Residents of Hawaii know that it is one of the greatest places to live. Breathtaking beaches, blue ocean water, palm trees, and warm sand are just some of the highlights of the state. While Hawaii is a majestic place to be, you might have trouble enjoying it if you find yourself with tax debt or other types of debt.
People who live in the state of Hawaii, actually have some of the highest mortgage, credit card, and general excise tax debt in the United States. If you are a Hawaii resident and you owe a variety of debts from taxes and other areas, you will want to understand your options and your legal right.
Take a look at everything you need to know about finding financial freedom from debts in Hawaii:
Finding Financial Freedom from Debt in Hawaii
A person who has unpaid debt in Hawaii needs to understand the tax law and what they can expect when a creditor attempts to collect their debt. When someone is in debt, they may have the money they owe turned over to a debt collection agency. If your debt is sold to debt collectors, there are legal regulations they are subject to follow.
Collection agents must follow the state department rules regarding how they contact you and what information they extend. They are able to contact through phone calls, emails, letters, and texts, however, they cannot do so at an inconvenient time or place. Debt collectors may only contact people between 8 am and 8 pm, and cannot contact them at work once asked not to do so.
Regulations also state the legal information that must be provided by a debt collector. Within five days of first contacting you, the collection agent must provide you with a written notice stating how much you owe and the creditors’ name, as well as information on the collection statute. A debt collector needs to follow the legal process laid out in the law surrounding debt collection in Hawaii.
If You Get a Debt Collection Letter
If you have been contacted by a debt collector about a debt you owe from tax returns or other creditors, you have options. If you dispute that the tax or other debt is yours, within 30 days you can ask the debt collector to provide verification that it is. They must then supply you with evidence, such as a billing statement or tax information, that the debt belongs to you.
You can also request that you receive no more contact from debt collectors for the debt. Once you do, they must cease contact, unless it is the IRS contacting you about your tax return. Keep in mind that no contact does not mean that your debt disappears. The collection agency can sue you for the debt. If they do, you may face having your property taken, your wages garnished, or even a bank account levy.
It’s much better to negotiate with the IRS or other collection agents than to face penalties for your debt.
Hawaii Statute of Limitations
The statute of limitations in Hawaii is a regulation regarding how long you can be sued by creditors for unpaid debts, including tax. However, there is no collection statute in regards to how long a debt collector can attempt debt collection. That means, even if your debt has surpassed the statute of limitations, which makes it time-barred, you can still receive communications from creditors attempting collection.
If you have a time-barred debt, make sure you do not pay anything on it. If you do pay something on your debt, the statute of limitations period starts again and you may face being sued and having to go to court for your debt.
The statute of limitations period for most debts in Hawaii is six years. However, if you are taken to court for the debt and the court has assessed that it belongs to you, they may extend the statute of limitations period up to ten years.
Debt Collection Agency Hawaii
If you have back taxes and a creditor is in the process of attempting to collect your tax debt or another debt, you will want to find the best solution by having your situation assessed before the date of limitations. There are programs that can help with tax problems so that you can avoid bank levies, tax liens, garnishing wages, and other penalties.
Some people consider filing for bankruptcy in an effort to avoid penalties for their tax debt. However, there are better options than bankruptcy that can help you get your tax or other debt paid, avoiding a tax lien and other IRS penalties.
Tax debt relief programs for your income taxes can help you minimize interest and repay your debt before reaching the date of the statute of limitations period. Paying general excise taxes and other debt during this period will help you avoid bankruptcy, a bank levy, and other penalties that you would otherwise be subject to.
Some of these programs allow people to settle their debt for less than the amount owed on their tax return by a specific date. To be approved for these programs, your situation will be assessed on-site to see if you qualify.
Finding a law firm to provide legal advice is a great way to avoid bankruptcy and ensure that you have the ability to settle your debt by the specified date within the relief period. Whether you have debt from your annual returns, or you have another type of debt such as mortgage, property, or credit card, you will want to find a solution that helps avoid life-altering consequences, including bankruptcy.
With a debt relief program, you will have a professional who understands tax law to help you find relief. Through the attorney-client relationship, you will have an opportunity to work with someone who understands your tax problems and can ensure that you find the best solution for your situation.
If you qualify for a debt relief program, you may be able to settle your debt from taxation or from a loan for less. However, keep in mind that even with the help of these programs, your tax debt will still affect your credit. Many of these programs still allow interest on your tax or loans to accrue during the period of debt relief. Filing taxes will still be required and your debts will still be subject to the statute of limitations.
When determining whether one’s debt qualifies for a debt relief program, the taxpayer’s assets will be considered, along with the amount of their taxes, and their other debts including credit cards, loans, and property. With these programs, you will need to file your taxes by the date for filing a tax return. Tax relief programs require annual returns to be filed by the due date and taxpayers to meet certain qualifications within the period of the debt relief program.
Options for Debt Relief in Hawaii
If you have tax debt or loan debt in Hawaii that has not reached the statute of limitations, you will want to understand all of your options, as well as the statute of limitations. You will want to ensure your income is safe from garnishment and other penalties by working with an attorney who can help you file your taxes and find a debt relief program for your situation.
Before you are taken to court or before you feel like you need to file for bankruptcy, you should speak with an attorney who understands taxation and how to find a compromise within the law. If you have general excise taxes, you can still work with an attorney to find relief for your tax debt within the collection statute.
Tax relief or other debt options in Hawaii include getting a payday loan to pay taxes or other debts, obtaining a debt consolidation or home equity loan, refinancing of mortgage or auto loans, balance transfer, or a relief program. Some people choose to file for bankruptcy before the statute of limitations is over, however, this is not always the best option for their financial future.
Once your income and tax situation has been assessed, your attorney and their law firm can provide on-site advice about the limitations of your case. They will help you avoid filing for bankruptcy and avoid other penalties for your taxation and loans so that you can keep the entirety of your income and get back on track.
The IRS Tax Relief Network is a professional tax resolution company that is skilled in helping taxpayers find relief for their financial situations. The team is made up of expert tax attorneys, enrolled agents, and certified public accountants who have the experience to assist taxpayers with their needs. They can negotiate with the IRS to find a viable solution for taxpayers who need to pay their back taxes or other overdue loans.
If you live in Hawaii and need help getting your financial life back on track, contact the IRS Tax Relief Network today. Our team is standing by and ready to help you find relief. We want to make sure you can enjoy the beautiful place where you live once again, without the looming stress of unpaid taxes, credit cards, and loans. Find tax relief today.