You 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.
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?
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.
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..
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.
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?
Contact your trustee – you should be submitting reports every month about your income. Obviously the amount you report will change once you move. If your income changes so may your payments.
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?
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.
Does a trustee have access to my personal banking in a consumer proposal same as a bankruptcy?
Hi Drew. The creditors may ask questions to help them determine whether or not to accept a consumer proposal, so they may request bank statements and other supporting documentation to allow them to consider your proposal.