Chapter 7 Liquidation and Stock

I plan to file for Chapter 7. My mortgage payments are up to date, but there is no equity in the home. My car, I believe, is only worth $2500, and I think most of that amount is exempt. Other than household goods, which probably are less than $4000, my only other asset is a stock account, valued at about $4900, but that account is restricted. That is, when shares are purchased, you must wait two years before they can be sold. I tried to withdraw funds from there several months ago to pay some of the credit cards, and the holding bank wouldn't allow it. The stock plan is through my job with payroll deduction and they have all kinds of rules and regs. Anyway, if I filed for Chapter 7, what happens to that $4900? Does the trustee get control of it? Unsecured creditor debt is just over 32K.
Answer this question Add to list

Answers (1)

Jeffrey Daniel Larkin

Jeffrey Daniel Larkin

Contributor Level 7
The trustee will take whatever is non-exempt and give it to creditors on a pro-rata basis. Whatever is still owed is discharged in the case.

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.