How to Stop CRA Garnishment After Receiving an RTP Demand Payment Letter

Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Protect my employment if I were to go bankrupt?

Are there laws in Ontario to protect my employment if I were to go bankrupt? I do not owe my employer anything (money) so I would not want to be penalized and lose my job because of a personal financial dilemma. Also, I have tried to withdraw from my locked in RRSP and because I am not past due on my rent and risk eviction, I can’t cash it to pay off my debts and be debt free!! Makes no sense! I pay my rent but the only way to get some of my rrsps is to default and risk eviction? Please help me make sense of this. It’s only a $17,000 RRSP, and it’s not going to make a hill of beans for me when I retire anyway. I need it now! Thank you.

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One Response to “Protect my employment if I were to go bankrupt?”

Doug Stuive, CA | Trustee | CIRP said...

There are laws in Ontario that protect employees from a variety of things in the work place under both the Ministry of Labour and the Human Rights Commission and it may be worthwhile to discuss this issue with those agencies for your own peace of mind. For most jobs filing for bankruptcy is not grounds for termination and your employment should not be affected. There are some jobs that do require you to disclose a bankruptcy filing and the employer may be required to confirm you are in compliance with your bankruptcy duties. There are also some jobs that cannot allow an assignment in bankruptcy due to licensing requirements. This may include jobs that involve managing or selling investments or providing accounting services.

If your debt is less than $17,000 and you have employment income and the ability to pay something each month towards your debt you may wish to consider a consumer proposal. A consumer proposal would allow you to make a fixed monthly payment that fits your budget. You don’t have to pay your debt out in full in most cases and the interest stops. This would also allow you to avoid a bankruptcy. A trustee in bankruptcy can help determine if the consumer proposal option is right for you.