Bankruptcy & registration

OMG…

umm ok. i was just curious on my options but “OMG” is not going to help me out bro.

you’ve got to be kidding!! I only hope you don’t have a wife and children. Go get a salary job…quick. How irresponsible!

lol no wife and kid. I am just wondering guys. Im looking into my options. I just wanted to know worst case senario.

killer,

Of your going to be a financial advisor maybe you should brush up on the new bankruptcy law.  Your screwed likely...

My advice go get two jobs and move in someones basement.

ok, so basicly dont file. I got that part. I am actually reading up on the bankruptcy law while I wait for someone on this forum to give me something in a bit more detail. I dont pay rent or anything but my debt just caught up (credit and carpayments). I am just curious about what can happen to my license/registration regarding bankruptcy. im 99% sure I wont file but now Im curious .

Before anyone can give you any good advise, we need to know the details of your situation.

1. How long have you been in the business?

2. How much time left on the guarantee?

3. Do you have a rich relative that can loan you money?

4. How much living overhead do you have?

5. How long have you known this was coming? 

6. What have you done about it?

7. Would you keep your financial advisor if he filed bankruptsy?

8. Any other details that may be helpful?

If it is too late, then you need to get a salaried job and do everything you can to stay out of bankruptsy.  Then maybe after you have learned from this experience you can re-enter the field and help others who are faced with the same situation. 

One thing is certain, if you file bankruptsy, you can kiss this business goodbye for good. 

Best of luck in this tough situation.

[quote=killerRep]

I just completed my 7 & 63 (today actually) but due to my time studying and the stippen, I am WAY behind my debt. I was thinking of filing bankruptcy. Will this cause a problem regarding my registration?

(guys, I am truly concerned about this and I need some serious advice, I do NOT want to lose my License or my job)

[/quote]

Actually I think, but am not sure, that it will cause major problems with your ability to get licensed(blue sky) in various states, and as well your ability to get appointed with insurance carriers for the sale of VA's and life insurance.

It may also cause a problem with your firm.  It is definitely a disclosable event.

Think about it a second....a guy struggling with financial concerns now being paid comissions to advise people on where to put their money?  It's just a perfect setup for abuse.

Man how do we let things get to this point?

Hey killer....aren't you the same moron who started the thread "Who makes more a stockbroker or a consultant?"

Dude...get up in the morning and look in the mirror and repeat 10 times:  "Thanks for choosing McDonalds sir, would you like some fries or an apple pie with that?"

I've noticed over the years that some B/D's don't care if their broker has filed bankruptcy. Check with your B/D to determine their reaction, but only if you've decided to file.

If you file bankruptcy, you'll have to report it on your U-4 for the next ten years. (I'm not sure if it automatically drops off after 10 years.) Also, clients will be able to pull-up your bankruptcy filing, if they go to the NASD website to check-up on you.

If you file, get used to paying cash for everything. Your car insurance will probably go up, as well. And what credit you obtain, after the filing, will cost you dearly. Think of any situation where obtaining a credit report is required and you're going to have a problem and/or pay more. Get used to explaining your bankruptcy, for the next 10 years.

Also, it's my understanding that you will be required to attend credit counseling classes and obtain a certificate, before being able to file bankruptcy.

Filing bankruptcy should be your last option. Never, ever file when their are other alternatives left on the table.

In conclusion, your financial life, rather than getting easier after the filing, will get more complicated and more expensive for the next 10 years.  Do you really want that?

Thank you so much doberman!! You had the most intelligent response yet. Like I said, I’m 99% sure I wont but I am just the type of guy that wants to know and understand all my options before choosing. Again, thanks man! I truly appreciate it.

<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

As for joedadumbass: First off, I wasn't born knowing this (and neither is anyone else, they have to learn it). I came into this business after serving in the military (perhaps you heard of risking your ass for your country?). I have served my country and now I changed careers. For most of my life all I know is stuff like M4/M16A2 rifle's effective range, the blast radius of a claymore, and hand to hand combat. I never learned until recently about this business. So as far as my "stupid" questions are concerned, well you can very much go fu*k yourself and anyone else that talks $hit. I don't believe in "stupid" questions. If I want to know something, damn it im going to ask. That’s the true difference between the ignorant and the wise. Look at all the "great thinkers" of our world history. They asked all questions, even the "stupid" ones.

