Sponsorship and Bankruptcy

Sponsorship and Bankruptcy
stevewelker 25.09.2020

Canada’s sponsorship application form asks:

“Are you an undischarged bankrupt under the Bankruptcy and Insolvency Act”

Answering yes will prevent you from sponsoring your family. A bankrupt is financially unable to reimburse the government if their sponsored family member receives government assistance while in Canada.

That said, you can act as a sponsor after completing your bankruptcy and obtaining your discharge. Most bankruptcies only take 9 months, and you’re only prevented from sponsoring family during that time.

If you are submitting an outland sponsorship application, and your family member currently resides abroad, they will obtain their permanent residency (“PR”) before they arrive in Canada. Therefore, once your family member has their PR you may make an assignment in bankruptcy without affecting their residency or any future application for citizenship.

If submitting an inland sponsorship application for a family member already in Canada on a valid temporary visa you must wait until they obtain their PR before making an assignment in bankruptcy or risk causing their application to be denied.

A Consumer Proposal does not affect your sponsorship in any way, and is an excellent way to deal with your debts at the same time.

Canadian immigration policies and procedures are complex, and outside a Licensed Insolvency Trustee’s area of expertise. Steve Welker and Company recommends anyone wishing to sponsor a family member consult with an immigration lawyer or specialist to ensure that your sponsorship goes smoothly.

If you’re struggling with debt, and would like free advice, give us a call to schedule your free consultation with a Licensed Insolvency Trustee.