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the effects of bankruptcy

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  • the effects of bankruptcy

    In 2008 I obtained a L1 visa to operate a business in the US for an insurance company. I worked and lived in Salt Lake City, UT from June of that year until November of 2009.

    When I started a bank account and obtained credit in the US all of my financial information from Canada was not taken into consideration. I had to start building credit from scratch.

    I have since moved back to Canada, as my business venture was unsuccessful. In fact, I find myself facing a lot of debt, and most likely owing more to the IRS this year.

    I am wondering if I can declare bankruptcy in the US without having it affect my financial situation in Canada. This would alleviate some of my concern about money right now.

    I don't fully understand the process or the consequences of doing so, but I know that I do not plan to live or work in the US for the forseeable future.

    Other than 2009 taxes the only other debt I carry in the US is a credit card. I do have some residual income that could be signed over if I do declare bankruptcy.

    Please let me know if this can be done without affecting my credit standing in Canada, and what the process and consequences would be of such a decision.

    If I can do this and it becomes necessary to do so then I would want to utilize the services of the person or company that provided me the most assistance.

  • #2
    Consult a tax professional and/or an attorney

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    • #3
      You can't discharge taxes in bankruptcy.

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      • #4
        Originally posted by wnlbutterfly View Post
        You can't discharge taxes in bankruptcy.
        If an income tax debt meets all of the following rules, the debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.

        -The due date for filing a tax return is at least three years ago.
        -The tax return was filed at least two years ago.
        -The tax assessment is at least 240 days old.
        -The tax return was not fraudulent.
        -The taxpayer is not guilty of tax evasion.


        Agree that the 2009 tax debt is not currently dischargeable, but disagree as to the wildly inaccurate statement that you cannot discharge taxes in bankruptcy.
        Last edited by tulog; 03-17-2010, 01:49 PM.

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        • #5
          Keep in mind that bankruptcy affects your Credit Score for the next few years !!

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          • #6
            I don't think its very efficient, it really stops you from advancing in life

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            • #7
              Personal Bankruptcy

              Essentially Equifax is a multi-national corp, and serves bot US and Canada.

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