Recently, I helped a couple who had moved to Florida from Ontario and were having trouble dealing with their debts. Their debts were all Canadian, meaning they had all been incurred in Canada from Canadian creditors.
They asked me if it were possible to deal with their debts from Florida, where they retired to, with Canadian solutions.
Legally, it is possible to deal with Canadian debts while outside the country, but it is more difficult than if you were living in Canada.
By law, a trustee must conduct an assessment of an individual, usually done in person. If the person is out of the country, then it is more difficult, as it has to be completed over the phone or by correspondence.
After the assessment, a set of documents must be signed and sworn. This becomes more difficult if the person is living in Florida. In the case of the couple above, the documents had to be sworn locally by an attorney (or it could have been done at a Canadian embassy).
During your bankruptcy, you must attend two counselling sessions to help you deal with your money management trouble. If you’re not in Canada, these counselling sessions are more complicated to arrange. The couple who had retired to Florida decided to do their counselling sessions by video conference using the internet (i.e. using a software program like Skype).
And if a bankruptcy requires a meeting with your creditors, you have to attend, regardless of where you are living in the world. Although the meetings are rare, it is the duty of the bankrupt to be there.
Although the law protects the rights of creditors, trustees, and you, the bankrupt, the law can’t reach beyond the border. If you live in Ontario and you file for an Ontario bankruptcy, you are allowed to keep certain assets. If you live outside of Ontario, you won’t be covered under these laws, and some of your assets, which would be exempt if you were living in Ontario, won’t necessarily be exempt. You may have to give up assets that you would otherwise be allowed to keep (for example, a basic vehicle).
Filing for a Canadian bankruptcy is easier if you live in Canada, but is not impossible if you don’t. If you have debts you would like to deal with, contact me for a free consultation. You can also email me any questions you might have. Don’t let your debts prevent you from living a hassle free life – let’s figure out a plan to get you back on track.
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