Question: I am a U.S. citizen and moved to Red Deer with my husband who got a transfer back to Canada. The company I worked for in Texas went bankrupt seven months ago and I can’t work in Canada until I apply with imigration and get approved.
This is going to take several months and we are majorly behind on our credit cards. Does a bankruptcy in Canada help us? If so can we file bankruptcy here in Red Deer?
Answer: A bankruptcy in Canada relieves you of any obligation to pay while you are in Canada and U.S. creditors are prevented from enforcing these debts in Canada.
Depending on when you return to the U.S. the rights of the U.S. creditors are not affected by your Canadian bankruptcy and they may resume collection. There may be statute of limitation laws however and these vary by state.
Our Red Deer Trustees would be happy to discuss your situation in more detail and provide you with further feedback. Our bankruptcy services are available in Red Deer.