A Division 1 Proposal Protects A Farmer and Her Assets
At Bankruptcy Canada, we have worked with people from all walks of life and in all kinds of situations.
We are no strangers to unique situations that many would not be able to come up with a solution for.
To illustrate this point, one of our LIT’s recently worked on a unique case involving a farmer who felt under a lot of pressure from the CRA.
The client was self employed, and she had a complicated situation involving tax liens registered on her personal assets – as well as her farm.
This meant that her assets were fully encumbered by CRA liens, and she was struggling to find a way to overcome this.
Feeling under pressure from the CRA to sell her farm and assets so that she could find the money to pay off her tax debt, she turned to us for help.
Selling her farm and assets was the last thing she wanted to do, and she was under a lot of stress.
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She met with Bankruptcy Canada for a free one hour consultation, and discussed all of her available debt relief solutions.
The situation is complex, and we advised that the best course of action to take would be a Division 1 proposal.
A division 2 proposal (commonly known as a consumer proposal), is different to a division 1 proposal in that when discussing the division 1, total debts excluding any debts secured by the individual’s principal residence equal more than $250,000.
She agreed that this was the best course of action for her to take so we filed for the Division 1 proposal and then proceeded to negotiate with the CRA so that her stressful tax situation could be brought to an end.
The proposal was accepted by the CRA and then approved by the court.
The client was over the moon with her solution and finally felt some relief after feeling stressed for so long.
She currently makes payments directly to CRA under the terms of the proposal, and this is settling the tax liens and making proposal payments to Bankruptcy Canada, which we then distribute to other creditors.
When this is over, the client will finally be debt free and she will not have the tax liens on her assets.
She can also keep her farm and continue living life as she likes.
Get In Touch With Bankruptcy Canada Today
If you want to find a better way to protect your assets, Bankruptcy Canada can help you.
Having been in the industry for many years, we have helped people in various financial situations, and we are confident we can help you.
Working with us will give you financial stability and peace of mind once more, plus, we’ll always come up with a suitable solution that suits your individual needs.
Don’t hesitate to get in touch with us if you need help or advice.
Bankruptcy Canada hopes to hear from you soon!
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal