Debt in BC working in the US

April 24th, 2014 by Questions

I have a large debt with revenue Canada and want to file bankruptcy but I am currently working in the US. Can they come after my income in the US? Will my debt affect my spouse?

Posted from: British Columbia

Questions

One Response to “Debt in BC working in the US”


, Gareth Slocombe, Trustee | C.I.R.P | C.A said:

Any Canadian creditor can pursue collection of your income in the US. However, they must pursue it through the US court system and collection procedures. This can be costly and not worthwhile for smaller Canadian creditors. In order for you to file for bankruptcy in Canada, which would allow you to extinguish the tax debt, you are technically required to reside in Canada at the time of filing, even if that is for a very short time period. Once you have filed for bankruptcy in Canada, Canadian tax authorities can not pursue your US income. However, you are still required to submit surplus income to the Trustee in accordance with the Canadian bankruptcy laws. Your spouse is not affected by the fact that you owe Canadian income tax debt.

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