Yes. A consumer proposal or bankruptcy can help with most CRA debt, including personal income tax debt, HST/GST debt, CERB/CRB overpayments, and many other unsecured tax balances. When you file a consumer proposal or bankruptcy through a Licensed Insolvency Trustee, a legal stay of proceedings is put in place. This means the CRA must stop most collection action, including collection calls, wage garnishments, bank account freezes, and legal proceedings. A consumer proposal allows you to make an affordable settlement offer to the CRA and your other unsecured creditors. You may repay only a portion of what you owe, with no further interest, through one manageable monthly payment. Bankruptcy may also eliminate CRA debt, but it is usually considered when the debt is unmanageable and a proposal is not practical. Bankruptcy can provide a fresh financial start, but it may involve additional duties, surplus income payments, and asset considerations. CRA debt can feel overwhelming, but there are legal options available. As Licensed Insolvency Trustees, we can review your situation, explain your options clearly, and help you choose the best path forward.

Hiring The Oakman Group is an important first step toward dealing with CRA debt, but the CRA is not required to stop collection activity simply because you have contacted or hired a Licensed Insolvency Trustee. However, once a formal insolvency proceeding is filed—such as a consumer proposal or bankruptcy—a legal protection called a Stay of Proceedings comes into effect. This generally requires the CRA and other unsecured creditors to stop collection action, including collection calls, wage garnishments, and many legal proceedings. This means that if CRA debt is overwhelming, we can review your situation and explain whether a consumer proposal or bankruptcy may help stop CRA collection pressure and create a structured path forward. At The Oakman Group, we will help you understand your options clearly, deal with the CRA through the proper legal process, and guide you toward the debt relief solution that best fits your circumstances. Need help with CRA debt? Contact The Oakman Group for a confidential consultation.

Yes. Simply speaking with the Canada Revenue Agency (CRA) does not prevent them from taking collection action. If you have outstanding tax debt and have not reached a formal payment arrangement that the CRA has accepted, the CRA may still use its collection powers, including: •Freezing or seizing funds in your bank account •Garnishing wages or other income •Redirecting amounts owed to you by third parties •Registering liens against certain assets •Taking other collection actions permitted under tax legislation Even if you are communicating with a CRA collections officer, collection action can occur if the CRA believes the debt remains unpaid and no satisfactory resolution has been reached. If your tax debt has become unmanageable, a consumer proposal or bankruptcy may provide legal protection through a Stay of Proceedings. Once filed with a Licensed Insolvency Trustee, this stay generally requires the CRA and other unsecured creditors to stop collection activities, including bank account freezes and wage garnishments, subject to certain exceptions. The key is to act quickly. If the CRA has warned that collection action may be taken, waiting too long can result in your bank account being frozen without further notice. At The Oakman Group, our Licensed Insolvency Trustees can review your situation, explain your options, and help determine whether a consumer proposal or bankruptcy can provide the relief and protection you need. Contact The Oakman Group today for a free, confidential consultation to discuss your CRA debt and collection concerns.

A repayment plan and a consumer proposal are both ways to deal with debt, but they work very differently. Repayment Plan A repayment plan is an informal arrangement between you and your creditors. Depending on the creditor, they may agree to accept smaller monthly payments or provide temporary relief from collection activity. However, there are some important limitations: •You must repay 100% of the debt. •Interest may continue to accrue unless the creditor agrees otherwise. •Creditors can change their minds or cancel the arrangement if payments are missed. •Not all creditors are required to participate. •There is no legal protection preventing creditors from pursuing collection action. For CRA debt, the Canada Revenue Agency may agree to a payment arrangement if you can demonstrate that you are unable to pay the balance in full immediately. However, the CRA generally expects the debt to be repaid in full, plus applicable interest. Consumer Proposal A consumer proposal is a formal legal process administered by a Licensed Insolvency Trustee under the Bankruptcy and Insolvency Act. With a consumer proposal: •You repay only a portion of your unsecured debt. •All interest stops immediately upon filing. •You can spread payments over up to five years. •Collection calls, wage garnishments, and most legal actions stop through a Stay of Proceedings. •The proposal is legally binding on all unsecured creditors once accepted. •You typically keep your assets, including your home, vehicle, and RRSPs. A consumer proposal can include many types of unsecured debt, including credit cards, lines of credit, personal loans, payday loans, and CRA tax debt.

A repayment plan may be suitable if you can realistically repay your debts in full within a reasonable period of time. A consumer proposal is often a better solution when the total debt has become overwhelming and repaying it in full is no longer realistic. At The Oakman Group, our Licensed Insolvency Trustees will review your income, expenses, assets, and debts to help you determine which option best fits your circumstances. Contact The Oakman Group today for a free, confidential consultation and learn whether a consumer proposal could help you reduce your debt and regain financial stability.

The best way to find out is to schedule a confidential, no-obligation consultation with us. We will assess your specific tax situation, income, and assets to determine which insolvency option best fits your needs.