When considering a consumer proposal, you may wonder if it will affect your current employment or stop you from getting a new job.
Let’s look at some of the most common questions regarding a consumer proposal and its impact on employment.
Will my employer know about my consumer proposal?
In most cases, your employer doesn’t need to know that you filed a consumer proposal. However, if you have a wage garnishment, your Licensed Insolvency Trustee (LIT) will need to contact your employer to remove it.
Typically, only your creditors, your trustee and the federal government need to know about your consumer proposal.
Can a consumer proposal affect employment?
A consumer proposal doesn’t affect your employment.
As outlined in the Bankruptcy and Insolvency Act, an employer cannot dismiss, suspend, lay off or discipline someone because they filed a consumer proposal.
Some sectors do require employees to disclose financial difficulties. These sectors include finance, insurance, and industries where potential blackmail could be a threat. These industries may perform a credit check before making a formal offer of employment.
If you are self-employed, this is not affected by a consumer proposal.
Will a consumer proposal affect my professional credentials or licence?
Jobs that rely on professional credentials or licenses, such as insurance brokers, chartered professional accountants and solicitors, have fewer restrictions with a consumer proposal than if they declared bankruptcy.
However, inform your professional association or governing body about your intention to file a consumer proposal if you have a professional designation such as:
Lawyer • Accountant • Real Estate Agent • Human Resources Professional • Certified Financial Planner • Insurance Broker • Insurance Agent • Investment Advisor
Doing so will allow you to determine any potential implications beforehand.
Can I be bonded if I file a consumer proposal?
You must be bonded for some jobs, so your employer is insured against theft.
Getting bonded for your job is easier if you have completed your consumer proposal and received a Certificate of Full Performance. You may want to ask the insurance company that is doing the bonding.
It is a good idea to talk to a Licensed Insolvency Trustee for more information.
Can I be a director of a corporation in a consumer proposal?
A consumer proposal lets you remain a director and continue managing your business.
Can a consumer proposal affect my future employment?
A consumer proposal doesn’t generally affect your career prospects. However, an employer may want to investigate your financial history if you’re applying for a job that handles money. This is common in the financial and insurance industries.
Some employers may also run a credit check or request your credit report as part of the hiring process, especially for positions in the financial sector.
It is important to be open with any potential employer about any difficult experiences you have had in your life, as this can help build trust and confidence.
Will a consumer proposal affect your current employment or prevent you from getting a new job?
For most Canadians, the answer is no, but some industries require you to disclose that you intend to file a consumer proposal. Always check with your professional board or body.
If you want to learn more about bankruptcy or a consumer proposal, let us connect you with a Licensed Insolvency Trustee.
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