Canadian Bankruptcy or Consumer Proposal if you Live Abroad

Filing Bankruptcy on Canadian Debt From Outside of the Country

People from Canada that are living in another country may go bankrupt or enter into a consumer proposal to deal with the debt they owe in Canada.

1. Individuals from Canada may file bankruptcy from the country they reside in.

   By filing bankruptcy abroad they will also be relieved of their Canadian debt as long as they remain in that country.

   By returning to Canada their debt will be reinstated and the money will be still owed.

US Bankruptcy

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:

Bankruptcy Form

Trustee Locator

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.