US property and a consumer proposal in Canada
November 8th, 2009 by Questions
I have a US property with some equity in it. If I submit a CP in Canada will be my US property protected against my creditors based in Canada and also Europe.
Posted from: Ontario
One Response to “US property and a consumer proposal in Canada”
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November 09, 2009 at 10:03 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Firstly, the US property will have to be considered when determining what would be offered to your creditors withing the consumer proposal. This must be done becasue in comparision if you filed for bankruptcy you would loose this property and it would be liquidated and sold for the general benefit of your unsecured creditors.
The second thing that is important to recognize is that the Canadian bankruptcy law is unable to protect foreign property from foreign creditors. So filing aproposal will not be able to prevent your US or European creditors from attacking property that is located outside of Canada.