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Canadian Bankruptcy if you Live Abroad

Richard Sklar Posted by:
Richard Sklar, CIRP, LIT
Licensed Insolvency Trustee

Table of Contents

Declaring Bankruptcy in Canada while Living Abroad – The Facts

If you are a Canadian living abroad and looking to file for bankruptcy on your debts owed in Canada, can you file for bankruptcy or a proposal in Canada? The answer is maybe.  If you meet ANY of the tests below, you would be eligible.

Do you work or conduct business in Canada?

While you may live abroad, if you currently work in Canada or have a business that operates in Canada, or if you worked or had a business in Canada within the 12 months prior to filing, you would be eligible to file in Canada.

Are you resident in Canada?

You have to currently live in Canada or lived in Canada within the 12 months prior to filing to meet this test.  If you have been living abroad for more than 1 year, you would not meet this test.  You may need to reestablish your residency in Canada to be eligible to file for bankruptcy or a consumer proposal if you do not meet any of the other tests.

Is the majority of your assets located in Canada?

If you do not meet the two tests above, you may still be eligible to file in Canada if the majority of your assets are located in Canada.  Assets that you have in Canada could include land, real estate, bank accounts, and investments, just to name a few.

If you do not meet any of the three tests above, you would not eligible to file for bankruptcy or a proposal in Canada.  To assist you in understanding whether or not you meet these tests, please contact our office and we would be happy to assist you.

Declaring Canadian Bankruptcy in a Foreign Country

If you are not eligible to file in Canada, depending on the insolvency laws in the country that you are living in, you may be able to initiate insolvency proceedings that include your debts in Canada. While this option does not remove that debt back in Canada, you are protected from any collection action in the country where you filed the insolvency proceedings.  So as long as you do not intend to return to Canada, this would allow you a fresh start free of your debts incurred in Canada as well as your new country.  However,  if you move back to Canada, you would need to deal with the Canadian debts and could consider insolvency proceedings in Canada at that time.

If you are coping with debt that you are not to pay –call us at 416-498-9200 for your FREE consultation. Our caring professionals will review your finances in detail and go over all your options for getting out of debt and getting on with your life.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Our experiance with 'David Sklar and Associates' was very good The customer service was great; we want to say big thank you to Disha at the Brampton office she was easy to talk to, she listened closely to all of our concerns and explained promptly. She truly made us feel confortable during a very difficult financial time. We deeply appreciate everything the David Sklar and Associates team did for us. Thank You Very Much..
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My experience at David Sklar and Associates was straight forward and easy. Jacqueline took her time going over the process with me, she was patient and understanding. Thank you Jackie. Roxanne
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I want to give a big TY to BIBI, Jo, Rhoda, Christina and all the staff at David Sklar, for making such a confusing, embarrassing, stressful, time in my life, so much easier to deal with. The level of patience and understanding they carried, during my learning process of the whole bankruptcy path, was truly a blessing. I was lost, tired, sick of the collection calls, threatening letters, embarrassed to tell anyone how far in over my head I was. But they made it easy, worked with me, and helped me to understand the bankruptcy act and what my responsibilities were, as well as theirs. I am now 3 months into my debt free life, and can now look forward to the future, and answer my phone. Ty so much to all, I will definitely be referring people I know are struggling, to ur company in the near future
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I had a wonderful experience with this company, especially thanks to Mo Patel. He was extremely helpful, professional, and supportive throughout the process. I truly appreciate his dedication and the excellent service he provided. Thank you, Mo, for all your help! Highly recommended
Victor P
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S88 19
1 week ago
Great service, very informative staff, and a special thanks to Mo Patel for how well he handled my case, always returning calls to clear up questions I had and a very positive vibe that allowed me to feel stress free during a very stressful process.
Pierre Bouffard
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It was a positive experience. Serena is very kind and knowledgeable. She made me feel comfortable and confident throughout the entire process. Thank you for everything!
Mischa
2 weeks ago
Disha Chauhan at David Sklar & Associates made the consumer proposal process completely seamless. She was professional, empathetic, and went above and beyond—even providing quick responses after hours to ease my worries. Disha explained every step clearly and lifted a massive financial weight off my shoulders. I highly recommend her and the firm to anyone needing a fresh start!"
Rafa Trabal
2 weeks ago
I contacted David Sklar & Associates by filling out a form on their website. That same day, a firm representative contacted me to schedule my initial consultation. I requested to speak in Spanish, and they connected me with Beatriz Cabrera. That’s where the magic happened. Beatriz was very kind and clearly explained the best option for my current situation. She stayed in constant contact with me to gather all the documentation needed to start my proposal. I highly recommend this company; the entire team does an amazing job. Thank you so much.
Lisa E.
2 weeks ago
Thank you Jennifer Ricaplaza & Team! Jennifer was amazing from the very beginning. She took the time to help me understand my options and explained everything thoroughly, patiently, and with genuine care. I never once felt rushed. Jennifer is incredibly kind, warm, and compassionate. She was extremely sympathetic to my situation and always made me feel heard and supported. I asked many (MANY!) questions throughout the process (sometimes more than once!) and she never hesitated to take the time to answer them. At every step, she would also check in and ask how I was feeling, which meant more to me than she probably realized. I am SO grateful to the entire team, and especially to Jennifer, who truly took the time to get to know me and understand my situation. She is exactly the kind of person you want representing your company — professional, caring, compassionate, and genuinely invested in her clients. You are very fortunate to have such a wonderful person on your team. A heartfelt thank you as well to Stephanie and the trustee, Chris, for their help and support throughout the process. Thank you all so much for making what could have been an overwhelming experience feel much easier and more manageable. I am truly grateful.

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