Personal Finance

Working Abroad While in Bankruptcy

  • Last Updated:
  • Dec 7th, 2019 10:44 pm
[OP]
Newbie
Nov 27, 2019
3 posts
2 upvotes

Working Abroad While in Bankruptcy

I've accumulated $45,000 of debt over the last two years. This stemmed from mental health and addiction issues that caused me not having been able to work for most of 2019. Thankfully I've got this part under control, however I'm left to deal with the financial fall out.

I'm weighing out my options of how to move forward. Bankruptcy/consumer proposal is looking like my best option at this time.

Im wondering if anyone has insight on working abroad while in bankruptcy? I'm looking into pursing a job outside of Canada that I have a line on as it is good pay & a good fit for me. Would I be forced to stay in Canada during this process? Or as long as I fulfill my requirements would I be alright to be employed out of country?

Thanks!
8 replies
Deal Fanatic
Sep 23, 2007
5061 posts
1155 upvotes
I don't think being abroad changes your bankruptcy status. Legally you are still on the hook. I don't see how bankruptcy would physically disbar you from buying a flight ticket and I don't think border controls have anyway to stop you. If you plan to return, it would be best to confront the bankruptcy settlements head on. Alternatively, maybe you can start a new life abroad and forget about the debt if you never plan to come back. But that's a huge life decision.
Deal Fanatic
Apr 16, 2007
7960 posts
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Financial District B…
chrishana80 wrote: I've accumulated $45,000 of debt over the last two years. This stemmed from mental health and addiction issues that caused me not having been able to work for most of 2019. Thankfully I've got this part under control, however I'm left to deal with the financial fall out.

I'm weighing out my options of how to move forward. Bankruptcy/consumer proposal is looking like my best option at this time.

Im wondering if anyone has insight on working abroad while in bankruptcy? I'm looking into pursing a job outside of Canada that I have a line on as it is good pay & a good fit for me. Would I be forced to stay in Canada during this process? Or as long as I fulfill my requirements would I be alright to be employed out of country?

Thanks!
No, a BK filing does not prevent you from leaving the country. However, in order to be released and discharged from your bankruptcy you must stay in touch with the LIT Trustee and complete any requirements or supply any new documentation that may be required from the bankruptcy.
Normal BK requirements is you need to attend a couple credit counselling sessions as ordered by the courts. These sessions are predicated on your discharge.
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Jul 17, 2008
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Don't all debts disappear after 7years, no matter if you declared bankruptcy, etc?
Deal Fanatic
Apr 16, 2007
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Messerschmitt wrote: Don't all debts disappear after 7years, no matter if you declared bankruptcy, etc?
Sure, defaulted tradelines do indeed get purged after 7 years of reporting but that may not be the real issue or reason as to why someone may consider filing for bankruptcy.
Who knows this guy may have already received a legal letter from one of his creditors that intends to move forward with litigation and has notified him of a court date to appear.
This is beyond the normal letter stating they will do this and do that if they don't pay up by this date or this date etc. (threats and possible intent).
There are other kinds of debt relief options out there but as the OP stated he is unemployed(in Canada) so a CP or DMP is really not a viable option. (It's up to him if he wants to disclose that he may become gainfully employed outside of Canada.)
Also, just waiting it out and/or hiding under a rock like some have done on this forum does not stop the collection attempts even after the 7 years.
Some may find it embarrassing to be constantly getting calls and collection mail from 3rd party collection agencies.
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mikeymike1 wrote: Sure, defaulted tradelines do indeed get purged after 7 years of reporting but that may not be the real issue or reason as to why someone may consider filing for bankruptcy.
Who knows this guy may have already received a legal letter from one of his creditors that intends to move forward with litigation and has notified him of a court date to appear.
This is beyond the normal letter stating they will do this and do that if they don't pay up by this date or this date etc. (threats and possible intent).
There are other kinds of debt relief options out there but as the OP stated he is unemployed(in Canada) so a CP or DMP is really not a viable option. (It's up to him if he wants to disclose that he may become gainfully employed outside of Canada.)
Also, just waiting it out and/or hiding under a rock like some have done on this forum does not stop the collection attempts even after the 7 years.
Some may find it embarrassing to be constantly getting calls and collection mail from 3rd party collection agencies.
Still, he plans to leave canada and work overseas. I see no reason why he can't just pack up and forget about it all if he had no intentions coming back for at least 7 years. If the creditors summon him to court, so what? Correct me if I'm wrong but since this is not criminal, nothing will happen. Court will give the creditors a favorable decision but then what after?
Deal Fanatic
Apr 16, 2007
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Financial District B…
Messerschmitt wrote: Still, he plans to leave canada and work overseas. I see no reason why he can't just pack up and forget about it all if he had no intentions coming back for at least 7 years. If the creditors summon him to court, so what? Correct me if I'm wrong but since this is not criminal, nothing will happen. Court will give the creditors a favorable decision but then what after?
Well no one knows his real reasons why he would want to file for BK.
We also don't know what stage his creditors are at that are making this guy want to think about bankruptcy. As I mentioned above some legal proceedings may have already occured. Definitely some mailings and/or correspondence from one or two of his FI's.

Usually, debtors in general just ignore collection calls and mailings etc. It's only when process servers come knocking with a notice to appear do most people starting thinking about legal filings like bankruptcy or a consumer proposal.
Again, we don't know what stage his creditors are at and/or his motivations but based on the OP's only three posts there's more to this.
Lastly, if he is served the worst thing for him to do is to not show up as summary judgments will follow him way after the 7 years if he comes back because judgments are renewable.
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Deal Addict
May 15, 2013
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Montreal
BananaHunter wrote: If you plan to return, it would be best to confront the bankruptcy settlements head on. A
Even if he doesn't plan to return, the correct thing to do is to confront it.
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Mar 9, 2012
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Messerschmitt wrote: Don't all debts disappear after 7years, no matter if you declared bankruptcy, etc?
They do - but with a bankruptcy you can get new credit after you file, including unsecured loans, or semi-secured (like a car or house). If you're holding onto $45,000 with no intention of paying off, your credit is crap, and you can't do anything until it falls off. You go bankrupt, you can start rebuilding long before bankruptcy falls off your file. Once it falls off, if you have done things right, you should have good credit.
Why can't we all just get along?

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