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Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If a subchapter S business files bankruptcy, the personal stock is disclosed in the statement of financial affairs. Generally, the stock has no value after bankruptcy.
Answer Applies to: California
Replied: 10/5/2011
The Law Office of Darren Aronow, PC | Darren Aronow
If you file a business bankruptcy then all stocks are property of the estate. If that stock is determined to have no value by the trustee, then they will likely abandon it. However, if that stock has value, they will likely liquidate it.
Answer Applies to: New York
Replied: 10/5/2011
Dan Wilson Bankruptcy | Dan Wilson
Need more details. Is the business filing a Ch 11 business BK? Or are you filing a personal Ch 13 or 7? If the latter, the corporation is an asset. It is non-exempt. You might have to dissolve the business. Use a BK attorney who has experience in this area.
Answer Applies to: Colorado
Replied: 10/28/2011
Attorney at Law | Douglas W. Harold, Jr.
If the corporation files for Chapter 7 bankruptcy, all of its assets are sold off by the bankruptcy trustee (assuming that the assets have any net value over and above the amount of liens on the assets).The corporation then normally folds up and essentially disappears unless the name has some value that can be sold to someone else by the trustee. Your personal stock would not be affected unless you (as opposed to a corporation) are filing for personal bankruptcy.
Answer Applies to: Virginia
Replied: 10/5/2011
Ashman Law Office | Glen Edward Ashman
Often corporations shouldn't file, so see a lawyer and determine if that's even a proper strategy.
Answer Applies to: Georgia
Replied: 10/5/2011
Heupel Law | Kevin Heupel
If your personal stock has a value that can be sold, then the bankruptcy trustee has the right to sell the stock. However, most sub S businesses have little to no value, and thus, the stock is rarely sold.
Answer Applies to: Colorado
Replied: 10/5/2011
Law Office of Harry L Styron | Harry L Styron
There is no such thing as a "Subchapter S" business bankruptcy. A Sub S corporation is still a corporation and may file only Chapter 11 (reorganization) or Chapter 7 (liquidation).
Answer Applies to: California
Replied: 10/5/2011
Law Offices of Joseph A. Mannis | Todd Mannis
Probably nothing, as the stock is not publicly traded and is probably not worth anything.
Answer Applies to: California
Replied: 10/5/2011
Eliza Ghanooni, Attorney at Law | Eliza Ghanooni
If your closed corporation does not have any ownership rights to your stock, then your stock should be unaffected by the bankruptcy filing.
Answer Applies to: California
Replied: 10/5/2011
Diefer Law Group, P.C. | Abel Fernandez
It depends on what stock you are referring to? If you file a chapter 7 bankruptcy on an S corp, that usually means that the company will close. If you have stock in this company, then it is worthless since the company is closing. If you have other stock, and you file a bankruptcy for another business you own, then your personal assets and stock in other companies should not be affected. But you may want to consult with an attorney.
Answer Applies to: California
Replied: 10/5/2011
