Can I Keep My Cryptos Safe Even After Filing for Bankruptcy?

Many people across the country get concerned about what happens to their cryptocurrency if they file for bankruptcy. Some of our readers may have a clear idea about bankruptcy, yet the complications of having cryptocurrency in this state could be more evident to them. To get to that point, first, you have to understand what cryptocurrency is.

Later, we will discuss about keeping your cryptocurrency while filing for bankruptcy. In this article, we have tried to let you understand the relationship between these two. Still, for further information and professional guidance, only an expert bankruptcy attorney in OKC can help you.

What Is Cryptocurrency?

Simply put, cryptocurrency is virtual money considered as the medium of exchange. Nowadays, people have taken cryptocurrency seriously and invest their money to buy and keep some. Remember that cryptocurrency has no regulating authority; this transaction system uses a decentralized approach to record the procedure.

According to the research, more than 46 million Americans own Bitcoin. A Bankruptcy attorney near Oklahoma will help you go through this entire procedure and keep cryptocurrency, but the question is –that the amount entirely depends upon a few factors.

People considering bankruptcy may have a few questions, such as:

● Should they disclose their cryptocurrency in this situation?

● Do other people access their cryptocurrency?

● Is their cryptocurrency bankruptcy eligible?

Can a Bankruptcy Trustee Access Your Cryptocurrency?

In previous days, many people didn't know much about cryptocurrency. But nowadays, it has gained popularity and people see the importance of having or accessing the same. For example, a popular crypto exchange platform named "coinbase" helps the trustees identify the crypto assets of particular debtors. Also, the platform allows them to access various services, including transferring digital money, freezing accounts and many more.

Should You Disclose Your Cryptocurrency in Bankruptcy State?

Yes, you should. Undoubtedly, cryptocurrency's value fluctuates daily, but it is considered an asset at the end of the day. Before filing the process, the debtors should contact bankruptcy attorneys to disclose all their properties and assets. Otherwise, they have to face hefty fines, including bankruptcy fraud charges which will serve no good.

Can Your Bankruptcy Attorney Classify Cryptocurrency in Bankruptcy?

First, you cannot identify cryptocurrency as a particular part of your asset. It is basically digital currency. But in most cases, people get confused with stocks or bonds because of how they utilize them. Until and unless you disclose them as other assets with the help of a bankruptcy attorney, cryptocurrency is considered obscure, which brings you trouble.

Can You Keep Your Cryptocurrency After Filing for Bankruptcy?

In a few cases, you can keep it. But that largely depends upon your financial situation and other assets and properties. In a few states, people can't keep their cryptocurrency if they own a house. But what about a vast amount of crypto? In that case, only a registered bankruptcy attorney will resolve your problem.

Get in Touch With Us

We know that legal procedures are always a bit complex. And when it comes to bankruptcy - it is the cherry on top of the cake. You have to consult a bankruptcy lawyer to see your options. Call Reneau Law Group in OKC at (405) 732-5432 to schedule a consultation with our expert team today.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.