Income garnishment CRA can impose upon tax debtors is one of the most serious legal collection actions the CRA can take. Each time a tax-debt is owed, the Canada Revenue Agency has a massive arsenal of tools at their disposal they could deploy to collect cash from you. An income garnishment CRA is certainly one of these tools.
What you might not realize is that the Canada Revenue Agency does not need to sue you or get a court order against you should they care to inflict a garnishment in your wages. The Canadian Tax Act provides them with the ability to require that the employer garnish your wages on a quick notice. If you owe the Canada Revenue Agency taxes, a garnishment of wages should not be a surprise.
Income Garnishment CRA Notices
The Canada Revenue Agency will send out a number of notices before a garnishment of wages happens: First, you’ll get a notice that you have a tax-debt; Second, you will get a notice demanding payment in full; Third, you will get a final notice for payment; Fourth, you’ll get a notice signifying that the wages are about to become garnished; Finally, your employer will get notice to garnish your wages and remit payment straight for the Canada Revenue Agency.
Ideally, you’d immediately start looking for a remedy to cope with your tax debt before issues go so far. Generally people who disregard notices and get a garnishment of their wages simply don’t get enough money to pay for their debt.
A wage garnishment can demand as many as 100 per cent of the income based on what type of income you have. The thing is that one time a garnishment of wages ensues it could cause unbelievable monetary adversity that is tough to handle.
Seeking Options To Prevent Income Garnishment CRA
Even if your wages are now being garnished and the situation appears hopeless, you’ll find financial options which can let you stop Income garnishment CRA. Your personal financial situation will need to be completely reviewed by a professional because the route you pick will depend on your own personal financial situation. Solutions can range from:
1. Securing financing to fully pay the debt or enough of a lump-sum payment the CRA agrees to revoke the garnishment of wages.
2. Participating in a tax payment plan program designed to stop a garnishment even when is being imposed by the CRA.
Both options will call for the guidance of a tax professional proficient at working with people who have tax problems and also the intention to make an arrangement to deal with their tax debt problems.
A tax issue can be a very serious one which shouldn’t be taken lightly. A tax problem will only snowball, if disregarded: the debt will increase and the Canada Revenue Agency is only going to become more aggressive. If the Canada Revenue Agency garnishes your wages you might think that it’s the extent of the collection action that they’re going to have against you, however, this might not be the case. The Income garnishment CRA has been known to deploy multiple enforcement measures at once to compel you to pay. This might contain garnishing your wages and freezing your bank-account or putting a lien in your home.
When you have a tax-debt and therefore are facing an Income garnishment CRA or in case your wages are being garnished, help is just one phone call away. At Tax 911 Now, we offer you stress free, obligation free consultation that is designed to offer you free guidance on what caused your tax problems, what options you have to fix your tax problems and the pros and cons of each option. So you will have more information at hand to make a informed decision.