There is a reason you can only file every 7 years or so. Problem is over these 7 years many fall back into their old habits and start racking up credit card debt again and the cycle repeats. I don't remember the exact statistics but I think it is over 50% will refile for BK if they have done it once. Regardless of what you think, I have heard of people getting approved for small limit credit cards 1 day out of BK. As far as a auto or home loan, there are plenty of predatory lenders that will do high risk loans for a high enough interest rate. BK is not looked at same way as it used to be. These lenders and CC companies are glad to do the loans because they know they are safe for at least 7 years.
No, but if a guy has a bankruptcy AND he has very little capital to trade with, forget it. If he comes we ll capitalized, we'll probably make note of it and maybe keep a closer eye on him. You need to understand something, there is no shortage of traders out there, no firm wants the hassle of dealing with a guy that stiffed his creditors. Too many fish in the sea so to speak.
I'm afraid it's not that simple my friend. If you were in this business and saw the types of characters you deal with on a daily basis, you would understand. And it's our business because you are putting US at risk! You think putting up capital protects the firm? Are you serious?
I understand Mav, but the problem is if you don't hire him, there is a firm out there that will, with a higher com rate so it is really not a big problem. I never understood those who want to trade prop with zero money upfront, that right there is a red flag to me that says you are not confident enough in your trading ability to put your own money on the line.
I have always thought that if a person has gone bankrupt that they would not be able to open a retail account using margin because if you are using margin it is kind of like getting a loan. So if you go bankrupt and want to open say a futures account, might as well forget it. At least until you re-establish your credit.
Yep. Kind of like a landlord thinking that a one-month deposit fully protects them against the tenants trashing the place or skipping on the rent for 3-4 months. Traveler
the best solution is to Man-Up and pay your debts. Independent of trading or any other matter. It is the best long term solution for yourself and your character.
If a firm allows an individual enough rope. He will hang himself and the firm. Understood. However, dont you guys use some sort of risk control software such as GS`s "prospector" that handcuffs these accounts? You certainly dont allow some cowboy to go home long 10m shares of BIDU with a 25k cap contri do you? Its probably more like 200. The company can disappear overnight and the firm is ok. If the contribution doesn't protect the firm. Why bother with it?
I take it you don't work in this business. When you are in a haircut environment trading derivatives it's not that easy. Read "Fooled by Randomness" by Nasim Taleb. You are confusing straight stock and futs trades with complex derivative positions. There are no amount of risk controls you can truly use in a leveraged environment to completely protect yourself and that is a fact. All you can do is be careful with who you let into your JBO or BD. That's it. Character counts for a lot. And someone that has defaulted on his promises in the past is a credit risk. That's the bottom line. Is it fair? No, of course not, the world is not fair. If you are looking for fair join the teacher's union and get tenure. If you are a trader, you are expected to be of a higher caliber person then anybody else. That is why floor traders for years lived and died on their word. Guys would buy and sell billions of dollars of futures contracts all based on their word. And they never went bad on their word because if they did, they knew they were done. It's that simple.
Instead of saying "are you serious" and "I take it you dont work in this biz" you could have just said the above. All I knew was that you ran a shop. Thanks for taking the time to reply.