September 5, 2017

The earlier you talk to a trustee the more options are available for you.

If a creditor had registered a judicial lien on your property (writ of execution) and you filed a bankruptcy the writ is removed by the Stay of Proceedings right away.  This is because your interest in the property now vests in the trustee and the trustee wold be inhibited from dealing with the property by the writ of execution

However, if you chose instead to file a Consumer Proposal the writ is only removed after the successful completion of the proposal – which can take up to five years and could be an impediment to refinancing even if you are up to date on your proposal payments.

A writ issued by the CRA is an exception in that if they register on your property their lien is as effective as a (subsequent) mortgage.  The CRA’s rights will survive either a bankruptcy or a proposal.  If you have tax debts don’t wait for a registration against your property before consulting with a licenced trustee in bankruptcy.

A bankruptcy or proposal filing will effectively block the placement of the writ, even by the CRA, allowing you more control and flexibility in restructuring.