Cryptocurrency has been on the rise due to the mass potential it has to offer. Crypto such as Bitcoin has been purchased by nearly 50 million Americans since it publicly launched in 2009.
However, this form of payment can be extremely confusing to navigate through due to its short history. If you were to file for bankruptcy, what would happen to your crypto?
The most essential thing you must do is to disclose your cryptocurrency in your bankruptcy due to it being an asset. Whether you own $5 or $5000 in cryptocurrency, you must report it. If you fail to, it would be classified as bankruptcy fraud.
While there is no specific exemption for cryptocurrency, there are other exemptions you can use such as the “wildcard” exemption to protect your crypto assets.
Due to the recent growth in popularity along with its volatility, cryptocurrency has been a topic of discussion within the bankruptcy community. For now, the currency is classified as “other asset” but in the near future it could change.
If you have any questions about filing for bankruptcy, please feel free to contact us at (718) 539-1100 or email us at firstname.lastname@example.org