Question about assets...

[jimisbroke]

Here's an odd question. I am filing this spring. My only asset is some stock in a private company. At this point the company is not allowing any sales. My attorney has advised that if it cannot be sold then the trustee cannot take it. My question is what happens if by some odd stroke of luck (bad? good?) that changes and the trustee finds it can be sold and the value is more than what I owe? For example, what happens if it turns out the stock is worth $50k at the time of the 341 meeting and I only owe $40k to credit cards? Do I get the difference? And to add another layer of confusion...does the fact that I am surrendering my house make a difference? Meaning would the trustee give any excess to the mortgage company? Just trying to cover all of my bases!!

[AngelinaCat]

You have many questions. If you are not comfortable with your attorney, you need to schedule some other consultations with BK attorneys.

Is the stock you are talking about contained within a Retirement instrument, or do you own it outright? If it is part of a Retirement instrument, it is an exempt item, and cannot be touched. If you own the stock outright, you will need to list it, and if the trustee asks you about it at your 341, answer the question.

You may also wish to go to nolo.com and purchase their downloadable version of their guide to filing Ch7 bankruptcy. It is a very good easy to read guide that is up to date. It also helps you understand what the attorney is telling you.

Good wishes to you.

[AngelinaCatHub]

Here's an odd question. I am filing this spring. My only asset is some stock in a private company. At this point the company is not allowing any sales. My attorney has advised that if it cannot be sold then the trustee cannot take it. My question is what happens if by some odd stroke of luck (bad? good?) that changes and the trustee finds it can be sold and the value is more than what I owe? For example, what happens if it turns out the stock is worth $50k at the time of the 341 meeting and I only owe $40k to credit cards? Do I get the difference? And to add another layer of confusion...does the fact that I am surrendering my house make a difference? Meaning would the trustee give any excess to the mortgage company? Just trying to cover all of my bases!!

You are dwelling on 'happenstance'. A what if is hard to respond to. In what you are saying, you and I cannot comment on what the future holds. Assume the stock is not common stock and cannot be sold, so you have no real asset to be gotten. After a time if the Trustee does nothing the item will be moot.

So, with the info you gave, this is the best I can do. As far as the home, it does not relate. If the stock can be taken, the excess will go to whatever debts you have, secured, on not. 'Hub