I am an American citizen who moved to Canada 10 years ago. I find myself in serious financial difficulties and have filed for bankruptcy in Canada. I owe approximately 60000$ in unsecured credit card debt to US creditors (cards that I obtained when I used to reside in the US). Prior to filing for bankruptcy (several months ago), I negotiated special terms (low interest, 5 year repayment plans) with each US creditor. My Canadian bankruptcy trustee is telling me to cease repaying these American creditors. It is my understanding that some of my US creditors may participate in the Canadian process - but can not be certain that they will.Can anyone advise me of what might happen to me?I live in Canada and work in Canada. I can not legally make payments to these US creditors as my trustee's role is to ensure equal treatment among all my creditors.What is the likelihood of a US creditor "playing ball" in the Canadian bankruptcy system?If a US creditor does not recognize the Canadian process, what can they do to me? Can they sue me? Can they harass my parents (who still live in the US?) Can they tack on exorbitant fees or interest and balloon the debt that I owe? My trustee states that I can resume payments to these US creditors after my bankruptcy has been discharged in Canada (which will likely be 21 months from now). What sort of mess might I be facing at that time if I wish to travel to the US for any reason?
State/Country relating to question: United States
Consulted with a bankruptcy trustee in Canada
This is a good answer. Thank you.
I have a few follow ups
I have been advised by my trustee to call these creditors
essentially to explain to them that I am bound by Canadian law NOT to repay them "preferentially"
My trustee recommends I explain that they can recuperate some moneys from assets which I have in Canada (I have no assets in the US to dispose of)
do you think that there is a likelihood that they will participate by sending in a claim to my trustee?
Yes but they are entitled to a share in my assets
Canadian law will treat them equaly
but there is no reciprocity, I understand that
I guess I am trying to reduce my risk in the future
I have no intention today of returning to live in the US - but I also have no idea what the future holds (family etc) - I wonder why these creditors would go through the hassle of suing me / waiting for me to return to the US (how would they know if I come back in 15 years from now)? etc
what you are saying makes sense
however my goal is to have a fresh start and get these debts taken care of
not waiting for me down the road (and perhaps ballooned to unreasonable amounts)
So in other words, it is likely that they will harrass me like crazy but then eventually not be able to do anything and they might give up within a few years
I do not expect to return to the US for at least a decade
your instinct is that they will abandon my case?
OK well thank you for your very fullsome answers
I really appreciate speaking with a professional who can give me some insight
they can not sue me while I live in Canada? that seems odd
OK that makes sense - thank you
I have filed over a thousand bankruptcy cases.
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