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Sent: Monday, December 15, 2003 10:40 AM
To: [email protected]
Subject: big trouble
Hello
A friend of mine asked if I would inquire what his next step should be .
A few years ago he had 6 years of income tax to be submitted ,and when he did get it done it was all signed and delivered and accepted .
Wanting to go the right route this time , he got a GST # and registered his new business .
The Income tax came back on him and said they figured he owed them 11,000.00.
He had disagreed and wanted to compromise ,but they wouldn't budge from that figure, so he ended up not paying it and now after about 8 years they say he owes $159,000.00 due to interest .He told me that when it goes over $200,000.00 they would send him to jail ( is that true ?)
He is thinking bankruptcy is his only course of action .
Do you have any suggestions ?
thank you
XXXXXXD
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david ingram replies:
Having been in my own $4,800,000 bankruptcy over income tax and survived, I can talk from the voice of experience.
I can tell him that there is light at the end of the tunnel. that it will eventually go away and that he should not hesitate for an hour or a day in getting down to Vancouver and seeing a lawyer named Murray Morrison BEFORE he declares bankruptcy.
Murray's email address is [email protected] and his phone number is (604) 930-9013.
Your friend will NOT go to jail when his bill reaches $200,000. My own $535.000 tax bill went to $4,838,000 befroe the CCRA gave up and put me into receivership to get rid of it. However, I was silly when I left it simmering for 9 years. Your friend can get it over with and get on with his life with a call to Murray first and then a trustee.
Please note that any old lawyer will NOT do. Your friend needs an "EXPERT IN BANKRUPTCY LAW", not his fellow Rotarian who is the best real estate lawyer for 500 miles.
Following is an answer I gave out to someone else on December 3. I expect to be getting many more emails like this after New Year's Day when the Xmas bills hit home.
========================================
Originally sent out dec 3rd.
As Robbie Burns said, "the Best laid plans o' mice an' men gang aft agley"
I am putting the whole poem (which describes a mouse when her home is turned over by a plough) at the end of my answer. It is now about 220 years old but still relevant today.
If you have money problems for any reason which could include divorce, separation, unexpected tax penalty, leaky condo, company downsizing, illness, an accident or any combination of the above, you will need help.
That help may be as simple as taking an adult education course in family finances at your local high school. Most adult education courses include such a course and even though I taught them for years, it did not keep "me" out of a $5,000,000 bankruptcy after three of the above events occurred.
If you need more immediate help (your Shaw.ca email address indicates a Western Canada address) and you happen to live in Greater Vancouver, contact a credit counselor such as Margaret Johnson at SOLUTIONS CREDIT, 200-10351 150th Street in Surrey - 1-877-588-9491 or locally (604) 588-9491. www.creditsolutions.ca www.solutionscredit.com [email protected]
As her pamphlet suggests;
"Budgeting involves more than just arithmetic. It takes determination. People experiencing financial difficulties need objective, unbiased neutral information."
That statement applies to your finances when you have an income and bad spending habits. It does not cover the financial disasters which I seem to see on a daily basis. I am talking about the $186,000 income tax reassessment for something that happened five years ago. I am talking about the leaky condominium crisis where the debt is $100,000 and you would have to earn $190,000 and pay $90,000 income tax to have $100,000 left and that is not counting interest accruing while you are doing it.
In this case, you need to consult competent help which does NOT start with a bankruptcy trustee, a night school course, a credit counselor or an accountant.
Now, you need a lawyer and not "just" any lawyer. You need a Murray Morrison, who specializes in Bankruptcy law and will work for you and give you and your family the advice it needs to preserve any assets possible and tell you what you can do and cannot do.
Why not save a couple of dollars and go directly to the trustee.
The trustee does NOT work for you. When you sign that paper, the trustee that you searched out, the trustee that you found in the yellow pages, the trustee your banker, hairdresser, mechanic, best friend or worst enemy recommended is not working for "you".
The trustee is working for the creditors. Their job is to get the most for the creditors following local federal, state or provincial guidelines which have different limits in each province and each state.
