Restricted Stock Units (Income or Asset)

[Leesa0926]

My company gives RSUs as supplement to your income but they vest at different periods and amounts.  It only looks forward 1.5 years.   When they vest they are taxed as income but you need to sell the shares to get the money.

My income is right there for chapter 7 but with the RSUs that will vest about a month prior to filing it would put me over.  I usually sell and pay debt with it but a lawyer mentioned not selling this time and to hold.

Lawyer will look it over but I thought someone here may know.  I don't mind using it to pay just don't want it to push me to a chapter 13.  

About 8k will vest around filing time and I have another 12k invested that vests through 2026.

Anyone know if they count as income or asset?  I've read conflicting things.

[pizzadude]

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@Leesa0926 wrote:

My company gives RSUs as supplement to your income but they vest at different periods and amounts.  It only looks forward 1.5 years.   When they vest they are taxed as income but you need to sell the shares to get the money.

My income is right there for chapter 7 but with the RSUs that will vest about a month prior to filing it would put me over.  I usually sell and pay debt with it but a lawyer mentioned not selling this time and to hold.

Lawyer will look it over but I thought someone here may know.  I don't mind using it to pay just don't want it to push me to a chapter 13.  

About 8k will vest around filing time and I have another 12k invested that vests through 2026.

Anyone know if they count as income or asset?  I've read conflicting things.

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I'd for sure defer to your attorney on this one.   I could see them including it as an asset because technically you don't have to sell it immediately upon vesting, right ?

[Leesa0926]

Yes, you only get taxed upon vesting but to get the funds you would still need to sell as it's in the brokerage account (Fidelity).  It wouldn't make sense to sell now anyway as stock is down. (think like Amazon)

You can automatically sell but I don't have it set for that and in order to not get capital gains you need to hold for a year if not sold at vesting.

I'm hoping it counts as an asset and it should as the anoints and be vesting dates vary so it can't be like counted in.