Can I keep the 13k in stocks in Texas for BK7

[outofdebt201]

I’ve search for two days on this site to see if anyone has posted about keeping stocks after filing BK7. But I couldn’t find anything. I have a house that my sister and I purchase about 7 years ago with equity of about 30k, in equity. I make about 30-35k a year and live in Texas (median income 38k filing single) So I’m under the means test for income. But I have $13k in IBM stocks and $175 in scotstrader account.

What is the chance that I will be able to at least keep SOME of the stocks? I was under the impression that Texas doesn’t have a wild card. I would like to use some of that money to pay my lawyer and my income taxes.

I asked my lawyer, but she said she would need to look into it, and she hasn't gotten back to me.

Thank you so much for your help, this site is a blessing.

[nerves]

Odds are pretty good that the trustee will want to liquidate the stocks if you don't have a wildcard or homestead exemption available to secure them. I don't believe the stand alone stocks will be considered a retirement exemption.

With that being said, I listed some stock options as an asset and the trustee didn't question or have any interest in them. However, stock options are not liquid unless you have cash to buy/sell and they were non transferrable.

[BKDefender]

You can only keep assets that are exempted. Check to see if Texas has a 'wildcard' exemption that you can use for anything. But I doubt that it will exempt $13k in stock. You are allowed to convert non-exempt assets to exempt assets, so you might consider liquidating your stock, fully funding $5k of your 2009 Roth IRA (you can do that until 4/15/10 tax day), fully funding $5k of your 2010 Roth IRA, and using the $3k to pay you BK attorney, buy groceries for a month, pay one month ahead of utility bills and/or rent, and then file BK with no non-exempt assets.
You could also buy a gun, a horse and a saddle, and sell them afterwards (If I remember right, TX has specific exemptions for horse/mule/cattle) - I was born and raised around Houston so I understand :-)

--William