Those who are facing problems related to the tax lien probably don't know the best way to get rid of it. However, the truth is that there are several routes one can take to get rid of it but remember one thing. They may be different in approach, but they all have the same objective: Remove the tax lien.
Thus, this guide is here to shed light on how you can fight Canada Revenue Agency Liens. In all fairness, it's better to know what you're doing rather than being forced to live the consequences.
What's a Tax Lien?
If you have unpaid tax debts, Canada Revenue Agency will file a claim on your property called Tax Lien. They will not do this until they've explored other ways of debt collection methods but didn't succeed.
A tax lien is very similar to a mortgage as it is filed against your property, but the CRA can also register a tax lien against your credit report.
Can I Lose My House to CRA?
If you have a CRA tax lien, it doesn't necessarily mean the revenue agency can seize your house. However, it does mean their payment is secured against the value of your property whenever you sell it. Although the CRA can seize your assets, they will try to use all other debt collection methods before taking any extreme measures.
Having a lien means the CRA is forcing you to deal with them. Please note that if you have tax debts, but the CRA hasn't filled the tax lien yet, you can get tax debt relief, which is usually a much better option than to fight Canada Revenue Agency liens.
How to Get The Lien Removed?
If you already have a CRA tax lien filed against your property or other assets, you have no choice but to work towards removing them. Here are three common routes you can take:
- Negotiate Payments: You can work with the CRA to negotiate repayment terms. If this is done successfully and you manage to pay the debt, the Canada Revenue Agency Liens will be removed.
- Sell Your Property: This is the easiest way out, but you will lose your property and any money paid as a result of its sale. This is because the CRA will take the funds that remain after paying your mortgage.
- Consumer Proposal: You can also file a consumer proposal. Keep in mind that the lien is put against the house, so the proposal must have a clause that states the removal of tax lien by CRA once you complete the proposal, and CRA must have to agree to the proposal. Practically speaking, this is the most difficult route out of all three, especially if a large amount of money is involved.
You might be wondering what if you file for bankruptcy? Unfortunately, this will not remove the lien. There are many technical things to consider when you decide to fight Canada Revenue Agency Liens, which is why we suggest getting consultation from a reputed credit agency.
At National Credit Help, we make sure our clients know their options and are helping the best way possible. Contact us today to let us review your tax lien situation and suggest the best options.