Chapter 7 And My Personal Penny Stock

[ManFromMunchkin]

Hello,

It appears that I will be filing for Chapter 7 bankruptcy in early 2007. I really don't see any other alternative. I am single and live in the state of Virginia.

My gross yearly income is about $20,000 from disability retirement, and my debt load is about $40,000. Most of it is from credit card debt.

As far as assets, all I really have is my furniture and my car, which is paid for, and which I estimate has a current Blue Book resale value of about $2,000.

There is one other little asset I have. I own about $1,000 worth of a penny stock from Scottrade in a taxable account

Yeah, I know. This probably sounds mighty stupid to most of you. But I have faith in this little stock. It's like my "pet."

In case you're wondering, the stock is TDCP.PK.

A pink sheet penny stock, no less. Now you must really think I'm dumb.

Okay, here's my question.

When I file for my Chapter 7 bankruptcy, can they seize the value of my penny stock? I have read that my furniture is exempt. Is this stock exempt too? Remember that it is not in a retirement account -- it is in a taxable account.

Here's another wild case scenario. One which probably has a one in a million chance of happening, but with penny stocks, these things do occasionally happen.

What if the value of my penny stock shoots up to, let us say, $10,000 or more during 2007. Can they seize the value of that stock?

Any information on the above would be deeply appreciated.

Thanks in advance.

Happy Holidays!

Dennis

[SinkingFast]

Any unused portion of your Homestead Exemption can be used as a WildCard to protect anything you want. The Homestead Exemption is $5K plus $500/dependent.

You mentioned disability,................ If you are a disabled Veteran, you can also take an extra $2K Exemption. According to the wording I saw, it looks like you could apply that to anything you wanted.

http://www.bankruptcyinformation.com/VA_exemp.htm

There are others here better qualified to address the "What if?" scenario should your investment boom.

[bige1030]

[Spartan]

Virginia allows Federal exemption. He can allocate the unused homestead exemption to protect up to $10,000 in stocks. So, if his penny stocks go up by 10X , he will still be protected.