Answer: Legally, filing personal bankruptcy in Canada discharges all of your debts, both in Canada and in the United States. However, American courts and creditors do not typically recognize legal proceedings in other countries.

In practice, this means that your American creditors would not be able to pursue you in Canada, but if you were to return to the United States they could attempt to collect from you. In that case, it may be necessary to file for bankruptcy in America.