If an Financial Advisor files for personal Bankruptcy how do the firms handle this? MSSB, Merrill, Edward Jones?
Are they canned immediately, case by case basis, not at all? No I am not planning on this, just curious.
Case by case. If your bankruptcy was caused by medical illness, then i have seen firms let that one slide. However, if it was from excessive gambling, then that may be an issue.
But it depends on the firm, some may fire for any bankruptcy.
What grounds would they have to fire you from bankruptcy? Is it in the contract? I can imagine a lot of advisors getting in to debt starting out in the industry a few years ago as they started out, then market crashes and they could easily fall in this situation. Anyone know where firms would draw the line?
They will fire you based off of being an additional risk to the company. This is either spelled out in a contract, or you are working at will.
Not a perfect situation or solution.
i almost hired someone who did file bankruptcy - I spoke to a bankruptcy lawyer (client) about the rules. It is illegal to fire someone who files, however they can limit what you can and cannot do. If they want to, the firm can make your life miserable.
Now - if you are producing or have potential or the bom just likes you, you may be able to slide by.