Going Bankrupt how will it effect series 7 and trading?

Discussion in 'Prop Firms' started by tomgordon, Jan 4, 2010.

  1. tomgordon

    tomgordon Guest

    I got myself into a finacial pickle. I owe money to a bunch of credit card companies. And going bankrupt might be my only way out. I am not proud of this. I am looking into all options. How would going bankrupt effect my liscenses? I am currently trading with a big prop. firm. If i would go bankrupt would i still be able to trade with them? Would i have to disclose this to the company? I am sure i am not the first trader to go through this. My big question is would i still be able to trade prop. if i went bankrupt?






    thanks for your help

    tommy
     
  2. gimp570

    gimp570

    I am sure that you are not the first trader to have to go BK.

    I dont know maybe the firm would not find out as long as you dont change firms in the next 10 years but i dont really know



     
  3. tomgordon

    tomgordon Guest


    i wonder if its better to just tell the firm or risk it? will they definitely find out about a bankruptcy
     
  4. It shouldn't affect your ability to get hired, but it is a U4 reportable event. You have to disclose it, just like you would have to disclose a criminal record or other court judgment. Trust me, you're not the first person in the securities business with a disclosure event!
     
  5. tomgordon

    tomgordon Guest


    I am already registered...so if i have to go BK then i should just let the firm know. And you dont think it will be a big problem?




    thanks

    tommy
     
  6. jnbadger

    jnbadger

    I worked with someone about 4 years ago who had his 7and had filed BK.

    I honestly can't remember if he had filed for BK before or after he obtained his 7, but he said it was not an issue.
     
  7. It wont affect you at all. I know guys in the biz with multiple personal or corp BK`s. All of them that wanted too still had a chair post hearing.

    Like the others said. It is a disclosure event BUT I know for fact that certain agencies do not talk to one another. You could have a "failure to recall" moment whilst filling out paperwork. Not saying you should mind you.

    As long as you are not a RIA who cares about your past?
     
  8. tomgordon

    tomgordon Guest



    Well i am already registered. So my question is should i let the firm know or just keep it quiet. Since it sounds like it might not be a very big deal to tell em about a bankrupy. Then it might be better to just be honest and let em know
     
  9. Since every answer you are going to receive on this thread is a guess, call the FINRA hotline and ask them, you do not have to use a real name, or any name.

    It may even be in the FAQ section on their site.

    I guess you did not pass the "common sense" section of the Series 7?

    Here, I will spoon feed you:


    http://www.finra.org/industry/index.htm
     
  10. #10     Jan 5, 2010