We are OPEN, and due to COVID-19, we are happy to conduct consultations via video chat, phone, or email. Please don’t hesitate to call us if you have any questions!

Call Today 678.929.8921
Benefit from the Experience of Attorneys Bill and Valerie Sherman Former Assistant Attorney General, Assistant County Attorneys and Magistrate Judge

Bankruptcy: I lost a huge amount of money in the stock market

Question: I lost a huge amount of money in the stock market and now I need to file for bankruptcy. I need to go bankrupt to save my house and get rid of bills from credit card companies and doctors and the hospital.

I got some stock tips on penny stocks from a friend who told me how much he made investing in penny stocks and I wanted to make money too so I invested in some penny stocks and I lost all my money and now the bills are mounting and my wife is threatening divorce. She’s angry because I had to sell her wedding ring to buy some stock in a company that I thought was a sure thing. They made some medical product that I thought the FDA would approve and I’d make some quick cash. The FDA never approved it.

I invested in a gold mining company, a solar panels company and a legal marijuana business. But they lost money and some even went bankrupt. Now that money is gone and I’m living on credit cards to buy food and I got cash advances to pay the mortgage, until I couldn’t do it anymore.

The worst part is that I could lose the house because I used our savings and 401 (k) to buy shares.

My wife said I shouldn’t use retirement funds to buy the penny stocks, but I thought these stocks were destined for serious profits. At least some of them should have been big winners, I thought. But pretty much all of them just lost value and are worth almost nothing now.

So I need some help straightening the whole mess out and getting out of debt and keeping my home from foreclosure becasue I feel like I was ripped-off by Wall Street. Can I file bankruptcy and keep my house even though I lost money in the stock market?

A.J. in Woodstock, GA

Answer: Many people lose money in the stock market. The fact that you lost money in the stock market buying shares of so-called “penny stocks” should not prevent you from filing bankruptcy. A frequent cause of bankruptcy is losing money “playing” the stock market.

Credit card debt and medical debt can be eliminated by filing a bankruptcy petition. In fact, most bankruptcy filers discharge credit card and medical debts.

Bankruptcy helps people keep their homes. If you are behind on your mortgage, you can use a chapter 13 to prevent a foreclosure. A chapter 13 will allow you to pay off any mortgage arrears thru a payment plan, usually over 5 years. So, for example, if you are behind 6 mortgage payments, a chapter 13 typically allows you to repay that amount over 5 years.

About Us

Overwhelmed by debt? Get a fresh start by calling 678-929-8921.

Let local bankruptcy and debt attorneys Valerie Sherman and Bill Sherman and their talented and friendly team help you get a fresh financial start!

We proudly serve the whole Atlanta Metro Area and North Georgia.