Question Can I open a brokerage Acct after filing chapter 13?

[jg77]

Simple question, I've recently had my chapter 13, 341 meeting and now I'm wondering if it's illegal to open a brokerage account.

[HHM]

It's not illegal, but it does beg the question of where you are going to get the money to open one.

[jg77]

The money would be coming from my father, he wants to give me $300 to invest in while I put in $200.00. Now that everything is down on paper and I'm not in this financial mess I was in, I'm sure an initial $200 from me wont hurt anyone.

[chloe0724]

If you have to provide your tax returns to the Trustee each year, they will show the accounts. Not sure you want to be in that position.

[havefaith]

perhaps your dad can put that money towards an account in which you are the beneficiary? or a life insurance policy? just a thought. I don't know what your age or your dad's is.. If your dad has a financial advisor, he should check with that person.

[Flamingo]

The money would be coming from my father, he wants to give me $300 to invest in while I put in $200.00. Now that everything is down on paper and I'm not in this financial mess I was in, I'm sure an initial $200 from me wont hurt anyone.

You will receive tax information each year for your tax returns from the brokerage firm holding your account. You provide them your SS# when you open an account. Also, there are fees associated with these accounts that are usually due and payable on a quarterly basis. They usually run about $40 or more a quarter so brokerage accounts are usually geared to those who have the funds to play in the stock market.

[chloe0724]

And honestly, with the market as volitile as it is current;y, why would you want to risk it. Why not just have him start a savings account for you, or buy savings bonds that you could redeem when your BK is over.

[Flamingo]

I also forgot to add that there are usually fees for each transaction you make in addition to quarterly fees. ETrade charges $12.99 per transaction along with quarterly fees so if you make several transactions purchasing small amounts of stock, you can blow through a small amount of investment money fast just on fees.