Property outside Canada and bankruptcy.

September 10th, 2007 by Questions

I\\”am a citizen of India and a permanent resident of Canada. I own significant value of farmland in India (about 250,000 dollars worth). India has restrictions on sale of inherited farmland (any sibling can oppose , mine will) and capital controls which will make it difficult to sell the property and move the proceeds to Canada.

If I declare bankruptcy in Canada over the 170,000 dollar debt that I have , will I be ineligible for discharge until I overcome the legal hurdles and sell this property (which could take 10 years..)?

Questions

One Response to “Property outside Canada and bankruptcy.”



September 11, 2007 at 9:14 am, A licensed trustee said:

The short answer to your question is “probably”. I suspect if you file bankruptcy one of two things will happen – either your trustee will advise your creditors of the property in India and allow them to decide whether or not they want to wait fo rit to be dealt with OR your trustee will place the matter before the bankruptcy Court and allow the Registrar to determine how to treat your situation.

Given the potential complexity of your bankruptcy, I strongly suggest you speak to an insolvency lawyer as well as a trustee before you decide to file.

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