If you are an attorney, physician or other professional with a license and you are planning to file for Chapter 7 or Chapter 13, you may be wondering how your professional license will be treated in your case. You must list all of your assets and sources of income when you file a bankruptcy case, but pursuant to section 525(a) of the Bankruptcy Code, a government agency cannot deny, revoke, suspend or refuse to renew a license to a person who has filed for bankruptcy, solely due to their filing. In other words, while your license is a valuable asset, you will not lose it due to your bankruptcy filing.
A bankruptcy filing will not protect you, however, from losing your license due to other circumstances. This means that if you violate the ethical standards of your profession or commit a criminal act that violates your ability to hold your license, filing a bankruptcy will not prevent your license from being revoked or suspended.
Thus, if you are considering filing a bankruptcy case and you hold a professional license, you should verify that you are in compliance with the standards and requirements of your profession. If there are any issues, be sure to discuss this matter with your bankruptcy lawyer before you file your case.
To learn more about bankruptcy, contact The Koplen Law Firm.
If you are interested in learning how filing a Chapter 7 or Chapter 13 bankruptcy could benefit you, contact The Koplen Law Firm. Bankruptcy is designed to give people who are in financial difficulty a “fresh start.” Thus, if your debts are causing you undue stress, you should call us for a consultation to discuss whether bankruptcy is the right option for you. Our offices are located in New City and New York City, New York.