Can a Bankruptcy Threaten a Filer’s Professional License?

Many people who would benefit greatly from bankruptcy protection hesitate to seek relief because of misconceptions about the process and what it means. Bankruptcy is not a punishment, but a powerful legal tool used to help individuals and businesses whose debts have become unmanageable. People from all walks of life and every type of profession have used bankruptcy to halt harassment from creditors and improve their financial standing.

Don’t continue to struggle with debt because you fear how it might affect your job credentials. Licensed professionals typically are not subject to discipline merely because they filed for personal bankruptcy. If you are licensed and continue to meet the applicable authority’s substantive requirements (education, testing, continuing education, criminal-background standards, etc.), you should have no problem. 

Bankruptcy is not a negative reflection on a filer’s honesty or character. In many cases, the circumstances that trigger severe financial hardship are out of the debtor’s control, such as an unexpected medical expense or major repair. Licensing bodies generally focus on competence, public safety and trustworthiness. Courts treat most bankruptcy filings as lawful efforts to address overwhelming debt, and most professional authorities recognize that financial distress by itself is not a reason to revoke a credential.

If you have some type of work-related license, you might want to check whether a bankruptcy needs to be reported within a specified period of time. It’s possible that a board might penalize someone for a failure to report even if they would not take any action concerning the bankruptcy itself. Of course, if the filing is in someone way linked to your professional duties, or if you’re seeking protection for your small business, additional steps might be required. 

Whether you’re a doctor, an attorney, a financial adviser or hold some other position that requires authorization from a government body or professional organization, tackling your serious debt issues offers a chance to concentrate on the important work you do rather than dealing with calls from collectors and wondering what your financial future looks like. 

Jeff Field & Associates assists individuals and businesses throughout Georgia with all types of concerns related to bankruptcy. For an appointment to discuss your particular circumstances and how we can help, please call 404-381-1278 or contact us online. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.