So my summary to you and all the people that try to put me down for my temporary ignorance: I am better than you. Maybe not in this business yet, but as a man. In the end, people are not going to remember how much money you had (cause you cant take anything with you when you die, face it) but how you were and lived your life. So go fu*k yourselves .

KR-

You have my respect and appreciate of your service for our country.

I apologize if perhaps I was a little harsh or rude.  (Ya gotta work on that temper, though.  It WILL hurt you in this biz to react so emotionally to adverse comments.)

I suppose this whole issue just hits a nerve with me though.  The frontline firms keep bringing in trainees, putting them on a salary that isn't enough to live on, give them huge hurdles to meet and not enough sales training, and then wonder why their folks end up worrying about $$ and perhaps having that issue affect their judgement and the produts they recommend.

Then again.....the cynic in me says that the big firms like this because it makes it easier for them to manipulate their trainees to sell 'preferred products'.  Keep 'em hungry and then throw 'em a bone now and then and all that stuff.  ;-)

Joe, you hit the nail so perfectly on the head I got goosebumps.  This is exactly what is happening and I wonder if it hasn't always been that way.

[quote=joedabrkr]

KR-

You have my respect and appreciate of your service for our country.

I apologize if perhaps I was a little harsh or rude.  (Ya gotta work on that temper, though.  It WILL hurt you in this biz to react so emotionally to adverse comments.)

I suppose this whole issue just hits a nerve with me though.  The frontline firms keep bringing in trainees, putting them on a salary that isn't enough to live on, give them huge hurdles to meet and not enough sales training, and then wonder why their folks end up worrying about $$ and perhaps having that issue affect their judgement and the produts they recommend.

Then again.....the cynic in me says that the big firms like this because it makes it easier for them to manipulate their trainees to sell 'preferred products'.  Keep 'em hungry and then throw 'em a bone now and then and all that stuff.  ;-)

[quote=TimBo]

Joe, you hit the nail so perfectly on the head I got goosebumps.  This is exactly what is happening and I wonder if it hasn't always been that way.

[quote=joedabrkr]

KR-

You have my respect and appreciate of your service for our country.

I apologize if perhaps I was a little harsh or rude.  (Ya gotta work on that temper, though.  It WILL hurt you in this biz to react so emotionally to adverse comments.)

I suppose this whole issue just hits a nerve with me though.  The frontline firms keep bringing in trainees, putting them on a salary that isn't enough to live on, give them huge hurdles to meet and not enough sales training, and then wonder why their folks end up worrying about $$ and perhaps having that issue affect their judgement and the produts they recommend.

Then again.....the cynic in me says that the big firms like this because it makes it easier for them to manipulate their trainees to sell 'preferred products'.  Keep 'em hungry and then throw 'em a bone now and then and all that stuff.  ;-)

[/quote] [/quote]

It has been exactly like that for the 15 years or so I've been in the biz.

The other sad thing is the damage done to clients(and consequently to our reputation as an industry) by folks with insufficent training & experience when they stuff clients money into questionable products out of despration for making their monthly expenses.

But their employers hardly care, as long as they don't get hauled into arbitration......

Sorry aswell joe for snapping at you. Its just that its very stressful being in this situation. I got screwed over in 1 firm while I was studying for my 7 then lucky for me got hired by another firm so that I can get sponsored. I want to stay in this buisness no matter what. It is also hard to realize how much knee deep in $hit your in until you actually stop and take a look.

Also, I feel like I have been ridiculed for my ignorance about some aspects of the buisness. I know I don't know that much but my eager to learn makes me strive forward to be the best that I can be.

In any case, I notice how right you are about the buisness, you would be lucky in a firm to even get a base salary or stipen of $2000 a month to survive while you learn the buisness and try to build a book (thats IF the firm even lets you build one). But hope is not loss for me, I got a 2nd job on the weekends that would support my current situation, so no bankruptcy for me.  This is temporary anyway cause Im really good on the phone and people seem to trust me when they first meet me.

