Unless you’ve filed for bankruptcy, most Canadians really have no idea what it entails. For many Canadians the idea of filing for personal bankruptcy is very unfamiliar. Not knowing how the process will affect your everyday life and employment is just one of the many reasons why bankruptcy can be so intimidating. The good news is, the Bankruptcy and Insolvency Act rules were designed to provide Canadians with the opportunity for a fresh start and debt protection all while allowing them to maintain a fair standard of living.
For the majority of situations, an employer will not be notified of an employee’s bankruptcy proceeding.
Filing for personal bankruptcy in Canada can, however, constrain the types of employment you may continue to work or obtain in the future.
Firstly, if you have filed for bankruptcy protection and have not received your discharge, you cannot manage trust accounts. If you do manage trust accounts, you will need to have someone else manage the accounts until your bankruptcy discharge is received.
The second constraint relates to your ability to be bondable. Being bondable means that an individual passes all of the background requirements to be covered by their employer’s insurance policy against the possibility of loss/theft. Until you have received a discharge from your personal bankruptcy, you cannot be bonded.
The third constraint relates to members of professional organizations. If you are a member of a professional organization, such as an accountant or an insurance agent for example, there may be certain restrictions that may inhibit you from obtaining a license to practice. Your professional licensing body will be able to inform you of the possible repercussions.
If you are in financial trouble, and can’t go bankrupt because of your profession, a Consumer Proposal may be the option for you. A Consumer Proposal also offers creditor protection and a fresh start.
If you have questions or would like to book a free, no-obligation consultation with a licensed insolvency trustee at Welker & Associates, contact our office today!
