Bankruptcy & Professional Designations

Where your profession has a professional designation or a provincial or federal licensing requirement, you maybe required to report insolvencies, including bankruptcy.

Your professional designation may prohibit employment where you have or are considering filing for bankruptcy.

New applicants are usually required to report any insolvencies prior to a licence being issued by the regulating agency.

Where you have questions about your profession, please call us at 905-721-7506.

The Law Society of Ontario (LSO) regulates lawyers and paralegals who wish to practise law in Ontario.

Bylaw 8 of the law society states under Notice of bankruptcy or insolvency:

A licensee shall immediately notify the Society whenever any of the following events occurs:

• The licensee receives notice of or is
  • served with a petition for a receiving order against him or her filed in court under subsection 43 (1) of the Bankruptcy and Insolvency Act (Canada).
• The licensee makes an assignment of
  • all his or her property for the general benefit of his or her creditors under section 49 of the Bankruptcy and Insolvency Act (Canada).

Members of  the Law Society of Ontario must report insolvencies and bankruptcy.

The Real Estate Council of Ontario (RECO) website specifies that bankruptcies must be disclosed when applying for registration regardless if they have been discharged.

Our experience as insolvency trustees is, that bankruptcy rarely affects a real estate agent’s ability to work.

Under the Real Estate and Business Brokers Act (REBBA) real estate agents must inform the Registrar’s office within five days of filing for bankruptcy.

When you inform the Registrar’s office you must include: a signed and dated statement including full particulars of the circumstances that lead to the filing and:

• • Form 69: Assignment of Bankruptcy
  • Form 79: Statement of Assets, Liabilities
  • Form 65: Monthly Income and Expense Statement
  • Form 84: Certificate of Discharge (if applicable)

Under normal circumstances bankruptcies do not result in revocation of registration. However, you may be asked to voluntarily enter into conditions upon your registration.

The obligations for Chartered Professional Accountants (CPA) is listed under regulation 4-3 under Obligations & Standing of the Chartered Professional Accountants of Ontario Act, 2017.

Under the CPA Ontario Regulation 4-3, accountants must abide bylaw section 8, which states:

Members shall disclose to the Registrar forthwith upon:

• becoming a bankrupt
• making a proposal to creditors
• becoming the subject of a formal proceeding as an insolvent debtor, or
• having a business of which the Member is an owner placed under a receiving
  order, as defined in the Bankruptcy and Insolvency Act.

The disclosure shall include: all documentation pertaining to the subject of the disclosure including financial circumstances of the individual including, income tax returns, financial statements and financial records.

The following professions should seek legal advice from our office when considering bankruptcy & insolvency.

• bank employees
• police officers
• security personal
• professions that deal in currencies & money
• persons needing security clearances
• government employees
• elected officials

Where you’re concerned about how your employment maybe affected in bankruptcy, call our office for a free consultation.

Licensed Insolvency Trustee Kelly Dey

Where you have questions about insolvency and bankruptcy, I invite you to call our office to speak to myself or one of our insolvency trustees.

We’re happy to speak over the phone or in-person at one of our offices and are available to answer questions and give you financial advice, without cost or obligation.

Call us today at 905-721-7506.