riccosuabe

me and my wife are looking to move to canada in the next three years,with me being the principal applicant as a plumber and pipe fitter.we had a problem with debt as my wife lost her job and has struggled to find another one.so we started to use one of the debt management schemes where the goverment freezes the interest and you pay back less and as a result cant get any credit for the next 4 years.i just wanted to know will it go against us when being considered or is your finacial state/history not a factor.im not bankrupt though just incase you ask.
thanks

JonboyE

It could be a problem if you are applying as a skilled worker. Both at the time of your application, and at the time you activate your permanent residence, you have to be able to demonstrate that you have sufficient, unencumbered, funds to get you established in Canada. If I remember correctly this is about $12,000.

If you get a job and apply as a temporary worker you do not need to prove any funds.

Once in Canada you start afresh with a clean (i.e. zero) credit rating. I think you should be sure you are able to continue to meet your obligations under your UK debt management scheme.

riccosuabe

well when we go itll be because of a job offer and our debt management doesnt include our house as its in my wifes name so wed have about $cad 30,000 before we went.so in a nutshell,if i get over as a PN it wont affect us?

jackiewalters

if you are awaiting a PR and you also have a job waiting for you on the other side, do you need to show proof of funds? I ask because we will only have enough to pay for a car and rent a house, and enough to take us through the first month, I have been told it is doable, have read many storys about others who have arrived in Canada with next to nothing, just a new post to start?

riccosuabe

well a friend of mine(who shall remain nameless)had just got a 15,000 loan in the uk for going over to canada and went through all the right channels as a skilled worker and when he arrived in canada just stopped paying payments even though hed only had the loan 6mnths,that was 5yrs ago and hasnt had any repurcussions.im not condoning his actions as i want it my immigration to be legit.just wanted to know if my financial past would hinder my immigration?

jackiewalters

I honestly do not think it will, mainly because you will not get penalised for trying to correct your current situation.

However your friend is very lucky to have gotten away with that loan as I understand it, the UK and Canada now have an agreement which means that people who run from debts are now more traceable.

jackiewalters

But out of curiosity, what if you were bankrupt, would that truley go against you? (Please note, we are not bankrupt either!!)

riccosuabe

it was the wrong thing to do,but i think it is still hard to find you(i think) as you always here of it happening.and thats my issue its not like im running from my debt,i hit a bad patch financially and am now correcting it.hopefully itll be all payed off before i get a job anyway

jackiewalters

You know what..............you have a good positive outlook, so yes you will reach your goal, and why the hell not EH!!

Keep your eyes on the prize!! seriously your house is in your wifes name, once the house is sold your laughing in Canada!! also maybe you have apoint with regards to not being found, but is it truley worth it?

Like I said knowing my luck if I were to pull a stunt like that I would be the ONE person in history to get CAUGHT!! just my luck, so I aire on the side of caution and resist temptation. your defo doing the right and honourable thing mate.

JonboyE

If you are landing as a permanent resident you need to be able to show proof of funds, if asked, regardless of whether or not you have a job to go to. A copy of a bank statement is usually sufficient.

jackiewalters

ok thanks I stand corrected and what if you do not have sufficient funds?

MB-Realtor

Making an Arrangement with your Creditors and going Bankrupt are the two items that will carry over from the UK to Canada. In fact they will tend to haunt you for the rest of your life when you apply for credit.

Invariably when you apply for major loans, like a mortgage, you will often find a clause in the contract that states:-

Have you ever made an arrangement with your creditors or been made bankrupt.

note the ever.

So you will end up (if you don't want to lie) having to explain it to prospective lenders, so have as much information as possible with you as to 1) Why it happened in the first place, 2) How you successfully paid it all back. & 3) How you are now financially responsible and wont represent an undue risk to them.

jackiewalters

I see your point but its confusing to me because in one breath you are told that you have to build up a credit rating because you are starting afresh and your credit in another country ie: uk cannot be traced, and then your told ahh but actually you can be traced and they will look into your past credit in the UK!! I am truley confused!

So in short if you have had to pay off your debts via an agreement in the UK or an ex bankrupt, you ARE still penalised in another country, ie: Canada!!

I have a friend who moved over to canada who had a bad credit history in UK, and had no problems with getting a mortgage after living in Canada for 2 years and establishing a strong credit!! so which is it??

MB-Realtor

Sorry, its got nothing to do with your credit history as such, a Canadian lender won't pull your UK credit history.

The problem is in answering the question about having made an arrangement or having gone bankrupt, either you lie and say no, or you tell the truth and then have to explain yourself, its your choice.

jackiewalters

Forgive me for being "Thick" so your saying that although the question would be asked regarding your past financially they can not actually access your credit file in the UK? Well there ya go riccosaube the ball would be in your court!! Not encouraging you to Lie, but its not all doom and gloom after all. And thank you for your quick response MB-Realtor