Question about filing for Bankrupt!

[nthompson]

Hi Guys,

I have searched the forum to see if my question could be answered but I just could not find one.

My question is that I already have my COPR and my wife and her family sponsored me to immigrate to Canada. I have around £5,600 in debt due to me taking out a long for my mother. Me and my wife were planning to try and pay it off before we move to Canada by next year March but once we done our budget expenses we were way under. I was thinking if I filed it for bankruptcy would this affect my Visa in anyway of me moving to Canada?

Thanks in advance

Kind regards,

Thompson

 

[sariss]

That isn't a lot of money. Can't you just pay it off over time? Does it HAVE to be paid off before you move?
I'm sure more experienced people will have insight as to what may happen if you do..

 

[scylla]

I was thinking if I filed it for bankruptcy would this affect my Visa in anyway of me moving to Canada?

No - this won't affect your visa in any way.

 

[zardoz]

As long as your sponsor doesn't file for Bankruptcy, you are fine. It's not clear what happens if the sponsor files before the PR lands, but I can only think that it would be a " Bad Thing™ "

 

[Catou]

Declaring bankruptcy just prior to leaving the country isn't a good idea. Think very carefully before you take such a serious step as there are considerable consequences. For a start, while bankruptcy could clear most of your debt it doesn't necessarily clear them all. If any of those debts are in joint names the whole of that debt will become your wife's debt if you are declared bankrupt. You will be investigated by the Official Receiver who will look into all your affairs. Immediately you are adjudicated bankrupt you must stop using any bank or building society accounts, credit cards, and the like. You won't have access to credit and if your bank accounts etc are in joint names your wife will not have access to them either, until the receiver rules otherwise.

You also have to tell the Official Receiver that you are planning to move abroad. Since you haven't yet landed you will also need to tell CIC about the change in your circumstances. I doubt it will affect your visa but they may need further assurances of your wife's financial situation.

For the duration of the bankruptcy you will have to keep the OR informed of your address and circumstances. Your property and income is part of the bankruptcy no matter where you are in the world so there's no fresh start in Canada until the bankruptcy is discharged.
Because the bankruptcy stays on your record in the UK for six years its possible that this could affect your credit rating in Canada.

It's a serious step to take and not a great way to start a new life in Canada. I recommend that you contact citizens advice or some other service for advice on this. You could, for example, look into making arrangements with your creditors to pay them off with regular installments or arrange a debt management plan that you can pay off from Canada.

 

[zardoz]

Valid points all... Here's another that has just occurred to me.
If you do declare bankrupt, you might no longer have the option to remove your assets, physical or financial out of the country. To do so might be considered, at the worst, fraud. See a lawyer on this but it could bite you in the donkey.

 

[Catou]

Valid points all... Here's another that has just occurred to me.
If you do declare bankrupt, you might no longer have the option to remove your assets, physical or financial out of the country. To do so might be considered, at the worst, fraud. See a lawyer on this but it could bite you in the donkey.

This is correct. Once bankruptcy has been accepted, the only assets he will have are the ones the Official Receiver allows him to keep. Fortunately, the UK doesn't stop people from leaving the country (unlike many other countries where you cannot leave without permission from the OR). The OR gets control of all assets - even airline tickets are an asset and can be used to repay debt.