What Happens If I File A Bankruptcy Or Consumer Proposal As A Human Resources Professional?
Human Resources Professional and Insolvency
Are you wondering whether you can file either a consumer proposal or for bankruptcy as a human resources professional?
Here’s what you need to know about this step if you do fill one of these positions.
There’s no set rule on who will or won’t be declared insolvent in the future.
The reality is that anyone can face insurmountable levels of debt and that does including a human resources professional.
You might hold a CHRL, CHRE or CHRP designation.
If this is the case then by law, you will need to make sure that you alert the Office of the Registrar of the Human Resources Professionals Association as soon as you file.
This is a requirement regardless of whether you are a new or existing member.
Indeed, this is clearly stated in the Registered Human Resources Professional Act 2013.
This will be the case when:
- A member of the firm itself is declared bankrupt.
- A member makes a proposal for creditors.
- A proceeding is brought against one of the members.
- A receiving order is made against the firm.
- Other events that are specified within the bylaws.
You might be a student.
If this is the case, you need to make sure that you report if your firm is experiencing either insolvency or bankruptcy.
Do You Need To Provide Documents?
It’s possible that as well as giving notice, you may be asked to provide documents directly to the registrar.
The documents that you may need to present include:
- Any relating to the bankruptcy.
- A full declaration allowing the association to access the necessary documents.
- Documents that detain financial circumstances.
Once this is complete, the registrar will make sure that these documents are sent on to the review committee.
A review committee will then judge the bankruptcy case as well as your conduct as a member.
Questions will be raised here related to your bankruptcy including whether it impacts employees, clients or any other party.
The committee will also be keen to explore your number of creditors and the nature of how they have been impacted as well as your conduct with them.
For instance, they will be exploring whether there is any civil liability or criminal liability.
They may also explore your financial situation at the point of the review and the date when you are expected to be free from your bankruptcy.
Can You Avoid Reporting Your Bankruptcy?
Unfortunately, if you are an HR professional, then it is not possible to avoid reporting your bankruptcy.
Failing to report it could lead to a complaint against you as a member which could then lead towards a Discipline Committee.
Reporting bankruptcy or a consumer proposal can be complicated particularly if you are held to a certain professional standard.
You will want to make sure that you access the debt relief you need as quickly as possible.
We can help here and if you contact us today or fill out an evaluation form, we will deliver the expert advice you need.