Employee stock options while bankrupt
February 28th, 2007 by Questions
I am considering a div 1 proposal, if not accepted then ultimately a bankruptcy. After filing I wish to enroll in company stock purchases threw work where I get 5% of wage taken off my pay cheque. I would have done it years ago, but I always used any extra money to pay debt, and cut my living expenses to that of a hermit.
Does enrolling in a program like this after one files have any impact on the bankruptcy/proposal proccess.
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March 01, 2007 at 5:52 am, A licensed trustee said:
If you file a proposal and enroll in an employee purchase plan after the fact, it will not have any affect on your proposal.
If you file an assignment in bankruptcy and enroll in an employee purchase plan after you file, the amount of your payroll deduction will be added back to your income when you trustee determines your monthly payment requirement.
Make sure you review your intentions with your trustee before you file so they may explain to you in detail how a stock purchase plan will be treated.