Dealing With Tax Debt
We have the power required to assist someone dealing with a tax debt who simply can’t pay!
Dealing with a tax debt is by far one of the most serious debts that one can face. The Canada Revenue Agency is aggressive and has limitless resources to collect from you. Their job is to collect that debt – they are not concerned with your financial status, or the fact that you are trying to get your finances in order.
Dealing with a tax debt is a financial problem with one of the most powerful creditors you can owe money too. The CRA can register a lien on your house, garnish your wages, garnish your receivables, freeze your bank account and more – all without a court order.
CRA tax problems don’t go away by themselves. The CRA will demand payment in full or often repayment terms that are impossible to honour. During this period, interest continues to accumulate, and they continue the unrelenting pressure – the letters, the calls and the enforcement action.
Licensed Insolvency Trustees are one of the only professions with the capability to really help someone dealing with a tax debt. That’s because our programs are legislated under the BIA and so when someone enters into a program through a Licensed Insolvency Trustee:
- The collection calls stop.
- Most enforcement action stops (garnishments stop and requirements to pay are lifted).
- A meaningful plan is put into motion to deal with your tax debt.
Tax problems have a snowball effect, but if the CRA has not yet securitized on your assets through a lien you may be in a stronger position. The sooner you start dealing with a tax debt, the sooner you mitigate the effect and consequences of embarrassing enforcement action.
Why pay a lawyer or debt counsellor to simply refer you to a Trustee? If you have a debt that you cannot pay the answer is simple: consult a Trustee directly and find out what real and practical options you have.
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