Q: my friend is filing for bankruptcy over a $24,000 credit card bill

A: A: You are essentially asking lawyers how a debtor can hide assets from her creditors and the bankruptcy court. Unfortunately, concealing assets in a bankruptcy is considered a federal crime and attorneys cannot ethically advise you how to commit a crime.

However, she should speak to a bankruptcy attorney regarding how she can best proceed.

A: The only way to "stop the bankruptcy" is by a dismissal of the case, prior to entry of a discharge, and the grounds for dismissal are mostly centered upon a bankrupt's circumstances preceding the filing, and the full disclosure of those circumstances on the bankruptcy Schedules.

If the bankruptcy is a Ch. 7, the proverbial curtain drops on the date of filing, and the bankruptcy "estate" includes only those assets (broadly defined) owned on the date of filing, and the debts in existence at the date of filing. Nothing that occurs after the filing date is relevant or reachable by the bankruptcy trustee (except for an inheritance received within six months of the filing date of the bankruptcy case).

The same rules generally apply to a Ch. 13 proceeding. There are some federal districts in which the Ch. 13 trustee requires periodic reports of income subsequent to the filing of the case. You can find out by googling your district's bankruptcy court and checking that district's local bankruptcy rules.

You don't say whether this is a gift or a loan. There are some provisions of the bankruptcy code that deal with a debtor's incurring post-petition date and whether such debts are dischargeable.

She could take your check to your bank, and get cash, or one or more cashier's checks, or use the proceeds to purchase prepaid Visa/gift cards (careful, some must be redeemed within 6 months).

There is no criminal liability of which I am aware that would apply to your friend's receiving a donation/gift/loan from you.

Oh, if your friend cashes the check at your bank, the bank may report it. If memory serves, banks report transactions over $10,000. Still, I see no peril for your friend in receiving your capital advance.

A: Why is she afraid to cash the check? Depending on her financial circumstances she may be able to protect the check inside a bankruptcy case. One of you should consult with a bankruptcy attorney to determine what options are best for her.

A: With all due respect to you, why is this a "do it yourselfer" without a lawyer? If you can afford to plunk down a check for 10K, then spend another $2k and get her a top BK lawyer to handle this thing correctly. Other questions and issues almost always arise in a case. This is not the only twist that she will face.

A: My colleagues whom have responded, have done a great job in covering the issues. Take heed and I urge consultation with an experienced bankruptcy attorney.