Are you concerned about CRA deadlines for filing and paying income tax? There have been several Government of Canada news updates regarding income tax for the 2019 tax year. For individuals, self-employed and corporations, the deadline for filing for the 2019 tax year is June 1, 2020, and the deadline for payment for the 2019 tax year is Sept. 1, 2020. In other words, penalties and interest will not be charged if payments are made by deadlines above.
Please do not hesitate to call Rumanek & Company at 416-665-3328 if you need personal finance help, you are considering personal bankruptcy in Ontario or would like answers concerning filing for either a consumer proposal or bankruptcy in Ontario.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
It happens to all of us at one time or another. You were on a vacation, did not have enough money or just simply forgot to make a payment (or two). There are three things that you must consider:
1. What is the effect on your credit score?
2. Will there be a penalty for a late payment?
3. Will the bank raise the interest rate on my credit card?
As a general rule, if you have always paid your credit card in full and on time, being late one time will have no effect on your credit score or credit rating. However, if you have a history of late payments, no payments, bounced cheques or paying less than the minimum amount due, you already have a reputation with the credit card company as a delinquent credit card holder. Missing or late payments will just continue to reduce your credit score. The only way to get back your old “good” score is to start making all of your minimum monthly payments on or before the date they are due. If you have any extra money, review your credit card statements and look for interest being charged and make the extra payment to those cards that charge the highest interest rate.
The computers of all credit card companies are programmed to charge a penalty if you are late in a payment. If you regularly pay your bill on time each month, consider calling the credit card company (the number is on the monthly statement) and explain what happened that caused you to be late in your payment and ask them to consider reversing the late fee. The person that you will be speaking to may be sympathetic to you and just might have the authority to reverse the late payment charge. Nothing ventured, nothing gained!
The credit card companies will rarely raise the interest rate on your credit card just because you were late on one payment. Being late on many payments or several payments in a short period of time will almost certainly downgrade your credit standing
Credit card companies set the interest rate on your credit card based on several factors:
There is the standard rate charged to the average cardholder
An introductory rate for new customers
The rate based on your credit score
The rate based on what the card offers you in points, rewards and/or bonuses
What other similar cards will charge you
You must realize that your credit card company wants to make a profit on you, but, they do not want to lose a good customer to a competitor. There is nothing wrong with phoning your credit card company and asking them to reduce your interest rate or allow you to transfer your card balance to a lower interest rate card. You should shop the competitors to see what is available from them and tell your credit card company what you found and see if they will match the competition.
You might find it advantageous to actually switch to the competitor if they offer a 6 or 12 month low introductory interest rage. But be careful of doing this as many people start running up their debt on the old credit card. Now you have solved one problem but created a much larger one by increasing your overall debt. Your purpose should be to lower your interest rate but continue to make the same payments so that you can pay off the total debt on all of your credit cards faster than before.
Anyone you owe money to can garnishee your wages. The real question to be asked is how they are able to garnish your wages. For Canada Revenue Agency, it is easy. They just issue a Third party demand and your employer is obligated to follow the instructions from CRA. It is a great world when you can issue the Third Party collection demand without bothering to go to court. All you have to do is pass a law that benefits only you. For the rest of your creditors to garnishee your wages, they must first sue you in court, obtain a judgement against you from the court and then obtain permission from the court to garnish your wages. You are notified at each stage of the process and are given the ability to attend court and convince the court that you do not owe the debt or that the court should refuse the judgment or refuse to give permission to garnish your wages.
If you do nothing, you will lose by default.
If you are contacted by a collection company who threatens to garnishee your wages, treat what they saying as just a threat. They are required to follow the same rules and procedures as everyone else. The original creditor (that hired the collection agent) could sue you themselves but everyone else must hire a lawyer or paralegal who is licensed by the Law Sociey of Upper Canada (L.S.U.C). If a collection agency threatens a lawsuit or a garnishee, simply ask them to make sure that they send you a copy of the legal papers which MUST show the court file number on the upper right corner of the first page. Without this number, it is just a bluff.
If you decide to file an Assignment in Bankruptcy or a Consumer Proposal. All lawsuits, garnishee orders and judgements are immediately stopped regardless of what stage the legal proceedings are at. If you are at the stage of having collection companies threaten to do all of these nasty things to you, perhaps, you must take action to stop everything and put your life back together.