When you hold a professional license, it is a significant asset and you want to do everything you can to protect it.
Whether you are a doctor, lawyer, realtor, CPA, or some other type of professional, your license is essential to your livelihood. When you file a personal bankruptcy, it is important to understand that your license is considered an asset.
Your Professional License is Considered an Asset When Filing Bankruptcy
Pursuant to section 525(a) of the Bankruptcy Code, a government agency is prohibited from denying, revoking, suspending or refusing to renew a license to an individual who has filed for bankruptcy protection, solely due to the Chapter 7 or Chapter 13 filing. This means that although your professional license is an asset with value, your bankruptcy filing will not prevent you from practicing your profession.
It should be noted, however, that filing a personal bankruptcy will not shield you from losing your license for other reasons. If you are in violation of the standards or ethics of your profession and the governing body is taking action against you, filing bankruptcy will not stop the revocation or suspension of your license.
The “Good Moral Character” Provision
The Bankruptcy Code contains a broad “good moral character” provision. If you hold a professional license and you have concerns, you should confirm that you are in compliance with the standards and requirements of your profession to ensure that no issues arise in your case. Although this is rarely an issue in personal bankruptcy filings, it is always better to confer with your attorney about anything that worries you before your Chapter 7 or Chapter 13 case is filed.
For more questions about your professional license and filing bankruptcy, contact us.
The information on this blog or any blog is not intended as, and should not be taken as, legal advice.