Joe, again, I appologies for my temper.

killerRep, (in case you didn't know) make sure you've notified your B/D about your second job. Your B/D must approve any outside employment. Failure to notify your B/D of your second job could result in termination, a fine, and/or being banned from the business.

Additional employment normally shows up on a credit report and B/D's are known for periodically pulling their brokers' credit reports. They do this to make sure their broker isn't having financial trouble (late payments to creditors, etc.).

yea I did, they are aware of my situation and job. There cool with it as long as it doesnt interfere with my work. But thanks Doberman again for the heads up .

[quote=killerRep]

Sorry aswell joe for snapping at you. Its just that its very stressful being in this situation. I got screwed over in 1 firm while I was studying for my 7 then lucky for me got hired by another firm so that I can get sponsored. I want to stay in this buisness no matter what. It is also hard to realize how much knee deep in $hit your in until you actually stop and take a look.

Also, I feel like I have been ridiculed for my ignorance about some aspects of the buisness. I know I don't know that much but my eager to learn makes me strive forward to be the best that I can be.

In any case, I notice how right you are about the buisness, you would be lucky in a firm to even get a base salary or stipen of $2000 a month to survive while you learn the buisness and try to build a book (thats IF the firm even lets you build one). But hope is not loss for me, I got a 2nd job on the weekends that would support my current situation, so no bankruptcy for me.  This is temporary anyway cause Im really good on the phone and people seem to trust me when they first meet me.

Joe, again, I appologies for my temper.

[/quote]

Apology accepted just as mine was with you.  No worries.

Truth is that some of my comments were a little harsh.  Then again, this is absolutely a business of hard realities. ;-)

Good that you've found a way to help yourself on the cash flow front.  Do everything you can to keep your expenses at a minimum for the next year or two, and pay off your consumer debts as quickly as possible.

The second job sounds like a good short-term solution for your immediate concerns, but do whatever you can to put yourself in a position where you can increase your income from your chosen profession so that you can dump the second job.  After all, it is unlikely that any part-time job is going to pay you anywhere NEAR what you can make during a productive hour or two in this business, right?

Good luck, and keep your head up.

your absolutly right joe. I have already began dumping ANYTHING that is not needed in my life (example: car, cell phone, etc), Living in NYC makes life a bit easier when it comes to communications and transportation. This way all my extra income goes straight to debt. So I should be up and on my feet soon. This temp job is going to boost that time and as soon as I start getting clients, im dumping the job (or after all my debt is paid off, whichever comes first).

Also, my girl is getting a part-time job to help me pay debt .

[quote=killerRep]

your absolutly right joe. I have already began dumping ANYTHING that is not needed in my life (example: car, cell phone, etc), Living in NYC makes life a bit easier when it comes to communications and transportation. This way all my extra income goes straight to debt. So I should be up and on my feet soon. This temp job is going to boost that time and as soon as I start getting clients, im dumping the job (or after all my debt is paid off, whichever comes first).

Also, my girl is getting a part-time job to help me pay debt .

[/quote]

In this business you cant imagine how much better things are with little or no debt. Even the pro's have bad months and most of us are re-investing in our practices so we can get cash strapped. Pay off your debt and invest in your business and enjoy your life five and ten years from now. I am a prime example, as much as I wanted a G35 a couple of years ago, I bought a Civic Si. Nothing wrong with Honda's, we now own two, but its no Infiniti. However the payment is no Infiniti either, $375ish instead of almost $600.

You just have to be judicious. Dont waste or gamble your money, when the time is right make a calculated risk to grow your practice.

Good luck!

[quote=killerRep]

your absolutly right joe. I have already began dumping ANYTHING that is not needed in my life (example: car, cell phone, etc), Living in NYC makes life a bit easier when it comes to communications and transportation. This way all my extra income goes straight to debt. So I should be up and on my feet soon. This temp job is going to boost that time and as soon as I start getting clients, im dumping the job (or after all my debt is paid off, whichever comes first).

Also, my girl is getting a part-time job to help me pay debt .

[/quote]

Keep humpin' soldier!  Maybe I'll run into you some day when I'm in the city visiting clients!

