You went to medical school, at an incredible personal cost. Tuition just kept climbing, but this was your dream. You fought for it. Plus, once you started, dropping out due to the high cost would leave you with nothing. You took on more and more loans.
In addition, you could not work and go to school at the same time. You tried, but it was just too hard. You started accumulating more and more debt just trying to pay the rent and keep food on the table.
Eventually, you graduated from school and got your medical license. You had finally made it. Your dream was a reality. You started looking for a job, with that new license in hand.
The debt problem
At the same time, you started thinking about filing for bankruptcy. Your debt is just out of control. You know that discharging tuition debts is difficult, but it’s not just student loans causing problems. You have a ton of credit card debt and, without a job, your credit score suffers.
What you worry about, though, is losing that license. Can it get taken away if you file for bankruptcy? Or do you have any legal protections? You do not want to file if you’ll just lose your license and then you cannot land a job, putting you in even worse financial waters than before.
Professional protection
The good news is that you do have protection. They cannot deny you a license just because of the bankruptcy filing.
This is similar to the way that the law protects you from getting fired. Bankruptcy-based discrimination is illegal in the workplace. If your filing is the only reason you lose your job, that violates your rights. Employers know it. They can’t discriminate, and neither can the licensing board.
That said, a code of conduct may apply to your license. If the board thinks you made questionable ethical decisions to get into debt or even broke the law, you could find yourself facing complications. If you just got in debt trying to make ends meet, though, bankruptcy cannot lead to the loss of a license or a denial when you apply.
Your future
It is important to think about your future. You do not have a job yet; how likely is that to change? Will you still qualify for bankruptcy after you get one? If so, would you be better off to use Chapter 13 to create a repayment plan, rather than Chapter 7 to liquidate your assets?
These are all questions you must ask yourself. Every situation is different. You need to know where you stand, what options you have and how to proceed to help set up the future you worked so hard for.
