Recover from Tax Arrears for Self-Employed Worker
Self-Employed Construction Worker Loss of Income Due to Injury At Work
A self-employed construction worker injured his foot while working and he was unable to work for one year due to the injury. However, his personal debts continue to accrue interest and he was not able to pay the property tax on his house.
With the reduced income, while recovering from the injury, he needed a solution that will pay off his personal debts and tax arrears completely. He needs a reset to his personal debt until he is fully recovered back on the full income he earns prior to the injury.
He needed a solution from alternative lenders who will lend him a loan based on the equity in the house so can pay off the personal debts and tax arrears until he is fully recovered and back to full his previous level of income as a self-employed construction worker.
Challenges |
|
Location |
South Frontenac, Ontario |
Property value |
$215,000 |
Mortgage |
$130,000 |
LTV |
59% |
Solution |
Refinance the property to pay off the outstanding tax arrears and personal debts. Then start working on improving the credit score back up to Excellent. |
Exit strategy |
Refinance with a traditional lender at the end of the 1-year term with increased income after a full recovery from the injury. |
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