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How to Make Your Bank Unfreeze Your Frozen Bank Account
Your bank account is your source of financial security, but it’s not always so secure. A frozen bank account is something many people have to deal with, and if it happens to you, you’ll need to learn ow to make your bank unfreeze your frozen bank account and take action fast.

A frozen bank account can usually happen in two ways — one, a third-party creditor can freeze your bank account with a court order, and two, the Canada Revenue Agency (CRA) can freeze it even without a court order if they know where you bank.

When your bank is advised of the action, they are legally obligated to freeze your account. In both cases, you likely won’t be notified that your account is about to be frozen.

You’ll only find out when you attempt to use your bank card or account. And in the meantime, any automatic payments, any cheques, or any other payments you attempt to make will fail, which can do a great deal of harm to your credit.

If you have a frozen bank account, what can you do?

When your bank account is frozen, the funds are held for 30 days and then sent to your creditors, so fast action is key.

The only ways you can get your account unfrozen are to:
1. Make an arrangement with the creditor (usually by paying the debt in full) and they remove the freeze. If you have the means to pay off the debt, this can be the best option. But if you don’t have the funds, you likely won’t be able to make an arrangement without professional assistance.
2. Get a court order to remove it. This can be expensive, and it isn’t guaranteed the judge will rule in your favour.
3. Look at filing a consumer proposal or filing for bankruptcy. Both options immediately stop a frozen bank account and will see any funds frozen returned as soon as possible, however, they can also significantly harm your credit. But if you can’t afford to pay off the debt otherwise, it may be the best option available.
One thing important to note: if you’re considering a consumer proposal or bankruptcy, don’t go directly to a trustee for these.

Speak with a financial consultant first. Trustees represent your creditors and get paid depending on the amount of the proposal or bankruptcy. A bigger amount equals more money for them.

It can’t be reiterated enough — if you have a frozen bank account, you must act quickly. Once your account is frozen, you only have a short period (30 days) to stop the bank from remitting the funds in your account to your creditor.

No matter the situation, a frozen bank account can wreak havoc on your credit and finances.

If you need to unfreeze your frozen bank account, don’t wait.

Contact DebtCare today to find out about all of your options. 1-888-890-0888.
April 17, 2018
Yes, the CRA Does Prosecute for Tax Evasion – Are You at Risk?

It is a common misconception that the Canada Revenue Agency (CRA) is lax when it comes to prosecuting for tax evasion. While we may not hear about regular citizens being prosecuted on a regular basis, the reality is that the CRA is actually quite aggressive.

Don’t believe us? Not only does the CRA prosecute on a regular basis, it also publishes such convictions online. You can view these here: http://www.cra-arc.gc.ca/nwsrm/cnvctns/menu-eng.html.

As you can see, being prosecuted by the CRA is both expensive and humiliating.

What can you do to avoid this predicament? Firstly, it is important to note that it is not illegal to have a tax debt – it is, however, illegal not to file your taxes. Not filing your income taxes is considered tax evasion, and this is what many of the above referenced convictions are for. So, if you have not filed because you can’t pay your tax debt, know that this is the worst approach you can take.

Instead, it is better to file with a plan to deal with the financial problem than to continue to ignore the problem altogether.

Once you file and receive your assessment outlining the debt you owe, be wary of contacting the CRA directly. This will often lead to a payment plan that you can’t afford. The CRA is not interested in long-term payment arrangements, and agents will use all available tactics to see the money paid.

If you do not call the CRA directly or make other arrangements, and instead hope that the CRA will forget about the debt, you’ll likely find yourself dealing with enforcement action, such as a wage garnishment or frozen bank account, in the near future. When it comes to tax debts, the CRA is ruthless, and make no mistake, if you owe, they’ll be coming to collect.

Great, so you don’t file and face prosecution or you file and face enforcement action, neither of which are great outcomes. There is hope. There are federal government programs that can help you deal with the tax debt, reduce penalties and interest, and stop enforcement action. There are also a variety of debt solutions that can help you pay off the tax debt (and consolidate all other debts) and get you back to a place of financial security.

At DebtCare, we can help you work through all of the available options for getting rid of your tax debt.

Want to find out more? Get in touch today by calling 1-888-890-0888.

