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Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6381
Experience:  20 years of professional experience
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Does an employee of a brokerage firm ( stock brokerage),

Customer Question

Does an employee of a brokerage firm ( stock brokerage) , registered, is prevented from filing a Chapter 13 and a Chapter 11 and if so and does not qualify through the means test for Chapter 7, is that employee by virtue of his license prevented from any bankruptcy?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Maverick replied 1 year ago.

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1. CAN you please provide more background information so we can better assist you?

2. Did you already apply for the means test to see if you qualify for chapter 7?

3. Why do you believe you cannot file a chapter 13?

Customer: replied 1 year ago.
1. Yes 2. No. 3. I read that Chapter 13 cannot be filed by a stock broker or commodity broker. Although I don't work as such I am licensed that way as a Series 7, my work has to do with the Compliance Department
Customer: replied 1 year ago.
I have responded to your questions. But I won't rate your response as there is no response yet. Only you sending more questions
Customer: replied 1 year ago.
Thus I can't pay unless a response shows up
Expert:  Maverick replied 1 year ago.

https://www.law.cornell.edu/uscode/text/11/109

As per the law above you are only eligible to file a chapter 7 bankruptcy; but not a 13 or 11 because of your status as a stockbroker/commodities broker. I am not finding any case law that would exempt you from this law based on your work in the compliance department only.

I would be surprised to see if such law exists since one could circumvent the law simply by making a recent and deliberate change to one's occupation. That said, it is a specific enough legal issue that would require the use of Westlaw software to confirm whether the issue has ever been ruled on. That software is region specific and requires a yearly contract and expensive monthly fees per region; so most JA experts do not subscribe to it.

You may want to go to a local law library and see if they have that there for your free use. You can do a key word search and try to read some cases to see if there is a litigated exception for your circumstances.

Expert:  Maverick replied 1 year ago.

Please assign a feedback rating for this answer so that JA will compensate me for my time. Thank you.