Assets outside Canada
How do trustees handle non-Canadian immovable assets held by a bankrupt? What happens if the bankrupt doesn`t cooperate in efforts to liquidate those assets? (Example: The bankrupt is willing to do anything within Canada but refuses to travel to the other country and sell the asset due to an outstanding arrest warrant in that country)
What kind of trouble can a bankrupt expect in that situation?
Once the value of the asset outside of Canada has been determined, the person that filed for bankruptcy may be held responsible to co-operate with thyeir trustee to see that an amoutn equal to that value is paid into the bankruptcy. In most cases, that means the asset is sold and thre money paid to the trustee. If the asset cannot be sold (or the bankrupt will not assist with it’s sale) then the Court in Canada will likely keep the person in bankruptcy until an amount equal to the assets value has been paid by the bankrupt.
Depending on the dollars involved this can be a minor issue, or a major problem. You’re best bet is to speak to either a trustee or perhaps an insolvency lawyer – they’ll likely be able to develop a strategy to deal with the asset.