Legal Question in Bankruptcy in Florida

I am about to file chapter 13 bankruptcy . Two houses went to foreclosure ,a couple of credit cards delinquent . I have $ 2500.00 cash . Can I open a stock market account and trade stocks while I am filing bankruptcy , is the money protected or can it be garnished by one of my creditors . ....


Asked on 9/26/11, 5:03 am

1 Answer from Attorneys

Sanford M. Martin Sanford M. Martin, P.A.

Several factors must be considered. After you file for Chapter 7 or 13, you are protected until the court grants a creditor the right to proceed against you. Such investments are property which must be included in the bankruptcy petition. So, yes your investment account is protected so long as the bankruptcy is in process, the court has not granted a motion to lift a stay which permits the creditor to collect, and the court has not issued a final order which excludes certain creditors, including the foreclosing banks, from collecting its debt. Usually, under a Chapter 13, all such debts are resolved as part of your Chap 13 Plan approved by the trustee and court, and any investment account is secure.

Read more
Answered on 9/26/11, 5:39 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Florida