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Investing/Daytrading After 341 Meeting - Risk?

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spaceboy710
New Member

Investing/Daytrading After 341 Meeting - Risk?

Hello everyone!

First off, I want to say how amazing this forum as been in understanding the specifics of the bankruptcy process and in planning for my post-bk rebuild. This place is truly wonderful. 


I'm been lurking for a while and wasn't able to find a case of my question being answered anywhere else on the forum or online. If I'm totally wrong, please let me know.

 

I have my Meeting of Creditors coming up. Should that go well (and I have no reason to think it won't), I should have my bankruptcy discharge 60 days later. 

 

During the wait between the Meeting and the discharge, I have considered doing some stock trading to generate additional (but very needed) income. This would involve wire-transferring about $2,000 in funds to my broker. Would transferring these funds look suspicious and/or potentially jeopardize the likelihood of my bankruptcy being discharged? While I've read frequently that the bankruptcy and discharge is mostly concerned with your financial status at the time of filing, I don't want to risk my discharge even if it meant generating very needed extra income.


I had talked to my attorney and he mentioned he "didn't care if I traded stocks" during the bankruptcy process but his response was more glib than I would have liked and I was hoping to hear more insight from other people.

 

Any advice would be great. Thank you!

Message 1 of 5
4 REPLIES 4
FireMedic1
Community Leader
Mega Contributor

Re: Investing/Daytrading After 341 Meeting - Risk?

I wouldnt make any financial moves until discharge. Trustee will look at all that he can to make sure theirs no fraud. You could risk dismissal. Not worth it to wait 30 days for the DC


Message 2 of 5
TRC_WA
Senior Contributor

Re: Investing/Daytrading After 341 Meeting - Risk?

Rolling the dice and I wouldn't do it.  Your attorney may be your friend... but the trustee isn't.

 


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Message 3 of 5
despritfreya
Frequent Contributor

Re: Investing/Daytrading After 341 Meeting - Risk?


@spaceboy710 wrote:

I have my Meeting of Creditors coming up. . .  I should have my bankruptcy discharge 60 days later.  During the wait between the Meeting and the discharge, I have considered doing some stock trading to generate additional. . . income. This would involve wire-transferring about $2,000 in funds to my broker. Would transferring these funds look suspicious and/or potentially jeopardize the likelihood of my bankruptcy being discharged?. . . I had talked to my attorney and he mentioned he "didn't care if I traded stocks" during the bankruptcy process. . . Any advice would be great. Thank you!


1.  You are in a Chapter 7 - post petition earnings are not property of the bk estate.  This is why your attny said he didn't care.

2.  You are free to try to earn money after the filing date.

3.  Trading stock is nothing more than going to a casino to play the tables.  Gambling is not a way to "generate additional income" (even if you think you have a "system" and/or you know more than the next guy).

4.  So long as the funds you are about to "lose" are not funds that were in existence when you filed bk, the bankruptcy court and/or trustee have no interest in whether or not you win or lose.

 

Des.

Message 4 of 5
spaceboy710
New Member

Re: Investing/Daytrading After 341 Meeting - Risk?

Totally agree and understand with the advice to wait until after discharge. Thank you for echoing what I needed to hear!

Message 5 of 5
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