Bankruptcy Among Financial Professionals

Debt problems cut across all demographic groups and workers in every industry. Doctors, lawyers and even financial professionals frequently file for bankruptcy when they can no longer pay creditors what they owe. This highlights the fact that financial struggles are usually attributable to unfortunate circumstances that can affect anyone. 

If you work in the financial industry and are considering bankruptcy due to a medical emergency, divorce, economic downturn or other reason, you should not hesitate to get the legal support you need to tackle your debt challenges and look toward the future. Whether you’re running your own business or work for someone else on commission, your income might vary widely from month-to-month and a skillful bankruptcy attorney can advise you of the best way to secure a debt relief solution that meets your needs. 

For financial professionals, filing for bankruptcy might involve additional considerations due to the ethical and professional standards they must uphold. The Certified Financial Planner (CFP®) Board’s Code of Ethics and Standards of Conduct outlines specific disclosure requirements for CFP® members who file for bankruptcy.

A member who files for personal bankruptcy or who is the control person for a business that seeks bankruptcy protection is subject to sanction, which is typically censure. However, a CFP® professional has the chance avoid sanctions by demonstrating that the filing was not a result of financial irresponsibility. When providing financial advice, the CFP® member must disclose the existence of the bankruptcy to the client and advise them of any websites that detail the proceeding. 

Bankruptcy is not a statement on someone’s professional competence or character—it’s a legal tool designed to provide debt relief during a difficult time. If you’re a financial professional considering bankruptcy, it’s essential to understand both the legal and professional implications. A trustworthy attorney can identify what works best for your particular situation and guide you through the legal process skillfully and efficiently. 

Jeff Field & Associates advises Georgia clients on a wide range of bankruptcy issues. Please call 404-381-1278 or contact us online to make an appointment to discuss your specific circumstances and needs. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.