Has anyone Declared Bankruptcy?

Dec 29, 2015

  1. petemarqdadon
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    petemarqdadon New Member

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    Hey, I've been a licensed life producer since 2011 but recently I've hit a low point that's making me consider bankruptcy. The only reason I've haven't moved forward with it is because I don't know if will affect my appointments with ANICO and Accordia, nor do I know how it will affect my getting appointments with other Life Carriers in the future. Can anyone shed some light on what I should expect if I do decide to declare bankruptcy?
     
  2. Tkruger
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    Tkruger Guru

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    It can affect your current and will affect future appointments. However some carriers will allow you to provide a letter of explanation and appeal the denial.

    This decision I've personally seen in our agency cause issues with carrier appointments with life and health agents.
     
    Tkruger, Dec 29, 2015
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  3. Josh
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    Josh Retired Agent, Current List Broker

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    Not for nothing, but there are a lot more options before bankruptcy. Maybe you've exhausted then already, but sometimes people lose hope a little too early.
     
    Josh, Dec 29, 2015
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  4. donamese
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    donamese Guru

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    For current appointments you may or may not be affected. It depends if they do annual reviews on their agents credit. If they do not, then you are fine. With new carriers, you will more than likely be declined.

    What type of bankruptcy will also play a part, you have a better chance of a Chapter 13 than 7 as you are paying back your debt instead of wiping it away. Sometimes an appeal will work but it would usually need to be a fairly good reason like going through 12 months of chemo so you were unable to work instead of the standard "the economy crashed and it has been tough!".
     
    donamese, Dec 29, 2015
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  5. rousemark
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    rousemark Still Here!

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    Every company has their own way with dealing with bankruptcy.. Some may term a current appointment, others won't. Once the bankruptcy is finalized, most life companies will contract you if you do not have any Vector hits in addition to the bankruptcy as long as there were no insurance monies involved in the bankruptcy. However, many will not give you advance but will put you on as earned only.

    As Josh said, be sure you have eliminated all other options before jumping into BR .. If you are a commission based agent, perhaps pick up the pace by working more hours and more days each week to increase your income..
     
  6. The Gimp
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    The Gimp Guru

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    If you decide that filing Chapter 7 is your only option, a good letter of explanation and discharge paperwork will allow you to get contracted with some carriers.
     
    The Gimp, Dec 29, 2015
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  7. rousemark
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    rousemark Still Here!

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    If you do file, go chapter 7 not 11.. 11 will leave you will the debt and it will be years before the BR is discharged.
     
  8. FRJ
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    FRJ Super Genius

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    I filed ch 7 years about 6 years ago and had no problem with both contracting and advancing some 3 years later. Had to add a note about the bankruptcy situation so that may have some some degree of importance towards getting approved. In my case, my wife lost a good paying job for over a year and we weren't able to stay afloat.

    I picked up at least a dozen different contracts (medigap, life, mapd, & health carriers).
     
    FRJ, Dec 29, 2015
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  9. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I'm going to get a little technical here:

    Chapter 7 wipes out all your dischargeable obligations. No further payments. It's also the easiest to "rebound" and build up new credit. You can easily apply for and get new "starter" credit cards and begin building up a better reporting credit file. However, to qualify for a Chapter 7, you have to satisfy the BK "means test".

    The Bankruptcy Means Test: Are You Eligible for Chapter 7 Bankruptcy? | Nolo.com

    Chapter 13 just restructures everything into a payment plan. Probably similar to a "Consumer Credit Counseling" scenario. Both will make a mark on your credit files, just as a Chapter 7 will.

    Chapter 11 is for companies. Ask Donald Trump. He knows all about the BK laws and uses them to his advantage. :)

    Of course, make sure you talk to a specialist in your state before you do anything.

    As far as companies appointing you, I remember NYL stating that as long as it's only 1 BK in the past 7 years (I think), then you'd still be eligible for hire. I simply state that as an example of a rather stringent mutual company. Just provide an explanation, stick to the facts, and you'll probably be just fine.
     
    DHK, Dec 29, 2015
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  10. rousemark
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    rousemark Still Here!

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    I mistyped.. I meant Chapter 13, not 11. As for the "starter" credit cards, they send those things out to people in either case.
     
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