Show me a bankruptcy file, and I will show you someone who has taxes as a main reason for declaring Bankruptcy. We are spending more and more time with tax clients discussing doing a debt proposal or bankruptcy to get out of tax trouble.
There are both good and bad trustees and a hundred miles between them. A good trustee is vital in getting though the mess that needs to be dealt with in getting a second or third chance for your financial life.
We are finding that not only do you need a good trustee, but you need a good consultant who only has your best interests in hand. Trustees first obligation is to the creditors… Never lose sight of that important fact. We also can recommend good trustees and we can work with them in dealing with your best interests.
As in everything else in life, you need good advice in making critical decisions. Often being able to discuss your finances with someone besides your trustee… can make all the difference in your stress levels. My recommendation is that before talking to a trustee, get some good advice so that when you first meet your prospective trustee, you are an informed buyer.
Dan White
The line lies, where tax planners and preparers, used to live and the new reality of highly aggressive tax regimes. Being that I deal with hundreds of cases involving aggressive tax planning, my suggestion is think carefully about risking fighting with CRA. Win or lose, it is stressful for most people.