When you miss a payment, but that leads to more missed payments, things can get out of hand and the CRA puts you into arrears. It may be frightening to have happen, but Leverage Capital can help you with support, guidance, and professional advice.
What Does CRA Mean? What Does the CRA Do?
The CRA is the acronym for the Canadian Revenue Agency. It is the revenue service of the Canadian Government that deals with taxes, benefits, administer programs, and ensures compliance on the government’s behalf. It also gives tax credits and administers laws and policies. The job of the CRA is to contribute to the social and economic
What are Arrears, and What Happens If You Go Into Arrears?
Arrears are what happens when you miss one or more payments for a debt, or the payment becomes overdue. Arrears start from the missed payment’s due date. If any payment becomes overdue or goes over its due date, it is considered late.
Various types of payments that can go into arrears
If you go into arrears, there are ways to get out.
If you find you just can’t pay in full, you can arrange a payment plan. Regular payments can be set up over a certain period. You can also arrange to speak with a qualified person or Licensed Insolvency Trustee. They may have helpful options for your situation, such as bankruptcy or a consumer proposal. Once bankruptcy is filed, collection activity will stop, since the CRA acts like any other creditor.
Remember the CRA can take measures when they are unable to make an agreement with the person in arrears, or who fails to file an income tax return. The CRA can do the following without going to court:
Contact Leverage Capital today and let me help you get out of arrears. I can help you take that step back to get your debt under control