US BK & Canada

Josie Yang · Post by **Josie Yang** » Tue Jun 14, 2005 1:03 pm

Does a landed immigrant with bankruptcy record in US affect his credit establishment in Canada?

nelsona · Post by **nelsona** » Tue Jun 14, 2005 2:22 pm

It affects it only to the extent that they will not be able to rely on their US credit history to establish a Cdn one.

They will need to 'start small', building their credit, just like a young person just out of school, or like one who has been bankrupt several years ago.. but it is not an indellible black mark on your Cdn record, which is clean when you move to Canada.

nelsona non grata... and non pro

Josie Yang · Post by **Josie Yang** » Tue Jun 14, 2005 8:07 pm

Thanks but this is the opinion of a lawyer which contradicts yours:

"You could have a bankruptcy on Mars and anybody looking at your credit application on Earth would certainly weigh that as a factor when determining your financial responsibility."

nelsona · Post by **nelsona** » Wed Jun 15, 2005 12:32 am

How does it contradict?

I merely said that you will not be able to point to any good credit US credit, since you have none, he says that if a potential creditor looks, you will be in trouble.

Most won't bother looking... and you would be advised not to encourage them to look.

Bye now!

nelsona non grata... and non pro

Josie Yang · Post by **Josie Yang** » Wed Jun 15, 2005 12:46 am

I'm sorry if I didn't quite get you. In fact, I don't quite get you yet. Why should I encourage the Canadian creditors to look at my US credit history if I've a BK record in the US? The question is how could I prevent them from looking at my US credit record. That's my concern. For example, Visa and Mastercard are international. If I apply for a visa or mastercard in Canada, they would be able to find out my records in the US when I discharged my credit card accounts.

nelsona · Post by **nelsona** » Wed Jun 15, 2005 1:03 am

Quite simply, you can't prevent them.

That's why I said you start small, maybe with a Store Card, like The Bay, or Canadian Tire, or a small Visa from your bank.

One or two carefully selected credit cards should get you some credit and allow you to build a credit rating in Canada, without attracting too much attention.

Your not going to be able to get a $20K line of credit a mortgae and a car loan in the same week.

Think of yourself as a student just starting out. This will keep you below the radar.

If I, for example, was moving to Canada I would be quite happy for ANY Cdn firem to look at my Credit history, because it would be to my advantage. You do not have that luxury.

But face it, for a Bankrupt indicidual, anything you get in Canada is more than you would get in US.

nelsona non grata... and non pro

Josie Yang · Post by **Josie Yang** » Wed Jun 15, 2005 3:36 am

Now I understand you better. Still, my question is...whether one has a BK record in US or not, he or she has to start small by establishing his credit in Canada? If yes, then the US BK has nothing to do with one's credit build up in Canada. For one could have the best credit in the US and still have to start from small. Am I right?

nelsona · Post by **nelsona** » Wed Jun 15, 2005 9:55 am

<blockquote id="quote">quote:<hr height="1" noshade id="quote">For one could have the best credit in the US and still have to start from small. Am I right?<hr height="1" noshade id="quote"></blockquote id="quote">

No. Someone with good credit in US would INSIST that the Cdn lender take a look at their US history. It would be advantageous to them.

This is exactly what many of us do when we move from Canada to US. We get the US lender to look at our Cdn record. Otherwise, we get very little credit, if any, until we can build up a US-only history.

You, because of your US Bankruptcy, do not have that luxury, and are in fact hoping that the Cdn lender will be too stupid, or too lazy to bother checking that you are a credit disaster.

That shouldn't be a problem.

nelsona non grata... and non pro

Pamela · Post by **Pamela** » Fri Jul 01, 2005 9:41 pm

I agree with Nelson. There doesn't seem to be much cross border checking of credit history between the two countries. Even my nephew who was earning over 300K in England could not get credit in Canada, his native country, when he returned after three years, and even though he had RRSPs here. Even if you insist, they are not likely to do it. So, as Nelson says, just start small and stay under the radar.

Josie Yang · Post by **Josie Yang** » Thu Jul 21, 2005 2:46 am

I have a couple of questions: 1. Are settlement funds for Canada and all the money an immigrant brings taxable upon landing in Canada? 2. Is it not allowed to max out credit cards before filing BK?

nelsona · Post by **nelsona** » Thu Jul 21, 2005 6:16 am

1. Of course ot, what kind of country do you tink Canada is?

2. Don't know. Don't care. This is a tax forum, not a deadbeat forum.

nelsona non grata... and non pro