Experience Dealing with Margin Debt / Negative Account Balance

I would greatly appreciate hearing from you if you have experience dealing with a broker stemming from a negative account balance. As a result of a liquidation by my broker, my account value was wiped and now has a massive negative balance beyond what I could ever repay. I don't care to get into the specifics of the trade or whether the actions of my broker were appropriate. I'd really just like to know about the sequence of events you experienced after you had a negative account balance. For example,

-- How long was it until your broker contacted you about the negative balance?
-- Were you ever contacted by a collection agency?
-- Were you able to negotiate the debt? If so, what was the final resolution and how long did it take from start to finish?
-- Did the broker ever seek a judgment against you, or attempt to place a lien on any of your assets?
-- Did you enter into bankruptcy?

Many thanks in advance for any information you can share.

 

you are leaving out the most interesting part, which gives people an incentive to reply.

 

Without more details - simple answer is they will do everything possible to collect. If you have a true negative net worth then you should consider bankruptcy. Technically with a negative net worth you are bankrupt. Sorry and good luck.

 

Naked option seller?

Read the agreement you signed. Should show exactly what will happen to you.

 

https://en.wikipedia.org/wiki/Debtors'_prison

 

Yep. It's been about 20 years, but I remember that clause in the IB agreement: "22. Account Deficit: Customer agrees to Debtor's Prison until such time as account is not in deficit..."

 

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[a]Yes,debt reduction;[b,c,d,e,f,g] i got a gov agency in it, because brokers cant do just any thing they want.Hope this helps. [g]On a related matter, its a little bit like Paul Tudor Jones said ''if not for the grace of God there go i'' . Good thing the bank went bankrupt, i could have gone bankrupt on another over leveraged deal. Live +learn; wisdom is profitable to direct.Yes on the lien; so they can take it out of your real estate sell closing statement.

Im not a mind reader but your over leverage caused it, not the fact your broker automatic sold it ,usually @ market slippage. But since i owed the bank before it went bankrupt ;i sent them a small check when i could .