I won't bore you with recapping the saga of undischarged bankrupt and malicious defamer Patrick "Hey, girls, I'm still single" Ross, who we all know now owes me over $120,000 after having maliciously defamed me years ago, then unwisely decided to not even defend my lawsuit. The more interesting story is what it will take for Patrick to get out of bankruptcy, and while I've published that he still has an outstanding $25,000 or so on his 2014-issued Conditional Discharge Order (CDO), it turns out that it's more complicated and potentially far uglier for Patrick than that. Let me explain.
The whole point of bankruptcy is that, if your debt far exceeds your assets, you try to convince the judge to let you off with paying a fraction of your debt, after having handed over all of your seizable assets. In Patrick's case, he was ordered to pay a grand total of $34,000 out of a total debt of almost $100,000; again, he stupidly decided not to do that which is why he's in the trouble he is in now. But here's the kicker (and I have written about this before).
After declaring bankruptcy, as you are paying off your CDO, you're not allowed to suddenly come into a pile of money and subsequently keep it all; such a windfall (such as an inheritance) is referred to as "after-acquired assets" and as it would be massively unfair to your creditors for you to get the benefit of bankruptcy while keeping all those assets, they are required to be turned over to the trustee, who can then distribute them to the creditors above and beyond what they are owed due to the CDO.
I will say that again to make sure you understand it -- even if you got a really favourable CDO, your after-acquired assets must be handed over to the trustee, who will then distribute it to the creditors even if that exceeds the amount of the CDO so that, depending on the size of the windfall, the creditors could end up getting the full amount of what you owed them. The principle is simple -- you don't get the benefit of bankruptcy while simultaneously getting to keep all that cash.
If you want proof, I refer you to the 2003 case of one Steven Sindaco, in which Sindaco, owing only $2,500 pursuant to his CDO, while still bankrupt managed to win $500,000 in a lottery, at which time he was told quite clearly that all that dosh was after-acquired assets and his creditors were entitled to the original full amount he owed them.
This brings us, of course, to the case of the aforementioned Patrick Ross who, while he owes only around $25,000 on his CDO, almost certainly got a sizable inheritance when his enabling and psychologically unstable father passed away, and you can see where I'm going with this.
See, based on conversations I have had with the fine folks at Canada's Office of the Superintendent of Bankruptcy, the day Patrick decides to try to get out of bankruptcy, he will first have to get a trustee (doesn't need to be the same one), and the very first thing that trustee will tell Patrick is that he has to get current on all of the missing years of his financial reporting, and that will absolutely include a full and complete list of all after-acquired assets, at which time (as you can see based on the Sindaco ruling) those assets will be distributed to all of his creditors.
It's not clear exactly how this would play out, but I have made it clear to everyone involved that the instant Patrick tries to get out of bankruptcy, the relevant authorities will be asking about any after-acquired assets, including but not limited to inheritance, proceeds from selling property or other assets, and what have you. And if you don't believe me, I suggest reading that Sindaco ruling again.
In any event, as always, let me know what ever you hear about Patrick's latest travels, employment status and accommodations. I want to make sure I'm ready to go when the time comes.
P.S. It's worth noting that there are times when it's hard to say how all of this will play out legally since almost everyone who's come into contact with this case admits they have rarely seen anyone so thoroughly screw himself as badly as Patrick has done. Even as far back as 2014, the bankruptcy registrar -- in issuing her ruling -- described this case with:
After considering the unique facts of this case, the common law principles governing discharge applications and, in particular, the reprehensible nature of the conduct that ultimately created 99% of the debt in this bankruptcy, ...
It is unlikely that Patrick getting out of bankruptcy is going to be either simple or straightforward, given how even the people who deal with bankruptcies on a regular basis are gobsmacked over how uniquely fucked up this is and how contemptuously Patrick has behaved. If Patrick thinks he's going to get any sympathy from the Court, he seriously needs to rethink that.
20 comments:
Patrick "Twatsy" Ross is the most bankrupt man in Canada.
Could someone as shameless and pathetic as Twatsy simply decide to stay in bankruptcy forever? That way they could keep their After Acquired Assets by never formally reporting them?
It's not like Twatsy will ever own a home or start a business. So what value does financial solvency have for someone with Twatsy's very limited skills and life prospects?
