Caldwell, ID asked in Bankruptcy and Criminal Law for Idaho

Q: Can I file bankruptcy even when my debt became unpaid partly because I was buying illegal drugs for my addiction?

I'm worried my past transaction on cash app will show I sent money to my drug dealer when I was going through my addiction. If so will I get in legal trouble trying to file bankruptcy. I really need debt relief now that I. Sober supporting my family, I'll lose my house if my wages get garnished.

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2 Lawyer Answers
Timothy Denison
Timothy Denison
  • Criminal Law Lawyer
  • Louisville, KY

A: Yes. You can.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Criminal Law Lawyer
  • Sacramento, CA

A: Filing for bankruptcy is about addressing your debts and getting a fresh start, and you can file even if past spending contributed to your debt, including spending on illegal substances.

However, be aware that bankruptcy proceedings require full disclosure of your financial transactions, and certain types of debts incurred through illegal activity may not be dischargeable.

Moreover, if any fraudulent activity is uncovered in your financial history, this could complicate your filing. It’s crucial to be honest with your attorney about all aspects of your financial situation. Your attorney can provide you with advice on how to proceed and help you navigate the process while protecting your rights. It's also important to consider that addressing the underlying issues, like substance addiction, is key to ensuring a stable financial future.

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