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Bankruptcy and immigration

Licensed Insolvency Trustees are not immigration specialists, so if you are concerned about how bankruptcy will affect your eligibility to immigrate to Canada, or your ability to sponsor someone else to immigrate, you should check with the Government of Canada’s Immigration & Citizenship department.

How bankruptcy affects your ability to sponsor new immigrants

Bankruptcy will affect your ability to sponsor eligible relatives who want to immigrate to Canada. You will not be eligible to sponsor anyone if you have declared bankruptcy and have not been released from it yet. These restrictions do not pertain to anyone filing a consumer proposal; however, if you have been released from bankruptcy, which usually takes from 9 to 36 months, you must make sure you meet the other financial conditions for sponsoring new immigrants.

Everyone must complete a financial evaluation form before sponsoring a new immigrant. This evaluation will calculate the financial requirements you must meet, which include a minimum necessary income. The financial evaluation covers your financial situation for the 12 months preceding the date of your application. The financial situation of your spouse or common-law partner will also be taken into account in your evaluation.

If your total income as sponsor is not sufficient, you will not be permitted to sponsor a new immigrant at this time.

How bankruptcy affects your citizenship application

If you are a Canadian resident, and have debts which you can’t pay, you are eligible to file for bankruptcy in Canada. This will not impact your own citizenship application.

How bankruptcy affects your eligibility to immigrate

If you are intending to immigrate to Canada, you could be denied a visa for financial reasons. These are defined as being unable or unwilling to support yourself or your family members. So long as you are able to support yourself and your family members, you will be eligible to immigrate even if you have declared bankruptcy in another country.