Getting into debt with the Canada Revenue Agency (CRA) is something we all would like to avoid. Unfortunately, financial turmoil can happen to anyone given the right circumstances. If you fall behind in payments to CRA they can place a Writ on the title of any property you own. A Writ is a registration on the title of property which represents the terms of debt that is owed With CRA Writs it is very much a “guilty until proven innocent scenario”. The onus will be on you to prove what you owe, and then to arrange a plan for payment. If not, the Writs will stay on your property and can negatively impact your ability to sell your property, or even renew your mortgage.
The CRA has a reputation of not being the easiest organization to deal with. They have extraordinary powers, that other lenders do not have. However, there are a few steps you can take to improve your situation in case you do need to deal with the CRA regarding a Writ on your home.
Why you should have an online CRA account
In foreclosure matters that involve the CRA, it is important to have someone experienced on your side. CRA will often impose large penalties and interest charges. It is up to you to understand how those charges are applied in order to possibly reduce the final amount owing.
Any Canadian citizen that has tax history with the CRA can set up an online CRA account. Information about setting up an online CRA account can be found here:
https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/mycra.html
An online CRA account contains a lot of well organized personal information and can expedite the process of sharing and receiving information from the agency. You will avoid corresponding through mail alone, saving a lot of time and frustration.
Get a professional on board
In a foreclosure, it is very important that you obtain the right information so that you act within the required timeframe. Doing so will give you the best chance to save your home, and possibly avoid a deficiency judgment that can ruin your credit and finances for years to come. A professional can help you make sense of what is happening so that you can think logically about resolving what can often be complex and emotional financial decisions.
