Chapter 13 with a Series 7

[jakeinTX]

I am new to this forum and confused by some info I have encountered. My income is decent, but I am an only wage earner with a stay at home wife and 3 kids. My debt has hit an unmanageable amount (cant believe I let this happen). I have a Series 7 license and work in the investment world. Does this mean I am not able to do a Chapter 13? Thats kind of what I am reading.

Thanks
Jake

[Lajazz947]

Here's the deal:

1- First of all there is no statutory disqualification by FINRA for a a BK absent fraud so your license is safe.

2- According to the code Stockbrokers cannot file a 13, only a 7 although there is lots of interpretive law on that as to what constitutes a stockbroker.

3-If you do not actually collect money or certificates or hold them for a client you may NOT be a stockbroker for definition purposes. i.e if your firm clears through another firm then you are not a holder of cash or securities. The questionto ask is:

if you went BK would your clients be creditors? Probably not.

I think that the rule is applicable to broker dealers not individuals. THIS IS TRICKY AND YOU NEED AN ATTORNEY TO SORT IT OUT.

I do not practice law so this is not legal advice, just what I have read.

[jakeinTX]

Thanks

I don't collect funds or certificates from clients (only provide info). No client of the firm would be a creditor of mine. The way you list it make sense. My other concern is that the company I work for also has a bank and I have two cars and a credit card obligation through them. I don't believe they can fire me for a Bankruptcy, but since I am in a right to work state they could make up any reason for termination (this would cause a 7BK instead of a 13BK and then they would get nothing) I think?

Jake

[Lajazz947]

You gotta get an attorney on this one for a pre-emptive plan before you take any action.

[chloe0724]

Jake,

I too work for a bank, only have my 6 & 63 though. I was very proactive with my compliance officer in regards to my BK. You will have to update your U4 to reflect it on your annual survey. It looks much better if you have given them all the background before this occurs. I too had obligations with the bank I work for, but everything has gone very well so far. Everyone has been very understanding.

It does feel strange giving planning advice to cleints while I'm going through this, but I try to keep it seperate.

Good Luck!!

PM me if you want to talk in more detail.