Filing Bankruptcy and Professional Licenses
Written by Myrtle Beach Bankruptcy Lawyer, Allen Jeffcoat
In my Myrtle Beach bankruptcy practice, I often talk to clients who are considering filing bankruptcy and who have a license that they are worried about losing if they file bankruptcy.
I’ve talked to Myrtle Beach realtors, lawyers, doctors, chiropractors, building contractors, insurance agents, securities dealers, counselors, accountants and many other professionals who are worried about making it through the current recession. They realize that they may lose some of their investment property in a bankruptcy, but want to protect their means of earning a living–which for them means protecting their professional license.
Myrtle Beach is blessed with many professionals that make our town a great place to live. But many professionals invested in real estate deals several years ago during the real estate boom they thought would never end. These investments have soured, and the resulting debt load threatens to ruin the professionals and their family’s financial future. Often bankruptcy offers a clear way to emerge from these financial problems with a fresh financial start.
My clients often say, “I’m a good [doctor lawyer, accountant, etc.]. But I have to have my license to do my work. My buddy says the state will take my license if I file bankruptcy. Even if bankruptcy is my financial answer, I can’t do it if I will lose my license.”
Well, their buddy is wrong. The Bankruptcy Code provides that “a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has [filed bankruptcy].” This means that the professional’s license is safe.
The bottom line is that if you have financial problems, get help. Don’t let fear of losing your professional license stop you from dealing with your financial problems.
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