Leaving Canada While Bankrupt: A Comprehensive Guide
Bankruptcy is a complex legal process that can be daunting, especially if you are planning to leave the country. This guide provides an in-depth look at the implications and requirements of filing for bankruptcy and leaving Canada.
Overview
Bankruptcy in Canada is governed by the Bankruptcy and Insolvency Act and is overseen by a licensed bankruptcy trustee. Filing for bankruptcy doesn’t necessarily impede your ability to exit the country. However, to be discharged of your bankruptcy, you need to complete certain duties and maintain good communication with your trustee.
Factors to Consider
Before you make a decision, here are several important factors you need to evaluate:
Understanding Bankruptcy: Bankruptcy is a legal status for individuals unable to pay their debts.
Legal Obligations: Filing for bankruptcy comes with certain duties and responsibilities.
Impact of Leaving the Country: How your move impacts your bankruptcy status and discharge.
Understanding Bankruptcy
Bankruptcy is a legal mechanism that provides relief to individuals overwhelmed by their debts. The process involves surrendering certain assets to a trustee who then uses these to repay your creditors.
Legal Obligations in Bankruptcy
When you declare bankruptcy, you are legally obligated to perform certain duties:
Disclosure of Assets: You must disclose all your assets to your trustee.
Attendance at Meetings: You are required to attend certain meetings, such as the meeting of creditors.
Monthly Payments: You need to make regular payments to your trustee, based on your income and family size.
Impact of Leaving the Country
Leaving Canada does not affect your bankruptcy status. However, it’s vital to ensure that you fulfill your bankruptcy duties and keep your trustee informed about your whereabouts.
Fulfilling Bankruptcy Duties from Abroad
Here are some steps you can take to fulfill your obligations from abroad:
Communicate with Your Trustee: Stay in touch with your trustee, providing them with your new address and contact details.
Attend Meetings Virtually: With modern technology, you can attend necessary meetings online.
Make Payments Online: You can make your monthly payments online from anywhere in the world.
Conclusion
In summary, you can file for bankruptcy and leave Canada. However, you should ensure that you fulfill all your bankruptcy duties and maintain good communication with your trustee, regardless of where you are.
