I Am Considering Bankruptcy

[Mark Hayes]

Over the past years I have had over 20 agents. We sold a lot of fixed indemnity policies with 12 month advances. Some of the agents did a poor job and I am now responsible for nearly $90,000 of chargebacks which I cannot afford to pay. I am doing very well with many other companies and different products working alone.

I am considering bankruptcy to eliminate this debt. Will this end my career? Does anyone know what effect it will have with my current appointments? Will I ever be able to get new appointments? Will I be able to get as earned appointments?

Any help would be appreciated.

 

[Newby]

You will likely go as earned with all carriers. Some may drop you entirely.

 

[somarco]

We sold a lot of fixed indemnity policies with 12 month advances.

Assurant?

The GA's I knew that were pushing this product limited the advance to 6 months. Of course that doesn't help you now.

 

[Mark Hayes]

Thanks for the replies. Would I be better off just paying a little and have it show as a vector or would it have the same result? Does anyone know what rights I have to force them to go after the agents ($80,000 of this is against agents)?

 

[somarco]

You can try to negotiate a settlement, including pay a little at a time, but don't expect the carrier(s) you are indebted to to allow you to continue writing new business. Even if they did any new business would zero out against your outstanding balance.

You might try going after your agents. Pick the top producers and make an example of them.

Good luck with this. That's a lot of cheddar.

 

[GreenSky]

I've always thought people were crazy to recruit. It's a shame you worked with dishonest agents. They are the ones that are at fault.

You're just crazy.

Rick

 

[Mark Hayes]

Thanks for the replies....will my current carriers be aware of a bankruptcy right away(especially if it against another carrier)?

 

[Larry Tew]

Thanks for the replies....will my current carriers be aware of a bankruptcy right away(especially if it against another carrier)?

It's public record, but it's unlikely they will see it unless they look for it. Check with your state insurance department to see if you're required to report it to them.

 

[goget]

If you're with a ton of other carriers and you're in good standing with them I find it hard to believe that those carriers will ever check. Also wouldn't new carriers allow one to go as earned? Newby can answer this i'm sure.

 

[VaDwayne]

I may be the only one to say this and I apologize for being so brash but your post are all about what's best you. Was it best for you when they handed you $90,000? I bet you paid some bills which was best for you at that time.

You owe somebody $90,000.00. Figure out a way to pay them back. Sure, it will follow you around but you signed the contracts.

Sell you house and cars. If you have a Mercedes but a Cavalier. Move into a trailer park. Work 3 jobs. Just my opinion!!