Will I be forced to cash this account?

I have been contributing to company shares for the last 10 year. $150 is deducted from every paycheck and my employer matches that amount. Will I be forced to cash this account if I have to file bankruptcy? I think there is a penalty if I do this.

One Comment

  1. First you have to determine whether it’s a retirement account. If so, then it’s likely exempt from the trustee and your creditors. If not, then you need to get the fair market value of the stocks as of the date your bankruptcy petition is filed. The filing date of your bankruptcy is the operative date to value the shares. I would need to know if you have a house with any equity. Lets assume that you do not and all your other assets are covered by an exemption. Then you would choose the federal exemptions and be able to exempt the shares up to a pre-determined amount. See this link for the federal exemptions. The “wildcard exemption” allows $11.500 plus $1,225 to use for any non-exempt property including shares of stock (assuming not retirement account). Retirement accounts have there own exemption. May have to sell some of the shares to appease the trustee, but better then losing all of them.

Leave a Reply