It’s understandable to be worried about tax debt; it’s a fairly common scenario. You may have started your own business, withdrawn too much money from RRSPs, or maybe you became liable for unremitted tax installments as a director of an incorporated company. A common misconception is that tax debt will never go away and that there is no relief from tax debt. This is simply not true and tax debt can be extinguished and compromised with the help of a Licensed Insolvency Trustee.
When you incur tax debt, your common instinct is to try to fix it on your own and all you have to do is work a little harder. But in reality, it can be difficult to arrange a payment arrangement that is both suitable for you and the Canada Revenue Agency. Oftentimes the required minimum payment far exceeds your ability to pay and this often leads to borrowing, or using additional credit to meet those obligations, or you begin defaulting on your payments. Unfortunately, what you may not be aware of is the Canada Revenue Agency has a powerful set of collection tools at its disposal if you fail to pay your taxes.
The good news is that there are solutions available to you. Tax liabilities can usually be addressed in a bankruptcy filing or a proposal made under the Bankruptcy and Insolvency Act. It is best if you promptly seek the guidance and advice of a Licensed Insolvency Trustee in these situations as the Trustee is best able to explain and review your options.
If you are unsure how to move forward or are struggling and overwhelmed with the threat of further action from the Canada Revenue Agency, call us today. We will review your options and show you how we can help protect you from further action, protect your property, and protect your wages.
Let’s start solving your problems today!