The CRA are not going to give up on money they believe they are owed. They will also not take your circumstances into account when they need to be paid, but will expect their debt to be paid regardless of the circumstances. Legal action will begin if they feel they are missing out and if they are concerned that the money will disappear out of your bank account then they will place a CRA bank freeze on the account.
There may not be a lot of notice given when it comes to a CRA bank freeze as they do not have the same obligations as others to warn you what they are going to do. Courts will not be involved, so you will not get your day in court or the chance to state your case and explain why you have got into this situation and what the consequences of a CRA bank freeze will be for you and your family. One day you will turn up at the bank and will not be able to take any money out – what would you do to feed your family if that were to happen?
The CRA consider it to be enough to make you aware that you owe money and hope that you will pay up before they take further action. Most of the time this is not going to be an option – you can’t give them what you don’t have and they are going to have to progress to sanctions. Information will be given to you in writing and it is at this stage you should begin to realise that there is the risk of a CRA bank freeze being put on your account. A couple of letters will go out, but this does not mean that there will not be a CRA bank freeze imposed for some time yet, as the two things can happen almost simultaneously.
The CRA will send the bank a “Requirement to pay” and they have to freeze your account. They will not argue the case for you, nor will they disobey the CRA. You will need to find ways to pay your bills or at least try to come to an arrangement to people who have to be paid each month. There is the risk that this will cause you to fall into arrears and you will be faced with bigger debts and other organisations contacting you regarding none payment.
If you receive a letter telling you that you owe money to the CRA then expect a CRA bank freeze. Speak to someone who has dealt with this sort of problem before and will be able to work with you until the problem has been sorted out.
A professional may be able to come to an arrangement regarding the CRA bank freeze meaning that you can gain control of the bank account and carry on as normal while paying your debt to the CRA. It will not be easy, but there are people who know how things work.