[quote=giff74][quote=killerRep]

your absolutly right joe. I have already began dumping ANYTHING that is not needed in my life (example: car, cell phone, etc), Living in NYC makes life a bit easier when it comes to communications and transportation. This way all my extra income goes straight to debt. So I should be up and on my feet soon. This temp job is going to boost that time and as soon as I start getting clients, im dumping the job (or after all my debt is paid off, whichever comes first).

Also, my girl is getting a part-time job to help me pay debt .

[/quote]

In this business you cant imagine how much better things are with little or no debt. Even the pro's have bad months and most of us are re-investing in our practices so we can get cash strapped. Pay off your debt and invest in your business and enjoy your life five and ten years from now. I am a prime example, as much as I wanted a G35 a couple of years ago, I bought a Civic Si. Nothing wrong with Honda's, we now own two, but its no Infiniti. However the payment is no Infiniti either, $375ish instead of almost $600.

You just have to be judicious. Dont waste or gamble your money, when the time is right make a calculated risk to grow your practice.

Good luck!

[/quote]

LOL....We have a nice car that I take when I go out to meet clients or professional contacts.  Otherwise my wife takes it because she has the longer drive to work.

So, my daily driver, believe it or not, is a 99 Toyota Sienna minivan that is totally paid off and in great shape.  Completely reliable.  I'm actually a car lover, and now and then get the idea that I want to get rid of the van and go out and buy a nice Escalade or Yukon Denali.  Or, maybe keep the van but also get a rockin Bimmer 545 or an E-class.  Truth is I could test drive one over my lunchtime, they could run my credit, and I could sign on the dotted line and drive it home the same day.

When that urge hits me I step out into the garage for a work break, take a look at that ole' van.  I think about the fact that I have two young kids and two big grehyhounds, and how hard they are on the interior of the car.  Then I contemplate the 500-600 or more a month I'm NOT paying on the paid off van, and how I can either put that money into the kids' education fund, my retirement plan, or additional marketing for the business.  Soon enough the urge passes and then I get back to work.

Eventually I'll probably cave in and buy the sweet wheels, because I really want to have a cool, fun ride before I get too old to enjoy it.  But, for now, I'll continue to practice what I preach.  Live below your means, invest the excess, and enjoy the intrinsic value of buidling my net worth. ;-)

But oh damn that new 545 is sweet lookin!

LOL....We have a nice car that I take when I go out to meet clients or professional contacts.  Otherwise my wife takes it because she has the longer drive to work.

So, my daily driver, believe it or not, is a 99 Toyota Sienna minivan that is totally paid off and in great shape.  Completely reliable.  I'm actually a car lover, and now and then get the idea that I want to get rid of the van and go out and buy a nice Escalade or Yukon Denali.  Or, maybe keep the van but also get a rockin Bimmer 545 or an E-class.  Truth is I could test drive one over my lunchtime, they could run my credit, and I could sign on the dotted line and drive it home the same day.

When that urge hits me I step out into the garage for a work break, take a look at that ole' van.  I think about the fact that I have two young kids and two big grehyhounds, and how hard they are on the interior of the car.  Then I contemplate the 500-600 or more a month I'm NOT paying on the paid off van, and how I can either put that money into the kids' education fund, my retirement plan, or additional marketing for the business.  Soon enough the urge passes and then I get back to work.

Eventually I'll probably cave in and buy the sweet wheels, because I really want to have a cool, fun ride before I get too old to enjoy it.  But, for now, I'll continue to practice what I preach.  Live below your means, invest the excess, and enjoy the intrinsic value of buidling my net worth. ;-)

But oh damn that new 545 is sweet lookin!

I love cars too.  The main thing that keeps me from buying a hot new car, besides the fact that I don't want a hot new payment , is the demographics of my area.  If I was driving an expensive car my, oh so conservative, clients would think.  "Hmm she must be making way too much money off of me"

So I'll stick with my Blazer for my daily driver.  But you know what is weird? No one seems to have the same ..Hmmm ...thoughts about the various hot rods and restored classic cars that I have had. They cost as much or more than many new luxury cars.  Go figure.  We belong to a car club. Good networking source.  If some one has the discretionary income to do a 12,000 paint job on a 1970 Mustang GT with a Cobra Jet engine (there is a hot car that I lust after!!)...they have money to invest.

