I can't pay my Canadian debts, but I don't live in Canada anymore. What can I do?
asked April 14, 2021 by Anonymous
Hi, I’ve been out of Canada since November 2020, and because of Covid-19, I had to retire. I am thinking of not returning, which will make me non-resident after a while. I do have three credit cards with a total of $15,000 debt which I am not able to pay now. The bank called my son asking to pass their phone number so I can call them. Unfortunately, I can’t even afford to call them. I am desperate to know my options if I can’t pay those debts. I’m not living in Canada and I do not have any assets there.
You can still file Canadian bankruptcy proceedings from abroad since under Canadian bankruptcy law, you are deemed a resident of Canada for bankruptcy purposes if you owe Canadian debts. The trick is finding a Licensed Insolvency Trustee who’d be willing to take on your file if you’re living abroad because the Trustee needs to account for your assets worldwide and liquidate them if required. Another alternative would by to file a consumer proposal with a Trustee.
Victor Fong of Fong and Partners Inc. contributed this expert answer.
answered 9 months ago by Debt.ca