Student loans - Bankruptcy - Dual

My_question_is: Applicable to both US and Canada
Subject:        Bankruptcy - Dual Citizen
Expert:         taxman at
Date:           Saturday October 07, 2006
Time:           02:50 PM -0400
Hi, I am a dual citizen, US-Canada, living in Canada.
Up til now, my credit in Canada and the US has been kept seperate.
However, I am considering declaring bankruptcy in the US (maybe Canada as
well).  I have a US student loan and credit card debt in both countries.
I need to know, if I file bankruptcy in one country will I also have to file
in the other?  Will declaring in one country affect my credit in the other
country?  Can I consolidate or make a proposal in 1 country and not the
Also, who can advise me?  My initial attempts have been met with I only know
bankruptcy law in the one country.
david ingram replies:
In Canada, student loans can not be discharged in a bankruptcy until 10
years has passed.
In the USA, student loans can not be discharged in a bankruptcy.
If you have an RRSP in Canada, it can be taken to pay the creditors.
What you get to keep in a bankruptcy is determined by the state or
provincial rules for the jurisdiction you are living in.
I get no feeling for that jurisdiction from your question.
I always suggest that one use a couple of dollars left to consult a
bankruptcy lawyer before declaring bankruptcy.  Although you may have picked
a trustee by going through the yellow pages or had him/her recommended by a
dozen others who have gone before you, the Canadian trustee or US lawyer
handling the bankruptcy is working for the creditors, not you.
Find yourself a bankruptcy lawyer who will not be handling the bankruptcy
BEFORE you declare.
That way, if a tricky question or situation arises, you will have a lawyer
you already know to ask a question of with privileged communication.
In my own personal bankruptcy, I used Murray Morrison in Surrey in greater
Vancouver at (604) 930-9013.
If you are not in BC, he may be able to refer you to someone in your area.
Another great resource is Earl (the original Sands, in Sands and Associates)
Sand's great bankruptcy  site at
And be prepared for anything.  At my first bankruptcy hearing the Bankruptcy
Trustee from Deloitte walked in the room, looked down his nose at me and
said, "Aren't you ashamed to be here Mr Ingram?"  It was wonderful.  I lost
immediate respect for him and hired Murray Morrison who protected my
interests all through the process.
And although I was put into bankruptcy by the CRA (the only Canadian to have
it happen that I know of), I likely should have declared myself ten years
earlier.  Today, I am an advocate for a person declaring bankruptcy and
starting over.  I can say that the best thing that happened to me in the
last dozen years was the CRA hiring a bankruptcy trustee and releasing me
from a $4,868,000 debt that would/could never have been paid off. Any day
for 20 years I could have walked into a trustee and stepped away from it but
was too proud, too stupid, too stubborn to do it myself.  Every friend and
advisor told me to do so and I didn't; silly eh?
If you are in BC and need a trustee, you can not go wrong (in my opinion) by
using Gerry Foran at Sands and Associates (604) 684-3030.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA) time -
(please do not fax or phone outside of those hours as this is a home office)
email to taxman at <mailto:taxman at> <>
Disclaimer:  This question has been answered without detailed information or
consultation and is to be regarded only as general comment.   Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist for expert help, assistance, preparation, or
consultation  in connection with personal or business affairs such as at <> . If you forward this message, this
disclaimer must be included."
Be ALERT,  the world needs more "lerts"
David Ingram gives expert income tax & immigration help to non-resident
Americans & Canadians from New York to California to Saudi Arabia to Mexico
to China or Chile - Cross border, dual citizen - out of country investments
are all handled with competence & authority.
Alaska,  Alabama,  Arkansas,  Arizona,
California,  Colorado, Connecticut,
Delaware, District of Columbia,  Florida,
Garland, Georgia,  Hawaii,  Idaho,  Illinois,
Indiana,  Iowa,  Kansas,  Kentucky,
Louisiana,  Maine,  Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi,  Missouri,  Montana,  Nebraska,
Nevada, New Hampshire,  New Jersey,
New Mexico, New York, North Carolina,
North Dakota,  Ohio,  Oklahoma,  Oregon.
Pennsylvania,  Rhode Island,  Rockwall,
South Carolina, South Dakota, Tennessee,
Texas,  Utah, Vermont,  Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas  Taxman and Tax Guru  and wizzard
wizard - consultant - expert - advisor -advisors consultants - gurus - Paris
Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo Zimbabwe
international non-resident cross border income tax help assistance expert
preparation & immigration consultant david ingram, experts on rentals mutual
funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants
New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton,
Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence,
Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince
Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,   Berlin,
Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing,
Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds,
Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson,
Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh,
Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish,
Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia,
Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St
James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears,
Truro, Charlottetown, Summerside, Niagara Falls, Albany Zimbabwe
 David Ingram expert income tax help and preparation of US Canada Mexico
non-resident and cross border returns with rental dividend wages
self-employed and royalty foreign tax credits
This from "ask an income tax and immigration expert" from
<>  or <>  or <> . David Ingram deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems  for the
United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai,
Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France,
Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia,
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran,
India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
San Antonio Houston
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration
Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant
Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax
specialist expert preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions
Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US


Trackback URL for this entry:

No trackback comments for this entry.