Robben

Hello guyz,

I have a car loan of $15000 in Canada. I have returned the car to the bank and moved back to my country. But, the bank wants me pay the money back. I said I will pay it. I am again going back to Canada through PR application process. I will need to get PCC ( police clearance certificate) from Canada. Will, it be effected due to bad financial credit I had with one bank. Will it be considered as criminal offence. Please advice!

Former Lancastrian

Only if the bank have been to the police and laid charges and a warrant has been issued for your arrest which is highly unlikely. So it won't show up on the PCC.
Now depending which route you are applying for PR under this may pose a problem regarding proof of funds if required

The funds must be

available and transferable;
unencumbered by debts or other obligations; and
sufficient to support initial establishment in Canada.

plasticcanuck

A loan, from Bank or otherwise, is a civil matter and police would only be involved if criminal action occurred such as fraud or theft. Dropping the vehicle off at the Bank does not excuse you of the debt. The Bank would be looking for any shortfall between what it realized from sale of vehicle and balance of your loan. It will also be looking to recover any expenses it occurred in the sale of the vehicle, such as storage and auction fees.
Without clearing this matter up your credit rating upon your return to Canada will be severely impacted.

Robben

If I understand correctly It will not be a problem to process the application?. As I am in stage of applying for PR Card. Yes, matter of fact my credit history will be impacted. Will bad credit history impact my PR application. Please advice

Former Lancastrian

Have you already been granted PR status and done the landing?
Which stream did you apply for PR under or applying?
Are you already a PR as in one sentence you say applying for PR card but then talk about PR application.
More info required to give you a better answer.

Aviator

If you are required to demonstrate available funds or nett worth, debts will have an impact.

Robben

Thank you for the advice. The application processing name for PR is Immigration, Refugee & Canada Citizenship. Will it require me to demonstrate “debt free in Canada” for applying.

christmasoompa

Still none the wiser! That doesn't tell us which PR route you're applying for, or what stage you're at. Have you actually got Permanent Residency? Or are you planning on applying for it? If the latter, via which of the 50+ visa routes? Each has different funds requirements.

Robben

I am in process of filling my PR application. Could you please let me know which visa application has a requirement to be “debt free in Canada” ?

christmasoompa

None of the routes require you to be debt free, but most have a proof of funds amount (i.e. amount you have to show in your bank account), and you have to declare debts when applying. But without knowing exactly which visa route, it's hard to advise you further.

Robben

Thank you for the advice. Will get back to you with more information. Once again Thanks a lot

SchnookoLoly

When we say "which route", we are expecting something like Express Entry, Spousal Sponsorship, Provincial Nomination, and so on.

Some routes require you to show proof of funds, like Express Entry. Some routes do not require any proof of funds, like Spousal Sponsorship.

This is why the stream under which you are applying matters for giving you an accurate answer.

Aviator

For example:
Proof of funds: skilled immigrants (Express Entry)

For 1 person you need to show you have $12300 unencumbered funds.

If one had debts of $15000 and $20000 in the bank, nett worth is $5000.

Not sure how it would go if a creditor were to start debt recovery proceedings for any debts in default.

Robben

The route I am applying is express entry. I can show funds of 13000 CAD. But, not sure if my Canadian debt will be counted. As in CIC states, it is to support ourselves while settling in Canada. Any advice! If my debt in Canada will be considered or not please. If it is, is it wise to go ahead with my PR application.

SchnookoLoly

As Aviator said, you have to prove $12,300 of unencumbered funds.

So if there is $15k in your bank account, but you have $5k in outstanding debt, then you only have $10k of unencumbered funds, and thus not enough.

So the debt doesn't necessarily stop you from entering Canada, but you need to ensure that you can show the adequate proof of funds despite the outstanding loan.

Make sense?