This is true for any brokerage account where you have margin enabled. Check your margin agreement carefully. Or better, disable
margin on your brokerage account
“ people with margin accounts end up as just general creditors in any bankruptcy and recover only a fraction of their assets after some years in bankruptcy proceedings. During bankruptcy, their accounts are frozen and no transactions are allowed”
“ people with margin accounts end up as just general creditors in any bankruptcy and recover only a fraction of their assets after some years in bankruptcy proceedings. During bankruptcy, their accounts are frozen and no transactions are allowed”
https://www.bogleheads.org/forum/viewtopic.php?t=20582
(sorry couldn’t find a better reference searching on my phone)