Posted by chucke/fl on 4/8/12 12:16pm
Msg #417295

Bankruptcy

I do not expect anyone to answer in open forum, but has anyone had to file bankruptcy? If so from a signing agent perspective what type of effect did it have on your business?

Reply by Beverly Brady on 4/8/12 12:21pm
Msg #417297

Since the SS doesn't ask for your credit records to be a signing agent, I would think it wouldn't have any effect. Times are tough, you're working...sorry you have to take this route, but better than loosing everything.
Good luck to you.

Reply by HisHughness on 4/8/12 12:27pm
Msg #417298

***has anyone had to file bankruptcy?***

There are some on NotRot who are convinced I am a moral bankrupt, but to date I have not had to file a formal declaration of such.

Reply by 101livescan on 4/8/12 1:55pm
Msg #417306

Currently, being solvent or credit worthy has not been a requirement in California in order to become a notary.

If you file bankruptcy, your debt will be forgiven. You can easily reestablish credit over time. I look at how many of my expenses are paid for on my credit card, it would not be easy for me to file BK and operate the way I do.

But, maybe we all could benefit getting back to CASH AND CARRY.

Reply by Brian Gruss on 4/8/12 7:30pm
Msg #417321

The only thing I can think of that you would want to look into, is being able to obtain and keep a bond is based on credit worthiness. If you have a bond, your insurance agent should be able to answer that for you.

Reply by Marian_in_CA on 4/8/12 7:52pm
Msg #417323

I don't see how filing for bankruptcy would have an impact on your commission or business... as far as getting business. This is especially true right now in this economy.

Now, if you rely on credit to run your business? That definitely a different story, depending upon how your business is set up.

But to get business *as* a notary? I don't think it matters and I certainly would never work for a company that wanted to do a credit check on me before contracting with me. No way. It's none of their business.

I've always felt that one's credit score is (almost always) never an indication of much, especially when it comes to obeying laws, morality, etc. A notary needs to obey the laws. If I were a TC, I'd much rather hire the notary with horrible credit, a crappy car and working hard to pay what they could than somebody in a nice car and shiny shoes who is willing to accept payoffs for bending the rules, backdating, etc. I know a lot of people with perfect credit who are outright criminals... and I also know some of the most upright honest people who have terrible credit (for a variety of reasons), but work hard.

But yeah... in this economy? Bankruptcy is not unusual at all and doesn't have the stigma that it did, only because so many people have to go that direction right now. In fact, I read something a few months ago that said the vast majority of people who file for Chapter 7 do so not because of consumer spending habits or because they don't want to pay their bills... but because they've had massive medical bills, layoffs, etc -- usually things beyond their control. Credit granting companies realize this, and that's why many of those people are able to buy a home in 2-3 years after discharge.

I've always been bothered by the idea that employers, insurance companies, etc. can use your credit scare against you. I just know too many people where that score is completely disproportionate to who they really are as a person.

Reply by JanetK_CA on 4/9/12 2:59am
Msg #417333

I think Marian makes some valid points, but I also think there's a big difference between "depending" on credit and "using" credit. I can think of lots of times where it has been very convenient to have good credit and to not have to think about it when it comes time to order supplies, set up a FedEx account, and countless other things where it's not logistically convenient to use cash. Other examples could be an unexpected need to replace business equipment or car repairs, etc.

But sometimes people just have to do what they have to do to get through the times when faced with challenges and the unexpected.