Will I Lose My Real Estate License if I File a Bankruptcy or Consumer Proposal in Ontario?
Can I Continue as a Real Estate Broker if I Go Bankrupt / Make a Consumer Proposal?
While many consider bankruptcy from a personal standpoint, there are also professional ramifications to take into account.
A common concern is what impact a bankruptcy filing will have on a real estate license in the province of Ontario.
The good news: when you file for bankruptcy or issue a consumer proposal, it does not mean your license will be taken away
Bear in mind, however, that if you are planning on filing either financial proceeding, you are obligated to inform the Real Estate Council of Ontario.
This means that you must provide the office of the registrar with information pursuant to your finances in the way of:
- Statement detailing the reasons you are filing for bankruptcy;
- Form 69;
- Form 79;
- Form 65;
- Form 84.
These financial documents basically detail the bankruptcy assignment, the details of your assets and liabilities, your income, and expenses; and, when applicable, your discharge paperwork.
You are obligated to provide these documents within a period of five days from filing.
In the event that you previously declared bankruptcy or filed a consumer proposal which has since been discharged, you must still inform the Real Estate Council.
As a new applicant to the real estate board, you need to inform them of all your financial matters which could impact your professional performance.
It will not preclude you from registering with the council as a real estate agent.
That said, they may wish to impose voluntary conditions on your registration to ensure both your welfare as a professional and that the interest of your clients is considered.
To learn more about the ways that bankruptcy or consumer proposals can impact your future as a real estate agent, contact the office of the registrar to discuss specifics.