ROD: I've mentioned a number of times that, yes, if someone has as vacuous and empty a life as Patrick and accepts that they will never have their own home, or business, or any kind of a relationship, then they can choose to live "off the grid" as it were indefinitely, as long as they have an accommodating employer.
But while Patrick might have been able to get away with that with the support and enablement of his batshit-crazy parents, now that both of them are gone, it's going to get increasingly more difficult to keep that up, particularly since (as I heard) his own siblings want nothing to do with him, given how he jeopardized all of their inheritances with his assholishness, and how he *continues* to do so to this day.
So while Patrick can soldier on like this with a life of absolutely no import or consequence, he will always be looking over his shoulder, wondering when he might slip up. Certainly, trying to proceed with any legal actions is going to blow up in his face spectacularly the instant the Court becomes aware of his history.
So, in the end, who knows how long Patrick can keep this up as long as he's happy being an utter non-entity? I'm guessing, though, that he's slowly but inevitably running out of road.
We realize that Twatsy Ross is Canada's Least Eligible Bachelor, but hypothetically, imagine the hilarity of the Twatster trying to solidify a relationship with a woman given his dire financial/life circumstances. Like, how on Earth would you explain your $120,000 malicious defamation debt or decade-plus undischarged bankruptcy to a lady on a date?
What I'm the most curious about is what's happening with the Ross residence.
I don't know if you're up-to-date on PZ Myers's blog, but two weeks ago his mother passed away. And in amongst several moving and eloquent tributes to his mom, he's revealed that he's the executor of her will, and he's getting ready to sell her house. He's not wasting time, possibly because he doesn't live in the area.
Contrast this with the Ross family. It's been over a year since Ken Ross passed on, but have assets been dispersed? Not that I'd expect that you'd know, but the house seems to be in limbo, and I'm not sure how long that could legally continue. Is there a deadline for these things?
It also occurs to me that Ken may have given the house to one of his children long before he passed on, on the condition that he be allowed to live there until his demise. This may explain why nothing seems to be happening with it. Could that person be Patrick? Of course, I don't know if someone in Patrick's bankruptcy situation would be allowed to own property, but he's got no trustee, no one he's obliged to report to, so...?
Anyway, it's all just wild speculation on my part.
Meanwhile another asset hider is required to stay in bankruptcy
https://www.thestar.com/news/gta/crypto-king-to-remain-bankrupt-pending-criminal-proceedings-judge-rules/article_6c5727da-45e5-11ef-9920-f7a8e3939ed3.html
Augray: I have in fact written about this possibility -- that the property was willed to one of the Ross siblings on condition that Patrick be allowed to continue living there. I don't find that likely, for the simple reason that (from what I've heard) all of Patrick's siblings absolutely loathe him for putting them through this, and if I were the sibling that inherited the house, I'd be *mighty* pissed about having a valuable residential property sitting there that I was not allowed to sell because my financially irresponsible brother was freeloading off of me and squatting in a property that I could unload for at least a couple hundred thousand.
Sooner or later, whatever is happening with that house will become obvious, and I will respond accordingly. And if that means filing to seize it, so be it.
Augray [part deux]: This is a perfect example of what I was referring to when I said that everything that family does from now on will be planned in the context of, "Is there any way that CC can take advantage of this?" Every single financial transaction will need to be examined to see if there is any way it can backfire on them to my benefit.
It's not just Patrick but that entire gang of hillbillies that is looking over their shoulders and wondering what sort of legal action I can drop on their heads the instant they start moving assets around. I'm betting that house would have been sold long before now if it weren't for the fact that I am waiting and watching.
My thought was that Patrick himself had been given the house years ago, long before Ken's demise. Yes, it seems insane, but your descriptions of Ken's behavior don't exactly preclude it, and it would be a possible explanation for the lack of activity with the house. Yes, his siblings would be extremely pissed off by this, but what could they do? Under this scenario, what's happening with the house (i.e.: nothing) may not become obvious for a long time.
And if the house is in the will, how long can it, and the estate in general, be in limbo? Two years? Five years? Ten? What entity has the jurisdiction to tell the family to get their act together?
For what it's worth (and I'm comfortable with "nothing"), I'm sure that if I were in your shoes, I'd be just as ruthless, if not more so. But I'm a programmer, and I'm regularly presented with situations that no one thought would ever happen. It makes me imaginative/paranoid.
If the will is being contested, it may well still be hung up in the probate court.
