Has the tax man come calling? Did you know that you can erase your tax debt by filing a Consumer Proposal or assignment in Bankruptcy no matter how large your debt?
All types of tax debt are erased including income tax, payroll source deductions, and HST.
The process begins with a meeting between you and one of Welker and Company’s licensed Trustees in Bankruptcy. We’ll review your unique personal situation, and explain the different ways you can erase your tax debt.
Maybe you’ve received a demand for payment or worse still a notice of garnishment, or notice of levy. Did you know that filing a Consumer Proposal or assignment in Bankruptcy stops the Canada Revenue Agency’s collection efforts immediately? That means that they can’t garnish your wages, register a lien against your home, or pursue you in any way. Once you file with a Trustee in Bankruptcy your Trustee stands between you and your creditors.
In short, a Consumer Proposal involves you proposing a settlement to all of your unsecured creditors including the Canada Revenue Agency. If a majority of your creditors accept your settlement, and you follow through on your payments, then your debt is erased. Typical settlements are approximately 33% of total unsecured debt spread over as many as 60 monthly payments. Filing a proposal stops interest from accruing and lowers your monthly payments substantially.
To learn more about Consumer Proposals click here.
If you’re unable to afford the monthly payments or lump sum required by a Consumer Proposal then Bankruptcy may be worth considering. By filing an assignment in Bankruptcy you can erase all of your tax debt in as few as 9 months for as little as $1,800. Bankrupts are allowed to keep a number of assets including a car worth less than $5,650, personal effects worth less than $5,650, furniture and appliances worth less than $11,300, and tools of the trade worth less than $11,300. It’s possible to make arrangements with your Trustee to keep any and all of your assets in addition to those listed above.
If considering Bankruptcy, it is important to know that your Bankruptcy can be lengthened by the court if your tax debt represents more than 75% of your unsecured debt and is greater than $200,000.
To learn more about Bankruptcy visit our Bankruptcy page here.
The best way to understand your options is to speak to a Licensed Trustee in Bankruptcy at Welker and Company. We’ll review your situation in person or over the phone, explain your options, and help you make the most informed decision possible. We never charge up-front fees and always offer free, no-obligation, consultations. You’ve got nothing to lose except your debt.