Payment agreement – Revenu Québec

What should I do if Revenu Québec seizes my salary and bank accounts, and registers a legal lien on my house?

(If you wish to learn about how a government registered lien would apply to an Ontario resident, please contact our office.)

Last year, Martin lost his job not long after filing his tax returns. Since he had earned a lot of money that year, the amount he had to pay was quite high. However, Martin decided not to pay his taxes, since he no longer had a job. Many Revenu Québec agent calls and letters later, Martin still hasn’t paid his tax debt. Fortunately, he found a new job. He hopes that in a few months, he will be able to pay not only his tax debt, but also his taxes for the current year. A few weeks after Martin is hired, his boss meets with him to discuss changes to his pay. His new employer informs him that he has been contacted by Revenu Québec, requesting that he garnish Martin’s wages. Martin is petrified. He didn’t know that Revenu Québec could seize his salary. He decides to look at one of the letters he had received from Revenu Québec. To his surprise, the letter mentions that Revenu Québec may proceed with a seizure of wages or bank accounts, or impose a legal hypothec or lien on his house. Martin had been unaware of these measures. As he is leaving the office, he decides to phone his brother, who has had debt problems in the past.

Devon : Hey Martin, how are you?

Martin : Hi Devon. Not very well, to be honest. I want to ask your advice about income tax problems.

Devon : I’m no expert, but I’ll try to help. What happened?

Martin : Last year, when I lost my job, I couldn’t pay the taxes I owed. Since then, I received several letters and calls from Revenu Québec agents, but I always ignored them, until now. My new boss just told me that Revenu Québec is garnishing a portion of my salary. I just read one of their letters, and they say that they can also seize my bank accounts and impose a legal hypothec on my house. I don’t know what to do.

Devon : That’s awful news! Do you remember when I had debt problems a few years ago? I had tax debts too. Like you, I ignored their calls and letters, and they eventually seized my accounts, since I had no job.

Martin : How did you solve your problem?

Devon : After they seized my accounts, I contacted an agent, who told me that I could make a payment agreement with Revenu Québec to end the seizure.

Martin : A payment agreement?

Devon : Yes! A payment agreement. It’s an arrangement you make with Revenu Québec to repay portions of your debt over a defined period of time, usually between one and 12 months. You have to make payments every month, for example, until you have repaid what you owe them.

Martin : And they agreed?

Devon : They accepted my proposed agreement, but warned me to respect the agreement if I wanted to avoid having my accounts and wages seized, or having a legal hypothec imposed on my house. Since I had just gotten a new job, I was able to respect my payment agreement for a time. However, with my family obligations, I wasn’t able to see the payment agreement to the end.

Martin : Is that when you went to see a Licensed Insolvency Trustee, like you were telling me?

Devon : Yes, exactly. When I stopped making payments, they seized my accounts again. I did some research and contacted a Licensed Insolvency Trustee at Ginsberg Gingras. They really helped me with my debt problems, and now I’m finally free of my debt burden!

Martin : I think I’ll contact a Revenu Québec agent to make a payment agreement. Now that I have a salary, I should be able to repay my tax debts little by little. But I’ll keep your advice in mind; if I can’t make a payment agreement, or if they keep garnishing my wages, I’ll contact a Licensed Insolvency Trustee at Ginsberg Gingras to resolve my debt problems. Thanks, Devon, I really appreciate your advice!

Devon : No problem, Martin. I hope you can solve your debt problems.

After the phone call, Martin contacts a Revenu Québec agent and asks to make a payment agreement. After many months of respecting the agreement, Martin had to stop making payments; with his new tax return, his tax debt has increased significantly, and he is unable to keep paying. He recalls his brother Devon’s advice and finds the information to contact a Licensed Insolvency Trustee at Ginsberg Gingras. He is keen to resolve his debt problems, and doesn’t want to face the risk of wage or account seizure, or a legal hypothec (commonly called a lien) on his house. He is confident that he is making the right decision for his financial future.

Several solutions are available to help you get rid of your debts and your creditors, such as a payment agreement or a consumer proposal. Consult a Licensed Insolvency Trustee at Ginsberg Gingras, they will send you on the right path so you can free yourself from debt.

Ginsberg Gingras, serving you for 40 years. Discretion assured.