Moving abroad does not automatically cancel Canadian debt. Creditors can continue collection efforts, and unresolved balances may create problems if you return or need Canadian credit later.
What may happen
- Collection calls/emails continue to your last known contacts.
- Account may be sent to collections.
- Credit score damage in Canada can persist for years.
- In some cases, cross-border recovery may be attempted.
Debt types to watch
- Credit cards and personal loans.
- Student loans (federal/provincial).
- Tax debt to CRA (special collection powers).
Better approach before leaving
- Negotiate payment plans before departure.
- Keep communication channels open.
- Understand limitation periods, but do not assume debt is unenforceable.