Why You Should Never Hire a Trustee in Canada – Kevin J. Johnston Exposes the Truth | Episode 47
- Tom Broderick
- Jun 20
- 2 min read
Updated: Jun 22
Trustees are not your financial saviors—they’re the CRA’s enforcers in disguise.
In Episode 47 of The Tax and Money Show, Kevin J. Johnston blows the lid off one of Canada's most misunderstood professions: Licensed Insolvency Trustees. Marketed as debt relief experts, these trustees often work against the very people they claim to help—and Kevin is here to tell you exactly why.
🎥 Watch this episode and discover how to handle debt and tax issues without handing over control to a government-aligned gatekeeper.
📢 Book your strategy call now: www.KevinJJohnston.com
The Hard Truth: Trustees Don’t Work for You — They Work for the CRA
Kevin shares the chilling real-life story of a Canadian man whose financial future was destroyed after hiring a trustee to "help" with his debt. Instead of protection, he faced:
Garnished wages
Frozen bank accounts
Intimidation from both creditors and the CRA
Why? Because trustees are legally obligated to serve the interests of your creditors, not you.
In this episode, you’ll learn:
Why trustees prioritize repayment to creditors, including the CRA
How they earn fees from your financial hardship
Why they may discourage alternative debt solutions that protect you
What Trustees Actually Do (And Don’t Tell You)
In Canada, Licensed Insolvency Trustees (LITs) are officers of the court, not financial advocates. Their duties include:
Administering bankruptcies and consumer proposals
Ensuring that creditors are repaid
Enforcing financial restrictions on your income and assets
But what they don’t promote is:
How trustees charge fees before you’re even out of debt
How they may discourage independent negotiations with CRA or creditors
Their close relationships with collection officers
💡 According to the OSB, LITs must act in the interest of creditors under the Bankruptcy and Insolvency Act—not in the best interest of the debtor.
Kevin’s Solution: How to Fix Debt Without Hiring a Trustee
Kevin outlines powerful alternatives to dealing with debt or tax problems:
Direct CRA negotiations using taxpayer relief provisions
Filing Section 85(1) or 87 rollovers for tax deferral through restructuring
Using incorporated entities to shield personal liability
Working with independent tax consultants who represent you, not your creditors
Kevin’s philosophy is clear:
“You don’t need a trustee. You need a strategy.”
How to Regain Control of Your Finances (Without Selling Your Soul)
This episode is packed with actionable insights:
What to do before considering bankruptcy or a proposal
How to recognize deceptive trustee marketing tactics
How to legally protect your income and avoid garnishments
What questions to ask before signing any agreement with a LIT
Final Takeaway: You Don’t Need to Be a Victim
This isn’t about fear—it’s about facts.Kevin empowers Canadians to take ownership of their financial battles and avoid getting trapped by a system designed to recover money—not protect people.
LIVE Thursdays at 9PM EST on Rumble
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