2024-09-25
What happens if I don’t fulfill my duties during a Bankruptcy?
Bankruptcy
If you’re going through a personal Bankruptcy, one of your main goals is to obtain your discharge — that is, to have your debts cleared so you can start fresh.
If I File For Bankruptcy Who Will Know? Will My Employer Find Out?
The parties who are notified of your bankruptcy include:
- All of your creditors;
- The Office of the Superintendent of Bankruptcy;
- Canada Revenue Agency (the trustee is required to file certain tax returns on your behalf)
In most cases, your employer would not be notified of your bankruptcy. The most common reasons that a trustee would have to advise your employer would be:
- If you owe money to your employer (in which case, they are a creditor of yours);
- If your pay cheque is being garnished - the trustee has to notify your employer of the bankruptcy in order to stop the garnishment.
Linda Paul
CIRP, LIT
Senior Vice-President
Servicing: Abbotsford, Chilliwack, Maple Ridge, Surrey, Langley
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How Often Can You File For Bankruptcy (MNP 3 Minute Debt Break)
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Canadians are facing a cost-of-living crisis. With rampant inflation, many have taken on more debt just to make ends meet. With interest rates still high, some households might be considering declaring Bankruptcy for the first, second, or even a third time.
If this sounds like you, don’t worry — many people are in the same situation, and it isn’t anything to be ashamed of. Filing for Bankruptcy or entering a Consumer Proposal might be the solution you need to relieve financial stress and get a fresh start.
