I sometimes hear from people who have taken jobs that require them to live and work outside of the country for a year or two. When they become burdened by their debt and want to pay it off, they wonder whether they can still file for bankruptcy in Canada.
The Bankruptcy and Insolvency Act states that in order to file bankruptcy in Canada, your debts must have been incurred in Canada and you have to have resided in Canada within the past year (before you file the bankruptcy). Also, if you don’t live in Canada, you must at least own property here even if you do not usually live in it. If you meet all these requirements, you may be able to file bankruptcy in Canada.
No matter where you are living, if you do file a bankruptcy with a Canadian bankruptcy trustee, it is very important that you disclose all of your debts and assets regardless of where they are. So, if you have a house in Florida and some American credit cards, it is important that you tell the trustee this because it could affect your situation. One thing to keep in mind is that even if you are able to file bankruptcy in Canada but are living elsewhere, there are certain duties you will be required to perform and being out of the country may make it more difficult.
For example, you may need to attend Canadian court (you definitely will if this is not your first bankruptcy), so if you cannot make a trip to Canada, filing a bankruptcy here may not be the right option for you.
If you would like to find out if you can file bankruptcy in Canada, contact Hoyes, Michalos & Associates at 310-PLAN and one of our professionals will be happy to give you the information you need. If you would like to speak to a bankruptcy attorney in the United States, visit bankruptcy america to learn about bankruptcy in the United States.
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