Stock Options- Need to exercise

[mixer99]

Im in a chapter 7 and 71 days post 341 meeting. Attorney said it will be discharged at end of the month. Looking at PACER only a few that filed my same week have been discharged already in my district, so I anticipate no issues.

My question is directed towards stock options. I have some options that I need to exercise before the end of the month which will yield about five thousand dollars. Terrible and fantastic position to be in I suppose, but I don't want the case to be dismissed or something worse as a result.

Of course I will call the attorney, but they are extremely hard to get on the phone. What would u do?

[HHM]

If they must be exercised, excise them. But don't do anything with the money.

Did you disclose the options on your petition?

In BK, options are tricky, strictly speaking, anything you own is valued "as of the date of filing". But, as you know, options can fluctuate and you need to exercise them.

[music12]

are you saying that the trustee abandoned $5000??? just like that? no questions asked?

i guess that can happen; there was a poster here who asked what to do when the trustee abandoned $10,000 they had in the bank account beyond their exemptions... got very lucky, i suppose.

[mixer99]

Thanks for the info everyone. Yes, we disclosed the options (gave vesting schedule, etc. to lawyer) They didn't ask for anything and lawyer certainly thought they would at least ask some questions.

BK trustee filed report of no distro right after 341 meeting, and I'm now on day 71 post 341. I guess they are so overwhelmed with filers they don't have time to look too hard.

And to the mod who answered first, I can exercise with e-trade and let it sit in my money market account. Question is- how long after discharge/close is it safe to spend, etc?

[HHM]

Once you are discharged, if the trustee has not made any claim to them prior to discharge, the money is yours. But, you should double check with your lawyer on the status.

[music12]

HHM, did you mean "once you are closed"? i always thought that as long as the case is open, even after discharge, assets could still be administered, no?

[HHM]

HHM, did you mean "once you are closed"? i always thought that as long as the case is open, even after discharge, assets could still be administered, no?

The trustee must make a claim for assets before discharge. The discharge terminates the BK estate, any asset that is not specifically withheld before discharge reverts to the debtor at discharge. Once the trustee marshals the assets (prior to discharge), you are correct, the case will stay open while he administers them.

[music12]

i see! thanks for clarifying that.