Beaudin Groupe Conseil - Demystifying debt, credit

Can you not tell my boss?

In general, Canadian Insolvency legislation does not require that the licensed insolvency trustee disclose information about a bankruptcy to an employer of a person who filed for bankruptcy. However, there are a few exceptions to this rule:

1.    If your employer is one of your creditors, they must be informed of your bankruptcy so they can participate in the process and receive a dividend.
2.    If you have a contractual obligation to disclose your bankruptcy to your employer, you may be required to advise them to comply with that obligation.
3.    If you work in a profession regulated by a professional order that requires the disclosure of a bankruptcy, or if you hold a license issued by the “Autorité des marchés financiers”, these organizations must be notified by you or by the trustee.

4.    The trustee must also inform your employer's payroll department to stop any wage garnishment.

Overall, bankruptcy is a matter between you and your creditors, and the details of your bankruptcy are only be disclosed to those involved in the bankruptcy process. However, if you are concerned about the potential impact of your bankruptcy on your employment, you should consult a lawyer or an insolvency trustee from Beaudin Groupe Conseil for advice on how to protect your interests.


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