Bankruptcy Question

Anonymous · ‎12-28-2016

Good afternoon all,

I have a question regarding if whether my investment account (scottrade) can be kept if I file for bankruptcy? The account value is under 3k but there is the potential for it to grow to more down the road. Just wondering if I file will they have me sell of my holdings?

thank you

StartingOver10 · ‎12-28-2016

@Anonymous wrote:
Good afternoon all,

I have a question regarding if whether my investment account (scottrade) can be kept if I file for bankruptcy? The account value is under 3k but there is the potential for it to grow to more down the road. Just wondering if I file will they have me sell of my holdings?

thank you

This is a good question for your attorney to answer.

Do you have any exemptions to cover the asset? Here is a link to NOLO about Federal exemptions and assets https://www.nolo.com/legal-encyclopedia/federal-bankruptcy-exemptions-property.html

Your attorney will be able to address your specific situation

Guyatthebeach · ‎12-28-2016

@Anonymous wrote:
Good afternoon all,

I have a question regarding if whether my investment account (scottrade) can be kept if I file for bankruptcy? The account value is under 3k but there is the potential for it to grow to more down the road. Just wondering if I file will they have me sell of my holdings?

thank you

Crivera330,

That is a question for your attorney.

If the investment account is a retirement account, you may be ok. If it isn't, you will have to close it with the proceeds going to pay off your debt.

Please let us know the outcome.

Guyatthebeach

pizza1 · ‎12-30-2016

This is a tricky one...

My 401k stayed intact, and the trustee didn't touch it. But, I had a small retirement trust that was liquidated.

Will be hard to know, and will actually be up the the trustee, not the attorney. Your attorney can advise what he thinks will stay out of the BK, but the trustee can override anything.

Happened in my case. My attorney said that my trust would stay intact, only to find out at the 341 meeting, that the it would be liquidated.