Boston Bankruptcy Attorney

Stock Portfolios and Bankruptcy

Despite the fact that the stock market is at a level that it hasn’t been seen since 1997, many people still have significant amounts of money tied up in the stock market. Because of this, many are concerned as to what will happen if they declare bankruptcy and have significant stock holdings.

If a person files for chapter 7 bankruptcy, the type where the assets are liquidated to pay off creditors, his or her stock holdings can be liquidated. This is not true if the stocks are part of a protected retirement plan but is true otherwise. If the stocks are not part of a protected retirement fund, there is a good chance they can be sold off to pay off debts. Considering how many people have taken a serious hit, the sale might not produce much good.

Chapter 13 bankruptcy is a little different. Expected dividends from a portfolio can be counted as income and be used to determine how much money the person has to pay on a monthly basis. If the market goes up significantly and dividends change drastically, the person may be sitting pretty. If, however, the value of the stocks decreases significantly, the person in bankruptcy may have problems making payments and may need to look into renegotiating.

Contact a Boston Bankruptcy Lawyer

If you hold a lot of stock and were depending on that stock to get you through your golden years but are not facing bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 to discuss your case and to determine the form of bankruptcy that is best for you.