5 Facts To Know If You Are Not From Canada And Are In Financial Trouble

2016-04-26   minute read

Debt Solutions

Canada is a welcoming place. People from around the world have been choosing to immigrate here for generations and have, in return for new opportunities, given back more than could have been expected. Our society is richer for their presence.

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However, adapting to Canada is not an easy proposition: we have two languages, severe winters, great distances to travel to get anywhere and a financial system that can seem alien to many people.

Our system financial is built on contractual obligations and risk management. We give opportunity and choices and help everyone maximize their potential to flourish. The flip side of this is when things go badly, legitimate endeavors fail, or when our system is not properly understood… Bills pile up, collection calls start, wage garnishments and forced execution on assets begins. Our system, at this point looks pretty harsh.

The natural thought is to think that one must be Canadian to benefit from Canadian law. The second thought is that someone may be able to sell us a solution. The final thought may be that insolvency legislation is punitive. It is time to move away from stereotypes, fear, and quick fix solutions that often don’t work or even cause more hardship.

Here are 5 things you need to know if you are not Canadian, and need help with financial problems:

  1. To be allowed to use the Bankruptcy and Insolvency Act, you must: Reside in Canada OR have carried on business in Canada OR have assets in Canada; Can’t see a viable solution to get out of debt.
  2. The Bankruptcy and Insolvency Act is not designed to punish:

    It is based on business law, not criminal law; it allows for sanctioning of bad financial behavior, but its objective is financial rehabilitation for honest debtors.

  3. Bankruptcy will not prevent you from travelling:

    As long as a person’s obligations under the law are met, there is no restriction on travel in Canada or internationally.

  4. Bankruptcy will not get you deported:

    Under immigration law, being in bankruptcy will restrict your right to sponsor a family member that wants to immigrate to Canada. Once you are discharged from bankruptcy (usually within 1 to 3 years), that restriction will go away and the normal sponsorship process can be started;

  5. There is no shame in getting help!

    Bankruptcy will restrict certain financial transactions and leave a negative mark in your credit report that will make getting credit harder for a certain time, but this applies to everyone that files a bankruptcy.

The Bankruptcy and Insolvency Act is designed to allow a person in financial trouble to start a life free of the burden of crushing debt… No passport required.

Any questions you have deserve to be answered. Contact a Licensed Insolvency Trustee from MNP today and you will get the free advice you need to understand your situation and make the best decision for you and your family.

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