September 5, 2017

There are a lot of urban myths about bankruptcy – one is that bankrupts cannot travel outside of the country.

Canadian bankruptcy laws do not impose an automatic travel restriction on people filing for bankruptcy.  Of course there are exceptions to every rule and if it were thought that a bankrupt individual might be planning to flee the country taking assets with him/her to remove them from the reach of his or her creditors the court could make an order restricting travel.

However, many people travel for business purposes, to obtain work or just for pleasure.  The idea of bankruptcy is to help people get out from under the burden of debt and rehabilitate them in terms of their use and understanding of debt.  Bankruptcy laws are not intended to prevent people from working or earning income.