Could this be a problem?

[sjantzi]

I'm a Canadian citizen working in the USA on a temp visa. We need to leave the country by the end of the year. We current own a home in the USA which we are about $80k underwater on. A short sale etc doesn't appear to be an option since we have a second mortgage. We would like to file a chapter 7.

My question is, if we were to purchase a home in Canada before we file could this cause any problems?

Since we would be giving up the American home the Canadian home would be our primary residence. At that point we would have re-established Canadian residency and would have a substantial income tax increase, which if used on the means test would allow us to pass.

Can anyone see any issues with this?

Thanks in advance!

[helpmeout]

Since you want to leave the US, you really should consult with an attorney to see what your options are. I would think that once you establish residency in Canada (and I believe that it would take more than buying house there, you would have to actually move there), you would not be able to file BK here, you would have to do it in Canada.