If you receive stock (or shares) from your employer as part of your compensation package, you’ll have to disclose this asset on your Schedule A/B. Even though it’s part of your compensation, it’s really an asset, not income. Depending on whether your employer is a publicly traded company or not, you’ll list your shares either in response to question 18 or 19 on Schedule A/B.
When listing the shares, make sure to differentiate between vested vs. unvested shares and be prepared to provide the bankruptcy trustee with details about both.
Common names for this type of compensation are:
- Employee Stock Ownership Plan (ESOP)
- Restricted Stock Units (RSUs)
- Employee Stock Purchase Plan (ESPP)
- Employee PROFIT Plan
Some, but not all, of these may be considered part of your retirement and therefore be protected by an exemption. If you own a significant amount of shares from your employer, it’s best to speak to a bankruptcy attorney about how filing Chapter 7 bankruptcy would affect your shares.