Will Filing for Bankruptcy Affect My Job?
A common fear about using Bankruptcy services is the effect it will have on your job. If this fear is holding you back from taking action, rest assured: there is no notification sent to your employer (except to terminate existing garnishments being deducted from your wages, if applicable), and therefore, in most cases your boss will never even know that you’ve filed for Bankruptcy.
It’s important to know that Bankruptcy services aren’t intended as a form of punishment. Bankruptcy is one of several solutions for debt relief, and there are systems in place to make sure it doesn’t compromise your ability to make a living.
However, there are some exceptions in which your employment might be affected by limiting the responsibilities you are permitted to handle:
If You’ve Filed for Bankruptcy, You Cannot Manage a Trust Account.
If your job currently requires you to manage a trust account, you will need to delegate the task to another employee until you are officially discharged from the Bankruptcy.
You May Not Be Bondable.
‘Bondable’ means that you are able to pass a number of background requirements mandated by your employer’s insurance policy, for the purposes of protecting against the possibility of loss or theft. This often includes a check to see if you have recently filed a Bankruptcy from which you have not yet been discharged.
Your Professional Organization May Withhold Your License.
Some professional organizations, such as accounting, legal, and insurance-related associations, may withhold or place restrictions on your license to practice, until your Bankruptcy is discharged. If your profession has a licensing body, we strongly recommend consulting with a Licensed Insolvency Trustee at Fuller Landau Debt Solutions regarding the repercussions of filing for Bankruptcy, before you make a final decision.
Can I Avoid These Issues and Still Discharge My Debt?
Yes! A Consumer Proposal will discharge your debts and offer you protection from your creditors without counting on your record as an un-discharged Bankruptcy. This leaves you free of the above restrictions. Other options, such as debt consolidation and credit counselling, can also offer you debt relief without having to claim Bankruptcy status.
If you’d like to learn more about Bankruptcy services and the other debt relief options available to you, please contact us today for a free consultation with one of our experienced Licensed Insolvency Trustees. With offices in Toronto and Hamilton, the Fuller Landau Debt Solutions team can help you get a fresh start and lead a FULLER life.