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Can employee stock options be converted to a 401K without bad faith before filing a Chapter 7 Bankruptcy?
Wiki User
∙ 17y ago
generally no. the only type of money that can be put into a 401k are payroll deductions, roll ins from other 401k's, traditional or Rollover IRA's and pensions. If the stock options are in one of these plans, call your plans service center to get your plans rules and procedures. It is rare for stock options to be in one of these plans. Also stock options have no real value until you exercise them (buy the stock).
Wiki User
∙ 17y ago
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The Two Major Corporate Bankruptcy Filings?
Just like people, sometimes a corporation accrues more debt than it actually has the ability to pay back. When this occurs, a corporation sometimes declares bankruptcy. However, corporations do not always use the same kinds of bankruptcy that individuals use. The two most common corporate bankruptcy filings are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7, which can also be used by individuals, is for businesses that are giving up entirely. If a company declares Chapter 7 bankruptcy, that company will cease operations immediately. At that point, legal ownership of the company is transferred to the bankruptcy court. When ownership of the company is transferred to the court, a lawyer will be appointed by the court to oversee the rest of the bankruptcy. This will include overseeing the closing of that corporation's facilities. It will also include a liquidation of the company's assets. The assets will be sold, and the proceeds of those sales will be used to pay back creditors that are owed money by the company. Chapter 11 bankruptcy, not used by individuals, is a bit different. Instead of the business being closed, the business is allowed operate normally during the bankruptcy. The goal of a Chapter 11 bankruptcy is the restructuring of the corporation so it can be profitable once again. There is also another potential benefit from this kind of corporate bankruptcy. All or a good portion of the company's previous debts and other obligations may be absolved. This is due to the fact that the goal of Chapter 11 bankruptcy is reorganization. Debt or other obligations that would force a company to go out of business may be removed to help that occur. Obligations other than debt that may be set aside by the court can vary. Usually this includes things such as agreements with unions on employee pensions and benefits, leases for real estate and other expensive contracts. However, even if a corporation attempts to enter Chapter 11 bankruptcy, there is still a risk that the company may be liquidated as part of a Chapter 7 bankruptcy. This can occur if a plan is not agreed upon by the corporation, its creditors and the court. If this happens, the only remaining options are either entering Chapter 7 or returning back to the company's pre-bankruptcy state. Since the company entered bankruptcy because survival without reorganization was unlikely, both choices are rather undesirable.
What are the differences between bankruptcy options?
Bankruptcy is a federal court process. It is designed to help consumers and businesses eliminate debt or repay debts under the protection of the bankruptcy court. There are two categories of bankruptcy, "liquidation" or "reorganization":Liquidation bankruptcy (or Chapter 7) - a consumer or business asks the court to discharge the debts owed (some debts cannot be discharged). In exchange, the business's assets or the consumer's property is sold (liquidated) and the proceeds are used to pay off the creditors.Reorganization bankruptcy (chapter 13) - involves filing a plan with the bankruptcy court suggesting how you will repay your debt. Some debts must be repaid in full while others require only a percentage or nothing at all.
What happens to put options when a company goes bankrupt?
What happens is the put writer gets hosed. If a company goes into Chapter 7 bankruptcy, all its stock becomes worthless. Unfortunately for the people who wrote put options on the company's stock, those do NOT become worthless. If the put buyer decides to exercise the option - and he will - the writer has to buy all those shares of worthless stock at the strike price.
What worse bankruptcy or debt relief?
If you have a pile of unpaid credit card bills and simply can't pay the total amount due. Then you have two options for dealing with the debt you've accumulated: liquidation or bankruptcy. When you declare bankruptcy, you're asking court to wipe your financial slate clean.
Pros and Cons of Bankruptcy Debt Settlement?
If you're in debt, chances are you didn't expect to be in this state. People get into debt for a variety of reasons, from making a huge purchase that they can't afford to losing their job. There are several options for debt relief, including claiming bankruptcy. However, bankruptcy isn't as simple as it sounds. The consequences of this decision should be weighed before filing for bankruptcy.Pros of Claiming BankruptcyOnce you file bankruptcy, you won't be contacted by creditors any longer. The bankruptcy will also put a stop to foreclosures, wage garnishments and repossessions. While you won't be able to get a credit card right away to start rebuilding your credit, you may be able to rebuild your credit sooner than if you were to deal with the collection agencies. If repaying your debt would take up to ten years, bankruptcy can make the path easier and free.Cons of Claiming BankruptcyA bankruptcy claim will show up on your credit report for as long as ten years. You won't be able to rebuild your credit or apply for a mortgage while there is a bankruptcy claim on your report. Bankruptcy doesn't take care of every type of charge, like student loans and back taxes. In court, you'll have to explain to a judge how you got into a financial mess, which is embarrassing for most people. Also, claiming bankruptcy will land your name in public court records and possibly your local newspaper.Tips for Claiming BankruptcyClaiming bankruptcy is not something that should be taken lightly. You should only turn to this solution if you've tried every other way to get out of debt and haven't been successful. There are three types of bankruptcy claims: Chapter 7, Chapter 11 and Chapter 13. Each type of claim has a distinct method for repaying your debt, filing the claim and using your own assets for liquidation. While you can file for bankruptcy on your own, protect yourself and your assets by hiring a bankruptcy lawyer.
How would you get a chapter 7 bankruptcy removed after 7 years?
