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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Can I protect my emlpoyer?

I work for a very small financial institution that has financed a huge debt consolidation (25K) for me. I feel that if they have to write off this type of loan, it would have a very negative impact on the business. Can I transfer the loan to a big bank and then declare bankruptcy?

My debt load is too much and I am thinking of resigning and going into another field of work, which would involve me leaving the country.

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One Response to “Can I protect my emlpoyer?”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

I don’t see any way to legally protect your employer, they are an unsecured creditor and by rights should be treated like every other unsecured creditor to whom you owe money. If you transfer the loan to a big bank and then declare bankruptcy, this would be considered an offense under the Bankruptcy and Insolvency Act as you would be miss representing your intentions to transact with the Big Bank in an attempt to protect one of your creditors. The result would most likely be determined by court and I expect would end up with your discharge from bankruptcy being refused and the outstanding loan surviving the bankruptcy. The Act is designed to prevent dishonest activity and while it is not perfect in most situations entering into this type of an arrangement will cause you a great deal of difficulty in the end.