Can You Leave The Country During Your Bankruptcy?

Leaving the Country While Bankrupt

One of the main questions that a lot of people ask when they are facing bankruptcy is whether or not they can travel.

There’s a common misconception that you can’t travel while you are facing bankruptcy, but this is not true at all.

There are however various situations where you will need to be physically present, and if you do not attend then you may not be able to declare bankruptcy properly.

If you want to protect yourself here, then you need to do everything you can to make sure that you get solid and reliable information before you go ahead.

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Credit Counselling Services

After you have filed for bankruptcy in Canada, you will need to meet with a licensed counsellor.

They will usually give you two sessions.

If you have approval from the government then you can do this over the phone in some cases, but only if your circumstances are exceptional.

If you have left the country, then this would not be considered as being an exceptional circumstance.

Meetings with Creditors

A meeting with the creditors is the chance for everyone to discuss the situation while dealing with the affairs respectfully.

There is always a meeting of creditors in a corporate bankruptcy but there isn’t usually one if you are declaring personal bankruptcy.


This again, doesn’t happen often but sometimes you will be required to attend an examination.

When this happens, you will need to do it under oath.

The examination is usually conducted by an official.

The purpose is to look further into the affairs of the bankrupt person and to find out how much debt there is and why.

If you were unable to attend this meeting, then the discharge of debt will probably be delayed until the examination can actually take place.


It is your duty as a bankrupt person to keep the trustee informed until the situation has been resolved.

This is to make sure that the whole situation is not delayed unnecessarily if any kind of assistance is required.

It’s also your duty to try and provide a monthly summary of your income and the amount of expenses that you are paying out.

Not being in the country at the time does not have any kind of consequence because this information can be provided by email or it can even be faxed if required.

Discharge Hearing

A lot of bankruptcies finish with an automatic discharge.

This means that there is no requirement to go to court to set the terms of the discharge.

If, in your situation, you do need to set the terms of the discharge then you will need to attend.

The main common reason why a hearing takes place is because the bankrupt person did not complete their duties.

In this case, the court will not make a ruling until they have spoken to you about the situation and until they have been able to resolve it.

Can you Leave the Country?

In short, you can leave the country if you have declared bankruptcy, or if you are in the process of doing so.

You do however have to be aware of your responsibilities because if you aren’t then this could delay the proceedings.

If you have any questions about your bankruptcy, then please do get in touch with our team.

We’d be more than happy to help.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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