repercussions for sponsored wife if husband declares personal bankruptcy

[metaphys]

Hello everyone,

Someone I know is in a tough situation financially and I have proposed that he consider filing for bankruptcy. He's convinced that this is not even an option because he is sponsoring his russian wife for citizenship. She has already lived here for nearly 2 years now. I do not know the details of her visa but I know they have been married for over 5 years. He has accumulated a lot of debt over time and has been struggling to repay for various reasons. His debt is quite crushing and having a negative impact on both of them and I just think that he should consider filing for a fresh start as a good course of action for the both of them.

They have no seizable assets that I know of. His debts are a combination of financial institution loans and personal debt. I think he has quite a bit of personal debt and quite a lot of back rent.

Based on what I said, can anyone attest to whether or not filing at this point would have negative repercussions for his wife?

And money owed to family/friends as well as his landlord be refunded should he proceed with the bankruptcy?

Thank you very much for your time.

 

[Ponga]

It sounds like he is sponsoring his wife for Permanent Resident status, not citizenship.

As her sponsor, be cannot file for bankruptcy until she has completed the PR process. Even if he has already been approved as her sponsor, he's better off to wait until she lands as a PR...just to be safe.

 

[zardoz]

Hello everyone,

Someone I know is in a tough situation financially and I have proposed that he consider filing for bankruptcy. He's convinced that this is not even an option because he is sponsoring his russian wife for citizenship. She has already lived here for nearly 2 years now. I do not know the details of her visa but I know they have been married for over 5 years. He has accumulated a lot of debt over time and has been struggling to repay for various reasons. His debt is quite crushing and having a negative impact on both of them and I just think that he should consider filing for a fresh start as a good course of action for the both of them.

They have no seizable assets that I know of. His debts are a combination of financial institution loans and personal debt. I think he has quite a bit of personal debt and quite a lot of back rent.

Based on what I said, can anyone attest to whether or not filing at this point would have negative repercussions for his wife?

And money owed to family/friends as well as his landlord be refunded should he proceed with the bankruptcy?

Thank you very much for your time.

As far as I am aware, there is no impact on her PR status or eligibility for citizenship, when qualified to apply.
I was under the impression that bankruptcy resulted in creditors being placed into a priority order, with the CRA probably at the front. Any money owed to friends, family or landlords is unlikely to ever be repaid.

 

[Mapleson]

It's unclear from the OP if the Russian wife is currently in process for PR status and living in Canada as a visitor, or if she has had PR status for the past two years.

In the former case, bankruptcy is a non-starter. The Canadian husband would no longer qualify for Sponsorship.

In the latter case, bankruptcy is an option. She has her PR status and his requirement for financial support of her would remain and continue. The only limitation is if they have some ongoing sponsorship, which would be excluded until he discharges the bankruptcy.

 

[zardoz]

Hmm.. I must learn to read the text AND read between the lines. I read it as already a PR and on the path to citizenship.

If the OP really means sponsorship for PR, absolutely agree that this would kill off the sponsorship. If she is already a PR, my original post stands.

 

[taffy7]

Hmm.. I must learn to read the text AND read between the lines. I read it as already a PR and on the path to citizenship.

If the OP really means sponsorship for PR, absolutely agree that this would kill off the sponsorship. If she is already a PR, my original post stands.

What your not a mind reader lol

 

[zardoz]

What your not a mind reader lol

Sadly, it appears not. Perhaps just as well... ;D

 

[metaphys]

thanks for the replies all. Your replies led me to inquiring if she was already a PR and yea he said in fact she was already a PR the day she set foot in the country to come live with him 2 years ago.. she's well into the citizenship process now. So she wouldn't be affected. My friend then said "but it will affect her credit because married people go bankrupt together". Google quickly resolved that this is just not the case in Canada.

But in the end, he won't consider bankruptcy because most of his debt is family/personal as well as a big chunk to his landlord and so it wouldn't be worth it and he wouldn't do that to those people anyway.

But thanks for chiming in it was worth a try

 

[scylla]

thanks for the replies all. Your replies led me to inquiring if she was already a PR and yea he said in fact she was already a PR the day she set foot in the country to come live with him 2 years ago.. she's well into the citizenship process now. So she wouldn't be affected. My friend then said "but it will affect her credit because married people go bankrupt together". Google quickly resolved that this is just not the case in Canada.

Something still doesn't make sense. If she has only been a PR for 2 years and became a PR the day she arrived in Canada, then she won't qualify to apply for citizenship for another two years. To qualify for citizenship, you need to have physically lived in Canada for 4 years since becoming a PR. Based on the information you have provided, it's impossible that she has applied for citizenship at this time. She doesn't qualify by a long shot.

Plus - he can't "sponsor" his wife for citizenship. She has to qualify on her own.