[quote=babbling looney]

LOL....We have a nice car that I take when I go out to meet clients or professional contacts.  Otherwise my wife takes it because she has the longer drive to work.

So, my daily driver, believe it or not, is a 99 Toyota Sienna minivan that is totally paid off and in great shape.  Completely reliable.  I'm actually a car lover, and now and then get the idea that I want to get rid of the van and go out and buy a nice Escalade or Yukon Denali.  Or, maybe keep the van but also get a rockin Bimmer 545 or an E-class.  Truth is I could test drive one over my lunchtime, they could run my credit, and I could sign on the dotted line and drive it home the same day.

When that urge hits me I step out into the garage for a work break, take a look at that ole' van.  I think about the fact that I have two young kids and two big grehyhounds, and how hard they are on the interior of the car.  Then I contemplate the 500-600 or more a month I'm NOT paying on the paid off van, and how I can either put that money into the kids' education fund, my retirement plan, or additional marketing for the business.  Soon enough the urge passes and then I get back to work.

Eventually I'll probably cave in and buy the sweet wheels, because I really want to have a cool, fun ride before I get too old to enjoy it.  But, for now, I'll continue to practice what I preach.  Live below your means, invest the excess, and enjoy the intrinsic value of buidling my net worth. ;-)

But oh damn that new 545 is sweet lookin!

I love cars too.  The main thing that keeps me from buying a hot new car, besides the fact that I don't want a hot new payment , is the demographics of my area.  If I was driving an expensive car my, oh so conservative, clients would think.  "Hmm she must be making way too much money off of me"

So I'll stick with my Blazer for my daily driver.  But you know what is weird? No one seems to have the same ..Hmmm ...thoughts about the various hot rods and restored classic cars that I have had. They cost as much or more than many new luxury cars.  Go figure.  We belong to a car club. Good networking source.  If some one has the discretionary income to do a 12,000 paint job on a 1970 Mustang GT with a Cobra Jet engine (there is a hot car that I lust after!!)...they have money to invest.

[/quote]

Funny you say that.  When I'm daydreaming about my future Bimmer or Caddy CTS-V I often wonder if clients wouldn't draw the wrong conclusion if I pulled up at their home or office in a car that cost that much.

Part of me says that clients want to work with successful advisors, and a nice car(expensive watch, custom suit) are outward evidence of success that makes you seem more attractive to affluent clients.

OTOH, I'm concerned that folks will take one look at the fancy car and say "Oh man if you can afford that car you're probably WAY too expensive for me!"

cool deal joe regarding you coming by NYC. In any case, all the cars you mentioned are nice. I had (as in going to give it up) a Scion tC. I love that car: its fast with great torque (enough for me living in NYC), its 4 cylinders (saves on gas), and it is under $19,000 with tax and options that I put in. 

In any case, you guys are right about driving to see a client in an expensive car. It's truly a double edge sword:

A) "this guy is to expensive for me."  

B) "This guy must be really good being an agent. "

C) "How much this guy is/going to be taking out of me!?"   (lol )

I've got you all beat, with the wheels I drive. She's a sweet little number I bought used some time ago, with only 30,000 miles on the odometer. She looks good and she cleans up real nice. Plus my 122 lb mutt loves to ride in the backseat with the windows down... Oh yeah, she's got 415,000 miles on the odometer and is in great shape. Original engine and original transmission. It's a Honda Accord and still gets 30 mpg.

This car is worth its weight in gold in conveying my conservative values to my conservative clients. It also breaks the ice with prospects. So, in those respects, my car is priceless.

Like everyone else, I lust after Beemers and Infiniti's (remember Jimmy Carter?) Never did care for Mercedes.

