my hubby lost money in stocks and he intend to declare bankruptcy...what shall i do? I am in a lost?

Question

I am an idiot in stocks. I only knew that he is buying on contra and the shares are dropping and he have to pay abt 60k.

I am an idiot in stocks. I juz knew that he is doing contra and that the shares dropping tremendously and it is time he sell and lost will be abt 60K

Answer 1

Your husband can declare bankruptcy without you being included, however you need to be aware that if he declares bankruptcy and those debts are jointly owned you will be responsible for them. Bankruptcy standards are very stringent now so he really should think this through, especially if you own your own home. I suggest that you check with your states bankruptcy court website to see how this affects you as a spouse. You can go to www.uscourts.gov and find the bankruptcy court in your state because they should have plenty of information for you. Since I use to work as a clerk for a bankruptcy court I advise that you speak with an attorney and as required by the new bankruptcy law, a credit counselor. FYI: It's pointless to call the bankruptcy court because they cannot discuss the law with you or how it will affect you. I hope this is helpful.

Answer 2

This is the risk for using other people money to invest in stock. But since it's already happened, probably both of you should sit down and discuss how to overcome this. $60k is not a very big amuount, and it's really not wise to declare bankruptcy over $60K. If he has a decent job, there shouldn't a big problem to pay back the bank by instalment.

Answer 3

Losing money in stocks is not a reason for bankruptcy unless they were purchased on margin and he cannot meet the margin call. To illustrate, just because your house is now worth half of what you paid for it, that doesn't mean you need to declare bankruptcy. It does mean that you can't sell your house at a profit.

Answer 4

the most important thing in stock investing is to diversify, so you can reduce the risk, avoid putting all of your money in one company, setup a portfolio. recently the stock market has big declines, so most of us loss a lot of money in the stock market, but i believe it will come back, just the matter of time. the only reason a person would declare bankruptcy is if a person borrow a lot of money and put all his money and the borrowed money into one single stock, and the company went bankrupted, then you are in big trouble...stock loss is capital loss, capital loss offset capital gain, the rest you can carry back or carry forward. good luck

Answer 5

Declaring bankruptcy is always a last choice. It depends on much debt you're in and what your income level is.

Exactly what did he do to lose money? Did he lose his capital, or was he short-selling, and now in debt because of a margin call?

Answer 6

Did hubby buy the stocks on margin? Why does he intend to declare bankruptcy. You need to say what his reasons are.

Answer 7

Unless he is in debt he has no reason to file bankruptcy, He didn't lose money unless he sold. Who knows what the future will bring.