# Can CRA take my bank money?



## munchies1 (May 31, 2013)

Hey I found this forum through google.. was looking up on the subject. Anyways.. a little problem I'm having, hoping someone can help. 

My landlord isn't accepting cash anymore to pay for rent, that means I have to open a bank account. The thing is I owe quite a bit all over the place, $1000 to BC hydro, $1000 to a "friend" who sued several people who owed him, although I'm not sure if I'm one of them. And like hospital bills, unpaid taxes for the last 3-4 years. (not much) I only _officially_ earned less then $100 every few months. And maybe a few other places like telus, shaw...etc

I have an inactive bank account with BMO, planning to activate it again tomorrow so I can deposit $1400 dollars and write a check to my landlord for June. But I'm worried about someone having access to it.. I would lose my apartment and most of my belongings will have to be left behind when I move out. :upset: 

so yeah what should I do besides calling them? which I can't risk doing.. because of other complications with law. I'm only 21 and my life is a mess, is there any way I can pay my landlord worry-free? :/


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## MoneyGal (Apr 24, 2009)

Pay your landlord by money transfer. Use a payday loan place / "the cash store" etc. 

Yes, CRA can seize money in any bank account you have.


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## Spudd (Oct 11, 2011)

You can buy money orders at the post office for $6.50. Would he accept that?


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## Yoqui (Mar 5, 2013)

If you have someone you trust, like a relative, give them the money and ask them to write a cheque on your behalf, is 1 option


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## Cal (Jun 17, 2009)

Once you get the rent issue dealt with you should make a plan to tackle some of your other financial issues.

One thing at a time though.


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## MRT (Apr 8, 2013)

If you have a bank account, you can go into your bank with cash, and walk out with a bank draft (for a fee, of course).

Your landlord should have no problem accepting that in lieu of a less secure personal cheque.


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## Oldroe (Sep 18, 2009)

Pull your head out of your A..S. Wake up start living like adult.


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## the-royal-mail (Dec 11, 2009)

MRT, why should the OP pay a fee for a bank draft in your scenario where they have a bank account? A personal cheque is just fine and is the way millions of people pay for their rent every single month. Bank drafts are a waste of money when it comes to paying monthly rent. I could see him going that route if he does not have a bank account but yeah, lots of problems here. Let's not confuse the issue by encouraging someone like this to waste money on unnecessary fees.


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## mind_business (Sep 24, 2011)

munchies1, out of curiousity, are you actively working towards paying off all your debts? Do you have plans to?


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## peterk (May 16, 2010)

Do you have letters from CRA saying that you owe them lots of money? How much? I ask because you say that you have had minimal reported income for the past few years. You likely don't owe any taxes at all, and probably are entitled to some credits?

Can you break down you TOTAL debt situation for us? what are these hospital bills? You don't have a 20k Visa bill that you've been ignoring for the last year, do you?

Honestly though, you don't sound like you are very messed up at all. If a few thousand dollars is all you owe you're actually in far less debt than the average 21 year old. What you have is a "holding a job" problem. 

Think of the 23 year old university graduate with 45k of student debt, a degree in European history, a taste for the finer things in life, and a part time job at Starbucks. THEIR life is a mess.

You on the other hand are, with a temporary construction job for the summer, 3 months away from being debt free and completely back on your feet. 

As far as the banking goes, I'd say put your money in the bank and see what happens. If the government takes it, consider it "forced savings". If you get kicked out of the room your renting and are on the street or a buddy's couch for a week or two, consider it motivation to go get a fucking real job! Stop dealing drugs and grow up. You're going to get in some serious trouble if you keep it up. 

Based on your good grammar, and the fact that you know the CRA is called the CRA, and not "the government", I'd say you're a pretty intelligent guy. I'm sure can get your life turned around and on your feet in a matter of weeks if you so choose


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## PrairieGal (Apr 2, 2011)

The CRA can only seize your bank account for money you owe them, not any of the other debts you mentioned. They would have to somehow find out where you bank, and issue a garnishee order. I think you are fine with using the bank account for your rent. 

I agree with the other posters. Time to get a real job and formulate a plan for paying off all these debts so you don't have to live like this.


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## MoneyGal (Apr 24, 2009)

Yabbut CRA can assess taxes and seize your assets without you ever filing a tax return and determining what, in fact, you owe. It's a way to force people to file - to get their money back. (We just had a long thread on this recently.)


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## MoneyGal (Apr 24, 2009)

the-royal-mail said:


> MRT, why should the OP pay a fee for a bank draft in your scenario where they have a bank account? A personal cheque is just fine and is the way millions of people pay for their rent every single month. Bank drafts are a waste of money when it comes to paying monthly rent. I could see him going that route if he does not have a bank account but yeah, lots of problems here. Let's not confuse the issue by encouraging someone like this to waste money on unnecessary fees.


Did you read the original post?


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## Compounding1 (May 13, 2012)

In before everyone ITT gets reported for aiding a fugitive!! 

But seriously OP, stop spending your money on things you don't NEED and pay off your debts so you can stop worrying about stupid Shaw bills. Oh, and pay back your "friend". You'll have to start claiming income eventually.


