Personal Bankruptcy & Appointment

[mackelroy09]

Firstly, a huge thank you in advance for anyone who reads this...I could really use some advice here.

After losing my real estate job earlier in 2017, I made the decision to enter the P&C business. Was hired by a small independent in December, filed personal BK Jan 1, and then tested and secured my P&C licenses through the state in mid-January. There was a question on the license application asking about prior bankruptcy, but it specifically excluded personal bankruptcy, so I was able to check "no" for that box.

For the first couple months on the job, I've been writing business under our managing broker's producer code (I think this is the right lingo). In any event, the first of our 10 carriers reached out to me to get me appointed and in their system. Here's the snag...their application also asks if you've had a bankruptcy in the past 5 years, but it specifically includes personal bankruptcy. Furthermore, if you answer yes to any of the questions, they ask for you to attach complete details and appropriate documents such as court records.

My questions are as follows:
1. How is having a personal BK going to affect my eligibility to be appointed with a carrier? If they're asking the question, I'm sure it matters to them in some way.
2. Our firm is small - just me and the managing broker (i.e. the boss). He does not know about my BK, as I was not asked any disclosure questions during the hiring process.I have been putting off filling out and sending this appointment app, because I would prefer my boss not know about my BK. Not only is it embarrassing, but more importantly -- could he fire me because of it?

Is it unusual for a carrier to ask for this disclosure? if so maybe I could get this appointment handled without my boss seeing the forms? Or do I need to just be upfront with my boss about my BK, because he'll find out anyway?

ANY insight is greatly appreciated. I've really been enjoying P&C and have had some early success. I'd hate to see me lose this opportunity.
Thank you.

 

[walthamny]

You usually cant get appointed while a bankruptcy is in process. Most carriers wont allow it. You wont be able to hide the bankruptcy from your Manager for very long either. They will eventually find out. I can't tell you what they will do, they can fire you or be totally understanding. Worse case, wait for the discharge and apply at another agency.

 

[mackelroy09]

You usually cant get appointed while a bankruptcy is in process. Most carriers wont allow it. You wont be able to hide the bankruptcy from your Manager for very long either. They will eventually find out. I can't tell you what they will do, they can fire you or be totally understanding. Worse case, wait for the discharge and apply at another agency.

Thank you for your input. When I made the decision to file, I was brand new to the insurance business...and didn't even know the questions to ask regarding how BK affects things (e.g. I wasn't aware of appointment)

Anyone else have any thoughts?

 

[donamese]

Carriers run credit and it will show. They all treat them differently. The common rule is it must be discharged for 2 years but that is not universal. Main thing is to be honest about it, you are already looking for an exception, don't want them to catch you in a lie too. Provide a detailed letter regarding the circumstances...what happened, why it happened, what you learned, what was included, etc. If the carrier is not black and white on their rules, showing acknowledgement and accountability puts them a lot more at ease when making a decision on your appointment.

 

[adjusterjack]

You mean your current boss doesn't know about your BK?

Better tell him now, before you fill out those papers. If he fires you, you won't have to be concerned with those appointments.

If he keeps you on he may have some influence with those carriers to get you appointed.

 

[clementhilden]

I was checking the threads to get some information for my future carrier pass and I was unpleasantly surprised that personal bankruptcy may affect the carrier. I mean I understand that the boss has to be sure he can trust you, but still. Anyway, I hope everything ended up fine. And how can you deal with bankruptcy? Did you have any troubles with creditors? I'm sorry if my questions are absurd, but luckily I've never had to deal with such problems. I'm so paranoid about financial issues because one of my friends had lost his house when he wasn't able to pay a mortgage loan so I kinda learned the lesson. I hope you found a good law company that help people to stop creditor harassment and find a way out.