open-Minded Approach
No judgement, ever. We meet you where you are and focus on empowering you with the information you need to move forward.
What Clients Are Saying
★★★★★
"I came in expecting judgement and got compassion instead. They explained everything clearly and helped me understand my options without any pressure."
— Michael
★★★★★
"Professional, warm, and genuinely on my side. The whole process was much easier than I had imagined. I cannot recommend them highly enough."
— Jennifer
DEBT RELIEF SOLUTIONS TAILORED TO YOUR SITUATION
When facing what may feel like insurmountable debt, you need access to professionals you can trust. Charla Smith & Company provides unbiased advice about your options for debt relief, which, depending on your situation, may include formal insolvency options like a consumer proposal or bankruptcy. Learn more about how we can help you get rid of your financial stress.
Bankruptcy in Calgary, Alberta
Bankruptcy isn’t the end - it’s a new beginning. When your debt becomes unmanageable with little hope of being able to pay it back, bankruptcy may be the answer.
We at Charla Smith & Company, located in Calgary, Alberta, understand the impact bankruptcy can have on you
Consumer Proposal in Calgary, Alberta
If your debt (not including any mortgages on your home) is under $250,000*, a Consumer Proposal may be the best way to get relief. A Consumer Proposal allows you to consolidate your debts while avoiding filing for bankruptcy or losing your assets. You usually repay only a portion of your d
Financial Advice in Calgary - Understand All Your Debt Options
A consultation with a Licensed Insolvency Trustee is the foundation of your debt relief plan. It helps us to understand and consider all the factors related to your debt situation so we can assist you with optimal advice and support throughout your journey to debt freedom. During our initi
Yes, but not through direct negotiation with a CRA collection agent. A Licensed Insolvency Trustee submits your proposal to a dedicated CRA unit that is authorized to accept a reduced settlement when the situation warrants it. CRA frequently accepts consumer proposals if the alternative bankruptcy often results in CRA receiving even less. The proposal also stops all collection action immediately through a legal stay of proceedings.
In most cases, yes. Personal income tax, HST/GST, liabilities stemming from unpaid corporate taxes, and most related penalties are treated as unsecured debt and are discharged through bankruptcy once you receive your discharge. The exception is High Tax Debtors: those with at least $200,000 in tax debt representing at least 75% of their total debt for whom the court is involved and discharge may be conditional or more complex.
Yes. CRA does not need a court order to garnish wages for unpaid tax debt. They can also seize 100% of your bank account and intercept government benefits including GST credits, the Canada Child Benefit, CPP, and OAS even while you are on a payment arrangement. Filing a consumer proposal or bankruptcy stops this quickly through a legal stay of proceedings.
This is very common. A consumer proposal addresses all your unsecured debts at once: CRA debt alongside credit cards, personal loans, and payday loans. You make one affordable monthly payment, interest stops on everything, and you settle for often less than the total owed across all creditors. This makes a consumer proposal far more comprehensive than a CRA payment arrangement, which only addresses the CRA debt while everything else continues to accumulate interest.
YOUR TRUSTED CHOICE FOR DEBT RELIEF
With our experience and our caring approach, we will help you find the best option for debt relief based on your unique situation - from advice on talking to your creditors to a consumer proposal or bankruptcy, and everything in between. We are here to lift the burden caused by overwhelming debt.
Contact us today at 1-403-899-3890 for a FREE, no-commitment meeting, and let us guide you to regaining your financial footing.
Or, join our Email List to receive notifications when we post new blogs or have news to share.
