Will this force an asset case?

My wife has about 10K in stocks. I assume they will go bye bye. Will this automatically make this an asset case? If yes, do asset case's become more difficult? Do people come to your house, appraisers etc? I have some home shop quality auto tools, a hobby welder etc. that I guess will be not exempt under the personal property/house hold goods exemption? Just kind of trying to figure out what to expect.

I had $1970 in stocks from a former employer. I cashed them in September, listed them on my income, and there was no issue with that. I was still below median. I used the $ to pay my lawyer and pay a few misc. bills. It was either that, or let the Trustee have them!

If you and your spouse are filing jointly, and she has $10K in stocks in a non-exempt fund, that money is toast. You really need to consult with a good attorney to come-up with a plan to deal with that money and your tools.

True. There's a big diff between the amount of stock I had and the $10k your wife has. Mine was low enough that it didn't hurt me to be counted as income on my schedules.

We could put some in an HSA account and some in my IRA...but it would still leave a bunch....I think it would drive me over the income limit....although I'm unemployed as of today so that will help with the income (is that a crazy thing to say or what?). My company was my employer....she's toast and she owes like $225,000 in personally guaranteed funds...my share is one 3rd of that (3 equal partners). Otherwise I have perfect credit and no late or skipped payments on my personal life....its a wacky deal here. I loaned the biz 30K of my personal funds...she's defaulting on me too! Can I sue myself? :dry:

Hey StillSwingn,

With that much you'll definately be over exemptions. Also... don't try to move it around cash it in, etc. especially if trying to put it into an exempt product. Our trustee (Who is extrordinarily tough) went back 4 years on my 401K and IRA, and wanted to know exact dates of contributions for them.

i.e. she was looking for non-exempt assets to be transfered into exempted assets.

We have issues with a stock my wife owned which we had little details about, and caused us a bunch of greif. Check my sig below.

Ok - I am certainly no expert in stocks or BK, but was just wondering why he couldn't just liquidate the stock and use the money to live on while he looks for other employment, before he gets to the point of having to file?

Yes I'm curious about the living off the stock thing myself....someones said I'd be over my exemptions....what did you mean by that? In Nevada we don't have a wild card or any cash exemptions that I'm aware of.....

Florida guy (steve) just read about half your blog...GAWD! What a friggen nightmare. I'm so sorry your getting the bend over treatment there. It appears FL is not a c7 friendly state. Those exemption limits...like 2k per car, are pretty horrible. Man it supports buying a new expensive car with like a 7 year loan so you go upside down and get to keep it...how odd eh?
Anyway...hope it ends soon for ya.

Thanks StillSwingn,

We're hangin in there! Just want it to get over with, and move on!

PoorGrammyinBK7: Remember if he does that within 6 months that would be considered income for the means test, which may force them into a 13, if they may have qualified for a 7 and it sound like he wa sgoing for a chapter 7.