Posted on Thursday, October 19, 2006Bankruptcy and EmploymentA recent question by email to me was: How will bankruptcy affect my employment options?This is a good question but one that is hard for a trustee to answer by virtue of the numbers of jobs and types of employment available. There is no way a trustee could know if bankruptcy would affect every type of job that is out there. What we should tell you is that some fields of employment and some jobs require that you are not a bankrupt. This might mean that you cannot file for bankruptcy while you have that job or you cannot take employment for a certain job if you are bankrupt. Most of those jobs would mean dealing with money or having some type of trust capabilities that are necessary in the job. For example, a lawyer who is self employed and handles their own trust accounts cannot be bankrupt and deal with those trust funds. It used to be very difficult to get a job in any casino if you were not discharged - now if you are working for a casino and file for either bankruptcy or a proposal you must disclose the information to them immediately. Many types of accounting jobs will not allow you to work if you are bankrupt. I once had a student who was refused a scholarship because she had filed for bankruptcy. If you are in a financial situation where you are looking at personal bankruptcy, a better option might be a consumer proposal. But the first step is to take a look at what the requirements for your job are and know how an insolvency (this means bankruptcy or proposal) might affect it. If you are planning a career in a certain field, also review the requirements before filing. Then come to see us at Hoyes, Michalos & Associates to discuss your situation and set up a plan that will allow you to continue without problems in your chosen employment. Call us at 310-PLAN. Posted by Norma Yau, Trustee @ 6:40 PM
Posted on Wednesday, October 11, 2006How does bankruptcy effect my credit rating?We frequently get asked how bankruptcy effects a credit rating.According to Equifax, a bankruptcy gives you a R9 rating and it stays on your record for 6 years after discharge for a first time bankruptcy and 14 years for multiple bankruptcies. The ratings range from a 1 to a 9. 1 being the best and 9 the worst. Each time a payment is late your credit rating gets worse, for example from a R1 to a R2 when one payment is late. There is also a note on your file about the bankruptcy. This note is purged from your record 6 years after discharge. A consumer proposal gives you a rating of R6 and is on your record for 3 years after it is paid in full. If you are concerned about faster improvment of your credit report, a consumer proposal can give that to you. The important note is that if you are behind on your bills, you already have negative notes on your credit rating. You need a plan to deal with your situation before creditors take you to court and garnishee your wages. Call us at 310-PLAN to develop a plan that's right for you. Posted by Rebecca Martyn, CGA, CIRP, Trustee @ 3:54 PM
Posted on Friday, October 06, 2006Credit Counselling and Bankruptcy in OntarioIf you file a consumer proposal or personal bankruptcy, you are required to attend two credit counselling sessions. The first credit counselling session occurs between 10 and 60 days of the filing of your bankruptcy or consumer proposal, and the second session occurs between the 30th and 210th days.The first credit counselling session discusses money management, spending and shopping habits, warning signs of financial difficulties, and obtaining and using credit. The second stage credit counselling session is designed to determine the causes of the insolvency, and to provide you with skills to prevent future financial problems. The credit counsellor will follow up on the principles discussed in the first session, and then help you identify non-budgetary causes of financial problems (such as marital break-down, job loss, family problems, excessive gambling, compulsive behaviour, and substance abuse). The counsellor will help you better understand your behaviour and spending habits, make you aware of resources to help you achieve and maintain economic stability, and help you develop a financial plan of action to keep you on track financially. There are some trustees that believe credit counselling is a waste of time. I, however, am a strong supporter of credit counselling. Many of the people I meet with each week have never been shown how to make a budget, and they have no idea how much they spend each month. By taking the time to review your finances and make a plan for the future, it is possible to become financially secure, even if you have filed for bankruptcy. We are strong believers in helping people make a plan, which of course is why our phone number is 310-PLAN (that's 310-7526, and you don't need to dial an area code to reach any of our Ontario bankruptcy offices), so please call us today, or e-mail us, and let's get started. For more information on credit counselling, visit credit-counselling.org, or read the Directive from the Superintendent of Bankruptcy describing the credit counseling process; see also budget, credit counselling, consumer proposal, personal bankruptcy, bankruptcy Ontario Posted by J. Douglas Hoyes, CA, Trustee @ 2:52 PM
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