Stock Options

[dolphin2003]

What is the name of your state? Texas

I filed bankruptcy in October 2001. I have paid my monthly payments on time until August 14, 2003 when I lost my job. I start a new job Friday. With my previous job I had stock options. If I exercise these options will my creditors get this money or will I get and be able to catch up on my payments.

 

[bearfootball]

Depends on where the money goes. If it goes into your retirement, then they can't touch it. If you cash out, and put the proceeds into a normal bank account, then they could get it ONLY after a judgement has been made against you.

 

[Ladynred]

I'm not so sure about that. The Options would have become part of the BK estate. I'm not a Ch 13 expert, but its possible that exercising those options would end up with the money being turned over to the Trustee.

Perhaps Elmo will chime in here..... ?

 

[HomeGuru]

Tickle me Elmo?

 

[JETX]

Elmo is an idiot.
He claims that a petitioner doesn't have to advise the bankrupcty court of new employment DURING the process. He further doesn't understand what 'bankruptcy estates' are.

So, back to this thread....
Though the writer isn't clear as to what chapter filing this is, it can be presumed that it is chapter 13 since he/she claims of a monthly payment plan. As such, there are TWO unasked issues that is critical in determining the correct answer. Those questions are:
"Were the stock options listed on the petitioners asset list?"
and
"Were the options earned at the time of the filing/discharge or were they 'earned' after the fact?"

For relevance:
"The bankruptcy estate of an employee-debtor includes the value of vested but unexercised stock options, and excludes value of stock options whose vesting depended on services after employee's filing for bankruptcy (In re Massimo DeNadai, 259 B.R. 801, US Bkrtcy Ct. 2001, 6-1-01)."

 

[HomeGuru]

Elmo is an idiot.
He claims that a petitioner doesn't have to advise the bankrupcty court of new employment DURING the process. He further doesn't understand what 'bankruptcy estates' are.

**A: and why would anyone take this persons' advice when their profile under occupation states: "an expert at being broke"?

 

[dolphin2003]

stock options

I filed chapter 13. All but 31 of the options were recieved before I filed, but they mature over a 10 year period, I received my first set in 1998 and each year since up to 2002. They are also non-qualified.

 

[HomeGuru]

.