Dealing with tax debt can be overwhelming, but there are ways to manage it effectively. A Consumer Proposal is a legal option that can help Canadians who are struggling with tax debt. Explore the benefits of choosing a Consumer Proposal, how it works, and how to get help from a licensed insolvency trustee and financial wellness coach.

Understanding Tax Debt and CRA Settlement Options

  • Tax debt is the amount of money you owe to the CRA in unpaid taxes.
  • There are several CRA settlement options available, including payment plans, debt consolidation loans, and negotiating a settlement.

What is a Consumer Proposal and How Does it Work?

  • A Consumer Proposal is a legal process that allows you to repay part of your debt over time.
  • A proposal is administered by your licensed insolvency trustee and outlines how much you can afford to pay your creditors and the CRA over a set period.
  • Once your proposal is approved, you make the agreed payments to your trustee
  • As long as you make the agreed payments, which can be a lump-sum payment or periodic payments (up to 5 years), your creditors and the CRA cannot pursue you.

Working with a Financial Wellness Coach to Manage Tax Debt

  • A financial wellness coach that is a licensed insolvency trustee can help you manage your finances and create a plan to pay off your tax debt.
  • They can help you navigate the process of filing a Consumer Proposal and ensure that your proposal is attainable.

The Benefits of Choosing a Consumer Proposal in Canada

  • Since payments can be made up to 5 years, paying back a portion of your tax debt over time makes it easier to manage your finances.
  • Choosing a Consumer Proposal less severely effects your credit rating, unlike filing for Bankruptcy.
  • A Consumer Proposal stops all collection actions against you, including wage garnishments, bank account freezes, and asset collection.
  • It provides you with legal protection from your creditors, including the CRA.

Financial Freedom is a Phone Call Away

If you are struggling with tax debt and considering a Consumer Proposal, it’s necessary to work with a licensed insolvency trustee. Andrea Orr is a licensed insolvency trustee in Windsor/Essex Region who can provide you with the guidance and support you need to manage your tax debt. We understand that everyone has their own unique situation so we review all your details to come up with the best solution and offer for your Consumer Proposal.

Contact us today to take your first step toward financial freedom.