What Happens If I Change Jobs While I’m Bankrupt?

| Category: Bankruptcy FAQ
Category: Bankruptcy FAQ | (10) comments

bankruptcy job changeYou have taken the big step.  You realized you were having financial difficulties, you visited the trustee and now things are going along quite well.

Until you find out that you have a career prospect in another city or even another province. You may find out you are losing your job or that you’ve been offered a different job at a higher salary.

Now what do you do?

If you have been keeping up with your duties, the good news is that you will not have to worry about starting a new job. There are two areas that you’ll need to inform your trustee about if you decide to change jobs:

Update Your New Information

In a bankruptcy, your trustee is required to be advised of any contact information changes.  This means your address, your phone numbers and your email addresses. So if any of this information is changing because of a job change, you should update your trustee with the new information right away.

Highlight Your Income Change On Your Next Statement

In a bankruptcy, your trustee reviews your income monthly.  When you submit your next statement, highlight your new job information so that the trustee is aware that you now have a new job.  If you are making more money, this may put you into the requirement to pay surplus income. Your trustee will advise whether you’re required to pay surplus income upon receipt of your income statement.

Changing Jobs Will Not Affect Your Ability To Complete Your Bankruptcy

If you’ve filed bankruptcy and worry that deciding to make a job change may hinder your ability to complete your bankruptcy or to deal with your debt, rest assured that as long as you update your information with your trustee and maintain your payments as normal, you can eliminate your debts as planned. Filing for bankruptcy doesn’t limit your ability to advance your career. Instead, it’s an opportunity to get a fresh financial start focused on making sure that you succeed even after you have eliminated your debts.

Category: Bankruptcy FAQ | Tagged in: ,

About Joel Sandwith

Joel Sandwith is a Licensed Insolvency Trustee with Hoyes, Michalos & Associates Inc. in London and Sarnia, Ontario. Before joining Hoyes, Michalos in 2009, Joel worked as a Credit Counsellor for Family Services Thames Valley. He brings a wealth of credit counselling and debt management experience to finding solutions for the people he helps get out of debt.

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  1. Eric V.


    If I file a Consumer Proposal, will it affect my Locked -In Funds (RRSP) should in the future I decide to withdraw it due to Financial Hardship?


    1. J. Douglas Hoyes, Trustee

      Hi Eric. Your RRSP would not be directly impacted by filing a consumer proposal. As to whether or not you would be able to qualify under the hardship provisions to withdraw funds from your locked in RRSP, that would be a decision for the pension hardship committee. Hardship is generally only permitted in exceptional circumstances, such as the possibility that you will be evicted for not paying your rent. Once the proposal is filed and your unsecured debts are dealt with that may reduce your financial hardship. Each case is different, so I would suggest you discuss this with your pension administrator who should be able to give you a better idea of your chances of making a successful hardship application based on your circumstances.

  2. madice

    I would like to know if I quite my while I am Bankruptcy.. I have 4 month left.. will it be an issue .. I did the math for 2 paychecks and It will cover 4 month .. I have issue with job I work..

    please help

    thank you

    1. J. Douglas Hoyes, Trustee

      Hi Madice. Yes, you can quit your job while bankrupt. As long as you continue making the required payments and fulfilling your other duties, it should not impact your bankruptcy. If you are currently paying surplus income, you should discuss this with your trustee to determine if your payments will decrease if your income decreases.

  3. Noreen

    Hello, I am planning on moving to New Brunswick and I still have a year and a half on my bankruptcy. I am currently paying a surplus, but when I move I will not have any income until I find a job. How will this work?

  4. Alison

    I am 3 months away from being discharged but am closing my business and starting a new job. Can my family member lend me money to supplant my income and help with bulls until my new job starts generating revenue?

    1. J. Douglas Hoyes, Trustee

      Hi Alison. Yes, a family member can loan you money while you are bankrupt. In cases like this, I suggest you discuss it with your trustee so they understand it’s a loan, and not income, so it should not impact your bankruptcy discharge.


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