Will USA debt follow me to Canada?

[WindsofTime]

Hey everyone,

Quick financial breakdown of debts:

• Federal Student Loans
  • 24k+ Subsidized
  • 43k+ Unsubsidized
• Private Loans
  • 36k+ w/ Cosigner
  • 70k+ w/ Cosigner
  • 4.5k+
• CreditCards (while I was in school)
  • 4.7k+
  • 4k+
  • 1.5k+
  • 2.5k+

Background: Started from a poor family and wanted to make a life for myself. Got caught up in the hype with private schools here in the US and took a risk. I earned my bachelor's degree but now have a huge mountain of debt. I literally am just one major hospital visit away from not being able to afford much of anything.

I've been wanting to leave the US for years now, just recently did I find out that Canada would be a great option. (Specifically, I've been looking at the Nova Soctia area)

However, I am concerned, I know that I will likely make less than I do here in the US and I am current on all my bills. Should something happen, or if I can no longer afford them, could either the private/credit-card lenders or the US Gov't come bang down my door in Canada and haul me back to the US? I have every intention to continue paying them, but only if I can. I don't want to end up not being able to afford basic needs just to pay off debts from another country.

Should I consider perhaps declaring bankruptcy if I do make it into Canada to protect me from future suits?

I've had a few suggest to just forget about them but never plan to live back in the United States for a while to be realistic since Canada does not care that much about them.

Anyone else gone through this before?

 

[canuck78]

You can't discharge student loans in bankruptcy.

 

[WindsofTime]

You can't discharge student loans in bankruptcy.

Yes, I gathered that while researching.

Now, what of the Private loans and credit card debts?

 

[canuck78]

If they are private student loans can't be discharged and if you stop paying your co-signer will likely track you down when they have to pay. Credit card debt can be discharged.

 

[WindsofTime]

If they are private student loans can't be discharged and if you stop paying your co-signer will likely track you down when they have to pay. Credit card debt can be discharged.

Cool thanks.

Now, the other questions I'm still curious about. If it becomes impossible to pay them back, is the US gov't + Creditors going to file suit and have it pushed through the Canadian courts? Is that a thing?

 

[canuck_in_uk]

Cool thanks.

Now, the other questions I'm still curious about. If it becomes impossible to pay them back, is the US gov't + Creditors going to file suit and have it pushed through the Canadian courts? Is that a thing?

For a $70,000 loan, yeah, they probably will sue you in Canada. Also, you would be screwing over your co-signers.

Be responsible and pay your debts, even if it takes you forever.

 

[WindsofTime]

For a $70,000 loan, yeah, they probably will sue you in Canada. Also, you would be screwing over your co-signers.

Be responsible and pay your debts, even if it takes you forever.

I have every intention to continue paying them, but only if I can.

Thank you though, that answered my question.

 

[scylla]

Thank you though, that answered my question.

FYI - unless you have a job offer, you typically require around $13K in savings to be approved to immigrate to Canada as a single individual.

 

[WindsofTime]

FYI - unless you have a job offer, you typically require around $13K in savings to be approved to immigrate to Canada as a single individual.

Thank you, I know.
For a single person, you are required to have $12,475 CAD which is $9,553.92 USD at the current exchange rate. I am able to make payments towards these loans and put money aside to work on getting that amount.

 

[canuck78]

Given the exchange rate it will become even more challenging to pay off your loans.

 

[Supercanadian]

What we accept as proof
Funds must be readily available to you. For example, you can't use equity on real property as proof of settlement funds.

The funds must be available both when you apply and when (if) we issue you a permanent resident visa. You must prove to an immigration officer that you can legally access them to use to settle here when you arrive.

For proof, you must get official letters from any banks or financial institutions where you are keeping money.

Letter(s) must:

• be printed on the financial institution’s letterhead
• include their contact information (address, telephone number and email address)
• include your name
• list outstanding debts such as credit card debts and loans
• include, for each current bank and investment account:
  • account numbers
  • the date each account was opened
  • the current balance of each account
  • the average balance for the past six months

Excerpt from https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/express-entry/documents/proof-funds.html

You're required to disclose all outstanding debts to IRCC even if you could show evidence of the stipulated CAD $12,475 in your savings account. I am not sure though if that would have any effect on the outcome of your application but it's something to keep in mind.

 

[CSmith0415]

Sorry - I am incredibly new to this process. Does this apply to "right of blood" applications as well, or is it only for people trying to get a work visa?

 

[scylla]

Sorry - I am incredibly new to this process. Does this apply to "right of blood" applications as well, or is it only for people trying to get a work visa?

What is a right of blood application?

 

[Copingwithlife]

Hey everyone,

Quick financial breakdown of debts:

• Federal Student Loans
  • 24k+ Subsidized
  • 43k+ Unsubsidized
• Private Loans
  • 36k+ w/ Cosigner
  • 70k+ w/ Cosigner
  • 4.5k+
• CreditCards (while I was in school)
  • 4.7k+
  • 4k+
  • 1.5k+
  • 2.5k+

Background: Started from a poor family and wanted to make a life for myself. Got caught up in the hype with private schools here in the US and took a risk. I earned my bachelor's degree but now have a huge mountain of debt. I literally am just one major hospital visit away from not being able to afford much of anything.

I've been wanting to leave the US for years now, just recently did I find out that Canada would be a great option. (Specifically, I've been looking at the Nova Soctia area)

However, I am concerned, I know that I will likely make less than I do here in the US and I am current on all my bills. Should something happen, or if I can no longer afford them, could either the private/credit-card lenders or the US Gov't come bang down my door in Canada and haul me back to the US? I have every intention to continue paying them, but only if I can. I don't want to end up not being able to afford basic needs just to pay off debts from another country.

Should I consider perhaps declaring bankruptcy if I do make it into Canada to protect me from future suits?

I've had a few suggest to just forget about them but never plan to live back in the United States for a while to be realistic since Canada does not care that much about them.

Anyone else gone through this before?

My brother got hit by a car in Florida . Not insured . Bill for trip to emergency $6000k
He thought incorrectly that the debt would not follow him to Canada . That was incorrect. Hospital just got a collections agency here to get the $$$$. Credit card companies are multinational, operate globally, they will find you
You rung up the debt , you pay the debt
Why ? Because that’s what responsible adults do aka grown ups

 

[CSmith0415]

What is a right of blood application?

I apologize, I just found the proper term - "Citizenship by descent". Does the settlement funds requirement apply in this case?