Declaring Bankruptcy and leaving the country.

May 13th, 2008 by Questions

I`am a Canadian citizen , I have a debt of 122K in Canada , I`am currently unemployed and I`am planning to leave the country in a few months. If i declare bankruptcy now can I …..

1. Leave the country before discharge? How long should I plan on staying after declaring bankruptcy?

2. Pay reasonable relocation expenses prior to bankruptcy? (Temporary accomodations , Cattle class air tickets , shipping of personal effects , etc)

3. While outside Canada , can I obtain a credit card without having to declare that I`am a bankrupt?

4. Receive the discharge without returning to Canada?

5. Appoint a representative in Canada to deal with the trustee on my behalf?

6. Deal with the trustee entirely by snail mail or email? (No telephones)

Posted from: Ontario

Posted from: Ontario


One Response to “Declaring Bankruptcy and leaving the country.”

, Barton Goth GCO Bankruptcy Trustees said:

I will answer each question in order.

1. There is nothing that prevents you from moving abroad while in bankruptcy. However it is helpful if you stay in Canada long enough to complete both of your conselling sessions, so roughly 3 month.

2. In terms of relocation expenses, as long as you are paying what is required by the trustee, the rest is up to your discretion.

3. You have an obligation when borrowing/applying for credit greater tahn $500 do disclose that you are in bankruptcy. This is a requirement of the process and is not simply limited to while in Canada. So the answer is if the amount you are applying for is greater than $500 yes you must disclose it.

4. The discharge is a little more difficult to answer. If your case is straightforward and you complete all your obligations under the act then yes, however if your case is more difficult you would need to be in attendance at court when a discharge is requested.

5. You wouldn’t be appointing a representative as it is your duty to stay in touch with the trustee.

6. Likely most communication could be done via mail/email, but you may have to call the trustee periodically.

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