Reduced Settlement Offers, including Tax Debt Negotiations
A debt settlement offer can be made by anyone, at any point of time during negotiations between a creditor and debtor. This means that you do not need to seek a representative or debt settlement company, to secure a deal regarding an amount you owe.
A reduced settlement, or lump sum settlement, is a sum less than payment in full offered to satisfy a creditor, and resolve your outstanding debt. If you can come up with a lump sum amount to resolve your debt, you would likely be saving money from having to otherwise pay off a debt over an extended period of time. Receiving a settlement offer on a debt that you couldn’t otherwise pay in full could be one of the best things to happen in such a situation. You may be surprised to find, that most creditors may be willing to accept a lower settlement than the one offered in the letter – provided that you have leverage in the form of being able to pay the offered amount right away.
Tax Debt Negotiations
The sooner a person deals with tax debt, the better. There are several penalties and interest rates that can be incurred with outstanding tax debts. These amounts can grow rapidly, and are subject to debt recovery action at any time, without notice. In some cases, authorities can clear bank accounts, and payment clerks can be demanded to deduct a portion of a debtor’s pay cheque (this is called a wage garnishee order). The legal proceedings associated with tax debt can lead a person to bankruptcy – and at the very least, a weakened financial situation that could otherwise have been settled sooner, rather than when it is too late.
Like any usual debt settlement, tax debt negotiation can yield a good outcome, if you seek professional financial consultation early. Discuss your options for resolution with our team of professionals today, and increase your chances of gaining a more favourable solution to tax debt.