Has anyone Declared Bankruptcy?

[Todd King]

As has been mentioned earlier, don't include your insurance companies in the bankruptcies. That will be a huge red flag that will cause many companies to turn you down in the future.

If you could go into the BK not owing any of your insurance companies you should come out okay.

 

[paul43]

I filed BK in 2011 and never had any trouble getting appointed to any company.
When filling out the paperwork if it asks "Did you ever file a BK." I answer "Yes" then I attach a copy of my BK Discharge paperwork along along with the application.

If your BK is not very complicated use a PARALEGAL instead of an Attorney. It will save you a ton of money & if you qualify you don't even have to pay the filing fees. A lawyer will not tell that because if you tell him you are going to use a Paralegal he has to lower his fees.

My son used a Paralegal to file his BK and she knew more than the Lawyer and was way cheaper than the Lawyer he was going to use.
Check it out with a good Paralegal that handles BK's.

 

[walthamny]

If you use a paralegal and you omit something on the bankruptcy schedule, your chapter 7 petition can be denied and you will have zero recourse against the paralegal. It is also against the law to practice law without a license so I would not recommend using a paralegal.

If you have whats called a no asset bankruptcy case, you can use bankruptcy clinic at most law schools. Also each bankruptcy court has whats called a pro se clinic that can help you file chapter 7 on your own.

As for the advice given to exclude insurance companies on your bankruptcy petition, you can pretty much ignore that. If an insurance company owes you money you have to list it, if you owe money to them you have to list it. If you don't, thats a felony under bankruptcy code, there are no statue of limitations for them to come after you. If you are just selling term insurance and getting no advanced commissions, getting paid as you go, you may be able to figure out how to file out bankruptcy petition. Otherwise, save 1500 to 2000 and get an attorney. Go sell the bankruptcy attorney disability insurance after your case goes through to make up for the expense later.

Ny Life won't fire you if you declare bankruptcy, it just needs to get reported to FINRA. Your current carriers can't terminate you for bankruptcy either, however, they can come up with other reasons. It is against to law to fire someone because of bankruptcy petition anyway. You will have difficulty getting appointed during bankruptcy proceedings, post bankruptcy, most carriers require explanation and they wont give you advanced commissions.

I have several bankruptcy attorneys in my practice( nice niche), few months ago heard this woman in Boston who filed bankruptcy on her own, omitted a bank account and the whole petition was denied. By law, even if she hires a lawyer now, she can not file for bankruptcy again for 8 years.

 

[navigator]

I filed chapter 7 bk in 2011 and did not lose any active appointments that I did have and only had an issue with 1 company getting appointed with shortly after, no issues at all with advances and an explanation letter was all I needed.

 

[monstrhuntr]

I filed chapter 7 bk in 2011 and did not lose any active appointments that I did have and only had an issue with 1 company getting appointed with shortly after, no issues at all with advances and an explanation letter was all I needed.

Exactly as he said except mine was 2013. Only one company turned me down and all advanced.

 

[Zaphat]

My friend is in a very similar situation. It will be helpful for him, thanks