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Do I file for bankruptcy if I’m living abroad?

My last date of study was in June of 2006. I had been making full payments for years after my repayment began, despite not earning any income. It was only suggested to me (after my funds had depleted)that I could do repayment assistance etc. In 2009 I moved abroad and was not elligible for the other option of payment relief because I did not reside in Canada. I still have 5,600 $ left and cannot pay any more. I am unemployed and since I may not be returning to Canada, I am wondering if it is worth filing for bankruptcy. Thank you for any help you can give!

Posted from: Alberta

One Response to “Do I file for bankruptcy if I’m living abroad?”

Desmond West-Chow, CIRP said...

First of all, since you have been out of Canada for such a long time, you may not be eligible to file for a bankruptcy since the legislation requires you to have resided or carried on business in Canada within 12 months prior to your bankruptcy filing. The only exception is if you still own property in Canada, if you own property in Canada (and this is not just real estate it is any type of asset here in Canada). In terms of the student loans collections department, any creditor can pursue you for a debt when you are outside of the country. They may have to hire a foreign representative to do so, but it is possible. Now practically it is up to the creditor to determine if the additional costs of collecting while you are abroad are worthwhile, but technically they can. Regardless, if they do not have any success collecting while you are away, when you return to Canada it is a debt that you will have to address.