Filing Bankruptcy Or Consumer Proposal And Your Job
How Bankruptcy or a Consumer Proposal Impacts Your Job
When you’re considering filing for personal bankruptcy, it’s understandable if you are concerned about your career.
That goes for both your current employment and your future job prospects too.
In respect of your current job, there is no requirement in most cases for you to disclose you are filing for bankruptcy – so, that shouldn’t be a problem.
However, if you work in the financial or legal sectors, some limits do exist concerning the types of role you can undertake as an undischarged bankrupt.
Filing bankruptcy or consumer proposal and your job won’t always mix well, but consumer proposals are slightly different.
Credit Checks and Future Employment
It’s always a great idea to talk with a local licensed insolvency trustee before you make a move.
If you’re worried about your job, trustees can advise you what will and won’t affect that – and the best way forward for your specific career situation.
The Bankruptcy and Insolvency Act offers certain protections which prevent you from getting fired or disciplined just because of a consumer proposal or bankruptcy.
A potential new employer also can’t ask you to disclose a bankruptcy or consumer proposal when you apply for a job.
However, they can request you provide a copy of your credit report, and your credit history will contain a clear record of your bankruptcy or proposal.
Most barriers to your future career associated with financial troubles will exist within the financial and legal sectors.
If you work in one of those areas, it’s vital you get the right information before you act.
Only a licensed insolvency trustee can give you unbiased advice about the effects of a bankruptcy or consumer proposal on your work.
Consumer Proposals Can Present Fewer Problems
While filing for bankruptcy can have adverse effects with regard to your career and future job prospects, your licensed insolvency trustee might advise you to consider going down the consumer proposal route instead.
Many of the potential problems that bankruptcy presents for financial professionals do not exist in the case of a consumer proposal.
That’s because, although a proposal is a legal process designed to address your debts – just like a bankruptcy – it works in a different way.
You’re essentially offering to pay your debts when you file a consumer proposal.
It’s a method for doing that by restructuring repayments so you can afford them.
While it might take substantially longer to pay off your debts with a consumer proposal – and you might end up paying back a lesser total amount – you’ll still be making your best effort to honour what you owe.
Over the lifetime of a debt, a person’s financial circumstances are prone to all types of changes, and a consumer proposal is more a method for addressing that than it as a way of escaping entirely from debts.
If you’re currently experiencing unmanageable levels of debt, talking with a licensed insolvency trustee is the best way to find out what is going to work best for yourself and your career.
Consumer proposals aren’t universally suitable – however, if you work in the legal or financial sectors, it’s well worth getting assessed.
Working with a Licensed Insolvency Trustee – Consumer Proposals
When you sit down with your insolvency trustee and talk, they’ll examine your situation and advise whether or not you should choose a proposal.
If the situation suits, your trustee will prepare an offer for you and submit it to your creditors.
Once that’s done, creditors get a 45-day period to decide if they want to take up the offer.
That goes to a vote, and the majority of creditors must come out in favor of the scheme before it can go ahead.
A licensed insolvency trustee is the only professional authorized to file a bankruptcy or consumer proposal on your behalf.
They’re also the most reliable source of advice about all things surrounding debt and how to move on with your life – and career.
Usually, your consultation will be free, and there’s a network of trustees all over Canada – so there’s one near you.
During your initial meeting, your trustee will look at your situation and discuss all your options with you.
That’s the time to raise any concerns you have about your finances and your job.
Where barriers exist, your trustee is the best person you could possibly have in your corner.
If you’re looking to connect with your local trustee – or even if you’d just like some friendly advice on your best way forward – call the friendly team of advisors at BankruptcyCanada today on (877) 879-4770 (24/7).
We’ve been helping and putting Canadians in touch with local licensed insolvency trustees for decades.