With it being 18 months now, that seems quite likely, because usually once probate clears the courts gran the executor about 6 months to get things lined up for distribution.
Who knows what's going on. That said, it would be a massive drag to pay property tax, utilities, all for the benefit of a bankrupt sibling.
Anyone see Pat mowing the lawn?
Augray: If the house is now in Patrick's name (and that's on my TO DO list to verify), then it's mine. It's properly in Saskatchewan, where I have a collection enforcement order against Patrick. So if Daddy Ken Ross transferred the house to Patrick, I guarantee that I have the right to take it, or at the very least force him to sell it in order to pay me what he owes me.
Can't imagine Ken Ross's master plan for the Lloydminster residence was, "Never liquidate, all four kids get nothing, pay property taxes and upkeep, let Twatsy's $120K+ defamation debt to CC grow by $6K+/year in perpetuity."
However, given how dumb and stupid that hillbilly family is, nothing would be surprising regarding the Ross estate.
Brian Busby: As I mentioned, chances are this would have all been resolved long ago if it weren't for the fact that that entire collection of yahoos is probably still trying to protect themselves against any legal action on my part to take the house. It must really piss off Patrick's family that they have to tip-toe around this process because of his stupidity and arrogance.
In any event, Patrick is already in enough trouble, but if his siblings are conspiring to conceal his assets or ownership, there's a good chance they're going to end up in trouble as well. And I could still end up with the house.
MgS: Interesting speculation that perhaps the will is being contested, if it was worded in such a way as to try to protect assets from me, and some of the family members are unhappy if it was designed to favour Patrick over the rest of them.
I can't imagine this can go on forever; sooner or later, there has to be a resolution as to who gets the house, or if it's sold. If Patrick gets the house, I have the legal right to take it. If it goes to someone else, then it seems Patrick won't have a place to live. And if it's sold and Patrick gets a cut of the proceeds, I'll have the right to file to take his share of those proceeds.
In any event, if the house is just sitting there unused and unsold, that's a valuable asset I'm betting that whole family would love to unload so they can get the cash.
What if the rest of the family agreed to let Patrick keep living there as long as he paid rent? Maybe they were planning on keeping it as a rental property the whole time, so what would be the problem if Patrick turned out to be the renter? Wouldn't that make everyone happy, and keep you from seizing the house?
Anon @ 6:34 AM: I already considered that once upon a time. First, I'm guessing that at least some of the siblings would not be interested in keeping it as a rental property, and splitting the rent three ways. I'm guessing they'd rather just unload the place and take the cash.
More to the point, renting to Patrick would make sense only if he brought in the same amount of rental income as if they rented to someone else. I truly doubt any of the family would be keen on renting to Patrick under some sort of sweetheart deal where they would get even less.
It's possible they might do this, I just don't think it likely as the other family members really don't have any incentive to cut Patrick any slack or do him any favours.
@CC: Regardless of the speculation, if the will has cleared probate, and it contains a “split ownership” arrangement clause, then a title search on the property would reveal that quite quickly.
At this point in time, one has to imagine that there is enough funds in the estate to sustain basic operating costs on the property, although the longer it is hung up in probate, the bigger the drain on the overall estate.
I can’t imagine any estate lawyer condoning making the property what amounts to a “joint trust for the benefit of Patrick” - that’s effectively enjoining the heirs of the estate to some bizarre contract without their consent. I’m not sure that would even be legal.
MgS: I have already submitted an online application for a title search on the property and am waiting to hear back. Whatever the result, it should be informative.
Since people seem to be following this epic saga, a reminder that I am always interested in whatever info folks can glean by doing a drive-by of Casa Ross in Lloydminster, and reporting on whatever vehicles are seen there, whether someone seems to be doing regular maintenance, whether lights are on in the evening and so on.
I won't mention the address as that information is easily available from the archives and elsewhere.
MgS: I can't blame you for thinking that it's been 18 months, but in fact it's only been a week short of 13 ( https://mccawfuneralservice.com/tribute/details/4305/Kenneth-Ross/obituary.html ). But that's hardly an excuse for not wrapping up the estate. Are "in-process" probate court proceedings available to the public? As in, could CC do an on-line search if he knew where to look? I would think so, if only so parties with a stake in the matter could attempt to insert themselves into the process if they're not in it already.
Post a Comment