Question: Hi, I have a questions. I owe about $45k at this time. I’m wondering what happens if I go back to Europe and stay there, never come back, or maybe in 5 years to visit, or even to stay. Will someone come after me? Do they do a write-off and declare me bankrupt after a while?
what is better? to just leave the country or to declare bankruptcy first? if I just leave and come back in 2 years will they stop me at the border?
Answer: If you owe money and don’t go bankrupt, your creditors will attempt to collect by sending you letters, and perhaps by taking you to court. However, if you are not in Canada, it is virtually impossible for the creditors to get a court order to garnishee your wages. Not paying your debts does not automatically make you bankrupt.
You could declare bankruptcy before you leave the country, but when bankrupt you are required to attend two credit counselling sessions, so in most cases if you are leaving the country you will probably not declare bankruptcy first. Having debts does not mean they will stop you at the border if you come back for a visit.