December 28, 2016
Frozen Bank Account? You Have Options
As the weather gets colder, some of us are happy to welcome the brisk cold weather – a break from the heat of the summer months, even if it brings with it some snow and frozen rain. However, when the freezing isn’t just taking place outside, and instead it is your finances taking a hit from Jack Frost, you may be in deeper trouble than you’d care to admit. This week we talk about the dreaded frozen bank account.

Bank accounts are typically frozen by one of two different types of institutions – a creditor or the Canada Revenue Agency (CRA). The two processes differ but the end result is the same.
- In the case of a creditor. If your account has been frozen by a creditor, that creditor will have been required to sue you in civil court, obtain a judgment against you, and then file enforcement action with the court in order to freeze your bank account.
- In the case of the CRA. The CRA does not require a court order. An agent simply sends a notice to your bank and your account is frozen.
In both cases, you likely will not be notified that your account is about to be frozen – you’ll find out after the fact, when you go to use your bankcard or account. That’s never a good thing. In the meantime, any automatic payments, any cheques, really any payments you attempt to make, will fail – doing a great deal of harm to your credit.

Once a bank account is frozen you have to act fast – often the bank will leave the frozen funds in your account, inaccessible, for up to 30 days before they are sent to the party who froze your account. It is this small window of time within which you need to get the issues straightened out.

What are your options? The best course of action is to pay the debt in full. Whatever is owed needs to be paid – that is the best way to get things unlocked quickly. But what if you can’t pay the debt?

If your account was frozen by a creditor who has obtained a court order, you can make a motion to the court to ask a judge to unfreeze the account. Whether or not they unfreeze the account depends on the discretion of the judge. There are no guarantees here.

File a consumer proposal. In this scenario, a consumer proposal is negotiated with all of your creditors and as long as the majority of your creditors accept the proposal, it is binding upon all of them. As soon as a consumer proposal is filed, all creditor collection action is stopped. This includes having a freeze lifted. If accepted, the debt itself may be reduced, interest will stop and you will be able to make a single monthly payment to pay down your debt.

File for bankruptcy. When a bankruptcy is filed, all collection action stops, including any frozen bank accounts.

No matter the situation, a frozen bank account can wreak havoc on your financial stability and your credit.

Don’t wait. Contact DebtCare today to find out about all of your options. 1-888-890-0888.
November 8, 2016
Frozen Bank Account Courtesy of the Tax Man?

Do you have a frozen bank account courtesy of the Tax Man? You’re not alone!

Thousands of Canadians owe the tax man – this is a simple but often startling fact. Owing the Canada Revenue Agency (CRA) isn’t illegal, but that doesn’t mean the organization is lenient – far from it.

If you owe, the CRA will do whatever it can to collect. This often involves freezing your bank account – and if you have a frozen bank account, you are not alone.

Over the last few years, the tax man has become more aggressive than ever – even freezing bank accounts within a year of the amount owed being assessed.

The CRA will not wait for you – if money is owed, it needs to be paid.

For example, we spoke recently with an individual who filed taxes in April 2014, and the CRA froze their account in January 2015!

When it comes to enforcement action, the CRA is not like other creditors who are required to take you to court to retrieve funds.

At least with those cases you have a chance to defend yourself. The CRA does not require a court order, and as a result you can have a frozen bank account with no notice to you. All that is required is a notice to the bank – with this, the bank is legally required to freeze the account.

Once you have a frozen bank account, the bank holds the money in your account for a period of time and then it is sent to the CRA. Once this happens, it becomes even more difficult to negotiate with the CRA.

Many individuals see a frozen bank account and assume that a quick call to the CRA will thaw things out. This is not the case. In order to have this enforcement action lifted, you will need to pay or come to a payment arrangement.

Paying the amount in full, if possible, is the best option.

Negotiating a payment plan – this is where the challenges continue. If you try to negotiate with the CRA, agents will use the opportunity to get personal information from you which can then be used to take more action against you – such as a wage garnishment or property lien.

Perhaps it was a negotiation call which led to the frozen bank account in the first place?

We suggest not calling the CRA directly, so what options are available?

Step 1 – Put a professional in between you and the tax man.

Step 2 – Evaluate your options. What do you have that you can leverage to pay the CRA? If you can’t pay the CRA in full, what can you afford monthly?

Step 3 – Consult a financial professional who has access to government programs that can force the CRA to unfreeze your account.

You have to act quickly before the bank sends the money to the CRA. Federal government programs stop interest, stop collection action, allow a single reduced monthly payment and sometimes the tax debt can even be reduced.

