Canadian Bankruptcy and U.S debts

May 10th, 2008 by Questions

Am I required to include ALL debts in bankruptcy even if the debtor is an U.S company and the debt MIGHT be statute barred there?

I spent a few years in the U.S before moving to Canada in 1995. At the time of leaving the country I owed creditors in the U.S a total of 35,000 dollars. Fast forward to 2008 and now I owe Canadian creditors 180,000 dollars.

My impression is that the U.S debts are now statute barred and including them in any proposal or bankruptcy in Canada will revive the SOL in the U.S.

Should I include those pre-1995 debts or can I just ignore them?

Posted from: Ontario

Questions

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


, Barton Goth GCO Bankruptcy Trustees said:

If you are filing a bankruptcy you are required to list all of your debts regardless of what country they are in. However, if the debts are no longer valid (i.e. statute barred) then legally you are not responsible for them any longer and there is no need to list them. As a result you may want to contact an insolvency lawyer in the states to confirm whether or not you are still legally liable.

One other thing to note, filing a bankruptcy in Canada will not release you from the debts in the United States (although they still must be listed). The only way to be released from debts in the US is by filing for bankruptcy in the US.

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