Bankruptcy Happens, Even to Financial Planners

January 29, 2012 5:54 pm Published by

For years now in these Bankruptcy in Indiana articles, I’ve been reassuring readers that, contrary to popular myth, bankruptcy does not spell d-e-a-d-b-e-a-t.  In other words, filing personal bankruptcy in Indiana is not necessarily (and not evenmoney advisers go bankrupt, too most of the time) the result of careless handling of one’s finances.  In fact, every one of us lawyers for bankruptcy in Indiana who works in any of the four Zuckerberg bankruptcy law offices is used to seeing just the opposite: bad things happening to very good, very financially responsible people.

 

In order to provide the very latest Indiana bankruptcy information to readers and clients, as you know by now, I read a lot – journals, magazines, newsletters, websites, books – you name it. And, just two weeks ago, I happened on the most amazing headline in Investment News“CFP Board Eases Up on Advisers Who Go Bust.”

 

I really hope that, once you “get” what this headline means, you’re going to find it as reassuring and comforting as I did.  Why? Well, for one thing, the very last people you’d imagine would be irresponsible with money are financial planning professionals, especially those who’ve devoted years of extra study to earn the CFP® (Certified Financial Planner) mark in order to offer even more comprehensive and thorough advice to their clients.

 

Up until now, as one planner explained to one of the Columbus bankruptcy lawyers who is my colleague, if planners filed individual bankruptcy in Indiana (or small business bankruptcy in Indiana, for that matter), they would have lost their CFP® certification.

As you may imagine, someone like me who’s been offering Indiana bankruptcy help for 25 years would be gratified to learn that situation is about to change. The CFP Board realizes that everything from unexpected medical expenses, a spouse’s job loss, or divorce to a general business downturn can negatively affect even the most responsible and financial savvy individuals. (I know this very well as I work to help stop foreclosure for very good people!)

 

The latest proposal is that, while a CFP® certificant must report a bankruptcy, there will be no disciplinary proceedings for a first bankruptcy.

 

Bankruptcy in Indiana, as I’ve always stressed to clients, readers, and even to my own colleagues, was never designed to be an escape hatch for deadbeats.  Quite the contrary, the bankruptcy safety net is for situations “when bad things happen to good people”. I’m so glad the CFP® Board has come around to seeing the same thing!

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This post was written by Mark Zuckerberg

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