What Impacts Does Insolvency Have on Me as a Lawyer?
If you’re a lawyer that’s operating in Ontario and you’re struggling with your debt, then you might be looking to file for bankruptcy or a consumer proposal.
However, due to the profession you’re in, there are certain implications that come as a result of this step.
As a lawyer in the province, the Law Society of Ontario can place specific limitations on you, when you file for bankruptcy.
These restrictions will then directly affect your ability to continue to practice law while you’re insolvent – listing that you’re restricted to practice on your status within the society’s directory.
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Alongside this, you will also have the following conditions applied:
- You will not be legally allowed to hold or receive money in trust.
- You are not able to practice real estate law.
- You can’t co-sign or sign on any trust account.
However, not only do you have to contend with these restrictions, but you’ll have to inform the society the moment that you opt in to this decision.
A rule that’s laid out in the By-Law 8, it’s vital that this is done as soon as possible.
Throughout the process, the society will also require you to inform them on all aspects of your financial affairs, including (but not limited to) the following information:
- Confirmation (from your bank) that any trust accounts you have been closed.
- A copy of the Certificate of Discharge once you’re repaid all of your debt.
- A Questionnaire of the Official Receiver
- A copy of your Statement of Affairs
Alternatives to Filing for Bankruptcy
Before you file for bankruptcy, it’s essential that you consider the risks that are associated with it.
As your job is a barrier and can be significantly impacted, it’s not a decision that should be taken lightly.
There are other alternatives that you could opt for instead of bankruptcy, including:
- A debt management program
- A debt settlement program
- A debt consolidation loan
If you have debts under $250,000, then a consumer proposal could be the best route for you.
Also, as a lawyer that’s insolvent, this option tends to have less impact on your ability to successfully practice law.
It is also a useful method of helping to eliminate unsecured debts.
However, as mentioned above it does come with its own unique restrictions that you should pay attention to.
Similarly to filing for bankruptcy, you must also inform them when you file for a consumer proposal.
Filing Bankruptcy or Consumer Proposal as a Lawyer in Ontario: Discover Which Option is More Suitable for You Today
Overall it’s important to recognize that there isn’t a one-size-fits-all approach to dealing with your debts as a lawyer.
Therefore, it’s critical that you seek professional guidance from a Licensed Insolvency Trustee at the start of the process before leaping into one choice.
Guiding you through each process and assessing your financial situation, you’ll have a path to take that’s unique to you and you alone.
Alongside this, it’s also a good idea to contact the society directly to find more information regarding the impact it could have on your career and financial future.
Get in contact with a local and Licensed Insolvency Trustee today by either calling (877) 879-4770 or by email through our website.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