Just thought I’d throw my 2 cents in now that I’m licenced with my 7 and 66. DO NOT FILE. I have a judgement/lien agienst me right now, relating to child support. Florida, Michigan and Alabama so far have given me a lot of sh*t regarding this. Florida and Michigan were fine with just a personal balance sheet, Alabama on the other hand was a lot more stringent… it took two months, a lot of paperwork and a lot of help from Merrill Lynchs registration office to get everything straightened out. As of right now I’m registured in the above three states, now the NYSE is starting to send questions… this is just with one judgement. I can’t imagine how it would look with a bankrupcy. I can tell you right now if your in debt as much as you say you are I hope you do not have any liens agienst you. Alabama will reject you… Who ever said for you to get a second job gave you the best advice. even a weekend $7/hour job will help you get out of debt. Think about it.

Here is what scares me.  You will be in such desparate shape to make money that you will sell the highest commission products.  Do you say you won't? hah.

People like you do not belong in the business,.

thanks for the advice DR, im actually getting paid a lot more in my part time job then $7/hour so im not that worried anymore. Im planning to consolidate my debt instead.

Maybee(etc), the one thing I wont do is sell my integrity. I am a man of faith and the one thing I do not want to do is screw people over (I am a God fearing man). As far as you predicting what I (or anyone else for that matter) am going to do or not do is wrong. Being judgemental will only pass judgement onto yourself. And if you dont believe in a God, here is a more simpliar way of putting it: when you assume you make an "ass" out of "u" and "me". So what you think you might have done in my situation is your buisness. Your narcissistic way of thought is not going to affect me. Remember all the great people in the past, they were remembered because most went from nothing to something (doesn't necessarly have to be regarding $ but never the less...). Chris Gardner is the perfect example though in reference to this buisness (if you don't know his story, you got to check it out, its amazing).

(you see joe, I can keep my cool bro )

I just realized that this post is no longer needed. I appreciate your concern from some of you (you guys know who you are). You guys truly did help me with my decision not to file. My debt is not as bad after I was told my monthly payments with consolidation. Thank you guys, take care and Godspeed.

[quote=killerRep]

thanks for the advice DR, im actually getting paid a lot more in my part time job then $7/hour so im not that worried anymore. Im planning to consolidate my debt instead.

Maybee(etc), the one thing I wont do is sell my integrity. I am a man of faith and the one thing I do not want to do is screw people over (I am a God fearing man). As far as you predicting what I (or anyone else for that matter) am going to do or not do is wrong. Being judgemental will only pass judgement onto yourself. And if you dont believe in a God, here is a more simpliar way of putting it: when you assume you make an "ass" out of "u" and "me". So what you think you might have done in my situation is your buisness. Your narcissistic way of thought is not going to affect me. Remember all the great people in the past, they were remembered because most went from nothing to something (doesn't necessarly have to be regarding $ but never the less...). Chris Gardner is the perfect example though in reference to this buisness (if you don't know his story, you got to check it out, its amazing).

(you see joe, I can keep my cool bro )

[/quote]

Well done sir.

Now make it a life habit to live on less than you earn. Pay off that consolidation loan and never be in debt again!

[quote=maybeeeeeeee]

Here is what scares me.  You will be in such desparate shape to make money that you will sell the highest commission products.  Do you say you won't? hah.

People like you do not belong in the business,.

[/quote]

I hear what you say Maybeee, and that is the risk that firms worry about.

Having said that, I know plenty of 'advisers' who focus on selling the highest margin product even if they don't have a penny of debt.....

[quote=killerRep]

thanks for the advice DR, im actually getting paid a lot more in my part time job then $7/hour so im not that worried anymore. Im planning to consolidate my debt instead.

Maybee(etc), the one thing I wont do is sell my integrity. I am a man of faith and the one thing I do not want to do is screw people over (I am a God fearing man). As far as you predicting what I (or anyone else for that matter) am going to do or not do is wrong. Being judgemental will only pass judgement onto yourself. And if you dont believe in a God, here is a more simpliar way of putting it: when you assume you make an "ass" out of "u" and "me". So what you think you might have done in my situation is your buisness. Your narcissistic way of thought is not going to affect me. Remember all the great people in the past, they were remembered because most went from nothing to something (doesn't necessarly have to be regarding $ but never the less...). Chris Gardner is the perfect example though in reference to this buisness (if you don't know his story, you got to check it out, its amazing).

(you see joe, I can keep my cool bro )

"Well did you ever hear "neither a borrower or lender be"

Maybeeeeee you should practice what you preach.