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QUESTION: I had about $30,000 invested in mutual funds. About a year ago =
I closed my account and I placed it my sister's name. If I get into =
troble with my creditors will they be able to go after my sister for =
this money? Is there a correct way to transfer money so that I do not =
break the law?
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david ingram replies:
If you were not in trouble with creditors when you made the transfer, =
you have no problem. If you were in trouble already and transferred the =
money to keep it away form creditors, it could even be considered a =
criminal transaction.
In my recent $4,800,000 bankruptcy, the Trustee went back 20 years =
wanting to know where cars i owned went and to whom they were =
transferred and for how much.
Traditionally, the trustee will only go back two years or five years.
If you are in trouble, do not talk to me. Do not talk to a bankruptcy =
trustee. call someone like Murray Morrison, whose contact information =
you will find below in an expanded version of an article I wrote about =
my own bankruptcy for Western Investor in the spring.
I did not go bankrupt, I was put into receivorship by the CCRA. I can =
truthfully say now that I wish I had pulled the plug 15 years ago. More =
people should just get it over with and save their family years of =
heartbreak and turmoil while they hold on waiting for the big break, =
etc.
An expanded version of the WESTERN INVESTOR article follows:
BANKRUPTCY - or How I Found Freedom in an Unfree World
by david ingram
I have just received my discharge from bankruptcy. It isn't completely =
over. I have to pay $800 a month for 36 months starting on Feb 7th, but =
that is a lot better than the $4,853,000 income tax bill that started it =
with no assets.
Well there "were" family assets. But over a period of 21 years I went =
from a positive "paper" net worth of $4,800,000 to a negative $4,800,000 =
because of an income tax bill that I fought in court and lost and then =
got stubborn.
If I had to do it again, I would have walked into a bankruptcy =
trustee's office 15 years ago and would have been able to get on with my =
life. Instead I got stubborn and decided I would go to my grave owing =
the CCRA as much as the tax bill increased to before I died.=20
So the house was in my wife's name, the cars were in my wife's name, =
the motorhome was in my wife's name and the business was in my wife's =
name. I owned nothing and was quite enjoying the position. After all, =
what else could anybody do? Well, there was one thing someone could do. =
In the middle of the bankruptcy my wife left for another man (with all =
the assets) but that is another article.
Thankfully, the CCRA finally gave up on collecting it and hired a =
trustee to put me into bankruptcy. I understand that I might be the =
first person that the CCRA put into receivership in Canada. No trustee =
I have talked to had ever handled a receivership where the CCRA had put =
an individual into bankruptcy. Oh sure, there were thousands where a =
taxpayer had declared bankruptcy because of a tax bill. But no one I =
have met knows of an individual put into bankruptcy by the CCRA.
Now you have to know that I have sent a couple of hundred people to go =
bankrupt over the years. Their situation was hopeless and bankruptcy =
was the only solution. And I had even had an appointment to see a =
bankruptcy trustee on July 22, 1999 but broke my arm and leg in a =
motorcycle accident the week before and never made the appointment. Of =
course, I should have rescheduled and got on with my life three years =
earlier because it took the CCRA three more years to put me into =
bankruptcy and I could have done something with those three years. You =
see, this article is meant to encourage you to see a trustee and pull =
the plug if you are fighting a losing battle, particularly if the major =
creditor is the CCRA.=20
If you have money problems for any reason that 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 that $5,000,000 bankruptcy after three of the above =
events occurred.
If you need more immediate help 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;=20
"Budgeting involves more than just arithmetic. It takes determination. =
People experiencing financial difficulties need objective, unbiased =
neutral information." =20
That statement applies to your finances when you have an income and bad =
spending habits. It does not cover the financial disasters that 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 that 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.
BUT, why not save a couple of dollars and go directly to the trustee.
The simple fact is that 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". =20
The trustee is working for the creditors. Their job is to get the most =
for the creditors following local federal, state or provincial =
guidelines that have different limits in each province and each state.
If you are in BC, Murray Morrison is in the same office as Solutions =
Credit that 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) =
that 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 also the first one he had seen.=20
After you have made a decision, you need a trustee. Remember, they are =
all working for your creditors. =20
Gerry Foran at Sands and Associates is a decent guy who you can deal =
with. =20
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.
david ingram [email protected] www.centa.com
Answers to this and other similar questions can be obtained free on Air =
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier =
Partners and I will be hosting an INFOMERCIAL but LIVE talk show called =
"ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the =
internet at
www.600AM.com=20
Local phone calls to (604) 280-0600 - Long distance calls to =
1-866-778-0600.=20
Old shows are archived at the site.
Fred Snyder and I are giving free seminars on making your CANADIAN =
mortgage interest tax deductible at our new office at=20
1764 West 7th
Vancouver.
This is in the Spence Diamond Building at the corner of 7th and Burrard
and is very easy to find.
When: Just about " Every" Thursday Night
Time: 7 to 9 PM
RSVP: phone (604) 731-8900 to reserve (limited to 15 people)
My time is still spent at=20
108-100 Park Royal South
West Vancouver, BC
(604) 980-0321
david ingram
This from ask an income tax immigration planning and bankruptcy expert =
consultant guru or preparer 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 gambling refunds =
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.
income tax wizard wizzard guru advisor advisors experts specialist =
specialists consultants taxmen taxman tax woman planner planning =
preparer of Alaska, Alabama, Arkansas, Arizona,=20
California Denver Colorado, Connecticut, =20
Delaware District of Columbia Miami Florida,=20
Garland Georgia, Honolulu Hawaii, Idaho, Illinois,
Indiana Des Moines Iowa Kansas Kentucky,=20
Louisiana Bangor Maine Maryland =20
Boston, Massachusetts, Michigan, Minnesota, =20
Mississippi, Missouri, Montana, Nebraska, =20
Nevada, New Hampshire, New Jersey,=20
New Mexico,New York, North Carolina, =20
North Dakota, Ohio, Oklahoma, Oregon.=20
Paris, Rome, Sydney, Australia Hilton
Pennsylvania, Rhode Island, Rockwall,=20
South Carolina, South Dakota, Tennessee, =20
Texas, Utah, Vermont, Virginia,=20
West Virginia, Wisconsin, Wyoming,=20
British Columbia, Alberta, Saskatchewan,=20
Manitoba, Ontario, Quebec City,=20
New Brunswick, Prince Edward Island,=20
Nova Scotia, Newfoundland, Yukon and=20
Northwest and Nunavit Territories, =20
Mount Vernon, Eumenclaw, Coos Bay=20
and Dallas Houston Rockwall Garland=20
Texas Taxman and Tax Guru and wizzard=20
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[email protected]
www.centa.com www.david-ingram.com
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 & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
=20
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