FA credit dings AFTER being hired

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jul 10, 2010 11:52 am

I'm seeking advice as to the best way to handle a bad situation...

After having a long-time, successful business and a PERFECT credit report, my entire industry (including me) was swept away by the credit crunch and recession.  So, last year I took a job with a major wire and I've been in production for about 6 months now. 

The GOOD news is... I'm doing well... bringing in assets... maintaining top quintile status so far... and they seem to "like" me.

The BAD news is... I'm not making anywhere near the money I was before... I thought/hoped that I could squeeze by or generate supplemental income... and neither has happened.

So, for the first time in my life, I am taking some hits to my credit report, mainly from business debt that was personally guaranteed.  Assuming that I just flat-out can't keep up, I'm wondering what the best thing to do is.  I guess the choices are...

1- Just let my creditors charge-off the debt and see what happens next

2- File BK, disclose that to the wire, and hope for the best

3- Find another job where it doesn't matter

Any input/advice is appreciated.  Can/will the wire fire me because of this?  Should I tell them NOW about the situation?  Frankly, I've been trying to generate some nice numbers before they find out, thinking that they might be more accepting of my siutation if they think they have a producer.

You can't imagine (or maybe you can) the level of stress and frustration I feel, knowing that I can succeed in this difficult business, but also knowing that there's an 800 pound gorilla in the room that could derail the whole thing.

Jul 10, 2010 4:02 pm

What difference does the numbers have? Are you gonna give him a loan to float him through? <insert gay smiley so Ice knows I am kidding>

I say F the wires, don't say shit and spend a little spare time looking at the indies and RIAs in your area. If you can and will humble yourself and show possible value to their business I would bet they will pick you up if and when the wires can you. Oh yeah, don't you dare file BK! Work with a credit counselor or whatever you must do to pay off YOUR debts. Be a part of the solution and not the problem.

Jul 12, 2010 8:01 am

[quote=N.D.]

What difference does the numbers have? Are you gonna give him a loan to float him through? <insert gay smiley so Ice knows I am kidding>

I say F the wires, don't say shit and spend a little spare time looking at the indies and RIAs in your area. If you can and will humble yourself and show possible value to their business I would bet they will pick you up if and when the wires can you. Oh yeah, don't you dare file BK! Work with a credit counselor or whatever you must do to pay off YOUR debts. Be a part of the solution and not the problem.

[/quote]

Agreed on not filing BK.  That would be a death sentence to you, literally, if not for anything else than that your clients (whom you're asking to trust their entire life savings), now know their financial advisor has filed bankruptcy himself.  

Jul 13, 2010 7:22 pm

I guess my question is:  If you are top quintile for a wire and STILL do not have enough to live on, what the Hell kind of projections of income did you run?  AND, how much were you making and what on earth made you think you could make that?  AND, how about the reality that maybe you need to cut out about half of your lifestyle!  I agree, you file BK, they will use that at some point as an excuse to take your assets and U4 your ass.  

Jul 13, 2010 8:11 pm

VERY IMPORTANT: You are required to disclose to your employer any settlements you make with creditors, as well as bankruptcy, and any lawsuits or judgements. None of these things in and of themselves disqualify you from employment. Past that, any advice you receive here is better suited for a lawyer to give you. That said, if good credit was a requirement for continued employment, many advisors would be out of a job.

Needless to say, what counts is production. If you are hitting the cover off the ball not only does your problem become self solving, you make yourself "fireproof." Just follow the rules and swing the bat as hard as you can. What will happen will happen. Worry only about what you can control.

Worst case, some short sighted manager will bounce you for the financial mess. Unlikely, in my experience, but it could happen. You will then find yourself on the street. If you've been whacking the ball out of the park you are on the street with very buyable and likable numbers. Not the worst position to be in.

Concentrate on production!

Jul 14, 2010 3:26 pm

Thanks for all the input... really.

The plan was that my former business would/could spit out enough business (in spite of itself) to bridge the income gap.  But, the small business credit industry is so thoroughly crushed that, even now, some BIG names are still dropping.  And... there is some real irony that I would land in a profession where personal credit is so important.  Every day I go to the office wondering if somehow my crappy situation is going to ruin a good thing.

My take-aways from your help were best stated by BondGuy... "concentrate on production" and hit "the cover off the ball" and "Just follow the rules and swing the bat as hard as you can."   Those comments give me hope that maybe I can dig out of this mess.

Ok... enough self-pity... time to get back to work. 

Jul 21, 2010 6:22 pm

[quote=BondGuy]

VERY IMPORTANT: You are required to disclose to your employer any settlements you make with creditors, as well as bankruptcy, and any lawsuits or judgements. None of these things in and of themselves disqualify you from employment. Past that, any advice you receive here is better suited for a lawyer to give you. That said, if good credit was a requirement for continued employment, many advisors would be out of a job.

Needless to say, what counts is production. If you are hitting the cover off the ball not only does your problem become self solving, you make yourself "fireproof." Just follow the rules and swing the bat as hard as you can. What will happen will happen. Worry only about what you can control.

Worst case, some short sighted manager will bounce you for the financial mess. Unlikely, in my experience, but it could happen. You will then find yourself on the street. If you've been whacking the ball out of the park you are on the street with very buyable and likable numbers. Not the worst position to be in.

Concentrate on production!

[/quote]  I couldn't agree more... I know a guy that has a $30K tax lien against him (just checked it on FINRA) and  he's still employed two years later... I guess it depends on several things: the price of rice, the time of day, who loves you, and what have you done for them lately? Next time don't personally guarantee the loans/lines of credit (assuming there is a next time) and WHATEVER YOU DO, think long and hard before you file for bankruptcy. CONSULT AN ATTORNEY!