Will My Employment Be Affected By My Consumer Proposal?

Will A Consumer Proposal Affect My Employment?

Will a consumer proposal affect my employment?”

A Consumer Proposal Won’t Affect Your Employment

Generally speaking, it will not. The Bankruptcy & Insolvency Act, which is the law that governs consumer proposals, states that “no employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of that consumer debtor.”

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Possible Exception – Licensed Professionals

With that being said, if you happen to be a licensed professional, you should inquire with your licensing body if filing a consumer proposal would affect your ability to be licensed.

Chartered Professional Accountant (CPA)

For example, according to CPA Ontario Regulation 7-1, a CPA or a person working towards becoming a CPA in Ontario would be required to disclose to CPA Ontario in writing the fact that she filed a consumer proposal and the circumstances that led to the proposal filing (Regulation 7-1, Paragraphs 27 to 29). CPA Ontario would then render a decision as to whether:

    • If that person is an applicant, she should be admitted or be refused admission as a CPA (Regulation 7-1, Paragraph 30)
    • If that person is already a member (i.e., already a CPA), she should remain a CPA without condition, remain a CPA subject to conditions or whether her CPA designation be suspended (Regulation 7-1, Paragraph 31)


If you’re a lawyer, the Law Society of Upper Canada may require you to report to them the fact that you filed a consumer proposal.

Human Resources Professional

If you’re a human resources professional such as a CHRP, CHRL, or CHRE designate and you’re filing a consumer proposal, you must notify the Office of the Registrar of the Human Resources Professionals Association (HRPA) immediately of your filing. This requirement applies to both new and existing members.

Certified Financial Planner (CFP)

If you’re a Certified Financial Planner (CFP), you are required to notify the Financial Planning Standards Council (FPSC) within 15 days of your consumer proposal filing. If you’re a new applicant or a CFP applying for renewal, you will need to inform the FPSC of your consumer proposal when you fill out the Declarations and Professional Obligations section of the renewal form. The FPSC will consider your reason for filing and situation and decide whether to deny a new or continued certification.

Our Promise To You

If you want to work with a Trustee who will give you confidence and peace of mind that your consumer proposal is being dealt with in a professional manner, look no further.

Contact Fong and Partners Inc., one of the 3 Best Rated Trustees in the Greater Toronto Area.

Phone: 416-260-3264

Email:   help@startingovertoronto.com