Nowadays, you would be hard pressed to go without hearing about cryptocurrency. If you do not already know, cryptocurrency is a digital or virtual currency that uses cryptography for security. This also means they act independently of a central bank. The most popular form of cryptocurrency is Bitcoin, which was created in 2009. Since then, over 100,000 Bitcoin transactions are happening each day. Even companies like Microsoft, DISH, Expedia, Overstock and Dell are accepting Bitcoin as a form of payment. But as cryptocurrency’s popularity grows, the question still remains as to its true value. Knowing its value becomes especially important in situations like filing for bankruptcy. If you own a form of cryptocurrency you need to know its value in your bankruptcy.
Cryptocurrencies Considered Commodities
There was one instance out in California where Bitcoin was a factor in a bankruptcy. It was ruled a commodity and not a currency, meaning its value rises and falls according to the market. So when the Bitcoin in the case appreciated in value, the trustee was entitled to the full appreciation upon transfer to the bankruptcy estate.
It is important to note that under the Bankruptcy Code, Bitcoin is not considered U.S. currency. This is part of the reason why it is valued as a commodity, as oppose to a digital currency like money you may have in a PayPal account. That money is easily denominated into U.S. dollars and considered cash assets in bankruptcy, meaning they must be listed on bankruptcy schedules accordingly. If you own cryptocurrencies and are thinking about filing for bankruptcy, hiring a bankruptcy attorney will prove helpful.
NJ Bankruptcy Attorney Works for You
When it comes to the right bankruptcy attorney, you need someone dedicated to your best interests. In New Jersey, that attorney is Joel R. Spivack, Esq. His experience and dedication to clients throughout the state speaks for itself. Mr. Spivack can help you navigate the bankruptcy process and provide you with a fresh financial start. All you have to do is fill out the online contact form to begin discussing your options today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.