Can U.S. Creditors Collect If You Move to Canada?

Once you move to Canada, your credit report in the country will not include U.S. debts.

Creditors in the United States may still collect debts from people who have moved to Canada. However, the processes involved in doing this are time-consuming and expensive.

Prior to Moving

If a creditor files a lawsuit before you move to Canada, the lawsuit still proceeds through the court system. However, the credit company cannot collect assets in Canada. The creditor could attempt to collect from assets left in the United States, like real estate or checking accounts.

After Moving

If a creditor files a lawsuit after you move to Canada, the creditor files the suit in the Canadian court system. Creditors do not usually file these types of suits because they are cost-prohibitive.

Credit History

When you move to Canada, your credit record in the country only contains debts incurred in Canada. Debts incurred in the United States are not part of your new credit history.

Wage Garnishments

Creditors may not garnish wages from you after moving to Canada if the company you work for is a Canadian-based business. If you still work for an American business after moving to Canada, garnishments are possible.

References

• Credit Cards: What happens to unpaid credit card debt if you move abroad?
• Financial Consumer Agency of Canada: Frequently Asked Questions