Personal Bankruptcy Chapter7/Series7

Discussion in 'Prop Firms' started by supersizeit, Feb 19, 2007.

  1. Hi guys,

    I know they ask this question on the U4 disclosure forms but do not really know how the answer is weighed in terms of getting the license. (I did a search here but could not find an answer to the following)...

    Does anyone know if filing a chapter 7 within the last 10 years constitutes an automatic disqualification for the series 7 license?-- or is this something that the NASD evaluates on a case by case basis?

    If its not an automatic disqualification then what other factors do they take into consideration in making the decision?
  2. Bump

    Either everyone who has viewed the thread so far does not know the answer or newbies questions tend to get ignored in this forum.
    I certainly hope its not the latter.
    I figure there has to be at least 1 trader who had filed a bankruptcy within 10 years prior to taking the series 7 exam and still received their license.
  3. mrmoose


    i have known guys who filed and were accepted their is sometimes a delay
  4. Thanks mrmoose. I figured this to be the case but its nice to have it confirmed by a trader who is in the know. :)
    ...back to studying.
  5. Depending on the type and reasons surrounding your bankruptcy they could disqualify...If it was because you got up to your eye balls in debt, they usually forgive....if its because you got sued and didn't want to pay...thats another story
  6. so if you mis-manage your own money its alright? :)

    but if your the whore, liar and cheat that you are ..then its not ok to be a broker?

  7. Thanks for the input TM-Direct...that makes sense to me and I think its reasonable for the NASD to investigate a traders financial background.
    My bankruptcy was due to accumulating too much credit card debt over the years, periods of unemployment and then not being able to make the minimum payments. I should be OK for the license.
    I didn't really want to take that route but I knew some people who said it really helped them get a clean start. Its not even been 18 months since my discharge and I am already getting unsecured credit offers left and right, however now I only keep enough cards to establish good credit again and have certainly learned my lesson.