U.S Debt and Canadian Bankruptcy

May 12th, 2008 by Questions

This is actually a follow up to an earlier post..

I had stayed in te U.S for a few years and had accumulated 35,000 dollars in credit card debt when I left the country in 1995. In 2008 I`am saddled with an approximate 180K Canadian debt.

If I declare bankruptcy will the U.S debt with all interest added on be included in the bankruptcy if I presume that the statute of limitations hasn`t expired?
The total U.S debt with interest at 14% would be now 220,000 dollars and greater than the Canadian debt of 180K.

If I file a division I proposal , would the same apply? ie. total debt of 400K with the U.S debt being 55% of the total?

To complicate issues further I don`t have documentation of the debt.

What would a trustee do if I gave him this information? Would he include the U.S debts or not?

Posted from: Ontario

Questions

One Response to “U.S Debt and Canadian Bankruptcy”


May 13, 2008 at 9:15 am, Barton Goth GCO Bankruptcy Trustees said:

A Canadian proceeding can only clear you from Canadian debt. Therefore it makes no difference if we are talking a bankruptcy or a proposal, you will not be cleared from your American Debt only the Canadian.

However, you must list all debts that exist at the time of filing either the propsal or bankruptcy, regardless of what country they are located in. And what you will find is that if you stay in Canada your American Creditors will not be able to collect from you, but if you cross the border their rights to collect will still exsist.

The only way to clear yourself from American debts is to file a bankruptcy in the US as well.

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