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Can I Lose My Professional License if I File for Bankruptcy?

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You’ve worked hard to get your administrative license. You likely graduated from college and spent a lot of time studying for your license.

While getting your license is hard, holding onto to it may be even harder. You may feel constantly scrutinized, and for good reason. What you do in and out of the workplace can affect your license status.

Sometimes people fall onto hard times financially. Even though they are gainfully employed, sometimes the unexpected happens. You suffer a disability and cannot work. Maybe you are involved in a car accident. Perhaps you are putting a child through college or starting a new business venture.

These situations—and others—can cause your debt to pile up. You may be in such a deep hole of debt that bankruptcy is your only hope. But how will filing for bankruptcy affect your professional license? Read on to find out.

What the Law Says

Under 11 U.S. Code § 525, you are entitled to receive fair treatment while going through the bankruptcy process. This means that the state board cannot discriminate against you and deny, suspend, revoke, or refuse to renew your professional license. You also cannot be denied employment based on a bankruptcy filing.

If you own a business, what will happen to it when you file for bankruptcy? There is no straight answer, but if you file for personal bankruptcy, you may still be able to keep your business. It depends on whether the debt you owe is through your company or through yourself personally. You must follow the laws and be honest. For example, you will have to disclose your business as an asset, but that does not mean that it will be taken away.

Your business is a personal asset and you may think that it has no value to anyone but you. However, your bankruptcy trustee will need to determine that for sure. The value will be based on any assets or inventory.

In any case, you will not lose your professional license. If you are an architect or engineer, for example, and have your own business, even if you lose your business through bankruptcy, you will still have your license under the law. While other actions can cause you to lose your license, bankruptcy cannot.

Keep Your License With Help From a Tampa Administrative & Professional Licensing Lawyer

If you have a professional license and are burdened with financial obligations, you may be concerned about your future. What will happen to your license?

While bankruptcy should only be considered as a last resort, it offers many protections, particularly for business owners. If you have concerns or are facing issues, seek legal help from  The Law Offices of David P. Rankin, P.A. He knows the laws surrounding professional licenses and can guide you through bankruptcy and other issues you may face. He has more than 30 years of experience helping Florida licensed professionals keep their license. Schedule a consultation by filling out the online form or calling (813) 968-6633.

Resources:

law.cornell.edu/uscode/text/11/525

bankrate.com/finance/debt/business-safe-in-personal-bankruptcy.aspx