To get relief from a frozen bank account, call DebtCare. We know how to help: 1 (888) 890-0888.

April 12, 2016
Still Owe Income Tax from Last Year? Avoid a Frozen Bank Account with These Tips
We are approaching the end of January, and that means that tax time is approaching. Sure, it may be a few months away, but if you still owe income tax from last year, those months can seem like minutes. Really, at this point you’re spending on borrowed time – a frozen bank account could come any day.

When you owe the Canada Revenue Agency money, they don’t wait until tax time to attack. Their strategy is simple: get the money owed, by whatever means necessary. All too often that means freezing your bank account to retrieve those funds. If you still owe money based on last year’s assessment, don’t assume that the CRA has forgotten – they haven’t. The CRA is becoming more and more aggressive each year, and there is a list with your name on it.

Great, so we’ve filled you in on the negative, how about some positive? You can avoid a frozen bank account in the following ways:
- Don’t tell the CRA where you bank! If you call to try and negotiate a payment plan with an agent, they may insist upon recording your banking information before agreeing to a plan. No matter what they say they will agree to or promise it is only an attempt to get the most information possible. Of course they can find out your banking information on their own with some legwork, but don’t make it any easier.
- Get to the tax debt before it gets to you – this is really the only way to stop a frozen bank account before it is leveraged against you. This may involve consolidating debt, borrowing money, or taking from savings – there are several financial options.
What can you do if you have a frozen bank account? If the bank has already received a notice from the CRA and your account has already been frozen, really the only way to have this lifted is to pay the tax debt.

Can you pay? If you can’t, you need to see a financial consultant to come up with a financial plan. If the CRA has frozen your account with money in it they will not easily let go of that money – no matter what that money is needed for.

Some federal government laws can protect you and force the CRA to unfreeze your bank account – these programs also stop interest and allow you to make one low monthly payment. There is no one-size-fits-all approach though, so the best thing to do is have an impartial review by your own representative.

If you are worried about a frozen bank account, or already reeling from the effects of one, call DebtCare today. We can help you figure out a plan to have it removed. 1-888-890-0888.
January 26, 2016
Tax Grinch – You’re Not Even Safe from a Frozen Bank Account During the Holidays

The holiday season is fast approaching, and that means a season of giving and joy – unless you owe money to the Tax Grinch. Unfortunately, even at the happiest time of the year, the CRA is determined to get money owed to them, and they’ll often leverage a frozen bank account to get it – even during the holidays. When there is money on the line, the CRA will not hold back.

Toronto’s Marion Hill experienced just this scenario. After trying unsuccessfully to negotiate with the CRA to come up with a reasonable payment plan, Hill found herself facing a frozen bank account – unable to pay bills, even basic living expenses, just in time for Christmas. Hill, like many other Canadians, found herself fighting with the federal government to try and get the freeze lifted, only to be met with denial on all fronts.

You can read more about this story here: http://globalnews.ca/news/1023012/toronto-womans-account-frozen-over-back-taxes-just-before-christmas/.

When you have a tax problem, time is not your friend. Ignoring the problem is also not an option – doing so won’t make it go away and will typically result in a problem that continues to grow as time goes by. And a frozen bank account won’t be the only action the CRA will take. The CRA will often adopt a multi-tiered approach, placing a lien on your house, and garnishing your wages. If you have assets you want to protect you have to act now before the collection action begins.

Perhaps you should try your hand at negotiating with the CRA – maybe that will work? Be careful – the government is not your friend. Trying to negotiate with them will often lead to further trouble, as they will often discuss the possibility of a payment plan in exchange for personal information – personal information they can use to come after you once they’ve decided that a payment plan will not be granted.

So what can you do? Bankruptcy and a consumer proposal are both viable options depending on how much you owe. These actually represent the only options to stop CRA collection action such as a frozen account or a garnishment in its tracks. Once you file either one, the bank has to unfreeze your account and give you back access to the money.

A bankruptcy and consumer proposal are also the only ways to legally reduce a principal tax debt. Often your creditors, understanding that many will never be able to pay what is owed, will accept a reduced total in exchange for a legally binding agreement that sees them receive regular payments.

Want to know more about how to deal with a tax debt, and perhaps reduce the principle debt? Call DebtCare Canada today at 1-888-890-0888.

December 2, 2015
Are You Dealing with a CRA Frozen Bank Account?

