Moving Within Canada or Out of the Country

We are presently living in Ontario. We have family members who are helping us to find employment-one in Alberta and one out of Canada.
We have crippling debts here due to illness and subsequent unemployment then expenses related to deaths in the family and we need to start fresh. Would we claim bankruptcy in Ontario before we move or would we wait until we get to Alberta or outside the country? CAN I claim bankruptcy from Alberta if we lived in Ontario? None of the debts are local- they are all credit cards and taxes.

If we did move outside the country, would our Canadian bankruptcies have to be registered or reported or recorded in any way in the new country? What are the laws regarding reporting that you have been bankrupt when you are not in Canada? For instance, could we apply for a credit card or mortgage in another country without admitting that we have been bankrupt in Canada?

If we were to claim Canadian bankruptcy from outside the country, how would we deal with the Canadian trustee and the debt counseling sessions so we could get our discharge when the time comes. Would we submit monthly income and expense reports and pay the surplus (if any) by mail from my new place of residence?

In your opinion, would it be better to stay in Canada until this is over, or does it matter? We have more family overseas than we do here so it might be easier for me to start getting back on my feet if we did move out of Canada.

One more question. I was self-employed until I stopped because of my health. Since then I have not gotten another job. My partner is still self-employed but if we move my partner would take a job with someone else. Would we claim individual bankruptcy or on the basis of self-employed?

Posted on Thursday, October 25, 2007 | Filed under: Bankruptcy
 posted by Questions @ 3:46 pm 1 Comment
1 Expert Comment:

 At October 25, 2007 | 6:37 pm , Barton Goth, GCO, Bankruptcy Trustees Said...

You have asked a number of good quesitons that i will try to cover.
First, where to claim bankruptcy. It is alwasy easiest to claim bankruptcy where you are living or planning on living. So if you intend to move to Alberta you are best to file in Alberta. However, things get a little muddy if you move to the states. Should you choose to move outside of Canada I would recommend filing in Ontario (assuming that is where you are living at the time) prior to moving. It is less than ideal to do this and makes the administration of the bankruptcy more complicated, but is easier than trying to file from abroad.
In terms of where to stay until this is over, follow the best long-term oppertunity, don’t let the presence of a bankruptcy factor into that decision as it can be dealt with regardless.
As for how to claim, individual or self-employed, it is the same process so it makes no difference what your current employement status is you would likely be filing what is called a Summary Administration Bankruptcy and you occupation simply is listed in the appropriate area.
I hope this help, it is the main thing syou outlined but anthing more specific than this will be largely dependent on specifics of your situation so you would be better to contact a local trustee

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