I am filing for Consumer Proposal Or Bankruptcy, Will My Employer Find Out?

December 26, 2014

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If you’re facing the possibility of filing for Consumer proposal or Bankruptcy, you may be concerned about privacy issues, particularly with regard to having your employer find out about your bankruptcy.

While it’s true that bankruptcy and consumer proposal records are public, however (meaning they can be accessed by anyone who is interested in them), your trustee won’t normally notify your employer directly unless:

  • Your wages have been garnished and the trustee needs to stop the garnishment
  • The trustee requires tax information that you haven’t been able to provide (such as copies of T4s, etc.)
  • You owe your employer money, in which case your employer will be listed as a creditor and will be notified along with all your other creditors
  • Your job involves the handling of money and requires that your employer be notified (i.e. if you’re a lawyer, real estate broker, insurance broker, chartered accountant, director of a co-op/condominium corporation, etc.).

Most bankruptcies do not require that a notice be published in a local newspaper.  However, a very small number of bankruptcies will, due to their nature, require a notice to be published.

You should also know that, even if your employer does find out about your proposal/bankruptcy, you cannot be fired because of it. A bankruptcy may, however, affect your ability to remain bonded, so this is something you and your employer will need to discuss.

If you are considering bankruptcy or a consumer proposal and you have concerns about how it might affect your employment situation, call today for a free, no-obligation consultation with one of our insolvency experts: in Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926 or book online.

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