I had financed my hairdressing business for five years with credit cards and personal loans - and had just received a huge tax bill. I couldn't afford it.
Sharon had run a hairdressing business for five years as a sole proprietor and had used credit cards and loans, for which she was personally responsible, to finance it.
She had tried to keep on top of her tax affairs and had filed her returns on time but had not been able to make the required payments. Eventually, Canada Revenue Agency sent her an income tax bill for $62,000 for personal taxes owing and $18,500 for GST. In addition, she had approximately $33,000 in consumer credit debt, for a total of $113,500.
Eventually she realized her business could not survive and she got a job as a hairdresser. She had no equity in her home and could only afford to pay $565 per month to service her debts on her new income.
She opted to do a proposal to her creditors and offered $565 per month for 60 months, for a total of $33,900 – far less than the $113,500 she originally had owed. The proposal was accepted.