I Am Considering Bankruptcy

[sman]

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!!

Obviously you aren't aware how the system works. When you have agents under you and they have chargebacks, the FMO is ultimately responsible for paying back that money.

Let's just say for example you had 5 agents under you and you have a 120% contract and you give your agents 100%. We'll say they each wrote $20,000. You would make $4,000 (20% x $20k) from each agent. And each agent was advanced $20,000. Now let's say those agents each had some chargebacks totaling $10,000 each. That leaves a balance owed of $50,000 for the agents. If they don't pay it, then you, as their upline owe the money. I believe he said somewhere that $10,000 of the $90,000 was from his own production. That means $80,000 was because of chargebacks to agents under him.

Point being, he didn't receive the full $90,000 and go blow it. He wasn't, as you say, "handed the $90,000".

 

[Newby]

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)?

I always use this as a rule of thumb.

Insurance companies only care a little if you screwed over hospitals and doctor bills. They only care a little if you screw over your ex-wife and your kids on child support. They only care a little if you screwed over your mortgage, car loans, credit cards, etc.

But if they find out you screwed over an insurance company (And going bankrupt to avoid paying $80,000 you rightfully owe fits in that category) you will be dead to them.

I would proceed with caution if you want to stay in the biz. The agents screwed you and ran off with your money. Not the insurance company. You need to put your efforts into hunting them down like the dogs that they are and getting every penny back that you can.

 

[Milkman1265]

Isnt it possible to just bring up the contracts and also file suit against the agents and recover as much as possible?

Everyone knows it's the agent's chargeback but the agency is responsible but that still gives the agency rights to go after the agent right?

 

[somarco]

Cost to go after $90,000 definitely worth it to deep pockets carrier.

Cost for GA to go after 10 agents for $10,000 each is prohibitive.

 

[Norwayguy]

Another reason why carriers like the FMO system it further protects them from deadbeat charge off agents.

 

[Larry Tew]

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!!

They say "Reading is Fundamental". Try it sometime. He wasn't handed $90k. Next time, have a clue before bludgeoning somebody with the flat side of your "sword of truth".

 

[Norwayguy]

They say "Reading is Fundamental". Try it sometime. He wasn't handed $90k. Next time, have a clue before bludgeoning somebody with the flat side of your "sword of truth".

And this is the dark side of recruiting.