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Will my bankruptcy affect my parents?

My parents is applying for immigrant and should be approved in 2 years. They are now supporting me as an international student in Canada and as my sponsor. In the worst case I may declare bankruptcy because some reasons about two years later. Will it affect my family’s immigration? Please tell me what will happen if I declare bankruptcy before or after I get immigration and how affect my parents like will they pay my debt?

Thank you so much.

Posted from: Alberta

One Response to “Will my bankruptcy affect my parents?”

Desmond West-Chow, CIRP said...

This is a good question and one that I would encourage you to pose of Immigration and Citizenship Canada just in case. However, there is nothing in the bankruptcy legislation that will restrict you from being involved with the immigrating to the country. The only restriction we find is that while you are in bankruptcy you are not able to act as someone’s sponsor, but there is nothing that I have seen that suggests you cannot be sponsored. In terms of your parents being responsible for your debt, they would only be responsible for your debt if you file a bankruptcy, if they are joint on that debt as guarantors, joint signer or supplementary cardholder in the case of a credit card. So unless your parents have signed something in relation to the debt they cannot be held responsible for your debt. In case you contact Immigration and Citizenship Canada and a find that is frowned upon for a sponsor to currently be in bankruptcy, you may also want to consider the filing of a consumer proposal. It is a good way to avoid a bankruptcy, eliminate the interest on your debts and even bring the principle of the debt down to a manageable level. But before you make any decisions I would recommend an anonymous call to Immigration and Citizenship Canada.