The Impact of Bankruptcy on Your Career: A Comprehensive Guide
As the specter of personal bankruptcy looms large, many people in Canada are concerned about the possible implications on their professional lives. The term “bankruptcy” itself triggers a sense of intimidation due to the unfamiliarity of the process and its potential effects on daily life and employment. However, thanks to the rules laid out in the Bankruptcy and Insolvency Act, Canadians are provided an opportunity for a fresh start and debt protection without compromising their standard of living.
Will My Employer Know About My Bankruptcy?
In most cases, employers are not informed about an employee’s bankruptcy proceedings. That said, declaring personal bankruptcy can affect your job prospects and the kind of work you may continue to do.
Trust Account Management Post-Bankruptcy
One significant impact of personal bankruptcy is on those who manage trust accounts. If you have not yet received your discharge after filing for bankruptcy, you’re not allowed to manage trust accounts. Thus, you will need someone else to manage these accounts until your discharge is granted.
Bondability and Bankruptcy
Bondability is another critical factor affected by bankruptcy. Being bondable implies that an individual clears all background checks to be covered under their employer’s insurance policy against any potential loss or theft. If you have filed for bankruptcy and awaiting your discharge, you are not considered bondable.
Professional Organizations and Bankruptcy
Another area of concern is for those who are members of professional organizations. For instance, if you’re an accountant or an insurance agent, certain restrictions may prevent you from obtaining a license to practice. Your professional licensing body will have specific guidelines about potential repercussions.
The Alternative: Consumer Proposal
If your job requires you to handle trust accounts, be bondable, or maintain professional standards, and you’re grappling with financial difficulties, a Consumer Proposal might be a viable alternative. Much like bankruptcy, a Consumer Proposal also offers creditor protection and a fresh start.
If you need more information or wish to discuss your specific situation, feel free to contact our office for a no-cost initial assessment.
The Bottom Line
Bankruptcy is undoubtedly a daunting prospect, but it’s essential to understand that it’s designed to give you a fresh start, not to punish you. The most crucial step is to arm yourself with the right information and make informed decisions. And remember, you’re not alone in this journey – professionals are available to guide you through the process and help you come out stronger on the other side.
