Q: I am about to file bankruptcy Chapter 7 in California. My debt exceeded 180.000$ and I have no assets and income
I am about to file bankruptcy Chapter 7 in California. My debt exceeded 180.000$ and I have no assets and income coming in. But I still have 60.000$ in Crypto currency. My lawyer will be able to protect 35000$ for me. I have a few personal loans that I would like to pay off, its 2 people and total of 25000$. Am I able to do that before filing bankruptcy? And if, yes, what is the best way to do it ?
A:
There is no best way!
Personal loans to people you know (and obviously care about) can be reached by the trustee and clawed back into the Chapter 7 estate. Should you lie about in on your schedules is is bankruptcy fraud.
I have never dealt with crypto currency in any 7 or 11 I have done, and it is new to a lot of practitioners; however, it is probably available to the trustee to distribute ratably to creditors.
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A: You state you have a lawyer. Talk to them. They are your best resource to evaluate your entire situation and give you the best advice.
A: Apparently you have an attorney. I urge you to rely on your attorney to respond to the questions you posted. If the attorney cannot address the issues, or is uncertain about what the issues are, perhaps you need to find another attorney. The potential payoff of debt prior to filing, which must be disclosed in your bankruptcy schedules, may create more issues for you and for the creditor you pay. You should be discussing your entire case in detail with an attorney, before you file.
A: Of course your attorney is your best resource for such questions. But if you do pay them you have to disclose it and the Trustee can get the money you paid back and spread it out among all the other creditors and your personal loan friends will not be happy. There is nothing that prevents you from doing whatever you think is right for your friends after your Bankruptcy is over. But you need to treat ALL creditors the same before and during your BK.
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