I'm a Canadian moving to the U.S. and cant afford to pay my debts. My total debt is around $17,600. I need to know if I should declare bankruptcy since my credit doesnt follow me to the US (as stated to me in an email from one of the Credit bureaus here in Canada).

Iknowalotofstuff

Bankruptcy is a process not an event usually 9 months. If you declare personal bankruptcy in Canada, you must attend two counselling sessions that could not be completed in less than 40 days. You will have to complete an affidavit for the trustee in order for him to complete his duties. If is not as if you go bankrupt today and it is over tomorrow. If you do not complete your duties, you do not get discharged. If the trustee gets discharged and you do not, the creditors rights are revived upon the trustee's discharge. If this happens, the debts could be waiting for you when you get back. You would have to account for all of your income and assets between the date of the trustee's discharge and your possible return to Canada.

The Statute of Limitations may be a better alternative. In Ontario, the limitation period is two years. You cannot be sued to collect the debt after the limitation period. The debt will probably be on your Canadian CB report for six years after it is written off. If you are in the US for say 10 years, you could return with a fairly clean CB report with no possibility the old creditors can collect from you.

Make a appointment with a bankruptcy trustee. Assessments are usually free. Be an informed consumer. Call the Lawyer's Referral Service. 1/2 hour of legal advice for $6.00.