foreign debt and bankruptcy in Canada
November 4th, 2006 by Questions
Is undeclared foreign debt included in a bankruptcy filed in Canada?
Thanks for your help.
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November 06, 2006 at 1:34 pm, A licensed trustee said:
Yes and no.
Yes – all of your unsecured debts, except for those specifically excluded by section 178 of the Bankruptcy and Insolvency Act, are included in your bankruptcy. If you fail to disclose some of them you may be subject to penalities under the law, but the debts will still be included.
No – Canadian law is only useful/enforceable in Canada. So while you Canadian bankruptcy will protect you from your creditors in Canada, it will not protect you if you leave the country. If you hvae US debt for example, the debt will still exist in the US after a Canadian bankruptcy.