One concern that people have when they are considering filing for personal bankruptcy is the impact on their job. For most of the individuals I meet with, a personal bankruptcy will not have any impact on their employment and generally their employers will not find out about the bankruptcy. Below are a few situations when an employer would find out about an employee filing for bankruptcy:
- if there is a garnishment on the individual’s pay, then their trustee would have to notify the employer to have the garnishment stopped,
- if the individual does not provide the required tax information to complete any outstanding tax returns, then the employer maybe contacted to obtain the information, and
- if the individual is required under their employment contract to notify the employer of a personal bankruptcy filing.
Were it becomes more complex is when there are other professional standards or industry regulations involved. These include insurance agents, real estate agents, accountants, lawyers, etc. The professional standards related to the professions above along with industry regulations could impact the individual’s ability to file a personal bankruptcy without a negative consequence. In those situations, a consumer proposal may be the more viable option to deal with the debts and limit the impact on someone’s employment since a consumer proposal is not a bankruptcy.
If you are concerned about debts and your employment situation, we’d be happy to discuss these options with you. Contact our Kitchener office today for a free consultation.