QUESTION
I am planning on filing Bankruptcy, Chapter 7. Am I able to preserve some funds, so its not being distributed amongst creditors ?
Asked on Nov 22nd, 2020 on Bankruptcy - California
More details to this question:
Hi, I live in Los Angeles, CA. My question is regarding potential ways of using the funds that I have left before filing bankruptcy. 1. I, currently, have around 60.000$ in Cryptocurrency. 35000$ from it will be protected by my lawyer, therefor I will be able to keep it. The rest 25000$ Id like to preserve as well. What are the best ways to do it ? I still have 2 personal loans that I have and would like to pay off those people, since they are my friends. Am I able to do that before filing? And if, yes, I presume it should be contractually connected, right ?
1 ANSWER
I am a bankruptcy attorney. You shouldn't do anything to hide assets because that's one of the first questions the bankruptcy trustee will ask you, and you must tell the truth. Hiding assets is one of the first things that causes FBI investigation on bankruptcy fraud. I don't know the worth of the Cryptocurrency but know that it fluctuates daily. Some assets are exempt from bankruptcy such as retirement funds, etc. Above that is a wildcard of $23,250 California property exemption. On the personal loans, yes, you must list all of your assets and debts even the personal loans. However, there is nothing against the law for you to pay them after the bankruptcy discharge (or case closes). Please know that you cannot selectively pay your debts before filing without paying the others. It's called giving preference to some creditors and that's a no-no. Good luck!
Answered on Nov 24th, 2020 at 5:41 PM