Tax debts: What are my options? | Debt Consolidation
For some, spring can bring insurmountable financial problems with the tax debts that are emerging. If you find yourself in this situation, do not worry. You will find below easily accessible options so that you can enjoy a debt free life! http://floridavacationrentaldirectory.com for clarification
If you do not believe you can make your payment on time, you can enter into a payment agreement with the Good Lender and that will allow you to make smaller payments over a longer period of time. your debt is fully repaid, including interest.
To do this, you must demonstrate that you have done everything in your power to pay off your debt, either by borrowing money or reducing your expenses. You may also need to provide information such as your income, expenses, property and debts.
The relief provisions
In exceptional cases, the Good Lender and Good Finance may be able to grant you an exemption from penalties or interest charges. They may even be able to reduce the amount you owe. It all depends on whether an attempt to repay the money would compromise your ability to live with the basic means of shelter, food, transportation costs and medical care.
The consumer proposal
It may be possible to significantly reduce the amount of your tax debts by filing a consumer proposal.
Consumer proposals are becoming more and more popular with people who want to avoid bankruptcy. When you file a consumer proposal, a licensed insolvency trustee will negotiate with your creditors so that you only have to repay some of your debts.
If the following applies to your situation, meet with a licensed insolvency trustee to continue the necessary steps for a consumer proposal:
- Your debt is less than $ 250,000
- You could pay back some of your debts if your creditors gave you more time to do so
- You want to stop all interest charges, income seizures and threats of legal action
- You want to keep all your belongings and belongings
A consumer proposal is an extremely popular option among people who are in financial difficulty because
- she stops all interest charges
- she stops the seizures of salary
- it stops all harassment from creditors
- only a portion of your debts must be repaid in monthly installments over a period of up to five years
If you find yourself unable to pay your tax debts, as well as any other debts, bankruptcy might be the right choice for you. In such cases, a licensed insolvency trustee will analyze your personal situation and determine whether bankruptcy is the right decision for you. He will also be there at every step to help you settle all your debts.
Bankruptcy is the best choice for you if you find yourself in the following situations:
- You owe more money to creditors than you earn
- You pay your bills and make monthly payments using more credit
- Your income is seized by creditors
An authorized insolvency trustee will also have to assess whether it is a tax bankruptcy since there are specific rules applicable to this situation.
If you decide to declare bankruptcy, you will be able to settle your debts quickly, which will allow you to start rebuilding your credit faster. In fact, bankruptcy is always a cause for relief because it:
- Prevents creditors from calling and harassing you on the phone
- Freezes interest payments
- Stop any legal action against you
- Stop the seizures of salary
- Eliminate your debts
- Some assets will be protected in case of bankruptcy (RRSP, house, car, under certain conditions)
- Bankruptcy can cost less compared to other solutions, such as debt consolidation, which often cost more than bankruptcy since you will have to repay the total amount owed plus interest
If you feel overwhelmed by your debts, do not hesitate to contact a licensed Insolvency Trustee now! It will help you until you are completely relieved of your debts, so that you can finally enjoy a life without financial stress!