Compromise with creditors

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Nov 11, 2010 9:55 pm

I have been a banker for about 20 years. Recently I accepted a new position with a new employer that that requires me to get my series 7, 66, and 79 license. I was completing my pre-registration questions and one of them asks whether I have compromised with a creditor or filed for bankruptcy. A couple of years ago, we had some serious financial problems and I had a couple of credit cards that went way past due and ultimately they asked me to just settle them and be done with it. I settled these card for less than what was owed.

Do I need to worry about losing my job because I have to answer yes to this question, or is it just something they need to know?

Just clarify, I have been working there for about a month and I am NOT going to be an FA, but I will work with them. I am a “specialist” for the region.


Nov 11, 2010 10:18 pm

By the way, I already work for the company, the did the BG screening for the hiring, now I am working on the license. I will NOT be an FA, but I will work with them and their clients. I am a “specialist” for a region.

Nov 12, 2010 9:41 am

FA or not, if you get the licenses, you are an "FA" according to FINRA (and your State). It will depend on your OSJ (Compliance / Principal). From what I have seen in the past, I do not think it should be a problem. I know an FA that has a bankruptcy and other collection issues.

The key is to disclose, disclose, disclose. Hopefully you have good records and the issues were resolved (in writing). I think you will most likely be okay.......... but don’t assume that if you are not working directly with clients that the rules do not apply as much. Rules are rules and licenses are licenses..........if you know what I mean.

Good luck with the new career.

Jul 17, 2013 12:49 pm

Still, you haven’t clarified the issue on compromising with creditors. Could you share more about that? I am worried I could get this question myself and honestly I don’t know what to answer. I’ll find some clues with a Nebraska bankruptcy lawyer as well. Any help would be appreciated.

Jul 18, 2013 7:26 pm

You do need to disclose.

I don’t know if it will compromise your job, that is up to your employer and whether they think you are worth the hassle, but it probably won’t jeaopardize anything. I know a few advisors that had to disclose similar events and it delayed their approvals but did not prevent them ultimately.