"Who cares if I owe a lot of money to CRA? I can just go bankrupt!"
I have heard this statement quite a few times in my career... but unfortunately, there are a lot of misconceptions about bankruptcy, and in particular the interception of bankruptcy and tax debt. Now that CRA has ramped up their collections action again, I thought it might be an appropriate time to bring on an expert to help chat about these topics. My special guest, Michelle Scheller, is a licensed insolvency trustee with MNP Ltd., and I have referred a number of clients to her team in the past to help with particularly "sticky" CRA collections issues. Michelle and I chat about the following:
- What is a licensed insolvency trustee? (4:40)
- What does it mean to "go bankrupt" or "be insolvent"? (5:05)
- What is a proposal versus a bankruptcy? (10:05)
- What are the special rules that apply when you have a "tax driven" bankruptcy? (16:35)
- What are the first steps you should take if you think you need help? (21:30)
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What is The Tax Chick Podcast?
Tax is complex, but it does not always have to be so complicated and shrouded in mystery. Host Amanda Doucette is a self-proclaimed foodie, spin class and Pilates enthusiast, and a tax lawyer. She fell into the practice of tax law despite having a life-long hatred of spreadsheets, math and numbers in general. Join Amanda and her guests as they unpack some serious Canadian tax topics and attempt to demystify the world of tax.