Question: I have applied for permanent residency recently. If I go bankrupt now will it affect my application of permanent residency?
Bankruptcy, Citizenship and Permanent Residency
When considering the impact of bankrupycy on citizenship and permanent residency we can look at three different scenarios:
- Can you file bankruptcy if you are not a permanent resident? The answer is yes. As long as you have lived in Canada for longer than 1 year then you would qualify to file for bankruptcy in terms of residency.
- Filing for bankruptcy does not affect your application to become a citizen of Canada.
- It does however impact on your ability to sponsor someone into the country. Immigration will not allow you to sponsor someone into Canada if you are an undischarged bankrupt because they are worried that you will not be able to support the person you are sponsoring. If you need to sponsor someone into Canada, you can deal with your debts by filing a consumer proposal. The immigration sponsorship rules only apply if you are an undischarged bankrupt. They do not apply to anyone filing a proposal.