Q: I filed a bankruptcy about nine months ago, but decided afterward to work directly with my creditors instead of defaulting. As a result, my attorney didn’t file the required paperwork by the deadline and my bankruptcy petition was dismissed. Since there also was no discharge or other final determination, am I still required to report that I had a bankruptcy on my Form U4?

A: Unfortunately, the answer is yes. The relevant question on the Form U4 is 14K, which asks whether, in the last 10 years, you have made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition. In your case, from what I understand, you filed for bankruptcy but then allowed the petition to be dismissed when your attorney didn’t file the necessary paperwork. There was, in fact, a final determination of your petition, which was that the court issued an involuntary dismissal. In any event, since you did file for bankruptcy, the answer to the question is “yes.” You would then complete a DRP (Disclosure Reporting Page) disclosing the status of the bankruptcy as “dismissed.” Additionally, I would point out that you may also need to complete a DRP page about any “compromise with creditors” that you made concerning those debts. For example, if you established a payment plan with a creditor to pay off the debt over time, or if the creditor agreed to accept less than the full amount owed, that would be considered a “compromise with creditors.”

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