Can CRA Garnishments Be Avoided?

When there is money owed to the CRA it is likely that CRA garnishments will be used to recover the debt. There are a number of steps that will be taken and at times, you will not be informed of what is going to happen.  If there is not a response that the CRA are happy with, they will proceed to take the money from your account. CRA garnishments is a tactic that the CRA will use if they believe it is the only way they will get their money.

The CRA are not the only people who can use this method, but it is easier for them to do it. They are able to move quickly and get their money under a “requirement to pay”. As they are part of the authorities, they don’t need to go through the same process and they will already have all the evidence they feel they need to go to this stage. If you are subject to CRA garnishments, then you need to work quickly and with professional help to get the problem resolved.

You will not get a great deal of warning, so you will be relying on other people who have more knowledge than you to get you out of this mess. As soon as you become aware of CRA garnishments, you should look for someone to go through the process with you, and deal with the difficult laws as you will not be able to deal with this yourself.

If you are aware that you are going to struggle to meet your commitments, then you should contact the CRA before they place CRA garnishments on you and your salary. Working with them will show that you are serious about wanting to pay what you owe, and the fact that you have employed someone to help shows them that you want to do what is right. CRA garnishments are not pleasant and you need to avoid them if you can.

In order to avoid CRA garnishments, you should make a sensible arrangement to pay. Be realistic about what you can afford to live on as if you offer too much you may fall behind, and if you offer too little it may appear that you are not taking this seriously. A tax professional can easily help you with the process of negotiation.

If you have left things too late and find that CRA garnishments have already been issued, you still need to act quickly to try and recover the situation. There may still be the chance that arrangements can be made.  Don’t let it get this far when there are people who can solve the problem for you.