Canadian Bankruptcy if you Live Abroad

Canadians living abroad can go into bankruptcy for their Canadian debt in the following ways:

• They can go bankrupt in their country of residence. This will free them of the Canadian debt so long as they live in that foreign country. If they return to Canada that debt will have survived and they will still owe that money.
• They can re-establish residency in Canada and then go bankrupt in Canada.
• They can go bankrupt under Canadian law while still living in that foreign country if:
• They have property in Canada (re: definition of "insolvent person"). "Property" includes money, goods, things in action, land and every description of property, whether real or personal, legal or equitable;
• or they have carried on business in Canada in the preceding year (re: definition of "insolvent person" and definition of "locality of a debtor").

Note: The trustee will have to get permission from the Office of the Superintendent of Bankruptcy for the debtor to go bankrupt in Canada without the person coming back to Canada.