I hate these severe penalties in the first place though.
You have 1 noble who can protest you out pretty much (I think, if you have like 3 or 4 nobles left only) while it does nothing cause the realm is !@#$ed anyway, and make you lose !@#$loads of honor and prestige. If you step down yourself you lose even more.
So basically, once a realm becomes smaller you don't want any government position cause it just screwes you over big time, even when you try to just save the nation.