Will I Lose My Job If I File For Bankruptcy?
The simple answer is “no”! Your employment cannot be terminated because you filed an Assignment in Bankruptcy. Your employer is not even notified that you filed for bankruptcy. The only exception to this is if your salary is being garnished. The trustee can stop the garnishee but must disclose his authority under the Bankruptcy and Insolvency Act to do so. To be discreet, the trustee usually sends a notice via Email only to the head of human resources or the payroll department. To help the trustee if you have a pay garnishee, you should get the Email and name of the person at your company who the trustee will work with to stop the garnishee.
You might consider turning a negative into a positive. Immediately after signing the papers to file your bankruptcy schedule a meeting with your employer. Tell him that you have had some financial difficulties and he/she must have noticed that you have not been working at 100% of your ability. Your employer probably has not even noticed anything but he will still agree with you. Tell him you are being proactive about the problem and have filed for bankruptcy. Your mind will now be clear of your financial problems and you will be a much more focused and better employee for the company. You should be pleasantly surprised at the reaction you get for being honest and upfront. Our recommendation is to ask for more responsibility or work so that your next performance review will be better than in the past.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.