Crowd (most likely accountant/lawyer though) sourcing: Trustee in Bankruptcy referral

[taxbuster]

I have a personal tax client who will be in need of a Trustee in Bankrupty. (It's not for me!)


Long-time non-tax filer finally got caught by CRA's garnishee machine, came to me for assistance, and I quickly determined they will be unable to (ever) pay the tax owing. My only Trustee dealings come from several decades back, so I don't know who's a good referral any more.


Would appreciate a good "taking care of people" type of Trustee for this person, if such still exists in YYC.


(And no, you don't need to be an accountant or lawyer to make a recommendation.)

[RichieRich]

I know of these people but don’t know if they’re any good or not. I do know their principle has several decades of experience.

https://www.bromwichandsmith.com/ban...kaAnZGEALw_wcB

[Zary's-Mustache]

I had no idea you could claim bankruptcy for taxes...

[Locke]

Originally Posted by Zary's-Mustache

I had no idea you could claim bankruptcy for taxes...

I know taxbuster (great guy) but Tax Debt is just the worst. Its almost a literal implication of The Simpsons "No! Dig UP stupid!" joke.

Because you have to earn more to pay it but as you earn more you're digging another hole simultaneously that you're going to have to earn more to dig out of and rinse and repeat.

I've seen it happen multiple times and it is heartbreaking. Because generally, its just normal every-day people, often who just started a business, who got a little behind because starting a business is hard, and then the fees, interest, penalties and fines add up and its just becomes a Hamster-Wheel.

So as much I'd love to help you taxbuster, I think your friend/client is going to need a bankruptcy trustee and a good lawyer more than Tax guys like us.

[taxbuster]

Originally Posted by Locke

I know taxbuster (great guy) but Tax Debt is just the worst. Its almost a literal implication of The Simpsons "No! Dig UP stupid!" joke.

Because you have to earn more to pay it but as you earn more you're digging another hole simultaneously that you're going to have to earn more to dig out of and rinse and repeat.

I've seen it happen multiple times and it is heartbreaking. Because generally, its just normal every-day people, often who just started a business, who got a little behind because starting a business is hard, and then the fees, interest, penalties and fines add up and its just becomes a Hamster-Wheel.

So as much I'd love to help you taxbuster, I think your friend/client is going to need a bankruptcy trustee and a good lawyer more than Tax guys like us.

Yep! I examined the file....did a few very rough calculations based on the info the individual gave me in a convo and said..."I'm sorry to be the bearer of bad news, but....".


Not my first rodeo with this kind of situation, although it's not a regular thing. Better that the person deal with all of it via a Trustee and have it in one package. One year, mostly likely, and they're done and out.


Interestingly, most post-bankrupts, when interviewed, say they waited too long.

[taxbuster]

Originally Posted by RichieRich

I know of these people but don’t know if they’re any good or not. I do know their principle has several decades of experience.

https://www.bromwichandsmith.com/ban...kaAnZGEALw_wcB

Thanks - will pass the name along!

[calgarywinning]

Funny how taxes is almost on the same line as credit card debt / bank supply of said debt and interest rates. Once you dip beyond what you can pay, the spiral begins, but at least the banks provide statements.

[Shazam]

I am surprised he wasn't threatened with jail time.

[GioforPM]

Thing about tax debt is that, if it's a high enough percentage of your overall debt, bankruptcy is more difficult.

[bizaro86]

Originally Posted by GioforPM

Thing about tax debt is that, if it's a high enough percentage of your overall debt, bankruptcy is more difficult.

Really? So the OP's client needs to run up their credit cards first?

That seems...like one way to write the rules...