2) The debtor can regain their Canadian residency and they will then be able to go bankrupt or file a consumer proposal to their creditors in Canada for their Canadian debt.
3) The individual may file for bankruptcy or file a proposal under Canadian law while living in that foreign country if:
They own Canadian property (re: definition of “insolvent person”) which could include money, things in action, goods they own, land and every description of property, whether real or personal, legal or equitable;
or if they have conducted business in Canada in the prior 12 months (re: definition of “insolvent person” and definition of “locality of a debtor”). Note:
If you think you qualify to go bankrupt or file a proposal while living in that foreign country the next step would be to fill out an information form and then contact a trustee, where you used to live in Canada:
The trustee will have to get permission from the Office of the Superintendent of Bankruptcy for the debtor to go bankrupt or file a proposal in that foreign country without the person coming back to Canada.
Getting out of debt is possible and a trustee in bankruptcy can guide you through the process.
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