QUESTION
If my husband has a little stock in a company what will happen to that stock if we have to file bankruptcy?
Asked on Sep 18th, 2014 on Bankruptcy - Georgia
More details to this question:
Due to the economy and my husband being unemployed for 6 months and my having to stop working due to a disability we have fallen behind. I'm afraid bankruptcy is the only thing that is going to get us back on our feet. What will happen to his stock with Verizon if we do file?
7 ANSWERS
If you file a chapter 7 bankruptcy the stock would become part of the bankruptcy estate and be subject to sale and distribution. However, you are entitled to claim certain assets as exempt or protected. The stock may be protected.
Answered on Sep 23rd, 2014 at 7:06 PM
The stock will be surrendered to the Chapter 7 Trustee. Your option would be to sell the stock and use it for necessities.
Answered on Sep 23rd, 2014 at 1:12 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, investments are not exempt assets, so he'll probably lose the stock. It's possible that you'll have a wildcard exemption that will protect the stock.
Answered on Sep 22nd, 2014 at 1:42 AM
If this stock is protected by an exemption available to you, and if you disclose the stock as you are required to and exempt it, you can keep it. Otherwise, your bankruptcy trustee will be able to take the stock, sell it & use the proceeds to pay a small portion of your debts. If you are eligible to use the Nevada exemptions, most of the list of property you can keep is described in NRS 21.090(1).
Answered on Sep 19th, 2014 at 12:44 PM
It would be considered an asset although you may be able to exempt it depending on the value and your other assets. Only a lawyer can advise you on the available exemptions.
Answered on Sep 19th, 2014 at 11:35 AM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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If the stock is held in a qualified retirement plan (IRA, 401k, etc.) it is exempt, however, if not, it becomes property of your bankruptcy estate and can be sold by the trustee to pay your creditors. There are ways to protect it through the exemptions allowed but you will need to contact your lawyer to get more information.
Answered on Sep 19th, 2014 at 11:35 AM
William Rhymer
If we are talking about a Chapter 7, then it depends on the market value of the stock. In Georgia, The maxi um exemption amount would be $5600.00. The exemption amount could be lower depending on the value of other property he owns. (Assuming the stock is not in an IRA or any other qualified retirement account.) He really needs to have a free consultation with an experienced bankruptcy attorney so that he or she can look at the big picture and will usually be able to tell to the dollar what will happen if a case is filed.
Answered on Sep 19th, 2014 at 11:29 AM