If my husband has a little stock in a company what will happen to that stock if we have to file bankruptcy? 14 Answers as of October 21, 2014

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?

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EDWARD P RUSSELL | EDWARD P RUSSELL
More than likely you should be able to exempt the stock as you say it is little.
Answer Applies to: Minnesota
Replied: 10/21/2014
Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
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.
Answer Applies to: Nebraska
Replied: 9/23/2014
Stephens Gourley & Bywater | David A. Stephens
That depends on the chapter you file and the value of the stock. In Chapter 13 you can generally keep the stock. In Chapter 7, you may lose it to the trustee unless you can exempt it.
Answer Applies to: Nevada
Replied: 9/23/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The stock will be surrendered to the Chapter 7 Trustee. Your option would be to sell the stock and use it for necessities.
Answer Applies to: Colorado
Replied: 9/23/2014
Ronald K. Nims LLC | Ronald K. Nims
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.
Answer Applies to: Ohio
Replied: 9/22/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It might be exempt. I do not know enough to answer this question. You will have to consult local counsel.
    Answer Applies to: California
    Replied: 9/22/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    The value of the stock has to be ascertained before the question can be answered completely. If the value of the stock is exempt, then you get to keep it.
    Answer Applies to: California
    Replied: 9/22/2014
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    All assets are disclosed in the filing. What happens to it depends on the value and if you have sufficient exemptions to protect the stock. Also if it is part of a retirement or IRA plan then it is protected. You must list all assets. List it or lose it is the rule. If you fail to disclose and it comes to light later the least that could happen is that it is taken from you. Please see a local knowledgeable bankruptcy attorney to advise you. There may be other important considerations that you aren't aware of.
    Answer Applies to: California
    Replied: 9/22/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    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).
    Answer Applies to: Nevada
    Replied: 9/19/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    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.
    Answer Applies to: California
    Replied: 9/19/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    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.
    Answer Applies to: Oregon
    Replied: 9/19/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you have enough exemption then you can keep it, but if not then the trustee will take it.
    Answer Applies to: New York
    Replied: 9/19/2014
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    As to Stock ownership, you first have to determine the value of the stock and if the value is covered by the bankruptcy exemptions for your district, you will be able to keep the stock.
    Answer Applies to: Connecticut
    Replied: 9/19/2014
    Rhymer Law Firm
    Rhymer Law Firm | 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.
    Answer Applies to: Georgia
    Replied: 9/19/2014
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