Will I lose my auctioneer license???

[Sin2cyn]

What is the name of your state?
Mississippi
My auction was shut down due to the corona virus therefore I was unable to pay a bank note on my property. The bank has threatened to start foreclosure proceedings by Monday so I am considering filing Chapter 13, however I am in fear that I may lose my auctioneer license. Anyone that knows the law on this please enlighten me. Thank you so much for your help.

 

[adjusterjack]

The law is MS Code 73-4-25 Grounds for disciplinary proceedings against licensees.

There are a couple that involve finances but I think the one that you are concerned about is:

(p) A demonstrated lack of financial responsibility.

https://law.justia.com/codes/mississippi/2018/title-73/chapter-4/section-73-4-25/

However, I find it hard to believe that the state would take away your license during the current crisis when you had to file bankruptcy due to something beyond your control, especially Ch 13 which involves paying back all or most of your debts over a period of time.

You might get more qualified answers by contacting the MS Auctioneer Commission:

https://www.auctioneers.ms.gov/

or the MS Auctioneers Association:

http://www.mississippiauctioneers.org/

 

[FlyingRon]

"Financial responsibility" has a distinct meaning I believe in such license actions. It doesn't just mean the guys business failed or he couldn't pay his rent or whatever. It means that he failed to handle property the money/property entrusted to him and/or he failed to maintain the proper bonds required by auctioneers.

But the links above (especially the last one) are going to be good resources.

 

[NeilTheCop]

I'm surprised that due to the potential for litigation in your profession, that you don't already have an attorney.

 

[despritfreya]

My auction was shut down due to the corona virus therefore I was unable to pay a bank note on my property. The bank has threatened to start foreclosure proceedings by Monday so I am considering filing Chapter 13, however I am in fear that I may lose my auctioneer license. Anyone that knows the law on this please enlighten me.

1) Your State is not likely to revoke the license to operate if a bankruptcy is filed. See 11 U.S.C. 525.

2) Has your State instituted protections against evictions/lock-outs/foreclosures on the commercial side? If "yes", you may have some protections against the lender due to the current crisis if the property is commercial. There are some Federal protections for residential property under certain conditions but I think anything commercial is going to depend upon State assistance.

3) You said your auction was shut down and you want to file a Chapter 13 because you were "unable to pay a bank note on my property". Are you talking about your residence or the commercial building/property where the auction is operated or some other property?

If it is the commercial building/property, is the auction run as a sole proprietorship or an entity? Is the commercial building/property owned by you personally or is it owned by the entity? Is the mortgage in your name personally or is it in the entity's name?

If it is the entity that should be in bankruptcy a Chapter 13 is not going to work since only people can file Chapter 13. The entity would be looking at a Chapter 11 and maybe even Subchapter V of Chapter 11.

Regardless of the situation, you need to talk to a well qualified bk attny.

Des.