Bankruptcy, a term that often triggers unease, is a concept unfamiliar to many Canadians. The fear of the unknown, especially when it concerns their financial security and career stability, is understandable. However, the Bankruptcy and Insolvency Act in Canada serves as a beacon of hope, offering individuals a chance to start anew financially, without compromising their standard of living.
In most circumstances, employers remain unaware of an employee’s bankruptcy proceedings. However, personal bankruptcy could leave a certain impact on your current job and the kind of employment you can secure in the future.
Constraints on Employment Due to Bankruptcy
Management of Trust Accounts
If you’re in the midst of bankruptcy proceedings and have yet to receive your discharge, you’re prohibited from managing trust accounts. In such cases, you’ll need to delegate the management of these accounts to another individual until your bankruptcy discharge is granted.
Bondability Issues
Bondability refers to an individual’s eligibility to be covered under their employer’s insurance policy, safeguarding against potential loss or theft. Until you obtain a discharge from your personal bankruptcy, your bondability is jeopardized.
Professional Licenses
Members of professional organizations, such as accountants or insurance agents, may encounter certain restrictions inhibiting them from obtaining a license to practice. Your professional licensing body will provide you with information regarding potential repercussions.
If your job requires you to manage trust accounts, be bondable, or uphold professional standards, and you’re experiencing financial difficulties, a Consumer Proposal may be a suitable option for you. Like bankruptcy, a Consumer Proposal offers creditor protection and a fresh start.
For personalized advice, feel free to contact our office to schedule a no-cost initial assessment to discuss the specifics of your situation.
Conclusion: Will Bankruptcy Affect My Job?
In conclusion, while bankruptcy does not necessarily lead to job loss or employer notification, it can potentially impact your job, particularly if your role involves managing trust accounts, being bondable, or maintaining professional standards. Therefore, it’s essential to consider all potential impacts and legal implications before making a decision. Consulting with a professional can provide clarity and help you navigate your financial struggles effectively.