A Chapter 7 bankruptcy will remain on the credit report for the requrired ten (10) years. There are not options for having it expunged sooner.
How much income is too much for chapter 7?
Income has little to no determination on one's ability to file for bankruptcy. It's the debt to income ratio that most bankruptcy courts look for. Consult a bankruptcy attorney; there may be other options that will not impact your credit as harshly as bankruptcy.
Where can one find an attorney to defend a Chapter 11 Bankruptcy case?
Filing a Chapter 11 Bankruptcy is a complex process. Finding a qualified attorney who is compassionate and understanding is an important first step. Compassion and understanding is a necessary requisite for such an attorney because a person files a chapter 11 bankruptcy because he/she has basically run out of any financial options like further bank loans. Checking out genuine review sites for bankruptcy attorneys on Google is perhaps a good place to start.
Can you donate a paid for car while in bankruptcy?
While in bankruptcy, the ability to donate a paid-for car can vary depending on the specific circumstances and the bankruptcy chapter you are filing under. In Chapter 7 bankruptcy, a paid-for car might need to be sold to repay creditors. In Chapter 13 bankruptcy, you might be able to keep the car and make charitable contributions with other assets. It's important to consult with a bankruptcy attorney to understand the rules and options that apply to your specific situation.
Options when payor cannot afford chapter 13 and too soon for chapter 7?
Good question. It is always a good idea to be fully aware of the bankruptcy system and the effect it will have on your life before filing. Filing for bankruptcy is the best remedy for many debt problems. However, there are other courses of action that may be better in certain situations, allowing you to avoid bankruptcy completely. One benefit of hiring a bankruptcy attorney is that doing so might actually help keep you out of bankruptcy court.
The Two Major Corporate Bankruptcy Filings?
Just like people, sometimes a corporation accrues more debt than it actually has the ability to pay back. When this occurs, a corporation sometimes declares bankruptcy. However, corporations do not always use the same kinds of bankruptcy that individuals use. The two most common corporate bankruptcy filings are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7, which can also be used by individuals, is for businesses that are giving up entirely. If a company declares Chapter 7 bankruptcy, that company will cease operations immediately. At that point, legal ownership of the company is transferred to the bankruptcy court. When ownership of the company is transferred to the court, a lawyer will be appointed by the court to oversee the rest of the bankruptcy. This will include overseeing the closing of that corporation's facilities. It will also include a liquidation of the company's assets. The assets will be sold, and the proceeds of those sales will be used to pay back creditors that are owed money by the company. Chapter 11 bankruptcy, not used by individuals, is a bit different. Instead of the business being closed, the business is allowed operate normally during the bankruptcy. The goal of a Chapter 11 bankruptcy is the restructuring of the corporation so it can be profitable once again. There is also another potential benefit from this kind of corporate bankruptcy. All or a good portion of the company's previous debts and other obligations may be absolved. This is due to the fact that the goal of Chapter 11 bankruptcy is reorganization. Debt or other obligations that would force a company to go out of business may be removed to help that occur. Obligations other than debt that may be set aside by the court can vary. Usually this includes things such as agreements with unions on employee pensions and benefits, leases for real estate and other expensive contracts. However, even if a corporation attempts to enter Chapter 11 bankruptcy, there is still a risk that the company may be liquidated as part of a Chapter 7 bankruptcy. This can occur if a plan is not agreed upon by the corporation, its creditors and the court. If this happens, the only remaining options are either entering Chapter 7 or returning back to the company's pre-bankruptcy state. Since the company entered bankruptcy because survival without reorganization was unlikely, both choices are rather undesirable.
If your chapter 7 bankruptcy was discharged six weeks ago what are your options for a refinance?
You can quite possibly refinance up to 80 percent of the value of your home and get some cashout with a decent rate.
What options are available to you as a small business owner filing for Chapter 7 Bankruptcy through a registered attorney?
The options available to a small business owner would vary in each situation. With a lawyer the business owner can go through each of the options and choose the best one for their situation.
Where can I learn about employee stock options?
An excellent resource for learning about employee stock options is through The National Center for Employee Ownership at nceo.org. This is a nonprofit organization that provides objective information relating to all aspects of employee stock options.
Should a Christian file bankruptcy?
Filing bankruptcy has no affiliation with religion. If filing bankruptcy is he best financial options available, then you should do it.
If you received a dismissal with prejudice on a chapter 13 with a one-year bar can you get around this in order to stop a foreclosure?
It is difficult to get around a dismissal with prejudice and one-year bar in a Chapter 13 case. However, you may be able to explore other legal options or file a new bankruptcy case under different circumstances to try and stop the foreclosure. Consulting with a bankruptcy attorney would be advisable to assess your specific situation and explore all available options.
What are the differences between bankruptcy options?
Bankruptcy is a federal court process. It is designed to help consumers and businesses eliminate debt or repay debts under the protection of the bankruptcy court. There are two categories of bankruptcy, "liquidation" or "reorganization":Liquidation bankruptcy (or Chapter 7) - a consumer or business asks the court to discharge the debts owed (some debts cannot be discharged). In exchange, the business's assets or the consumer's property is sold (liquidated) and the proceeds are used to pay off the creditors.Reorganization bankruptcy (chapter 13) - involves filing a plan with the bankruptcy court suggesting how you will repay your debt. Some debts must be repaid in full while others require only a percentage or nothing at all.
