How can I deal with my Canadian debts if I now live outside of Canada?
The definition of a candidate for bankruptcy is: an insolvent person who, at the time of filing bankruptcy, lives or carries on business in Canada.
If you do not live or carry on business in Canada, then you cannot file bankruptcy in Canada.
You may live in Canada until the day you file bankruptcy. Once you sign your bankruptcy documents you may move to anywhere in the world you choose. However, you have a duty to keep your Trustee advised of your place of residence and other contact information. In addition, you must arrange to attend in person, or by telephone, your two mandatory Counselling Sessions. If you fail in either of these areas you will not be eligible to obtain an Automatic Discharge from your bankruptcy.
You also have a responsibility to provide your monthly income information to your Trustee in order for your Trustee to determine if you are required to pay Surplus Income. Even though you may be living outside of Canada after filing bankruptcy, you are still required complete your duties as a bankrupt, and several mandatory requirements, before you will be eligible to be discharged from bankruptcy.
When you re-establish residency in Canada you will then be eligible to file bankruptcy in Canada.
You may be able to file bankruptcy in Canada while living outside the country if you
✔ carried on business in Canada in the preceding year, or
✔ own property located in Canada such as: real estate, things or goods, money
which is currently located in Canada
Your Trustee will need permission from the Official Receiver in the Office of the Superintendent of Bankruptcy for you to file bankruptcy while you are still in a foreign country.