How Will My Consumer Proposal Impact My Work?
A consumer proposal offers an alternative to bankruptcy for people who have debts that total no more than $250,000 (excluding debts secured by a residential property).
It is administered by a Licensed Insolvency Trustee (LIT), who will help you to create a proposal to offer creditors for paying a proportion of your debts.
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Your LIT will act as the consumer proposal administrator, to whom you will make payments, and they will then make payments to your creditors.
If you are considering a consumer proposal as an option to help you deal with debt, you may be wondering about whether it will affect your employment.
When you have debts to pay, you naturally do not want to have to worry about your primary source of income.
Fortunately, a consumer proposal is unlikely to affect your employment.
The Law on Consumer Proposals and Employment
The law offers protection for those who file a consumer proposal.
It says that employers must not dismiss, suspend, or discipline an employee just because they have filed a consumer proposal.
However, there is one exception that you might need to be aware of.
If you are a licensed professional, filing a consumer proposal could affect your ability to remain licensed with the licensing body.
You should check with the licensing body to see if a consumer proposal will affect your licensing.
For example, a Chartered Professional Accountant (CPA) or someone who is working to become one may need to report the consumer proposal to the appropriate licensing body.
Some other professionals that may need to report a consumer proposal include lawyers, human resources professionals, and Certified Financial Planners (CFPs).
For example, qualified human resources professionals need to notify the Office of the Registrar of the Human Resources Professionals Association (HRPA) if they file a consumer proposal, while CFPs need to tell the Financial Planning Standards Council (FPSC), either as an existing member or if renewing or applying to the council for the first time.
If you file a consumer proposal, you shouldn’t need to be concerned about your job.
Your employer can’t let you go just because you have filed a consumer proposal.
However, if your job depends on being licensed by an official body, you may need to report the proposal to ensure you can keep your licensing.
Take a look at our information on consumer proposals to find out more about whether a consumer proposal might be the right choice for you.
We can help you to find a local Licensed Insolvency Trustee to make the process simple.
Your trustee will give you the advice you need to make the right decision and make sure that you follow all of the necessary steps.
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