Can a Bankruptcy Affect Existing P&C Appointments?

[Ins618636314]

When I changed agencies there was a lag in commissions and prior to the change my prior agency changed the pay dates. All of this caused a fairly high amount to go on credit. Now that commissions will come in soon I have seen the total. I am concerned I might not be able to pay it back. Having a full time assistant & a decent size P&C book I am concerned this will affect existing appointments. I have read a lot of speculation on the boards as to what might happen but nothing where someone actually gave an answer. This will not affect my Corp just my personal side. If it matters at all I/we do not have the PFTA checking handling client funds. Any info would be appreciated.

 

[AZDave]

You will be far better off going thru a consumer credit counseling org. They can restructure and make terms with that personal debt and it won't muck up your credit as bad.

If you own your agency, even if incorporated, BKO is very expensive. Due to your residual income, they (the bko trustee) will demand a pretty high settlement percentage, and at the end of the day, not worth it.

Good Luck
Dave

 

[Ins618636314]

You will be far better off going thru a consumer credit counseling org. They can restructure and make terms with that personal debt and it won't muck up your credit as bad.

If you own your agency, even if incorporated, BKO is very expensive. Due to your residual income, they (the bko trustee) will demand a pretty high settlement percentage, and at the end of the day, not worth it.

Good Luck
Dave

Actually I am not all that familiar with the Consumer Credit Counseling Organizations. From what I know they charge more but that is going off of very basic knowledge of debt consolidation places.

I have my own Corp but only for tax / protection reasons. I broker through an agency that I do not own as the agency pays my corporation. The corp is fine it is just my personal side has a bit to much cc debt that I am concerned about.

If the credit counseling agency(s) are not a bad way to go anyone know where to start?

Thank you again for the reply!

 

[AZDave]

cccssouthwest.org . They are non profit and the real deal. They do not eliminate the debt. Beware, there are many scams out there.

So, you are an appointed sub producer for another agency. That pays you as a sub producer with a 1099?

 

[Ins618636314]

cccssouthwest.org . They are non profit and the real deal. They do not eliminate the debt. Beware, there are many scams out there.

So, you are an appointed sub producer for another agency. That pays you as a sub producer with a 1099?

Guess the system wants 20 or more characters. But yes that is correct.

 

[AZDave]

Then you have no agency to worry about.

I would take a serious look at your producer situation. Seems you are spending more than you are producing. This business is tough and may not be for you. You cannot spend your future commissions, but spend them when they are fully paid in your pocket.

My same answer stands to your question.