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## jcgd (Oct 30, 2011)

I knew one guy who was in a similar situation to what the OP has described. His issue wasn't out of control spending or anything like that. He had responsibility, priority, and cash flow issues. The guy just didn't know how to make things flow and he essentially had all his bad choices creating more bad situations, to which he would once again make bad choices.

For him an idea would be to stop what he's doing, make a list off all his responsibilities and lay out a plan for how to pay all debts as required, in a proper order. You have to look at the schedule of money coming in versus the schedule of money going out and gets some balance in your finances. Do the same thing for your life.


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## fraser (May 15, 2010)

CRA have very significant powers. They can, and do, seize bank accounts, garnishee wages, place liens on your registered possessions, and other not so pleasant collection methods.

They need these tools otherwise Canada would be another Italy or Greece when it came to avoiding taxes and the avoidance of actually paying the assessed tax.

As others have said, I suspect there is nothing like a wage garnishee or the seizure of a bank account to get someone to either come in and discuss their tax situation, respond to requests for information, or simply file their taxes. 

CRA may seem tough on personal income tax but they are even tougher, and rightly so, on payroll deduction remittances.

Although it is not kosher, a good bank manger will, on receipt of a seizure notice, check you account for demand loans. If there any demand loans the bank tends to call them immediately so that they get their money ahead of CRA. They are not supposed to do this but I know that it was the practice at many banks some time ago. The bank's view is that if you cannot pay your taxes, chances are you cannot pay your demand loan-especially after CRA has emptied your bank accounts!


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## munchies1 (May 31, 2013)

You are all very helpful here :encouragement:

After reading this I will definitely not deposit any money, I'll have to use either a money order or bank draft today.



peterk said:


> Do you have letters from CRA saying that you owe them lots of money? How much? I ask because you say that you have had minimal reported income for the past few years. You likely don't owe any taxes at all, and probably are entitled to some credits?


I'm not sure on the seriousness of my situation because I do not receive mail and I move around a lot. I just got sick of all the unwanted visitors at my door and constant phone calling about every little thing. And growing up as a kid my dad was no better than me, he had gambling issues and would often skip bills and payments a lot. So it's basically the same story all over again.

I owe about $160 to the hospital. It's not much but felt it's important to mention to find out how much power CRA has over me right now, also when I was a teenager I got like a dozen skytrain tickets and they are $173 each. Totally forgot about that, but I read in the paper something like less than 12% have been paid in BC. :chuncky: I have friends who have 3x as many of these damn "no bus fare" tickets! damn.

I'm ball parking it around $5000 - $7000 total. FML :/



mind_business said:


> munchies1, out of curiousity, are you actively working towards paying off all your debts? Do you have plans to?


I'm not, I know this is all going to come crashing down on me sooner or later. If I can find a job I like for 6 months I think I'll be okay though. Thanks everyone, I'll try to keep using this forum more it has a great community. :love_heart:


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## james4beach (Nov 15, 2012)

Could it help the OP to declare bankruptcy?


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## MrMatt (Dec 21, 2011)

james4beach said:


> Could it help the OP to declare bankruptcy?


Doubtful, $5-7k isn't worth it. Just get to work.


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## Just a Guy (Mar 27, 2012)

There is a statute of limitations on some debts. I think, if no action is taken to collect a debt for two years, it is no longer considered owing by law (this doesn't apply to all debt CRA, for example, can come forever it seems). Talking to a trustee in bankruptcy may not be a bad idea...initial meetings are usually free, and there are options other than bankruptcy. Also, it may help if there was an intermediary.


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## Homerhomer (Oct 18, 2010)

Getting an education (either good trade, or college or university degree in a field where you will be able to make decent money) should be a big part of turning your life around, this will be the best thing you will ever do for yourself and avoid regretting not doing it for the rest of your life when you still had a chance to do so.
Your dad had issues and didn't make it easy for you, that's behind, do not use it as an excuse to fail, you are still very young and have plenty of time to make your life better, much better, if you do it will be your accomplishment, if you don't the blame will be on your shoulders.
Go out there and make good choices.
Pay back the debt, file your taxes (you may even get refunds there), get education, forget about finding excuses to fail and just turn things around.


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## munchies1 (May 31, 2013)

I used a money order and it worked fine, just had to pay a $7.50 fee. I guess I'll be paying my rent like this from now on.

Also I'm not blaming my dad or anything, I know it's my fault. Thanks for letting me know about the tax refunds, I probably do have some money waiting for me there.


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## the-royal-mail (Dec 11, 2009)

munchies1 said:


> I used a money order and it worked fine, just had to pay a *$7.50 fee*. I guess I'll be paying my rent like this from now on.


http://www.cbc.ca/news/business/story/2012/11/29/rbc-profit-earnings.html


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## Homerhomer (Oct 18, 2010)

the-royal-mail said:


> http://www.cbc.ca/news/business/story/2012/11/29/rbc-profit-earnings.html


How his/hers $7.50 a month contributes to 7.5B profit by RBC is the least of OP problems.


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