| Author: |
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Bob |
| Date: |
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August 21, 2002 |
| Question: |
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I am Canadian but have recently relocated to the U.S. with my American wife. We are starting over and it looks very bleak for paying off about $20,000 worth of credit in Canada. My questions are these:
- If we file bankrupcy, can they take a vehicle that has a lien on it (it's worth $8000 US but we have less than $1000 equity on it)
- Can U.S. institutions find out I'm filing bankrupcy in Canada (is it going to affect our credit rating here.)
- If we didn't file bankrupcy and failed to pay our debt what would the legal ramifications be - could they arrest us at the border when we come to visit? (This is assuming we didn't go the bankrupcy route.)
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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August 21, 2002 |
| Answer: |
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After bankruptcy you can usually keep paying on a secured vehicle, provided the secured creditor allows you to do so. Exemptions for assets (what you are allowed to keep) are determined by the province or state of residence. I'd suggest you contact an attorney in your state to find out what you are allowed.
If you make an assignment into bankruptcy in Canada you must disclose all debt, including any U.S. debt. The Canadian bankruptcy, however, may not cover the U.S. creditors.
If you fail to pay the Canadian debt they cannot arrest you at the border.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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