No, filing a bankruptcy or consumer proposal does not mean that one can lose their real estate license. And it is according to the Real Estate Council of Ontario (RECO). RECO doesn’t say anything like filing a bankruptcy or consumer proposal means the license will be ceased or something. So, if someone has such questions that they might lose their license or something. Then it is just a piece of false news that someone has spread. And the main government of this thing RECO doesn’t say anything like that. So, don’t believe in such things.
There will be no termination of license even the person has filed bankruptcy. One can have their real estate license even when they file bankruptcy. And nothing will happen to their licenses. Neither they will lose their job or something. And it is a government law that prohibits all the government and private companies from terminating their employees. One can continue what they were doing in their life.
Things to know before filing bankruptcy if someone has a real estate license
If someone is going to file their bankruptcy and if that person owns a real estate license. Then they have to inform the registrar’s office within five days of applying for bankruptcy or consumer proposal. And these documents are needed
- Proper reason for filing the bankruptcy with signed and dated
- Form 69: Bankruptcy assignment
- Form 79: Statement of all the possession and liabilities
- Form 65: Monthly expenditure statement
- Form 85: Discharge certificate but only if it is applicable
These are documents that will be needed in the registrar’s office.
A person can apply for real estate license after filing bankruptcy or not
As the RECO says that bankruptcy doesn’t prevent anyone from losing their license or registering for a license in RECO. So, a person can apply for the real estate license even that person has filed bankruptcy or not. But the person needs to disclose that they have applied for bankruptcy. Only after proper checking one can get their license.
Just disclose each and everything
Before registration, a person needs to disclose the proper reason for filing their bankruptcy, credit score, and a financial image. And the RECO official will take a complete check on those things. So, that they can know the person will be able to perform the job or not.
In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100