New employment while in Bankruptcy

July 19th, 2011 by Questions

I’m currently self-employed and am considering bankruptcy, once I do and am making payments, if I get a job what happens then?

is my new employer contacted which could hurt if on probation?

Are my payments adjusted higher?

Posted from: Ontario


One Response to “New employment while in Bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

What happens will largely depend on you and the level of the income you will be receiving.

Firstly, one of your bankruptcy duties is to inform your trustee as to any changes in your situation, inculding employment.

The next component of this is you have an obligation to provide pay stubbs each month to your trustee, so if you fail to do this your trustee would have to contact your employer to request them.

The only other reason your trustee would have to contact your employer is if you were not making your monthly payments. So as long as you do what you are supposed to there is no need to contact your new employer.

The second part of this was the level of payments. This depends on the level of your income. If you get a job and you end up making more than you are currently, then your payment will increase in accordance with the surplus income obligation you are subject to. However, if your income stays about the same at the new job as it was at the old job, then you may not experience a change in your payment.

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