Failed entrepreneur Eddy Groves has applied for permission to live in Canada, where his wife is setting up a business.

Mr Groves and his wife Viryan Collins-Rubie are due to front the Federal Court in Brisbane on Thursday over the application, along with lawyers for his bankruptcy trustees.

The couple was to be cross-examined on Tuesday but their lawyer told the court they were in Nevada in the US.

Mr Groves' trustees in bankruptcy, Mark Robinson and Andrew Scott of PPB Advisory, are yet to give permission for Mr Groves to move to Canada.

The court on Tuesday heard Mrs Collins-Rubie is setting up a business in Canada and is trying to secure a lease for a premises in Vancouver.

It's unclear what type of business it is.

Lawyer for the trustees, Carolyn Conway, told the court Mr Groves had $23 million in net debt and the application was unusual.

"Mr Grove's application involves not a visit but a relocation to Canada," she said.

"He's leaving Australia permanently to reside in Canada."

Justice John Logan adjourned the hearing until Thursday, when Mr Groves and Mrs Collins-Rubie are due to arrive in Brisbane at 7am (AEST).

Earlier the judge disclosed a possible conflict of interest, telling the court he had presided over previous matters involving Mr Groves, and had lived in the same area as Mr Groves more than 30 years ago when the former ABC Learning boss had been "trotting around" on a milk run.

"It was a very efficient milk run," he said.

Ms Conway said she had no objections to the judge presiding over the matter.

Mr Groves co-founded the failed Brisbane-based childcare chain ABC Learning Centres.