Many people put a great deal of money in the stock market because of the chances for great financial payback. However, some stocks do not come with financial benefits, which can lead to dire monetary situations. If you have money in the stock market but are currently going through difficult financial times, you may be wondering how declaring bankruptcy will affect your stock portfolio.
Fate of a Stock Portfolio Following Bankruptcy
If you own shares in a company, your stock ownership can be affected by your declaration of bankruptcy. This depends on the chapter for which you file. Some common effects of bankruptcy on your stock portfolio include:
- Chapter 7 – A court-appointed official will decide if a portfolio is able to be kept. Luckily, retirement funds will likely not be sold. However, other shares may have to be given up in order to pay off debts.
- Chapter 13 – As you have to pay back creditors under chapter 13, you may have to sell stocks in order to fulfill these debts. However, if you can pay back the debt with income alone, you may not have to get rid of your shares on the stock market.
It can be important to discuss your financial situation with a qualified bankruptcy attorney to determine the best way to protect your portfolio during bankruptcy.
Bankruptcy can be very helpful for handling your debts and developing repayment plans. If you are struggling with your finances, it is time to look into your bankruptcy options. Contact the knowledgeable Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, today at 414-377-0518 for a free consultation.