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HomeLatest NewsThe steps you must follow to defer a debt with Social Security

The steps you must follow to defer a debt with Social Security

Date: March 29, 2024 Time: 05:33:45

The deferral of a debt to Social Security is possible, but conditions. There are many different factors that influence this and not all of them depend on the person involved. However, there is no need to worry because, in certain cases, the debtor can request an extension if he is not able to pay within the established period. Although, sometimes, a guarantee is requested and some requirements must be met that vary depending on the quality and amount of the debt.

The first thing that those who keep their own accounting or deal with the billing of a company should take into account is that almost all debts in Social Security can be deferred. This is the case of monthly contributions, surcharges, quarterly VAT… But there are two major exceptions.

Likewise, the postponement of a debt does not mean that it is eliminated, but rather that its payment is postponed. Social Security has the possibility of periodically reviewing the financial situation of the debtor and, if this improves, it can proceed to revoke the deferral, as explained in the electronic headquarters of the administration. For this, it is essential to comply with the terms and conditions that have been agreed since, if they are not met, the debt is executed.

How to request a debt deferral

Debtors must follow a series of steps to be able to request the deferral of a debt to Social Security:

The first is to communicate the economic situation to Social Security, so that it can assess whether it is appropriate to defer the debt. This can be done in two different ways: by sending a letter to the Social Security General Treasury, or through the telephone service. A request for a deferral of payment must then be submitted. This must include the debtor’s data, the amount of the debt, the terms requested and the reason for the request. You have to provide all the necessary documentation: debt receipts, payslips, company certificate… Once the application is received, Security issues a resolution that notifies the debtor in writing. This may be favorable, deny the request or condition the postponement to the fulfillment of certain conditions. In this case, it is important to comply with the agreed terms and conditions, since otherwise the debt will be foreclosed.

How long is there to pay off the debt?

When Social Security grants the postponement of a debt, the person involved has a period of five years to pay it. Also, the timing, amount, and frequency of each installment payment is flexible. And, if the economic situation of the debtor improves, he may settle it early.

But do not forget that the debt generates interest, which is calculated on the total deferred debt. This percentage may include fees and interest that were not paid before requesting the deferment.

What debts are unpayable

Those who have contracted a debt with Social Security must be clear that there are two types of quotas that cannot be postponed: those that are paid to provide coverage for those accidents at work and occupational diseases; and, for employers with dependent employees, the so-called ‘worker’s quota’, the percentage that the worker must pay for someone else’s account and for whose income he is responsible.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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