Need help with process
I started training in Feb, and my question is this, i've had a serious cash flow problem and have recieved some collections and maybe a car repo, I beleive that FINRA has alredy looked at my credit report, how often does this take place. I have passed the Series 6 and still need 63 and Life Ins, should I stop and clear these credit issues or what?
Maybe a car repo? As in immiment?
Check out the U4 itself.
The disclosure section is #14 -- on pages 12 -14.
They're all criminal, reg and financials related to investments.
Section 14K is where you're concerned:
Within the past 10 years:
(1) have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?
My understanding is that line is just in regards to filing a BK, however when I was a lender we considered any kind of "consumer credit councling" to be just as bad as a BK. Basically this is where you hire a 3rd party company and they "negotiate" new balances to be paid with your creditors (and charge you a very large fee).
In reality what typically happens is you make your normal (credit card) payments to them and the credit cards get nothing.
After a few months, your credit is trashed and the creditors think that you are about to go into BK. Being that they are unsecured they should be willing to take any amount you can offer (hence the amount that you've been "saving" with the councling company.
Anyhow, thats how its supposed to work. In reality consumer credit councling schemes are a total waste of money. You're prefectly capable of destroying your own credit and saving the money you would have paid and using that as a settlement before you go "into bankruptcy" (which you don't do of course). Its basically just gaming the system.
Anyhow, think you will be fine but don't take my word on it. Call your firm's legal/compliance department (or whoever handles registration).
Worst case and you do get a BK - its reported but doesn't otherwise negatively impact you.
I interviewed with Merrill yesterday and I told them that I had a BK a few years ago and they shrugged it off like it was nothing. Someone posted here (in another thread) the actual FINRA regulation verbiage regarding credit and bankruptcy, and it states that it is not a disqualifier. I was told that at the most I may have to write a letter or something to explain the circumstances surrounding my BK, but that it should not be a barrier to getting my licenses. Take that for what its worth.
Oh, but let me add that Waddell & Reed DQ'd me for having a 3 year old BK. Can you believe that!? They have a policy that states no BK in the past 5 years. However, I wasn't going to accept that position anyway.
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