If chapter 7 was filed, would the online brokerage house cancel my account? Not much money left in the account, but I just want to keep ythe account alive for the future stock trading and investment.
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Last edited by sivmtrohs; 12-29-2005, 10:37 AM. -
More than likely account will be closed..... most creditors do close all their accounts with you......
You may have to regroup and reopen another account with them..........Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different. -
Brokerage house is not a creditor. Brokerage account is like bank account. The bank will not close my checking and savings accounts, will they? If I change my stock brokerage account to cash account from margin account, it should be treated as the same way as checking account. That could be only my wishful thinking, though.Comment
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If the brokerage account is a money account like a online checking account or regular checking account - the trustee can "take" the money recorded for the day of filing your petition as "on-hand-cash" unless you can exempt it...
Minny
Very seldom is an account frozen such as a checking account...Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.Comment
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Did you list them on your Bk petition? Or did you just consider it too small an amount to be bothered with or "forgot" them? If they were not listed, tthey would not be notified until and if they run a credit check. Seems to me the money mkt. type acct. would be fine. The margin acct they woould prob close if they know of the Bk. Only other situation I can think of is if they allowed you to buy stocks and then put the money in to pay for them w/in the 5 days or week that you have. You might have to make arrangements w/ them so that you can only buy stocks, puts or calls if you already had the money in the acct. Highly unlikely that they would let you buy or sell options. All of this is IF they know that you filed. If they don't know and you aren't worried about the Trustee, then you could go ahead and do business as usual. The one caveat being that you are not supposed to incur debt during the Bk process.
In other words what you can do depends a lot upon what they know and what you would not want the trustee to know. However, since interest and possibly gains and losses would be on your last 2 years tax returns, the likelihood of the Trustee finding out increases dramatically. ArtComment
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