Bankruptcy and Permanent residency application

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:

  1. 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.
  2. Filing for bankruptcy does not affect your application to become a citizen of Canada.
  3. 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.

Join the Conversation

  1. AvatarShaun D.

    I have been living in Canada for over 6 yrs and have been a permenant resident for over 3yrs,I think I might be made insolvent or bankrupt. Will this effect my renewal of permenant residency and could that be denied or revoked thanks

  2. AvatarJ. Douglas Hoyes

    Hi Shaun. Generally a bankruptcy makes it very difficult to sponsor someone into Canada. If you are already here it’s generally not an issue. However, we are not experts on immigration law, so you should consult with an immigration lawyer for a more complete answer specific to your situation.

  3. AvatarGrewal

    I am on student visa in Canada and if I d declare a bankruptcy it will effect my immigration status or not

  4. AvatarJ. Douglas Hoyes

    A bankruptcy impacts your ability to sponsor someone, but generally does not impact your ability to remain in Canada. However, this is a question that is best researched with an immigration lawyer, since you don’t want to make an uninformed decision and have it impact your status in Canada.

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