If you are in BC, Murray Morrison is in the same office as Solutions Credit which is just behind the Guilford Shopping Centre at:
Murray Morrison
200-10351 150th Street
Surrey, BC, CANADA, V3R 4B1
(604) 930-9013 Fax (604) 588-2005
email to [email protected]
Talk to someone like Murray first. Get your law straight. Learn what you get to keep and what the limits are. In BC for instance you can have $5,000 equity in a car. However, The Bank of Nova Scotia (for one) will insist on seizing your car even if you have never missed a payment if the car loan is with them. Arranging for someone else to take over the loan before you go bankrupt could make the transition easier.
I advised one lady client to go bankrupt at this time last year for a $140,000 tax bill (which was unjust, unfair and illegal in my opinion) which we had fought for two years. (Canada decided to tax her retroactively on her income for five years even though she was an American living in the states. They decided she spent too much time in Canada and she had since moved to Canada officially - Bankruptcy was the only way to get rid of it and start over.)
I was blindsided by the Bank of Nova Scotia's new policy of not allowing anyone to keep a car. Luckily, a friend paid out the bank and loaned her the money and she kept her car. It would have been far easier if we had known that in advance. Her Bankruptcy Trustee was blind sided as well. It was the first one he had seen as well. (Ten boos to the Bank of Nova Scotia).
After you have made a decision, you need a trustee. Remember, they are all working for your creditors.
Gerry Foran at Sands and Associates is a decent guy who you can deal with.
Gerry Foran
E Sands & Associates Inc
1100 Melville Street
Vancouver, BC, Canada V6E 4A6
(604) 684-3030
Sands and Associates also have satellite offices in Surrey, Burnaby and Langley.
Trustees might not like me saying this but you do not even need money to do it. They can be paid from your assets, tax refund or might not even get paid until after the bankruptcy. While I was actually writing this, another client who I had sent to go bankrupt came in to return some material I had loaned him. I said thank you and suggested that he must have his discharge by now. He did not have it. He only had a conditional discharge because he still owes the trustee $1,500 which he expects to have very soon. Another client is in the same position. However, they do not have a dozen creditors phoning looking for money.
Hope this helps. Remember - see the lawyer first - before you see the trustee. And only talk to a lawyer who deals regularly with bankruptcy and appears in court for bankrupts protecting their rights. That means one in 100 lawyers. There is little chance that a lawyer you are already dealing with would be the one you would use because a bankruptcy lawyer is likely too busy to do anything else.
Hope this helps! Enjoy "To a Mouse" by Robbie Burns
Here is the whole poem:
To a Mouse, On Turning up Her Nest with a Plough
by Robert Burns (1759 - 1796)
Wee sleekit, cowrin, tim'rous beastie,
O, what a panic's in thy breastie!
Thou need na start awa sae hasty,
Wi' bickering brattle!
I wad be laith to rin an' chase thee,
Wi' murd'ring pattle!
I'm truly sorry man's dominion
Has broken nature's social union,
An' justifies that ill opinion
Which makes thee startle
At me, thy poor earth-born companion,
An' fellow-mortal!
I doubt na, whiles, but thou may thieve;
What then? poor beastie, thou maun live!
A daimen-icker in a thrave
'S a sma' request:
I'll get a blessin' wi' the lave,
And never miss't!
Thy wee bit housie, too, in ruin!
Its silly wa's the win's are strewin':
And naething, now, to big a new ane,
O' foggage green!
An' bleak December's winds ensuin'
Baith snell an' keen!
Thou saw the fields laid bare and waste
An' weary winter comin' fast,
An' cozie here, beneath the blast,
Thou thought to dwell,
Till, crash! the cruel coulter past
Out thro' thy cell.
That wee bit heap o' leaves an' stibble
Has cost thee mony a weary nibble!
Now thou's turn'd out, for a' thy trouble,
But house or hald,
To thole the winter's sleety dribble
An' cranreuch cauld!
But, Mousie, thou art no thy lane
In proving foresight may be vain:
The best laid schemes o' mice an' men
Gang aft a-gley,
An' lea'e us nought but grief an' pain,
For promised joy.
Still thou art blest, compared wi' me!
The present only toucheth thee:
But, oh! I backward cast my e'e
On prospects drear!
An' forward , tho' I canna see,
I guess an' fear!
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.comThis from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Taxman and Tax Guru
Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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