Bankruptcy and Immigration

Bankruptcy and Immigration

The influence of Bankruptcy and Immigration on each other is a subject that is often overlooked. However, it carries significant implications on the lives of immigrants intending to make Canada their home. This article seeks to demystify the interplay between these two critical areas, providing insights that can aid immigrants and their sponsors in making informed decisions.

The Role of Licensed Insolvency Trustees

Licensed Insolvency Trustees (LITs) are professionals authorized to administer insolvency procedures, such as bankruptcies and consumer proposals. However, they are not immigration experts, making it crucial for anyone worried about how bankruptcy could impact their immigration status or their ability to sponsor someone else’s immigration to consult with the Government of Canada’s Immigration & Citizenship department.

Impact of Bankruptcy on Sponsoring New Immigrants

Declaring bankruptcy can affect your ability to sponsor eligible relatives wishing to immigrate to Canada. If you have declared bankruptcy and have not been discharged, you will not be eligible to sponsor anyone. This restriction, however, does not apply to individuals filing a consumer proposal.

Once discharged from bankruptcy, which typically takes between 9 to 36 months, you must ensure that you meet the other financial conditions required for sponsorship. Before sponsoring a new immigrant, you must complete a financial evaluation form that calculates the financial requirements you must meet, including a minimum necessary income.

Bankruptcy and Citizenship Application

For Canadian residents burdened by unmanageable debt, filing for bankruptcy in Canada is an option. Fortunately, this step should not influence your citizenship application.

Bankruptcy and Immigration Eligibility

If you’re planning to immigrate to Canada, being unable to support yourself or your family members, known as “financial reasons,” could lead to a visa denial. However, even if you have declared bankruptcy in another country, you will still be eligible to immigrate to Canada as long as you can support yourself and your family members.

Find Your Personal Debt Relief Solution

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