I am answering this after two phone calls in half an hour. Both were from people I knew and both involved the necessity to go bankrupt, something none of us want to do, but something that can be the salvation of a person, family and marriage. Remember that I have just come out of a $4,868,000 bankruptcy involving 1979, 1980, 1981 and 1982 and could have declared bankruptcy any day of the week for 20 years but didn't. In fact, I intended to go to my grave owing whatever amount it had increased to by the time I popped off at 145. In July 1999, I actually made an appointment with a trustee to talk about it but "luckily" missed it because of a motorcycle accident that had me in and out of three hospitals and then in a wheelchair for 3 months. At any rate, on August 13, 2002 a process server showed up at the office with the news that I had been put into bankruptcy by the CRA. As far as I have been able to deduct, at that time I might have become the first and only person ever put into bankruptcy by the CRA. No trustee I met or talked to had ever dealt with one before. Lot's of people had a tax problem and used bankruptcy as a means of getting out but I was unable to find anyone else in Canada who knew of an individual being put into bankruptcy by the CRA. So, it is fair to say that I did not expect it. I did something that I considered smart. I contacted a bankruptcy trustee (the same one whom I had the appointment booked with in 1999) and had him meet with myself and my "then" wife and give us the low-down - the rules as it were. Remember, this was completely by surprize, neither my wife nor myself had done any planning for a bankruptcy. Of course most people have asked friends, looked in the phone book, and asked around before they pick a trustee to handle "their" bankruptcy. The problem is that the trustee "by Law" is working for the creditors and they, of course, come ahead of the bankrupt although, in truth, everyone is to be treated equally according to the law. I tried to work with the trustee appointed in my bankruptcy but it was extremely difficult. Our first meeting started with the trustee coming into the room in his $1,000 suit and asking me, "aren't you ashamed to be here Mr Ingram?" Well, I was not ashamed and not embarrassed. Secretly I was pleased that it was all coming to a head. I started off dealing with it myself (after all, I "am" the guy with all the answers) from Aug 13, 2002 until about August 12, 2003. Then I realized that I was going around in circles and started looking for professional help. TWO trustees recommended one person. I was given a reference to Murray Morrison LLB, a lawyer specializing in bankruptcy. I went out to his office in Surrey and life started becoming better. I now had an advocate who knew the rules, and could represent "me" against rattlesnake hall (I mean, the trustee) in the Ivory tower in downtown Vancouver. So my recommendation to anyone who is two years of income in debt is to consider bankruptcy if the debt is killing you. At least consider a Proposal which means you pay off "x"pennies on the dollar. If you are in debt to the CRA for $30,000, you have to earn about $60,000 and pay $30,000 in tax, EI, CPP and Back and forth to work expenses to pay the $30,000 and that is without interest. However, BEFORE you consult a trustee, see someone like Murray Morrison who is a bankruptcy lawyer who represents "YOU", not your creditors. You can get hold of Murray at (604) 930-9013. If you do not live in BC, Murray knows other like minded lawyers in other provinces and can give you a referral. He also knows people in a couple of states. 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 Dundee Wealth Management and I, David Ingram host a 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 Local calls are taken at (604) 280-0600 and Long Distance calls (BC only) are taken at 1( 866) 778-0600 Callers to the show are invited to attend free seminars on financial planning with such specialities as deductible mortgage interest. They are held at Fred Snyder's Office at 1764 West 7th in Vancouver - (604) 731-8900 for more information. ========================================= This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, 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, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio and Houston Texas Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax and ImmigrationWizard Income Tax and Immigration Guru Income Tax and Immigration Consultant Income Tax and Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer consultant expatriate anti money laundering money seasoning FINTRAC E677 E667 4789 4790 TDF-90 Reporting $10,000 cross border transactions ========================= Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, 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. 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