Chapter 13 Bankruptcy

Discussion in 'Trading' started by optionsplayer, Apr 16, 2003.

  1. Was not sure where to put this thread.....In any event, I have a little cousin doing a research project on the fallout of the trading marketplace over the last 4 years.

    I could not believe some of the stuff she turned up. According to several sources including Nolo law, if you are a stockbroker, you can not file chapter 13 even for personal debts.

    But what I would like to throw out here for debate is this......I am merely a retail person....so for you pros or props, eventhough you have the common fact of the series 7 licenses and other NASD licenses, I am sure you would not consider yourself a stockbroker.....

    My assumption is a stockbroker would be someone who interfaces with retail people, etc. Eventhough anyone with a series 7 is considered a registered exchange rep?? Is this right??

    Anyone else with insights or horror stories they would care to share, please drop a line here or PM me.

    THanks
     
  2. Not true....know at least 10 brokers who have filed for bankruptcy....could effect your license and registration.
     
  3. yes...but did they file chapter 7 or 13.....the Nolo law stated Chapter 13 is not permitted by stockbrokers.......there is a huge difference with some major implications depending on the situation and how much unsecured debt is involved.......eventhough the 7 wipes everything out, there could be some legal collateral damage
     
  4. you may be right...13 is for corporations right? A lot of Brokers try to incorp. themselves so they may not allow that type of filing but they do allow bankruptcy claims