When you start to fill out the paperwork for your bankruptcy, it can seem a bit overwhelming. It seems you have to provide every single bit of information regarding your life and finances. In a sense, you do. The Bankruptcy Code states that you MUST disclose ALL of your assets to the court, including but not limited to, personal property, debt collections, and financial accounts.
Stock falls along the lines of a personal account. Think about it, if you hit hard times and needed cash, you could sell a portion (or all) of your stock to get money. You always have to remember that if you can touch the money, then the court or bankruptcy Trustee can too. To protect your asset you will need to make sure that it is listed in the bankruptcy and valued correctly. To determine the value of your stock, you will need to take the current market value and multiply it by the number of shares that you own.
Protecting your stock all depends on the amount of “wildcard” exemption. This is an exemption that can be used for basically any property that you have/own. If the stock is able to be protected under the ?wildcard? exemption, then the Trustee will not interfere with the stock. If the stock is not properly protected, the Trustee will have the right to seize the stock, sell it and use the proceeds to pay your creditors.
In order to protect your assets it’s important that you fully and accurately disclose your property to your bankruptcy attorney. An experienced bankruptcy attorney will be able to use bankruptcy exemptions to protect most, if not all, of your personal property.
Sometimes, especially during Chapter 13 bankruptcy, a person decides they would like to sell their house during their bankruptcy. The big question that they ask is: Am I allowed to sell my house during bankruptcy?
The answer to this question is yes, however, you must get Court approval before selling the house while in a Chapter 13.
Also, if you are considering selling property, other than your house, that is listed in your bankruptcy, it is very important that you discuss this with your attorney, as each case is different.
In order to sell your house, your attorney will need to file a Motion to Sell with the Court. The Motion to Sell lets the Court determine what happens to the proceeds from the sale of the property, makes sure that the terms, conditions and expenses of sale are reasonable.
Before your attorney can file the motion with the Court, you will need to put the house on the market. Once you have received and accepted an offer, you must contact your attorney’s office and provide them with a copy of the contract between you and the buyer, so they can file a Motion to Sell with the Court. It typically takes about 30 days from the date the Motion is filed until permission is granted.
Contact your bankruptcy attorney for more specific advice on selling property during bankruptcy.