Can I declare bankruptcy in Canada if I am living abroad?

October 12, 2012 10:14 pm Published by

You must be “resident” in Canada to declare bankruptcy unless you have either

  • Carried on a business in Canada or/and;
  • Have assets in Canada

Practically speaking unless you have severed all ties with Canada and have primarily Canadian debt, you can declare bankruptcy in Canada. Practically speaking the most practical way to do this is upon any travel back to Canada and contact a Trustee while you are in the country.

Can I keep my vehicle lease going while I am bankrupt or file a Proposal?

As long as you keep your payments up to date the Bankruptcy and Insolvency Act prohibits any creditor from cancelling a contract (lease) only because you are bankrupt. So yes, as will all “on-going” commitments (rent, mortgage, cell phone contract, car lease, etc) if you continue to make your payments under the terms of the original contract, then you can keep your asset.