Bankruptcy And Sponsoring a Relative’s Application For Immigration

According to Immigration Canada, you can sponsor a relative’s immigration application as long as you are a citizen or permanent resident of Canada and are 18 years of age or older. There are, however, some restrictions, one of which states that you cannot be an undischarged bankrupt.

A first-time bankrupt with no surplus income will be eligible for an automatic discharge after nine (9) months as long as all conditions are met. If there is surplus income, the discharge will be issued after 21 months. A second-time bankrupt will be eligible for an automatic discharge after 24 months or after 36 months if there is surplus income.

If you are considering sponsoring a relative’s immigration to Canada, you might not want to wait until you are discharged from bankruptcy, which could take anywhere from 9 – 36 months. You could postpone filing for bankruptcy until after the sponsorship; however, the application process could take several years. In the meantime, your creditors will continue their collection activities, which might include legal proceedings.

As an alternative to bankruptcy, you might want to consider filing a consumer proposal that will not impact the sponsorship application process. A consumer proposal still legally protects you from creditors; however, it allows you to work out settlement arrangements with them.

If you have already immigrated to Canada, filing for personal bankruptcy will not affect or delay your efforts to become a Canadian citizen.

There are advantages and disadvantages to both personal bankruptcy and consumer proposals that are specific to each person’s situation, so you should consult with a Licensed Insolvency Trustee to help understand your options.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of significant financial stress;

• You won’t be stuck in an assembly line process.

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy.

• We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options.  Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.