Yes but you have to report it.

Answer Applies to: California
Replied: 8/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

You can sell stocks prior to bankruptcy but you must meet all the requirements of the bankruptcy law in doing so. It is probably unwise to do so and you should consult an attorney prior to making a decision. Transactions within one year prior to filing will be scrutinized by the trustee to see whether you violated preference rules. All income and expenses must be provided in your bankruptcy petition.

Answer Applies to: California
Replied: 8/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

If you have an attorney, they will answer all of these questions. You can sell your stocks before filing bankruptcy, but doing so may result in income you have to include on the means test if received in the 6 calendar months prior to filing your case. Whether this will affect your eligibility or not depends on multiple factors, including obviously the amount of gain on the sale, but you need to have a comprehensive consultation with a bankruptcy attorney before deciding how/if to proceed.

Answer Applies to: California
Replied: 8/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Without looking at your financial situation its hard to say. Generally all sales of assets within a certain time period prior to filing must be disclosed. Taking money out of a retirement or selling an asset prior to filing is ok as long as you disclose it and can account for the sale proceeds.

Answer Applies to: California
Replied: 8/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.