Small Business Alert: Are You Dealing with a CRA Frozen Bank Account?

The deadline for filing your business tax returns has passed – for many, this season is a stressful one, but if you filed on time and don’t owe, that stress if finally out of the way. However, if you do owe, or are still dealing with a debt following last year’s deadline, you may be facing the reality of a CRA frozen bank account.

In the past, the CRA tended to take at least a few months before issuing a notice to freeze a bank account. However, they are now freezing them far sooner, adding to the already existing mountain of stress when it comes to dealing with your small business finances.

Furthermore, not only are they freezing accounts far sooner than they used to, they are also freezing them for far less – amounts as low as $1000. This is causing a great deal of trouble for many businesses that get stuck in the CRA web. Not only is this an embarrassing situation to have to deal with, it can be ruinous for your business reputation – especially when payments can’t be made or cheques begin to bounce…

With most creditors, collection action, such as a frozen bank account, requires court approval, but one of the biggest problems with the CRA is that they don’t need a court order to freeze your account – and your bank must comply once they receive notice.

Wait – how does the CRA know where you bank? Often you’ve told them yourself. Any negotiations you enter into, cheques you send, etc., likely provide them with personal information that makes obtaining this information easy (if you haven’t provided the exact information yourself). Even without this information, a little extra legwork and a letter to the 5 major banks will often yield the same results. The reach of the CRA is long – once collection action has been decided upon, the ball is entirely in their court.

So, does this mean that once your account has been frozen that you are dead in your tracks? Of course not – you do have a few options, but the right solution will depend on your personal circumstances. There are programs offered by the government that have the ability to immediately unfreeze your account. Furthermore, if you invoke these programs very quickly, you may be able to get your account unfrozen before CRA removes the funds from your account.

At DebtCare Canada, we are experienced in dealing with various tax problems, including CRA frozen bank accounts. Call us today to discuss your options: 1-888-890-0888.

July 8, 2015
De-Thawing Your Account: How to Get a Frozen Bank Account Unfrozen
Spring has sprung and while the snow and ice may have melted, the truth may not be the same for your bank account. Having your bank account frozen is both embarrassing and can cause considerable unexpected financial problems – especially if your pay goes into the account and you have bill payments set-up on pre-authorized withdrawal.

When it comes to getting a frozen bank account unfrozen, your options depend on who froze it to begin with. Here are the most common types of frozen bank accounts:
- Account was frozen because a creditor obtained a judgement from the court with respect to a debt and has frozen the account accordingly.
- Account was frozen by Family Responsibility – you have a very big problem here.
- Account was frozen by Canada Revenue Agency. This is another big problem – CRA doesn’t need to go to court or get a court order against you to freeze your bank account.
Here are your options:
1. Pay the debt you owe – through your savings, investments, assets or financing.
1. Contact the other side and try to negotiate an arrangement that is satisfactory so that they voluntarily lift the freeze – good luck once a freeze is in place.
1. Go to court and ask a judge to lift the freeze on your account. This option is costly unless the enforcement action relates to a judgement obtained in small claims court. If this is the case, you can represent yourself. You can technically represent yourself in family court and tax court but it is not recommended.
1. Make a proposal. Making a proposal to your creditors immediately stays any collection action and will immediately see a frozen bank account unfrozen. In a consumer proposal, your creditor(s) is offered a sum to settle your debt with a monthly repayment schedule over 5 years. At the end of 5 years, the debt would be paid in full (the consumer proposal can actually be paid at any time). The only circumstances in which a consumer proposal cannot unfreeze a bank account is if it relates to unpaid Family Responsibility or if it is related to some form of fraud on the government that is not protected by a proposal.
Some people are surprised to learn that a consumer proposal can actually stop CRA collection action, such as a frozen bank account, as most perceive CRA as the almighty creditor.

If your bank account is frozen, your options are clear. If there was money in the account you need to act fast as often the bank will hold the money in your account for a number of days, or if remitted to the court, the court may also hold the funds for a period of time before they are given to the other side.

Find out more about getting a frozen bank account unfrozen by calling DebtCare Canada today. We can help: 1-888-890-0888.
May 11, 2015
How to Get Your Bank Account Unfrozen

Having your bank account frozen is not fun. A frozen bank account will paralyze your ability to pay your bills because essentially money can go in but no money can go out. Depending on who the authority freezing your bank account was, you may or may not have an opportunity to get your account unfrozen and then get some or all of your money back.

