ESOP and Chapter 7

[Jacob]

Excuse my ignorance. I'm just starting the process of chapter 7 and waiting for my NOLO book to arrive.

My previous employer was an ESOP (49% Employee owned when I left). My shares were worth some 200K but I can't collect any funds for another 3 years. Would this be an asset I could lose under chapter 7?

I spent all of 20 min with my attorney's assistant discussing this sort of info and she didn't know.

[JimKutkowski]

Yuck, that is the type of nonsense that gives us a bad name.

Short answer is each district is different. Go find an attorney who values your business enough to talk to you, this is not one you want to do alone because of the ESOP issue alone.

What district are you in. I don't do Chapter 7 very often, but I can probably refer you to a good attorney in your area.

[sjcmCA]

Trust is willing to wait several years for ESOP?

Yuck, that is the type of nonsense that gives us a bad name.

Short answer is each district is different. Go find an attorney who values your business enough to talk to you, this is not one you want to do alone because of the ESOP issue alone.

What district are you in. I don't do Chapter 7 very often, but I can probably refer you to a good attorney in your area.

Is it really true that it depends on the district for 200k? It's hard for me to understand this since the banktrupcy is the Federal Law.

Will the Trustee will open the BK case for several years until the ESOP is available? This is a very interesting issue.

[DebtEnder]

Ehh I like to say BK is a federal event but the states/districts make the rules.

It's maddening at times.