delsol79

Hey - just wanted to know if any previous applicants had been asked to submit evidence of outstanding debt when they sent supporting evidence.

The 90 day letter says proof of funds unencumbered by debts but unless they run a credit check I am unsure of how they know.

I plan to have the necessary funds in my savings account by the time I send off the evidence however what if you have 5-6k debt on a loan/credit card? Would this count against you and "wipe out" your proof of funds?

My way of thinking is that my savings are mine and free to use as loans are a monthly commitment etc.

Anyone with experience of this?

Thanks!

Paul Wildy

I dont believe the do credit checks but I dont know that for sure. Basically "unencumbered funds" means funds which there is no security against that you can withdraw and do what you want with.

So, for example, if you have a house worth £200k but you have a £200k mortgage then those are not unencumbered funds. If you have £5k in a savings account and £5k credit card debt the savings account funds are still unencumbered - you can withdraw them when you like and do what you want with them.

What they are really asking here is what are your liquid assets - what money do you have available to use to get yourself economically established in Canada? They arent asking for your net worth (all assets minus all liabilities).

Hope that helps.

StefkeUK

hello,

I think we will need to have some clarities about that. And maybe those who have passed this stage of application to share their experiences.

I have read (on this forum) different versions about the fund you need to have; one stating that you might have to declare you debts aswell and it could be decrease from your saving.

Any good advice is more than welcome.

Stefke

Paul Wildy

Certainly when you calculate your net worth (e.g. for Schedule 4 used for PNP or other forms that ask you for it) you must show debts as well as assets. But my understanding is that for Proof of Funds purposes you dont need to subtract debts. See http://www.cic.gc.ca/English/immigra...lled/funds.asp

What they say on here is "You must show that you have enough money to support yourself and your dependants after you arrive in Canada. You cannot borrow this money from another person. You must be able to use this money to support the costs of living for your family".

So basically you cant borrow the money from a firend to put in your account to show Proof of Funds. But if you have 5k in a savings account and at the same time happen to have a 5k loan (that isnt due for repayment straight away) then you meet the requirement of being "able to use this money to support the costs of living" etc.

But if anyone has been challenged on this point by CIC it would be useful to know.

delsol79

OK thanks - this is my understanding of it as well however you have drilled it home, they are asking for funds you are free to use. Not your net worth. The money in my savings account is mine and free for me to use. The credit card is not offset against these funds and does not require payment in one installement.

One further level of complexity to add My savings account goes up and down - mainly down recently after 3 weeks travelling around Alberta and BC. However, what with Xmas bonus coming and regular savings I will have around 5k in place for January. My family have offered to give me the rest of the money I need if I can not sell my car in time (which makes up the rest of the fund).

I know it says "cannot be borrowed" but do you think if asked I could just get family to write a letter explaining it is a gift? I am just worried about the savings statements showing large sums injected in last few months including my Xmas bonus etc. I was hoping I could just print of the screen showing the total balance...

Paul Wildy

I dont see why that couldnt work. If you provided a bank statement with the funds deposited and a letter from a relative stating it was a gift and they were not expecting it to be paid back you would not be foul of the rules (though they may question it a bit). I think as long as you can show you actually have the money (and that you dont have to return it to someone in 30 days time) then okay, but I dont think simply the promise of money (e.g. a letter from a reletive saying they were going to give it to you) would be enough.

David P

If you borrowed some money would CIC or immigration be any the wiser? You only have to show a bank statement with the required number in the total, not justify every item on it.

With all the costs involved in moving I'm sure there are people who borrow some money off parents to see them through the first few months which they then pay back once a job is secured.

blagustin

Would it matter if part of your funds are given by your parents? They were asking for history of funds,how it accumulated , etc. Is it ok to state in the letter that this was given by parents as gift. This is still considered as UNENCUMBERED.

Advise please... thanks.

Paul Wildy

Yes, funds are only "encumbered" if you owe them to someone. So if they were received as a gift they are unencumbered.

TrishP

I would encourage you to try to pay off your debt/loans before you move as it's amazing how much money you'll eat through in the first couple of months ... it seems that every way you turn, someone has their hand out and wants money off you!