Let’s begin by reviewing who can freeze your bank account and how they can do it.

A creditor can freeze your bank account if 1) they sue you; 2) they successfully obtain a judgement against you; and 3) they are approved by the court to take enforcement action against you. The creditor then takes the proof from the court that they have a judgement and can freeze your account and sends it to your bank. Your bank can accept the document and freeze the funds in your account for a period of time. In the Ontario small claims court for example, the bank would hold the funds in your account for 30 days. At the end of the time period the funds are sent to the court. The court then holds the money for an additional period of time and then it is released to the creditor.

In the case of a frozen bank account with respect to a tax debt to the Canada Revenue Agency, the CRA does not need a court order to freeze your bank account. The CRA will send a notice to your bank – this notice is called a ‘Requirement to Pay’. The bank then will freeze your account and again will hold the funds in your account for a period of time. Once the allotted time period has expired the funds will be directed to the CRA.

In the case of a frozen bank account that results from unpaid family responsibility, the court will issue an order that the account can be frozen. The funds will be held for a period of time and then released to either the Family Responsibility Office or the court, which will later release them to the other parent. If your account has been frozen as a result of unpaid family responsibility you will need to speak to a lawyer to see if he or she can go to court on your behalf to request an order to lift the freeze.

If the case of a bank account that is frozen by the CRA or as a result of a small claims court order, you will need to get financial help, and this help will need to come from a financial consultant who is experienced and capable of combatting a frozen bank account under these circumstances. A good financial consultant can qualify you for programs that will stop the enforcement action being taken against you, freeze the interest accumulating on the debt, potentially reduce the size of the debt and allow you to make a monthly payment that you can afford.

If your bank account is frozen and you need help call DebtCare at 888-890-0888 or visit www.debtcare.ca.

June 24, 2013
How to Deal With a Frozen Bank Account as a Result of a Canada Revenue Agency Tax Debt
When an individual or business has a tax debt owing to the Canada Revenue Agency, the Canada Revenue Agency will begin to pursue enforcement action to collect the debt. One method that the Canada Revenue Agency uses to collect debt is by freezing a bank account.

A frozen bank account can be extremely disruptive and can cause incredible financial hardship. Many people feel blindsided when they go to the bank and find out that the bank has frozen all of the funds in their bank account. However, a frozen bank account that is the result of a tax debt generally doesn’t occur without warning.

A Canada Revenue Agency collection practice usually is as follows:
1. 1. First you will be notified in writing that a tax debt is owed.
  2. Second, you will be sent another letter demanding payment of the tax debt.
  3. Finally, a “Requirement to Pay” letter will be sent to you and your bank, requiring the bank to freeze your bank account.
When the “Requirement to Pay” letter is issued and sent to the bank, the bank must freeze the bank account indicated. The bank will then hold the money that is in the frozen bank account for 30 days and then will send the money to the Canada Revenue Agency.

The frozen bank account (even after the money has been sent to the Canada Revenue Agency) will remain frozen. Outside of losing all the money that was in the frozen bank account, the frozen bank account will now cause significant disruption because if your pay is directly deposited into the frozen bank account, the bank will continue to seize the money deposited into the frozen bank account and send it to the Canada Revenue Agency.

Once the CRA has frozen your bank account, you will almost always have to open a new account with another institution. Generally speaking, once the CRA has frozen a bank account the account holder will also see that the relationship they once had with their bank has been severely damaged. Most banks will stop offering credit and may even close existing credit products if they become aware that a customer has a tax debt owed to the Canada Revenue Agency. This is because some people who have tax debts end up filing for bankruptcy after being put under the pressure of CRA enforcement action.

Of course, if you have a tax debt and your bank account has not yet been frozen, it is advantageous to act before things come to that. Acting now doesn’t necessarily mean coming up with money you don’t have to pay off the tax debt. Acting now means seeking out professional guidance to deal with your tax problem before things get that far. If your bank account has been frozen you still have a chance to get your account unfrozen. Getting a bank account unfrozen is difficult but can be achieved through programs that involve legislation that carries the power to stop certain collection actions, such as a frozen bank account.

If your bank account has been frozen or if you owe money to the Canada Revenue Agency that you do not have the means to pay, we can help – including getting your bank account unfrozen and coming up with a plan to deal with your tax debt. Contact DebtCare at 416-907-2582 or visit www.debtcare.ca.
October 22, 2012

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