Private Company Stock Grant and Chap. 7?

[wisedecision]

My previous employer granted me Stock Options bonus free and clear 4 years ago prior to being laid off 18 months ago. The amount was $29k worth of an Employee Stock Purchase Bonus that I was taxed with the IRS on that was paid by the remainder of a cash bonus specifically for taxes towards the stock bonus $ amount. The total amount was $50k ($29k work of stock, $21k for taxes)

The question is, how do I value these? The Par Value Per Share listed on the actual certificate is $0.001. Is the $29k the value or do I list the share price Par value listed? The company is still private with no IPO in sight. I haven't received anything from the company re: value. What will the trustee do with these? I was thinking of not disclosing these but don't want to go that route due to the legal implications.

Just looking for some general information around the subject of Private company stock and bankruptcy. Any detailed info would help.

Thank you.

[wisedecision]

Bump

[outofdebt201]

I'm in the same pickle I have 88 shares of IBM stock and they are worth around $12,000. My lawyer stated that because I'm filing chap 7 in Texas I might be able to keep some of it. I also own a house with 30k equity in it. I'll let you know how it works out.

[wisedecision]

Just wanted to provide the info on the initial question after discussing with my attorney and filing the BK.

My attorney advised me that I needed to contact my prior employer that I own the shares of and get a current value of the shares even though the company is private and the shares are not publicly traded.

I contacted the legal council for the company and had to explain my situation. The unfortunate part is that being the company is private, they would not provide a specific share value. To get around this my attorney advised that he had up to 20k left in exemptions in my no asset CA Ch.7 that he could list these shares under. I went back to the legal council of the company and explained that I could protect these shares up to 20k and asked whether the value was greater or less than 20k. I was able to get a written response from the company stating that although they could not provide a specific value, it is very unlikely that the value of the shares in question is greater than 20k. This information was adequate for my attorney to list the shares under my exemptions for protection.

I provided a copy of the email to my lawyer for the 341 if any questions arise and hopefully I can get through the 341 and protect these shares without the Trustee trying to snap them up.

I'll post additional info after the 341.

[nerves]

I have some stock options that have not been exercised. To exercise them, I would have to have cash to purchase them - which I don't. So they technically don't have value until you exercise them. At least that is my understanding. We disclosed that we had options (no value was included) and the trustee didn't even question or have any interest in them. Each state/district may be different.

[wisedecision]

I have some stock options that have not been exercised. To exercise them, I would have to have cash to purchase them - which I don't. So they technically don't have value until you exercise them. At least that is my understanding. We disclosed that we had options (no value was included) and the trustee didn't even question or have any interest in them. Each state/district may be different.

Understood. My problem is I have options that were exercised and I own them. The difference is the company gave them to me free and clear as a bonus back in 06 and part of the bonus was also paying the taxes on the stock. The total cash value of the bonus including taxes paid was 50k. Even though the current value per the company is less than $20k, when I was bonused them, they had a value of almost $30k.

We'll see what happens at the 341 and I'll let y'all know.