Legally Settle Your Tax Debt and Stop CRA Collections Without Bankruptcy

If you owe significant back taxes, GST/HST, payroll remittances, or penalties and interest to the CRA – and there’s no realistic way to repay it in full, filing a Consumer Proposal could be the legal lifeline you need.

A Consumer Proposal is a powerful alternative to bankruptcy that allows you to:

• Reduce your total CRA debt
• Freeze all interest and penalties
• Stop wage garnishments and bank account freezes
• Consolidate into one affordable monthly payment

At TaxHelp.ca, we work with trusted Licensed Insolvency Trustees (LITs) to help our clients resolve overwhelming tax debt through legally binding agreements. We guide you through every step of the process and advocate on your behalf.

What Is a Consumer Proposal?

A Consumer Proposal is a legal process under the Bankruptcy and Insolvency Act (BIA) that allows you to settle debt with your creditors including the CRA by offering to repay only a portion of what you owe.

• You keep your assets
• All CRA enforcement stops, including:
  • Wage garnishments
  • Bank freezes
  • Property liens
• You make fixed monthly payments for up to 5 years
• Interest and penalties stop immediately

Once accepted, the CRA cannot take further legal action and must respect the terms of the proposal.

CRA Collections Are Aggressive, But a Proposal Can Stop Them

CRA can and will use legal enforcement powers that other creditors can not:

• Freezing your bank account without notice
• Garnishing up to 50% of your wages
• Registering liens on your home or property
• Seizing your business receivables or refund offsets
• Holding directors personally liable for corporate debt

A Consumer Proposal stops these actions immediately, giving you legal protection and the breathing room to recover financially.

When to Consider a Consumer Proposal?

You may be a good candidate if you:

• Owe $10,000 to $250,000+ in combined tax and non-tax debt
• Face CRA collections, legal action, or interest that keeps accumulating
• Have tried payment arrangements but can’t keep up
• Are ineligible for Taxpayer Relief or the VDP
• Want to avoid bankruptcy while protecting your home or business assets

How We Help With CRA Debt and Consumer Proposals

At TaxHelp.ca, we stay directly involved throughout the process to ensure your CRA debt is handled correctly.

Here’s what we do:

1. Review your CRA debt profile
   • Retrieve and review tax account balances and collections history
   • Identify all CRA debt that is eligible for inclusion in the proposal
2. Work with a Licensed Insolvency Trustee (LIT)
   • Connect you with an LIT who specializes in tax-focused proposals
   • The LIT handles legal filings and negotiations
3. Structure a viable offer to the CRA
   • Advise on terms CRA is likely to accept
   • Provide context and documentation to support your financial position
4. Manage CRA communications
   • Track responses and address CRA concerns or objections
   • Help ensure they vote in favour of the proposal
5. Post-approval Support
   • Ensure ongoing compliance to prevent future CRA issuesAssist with future filings, payment planning, or rebuilding credit

What If I’m a Business Owner?

If you are personally liable for business tax as a director, a Consumer Proposal can address:

• Unpaid GST/HST
• Unremitted Source deductions (CPP, EI, and income tax withheld)
• Corporate income tax reassessments

Overwhelmed by CRA Debt? Let’s Talk.

If you’re drowning in CRA penalties, interest, or tax debt you can’t afford to repay, we can help you settle your debt legally.