Secured debts

April 22nd, 2008 by Questions

I have two secured debts – a car and a mortgage but no major unsecured debts.My problem is that I will have to leave Canada soon to return in my country and I don`t have so much time to wait to sell these assets.Is the bankruptcy a solution in this case – I mean a solution to liquidate fast what I have here ? Is it possible to declare bankruptcy from abroad – and if yes what are the consequences considering that the bankrupt does not have any assets either in Canada either abroad ?
Thank you


One Response to “Secured debts”

, A licensed trustee said:

The questions you should be asking is “if the car is sold will it pay off the debt? If the house is sold will there be any equity (money left for you)?”

If selling the assets will clear the debt then you may not be eligible to file for bankruptcy. I suggest you go and speak to a lawyer, perhaps you can give them power of attorney to sell the assets and deal with this for you.

If selling the assets will not clear then debt then you might want to consider filing for bankruptcy – in that case you should call and speak to a trustee.

To answer your second question, under normal circumstances, you cannot file for bankruptcy in Canada from outside of the country.

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