I am a Canadian citizen working in the US on a long-term work visa. I have $35K CDN student loans and $10K CND credit cards debt. Revenue Canada does not require me to file an income tax return because I have very little ties to Canada. I have no tangible assets, such as property or car(s) in Canada or US, but, I earn $60K+ USD from my US employer. I cannot get a loan from any Chartered Bank in Canada because I do not file income tax with Revenue Canada.

I realize it is unethical, but what are the implications for not making any more payments on my debt in Canada? I am not worried about my credit rating in Canada because when I return to Canada I should have enough saving that I would not require another creditor. Also, by the time I return the bad credit information should be removed from my record. Does Bankruptcy take into consideration income outside Canada? What are the legal implications of defaulting on the debt? What can a court do? Can they garnish wages in the US? When I return to Canada to visit, can I be arrested? Thanks for in advance for your recommendation.

A creditor can sue you in the US if they wish to hire a US lawyer to handle the collection for them. Whether they do or not is up to the creditor. I am not familiar with US law but if they sue you I imagine they can garnishee your wages and seize assets.

If you file bankruptcy, your worldly income is looked at. Also, student loans survive bankruptcy proceeding, so they can pursue for many years. Filing bankruptcy is not a criminal action so I don/t believe they could arrest you when you cross the border.

Shane Brenneis

(403) 298-1575
sbrenneis@collinsbarrow.com