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Does US Bankruptcy force filing of Canada bankrupty?

If someone who lives in Canada has real estate in the US that goes into foreclosure, and they are forced to declare bankruptcy in the US to hold off the creditors there, is it required to declare bankruptcy in Canada, even though the financial situation in Canada is totally solvent? That is, can US creditors reach across the border to obtain their due if no Canada bankruptcy declaration is made?

Posted from: Alberta

One Response to “Does US Bankruptcy force filing of Canada bankrupty?”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

There is nothing that forces a Canadian bankruptcy. But be advised a Canadian bankruptcy would not release you from any debt from the US, only protect you form certain creditor collection actions. However, this does not mean your Canadian property would be entirely safe as regardless whether you file a bankruptcy in Canada or elsewhere your world wide assets must be considered and be dealt with by the legislation in whatever country you file in.